Exclusives

Exclusive licensing is a commonly misunderstood (and mishandled) arrangement for producers who are inexperienced in the music business. Some producers even have contracts with verbiage (likely that they wrote themselves) that state that they're passing all rights for the music over to the buyer, which is a re-assignment of copyright. This would be a mistake.

Breakdown

Important: Selling an exclusive, and selling your copyright are two entirely different things. If you sell your copyright, you are also selling your right to ever collect another dime on that music ever again. I doubt that's what you want to do.

Selling an exclusive (at least on Beat Brokerz) means that you are granting the licensee the right to record and release their music before you license that music out to anybody else, which means that the beat is "exclusive" to them during that period. It does not mean by any means that they become the "exclusive" owner of that music.

An exclusive license is an assurance to the buyer that nobody will release a song on that beat while they are working on releasing theirs. Therefore, an "exclusive" is a protected period of time that is promised, not an assignment of rights. And you can begin licensing the music again after the exclusive period ends, or the licensee releases their music.

How To Use It

By granting an "exclusive" license period to a buyer, you will be giving up your licensing revenue on that music for the exclusive period, or until the artist releases their music, whichever comes first. When you price your exclusive licenses, take that into consideration based on how much you would expect that beat to earn if you hadn't licensed it exclusively. But remember, it's not like you'll never be able to license that music again.

Also, if you're working out a deal with an established artist who you know will be pushing a lot of copies, you might need to use the exclusive period to close the deal while still charging a small(ish) licensing fee because you expect that there will be significant royalties generated on it over the long term.