RPAGF Chapter 69 Authorization and Betting
Chapter 69 Authorization and Betting
"Amanda, I know you come from a wealthy family, and you and Keith don't lack this little bit of money at all. But who would complain about having too much money? Besides, Jimmy, Anton, and Holly really need this income to supplement their lives, and this mask merchandise is the best opportunity for us to test the waters."
"KISS's merchandise generates tens of millions of dollars in revenue every year. Don't you want to replicate that success?"
"You don't need to worry about anything at all. Production channels, factory connections, distribution and sales, operations and promotion—Tino and I will handle all the miscellaneous matters. You just need to wait to collect the licensing fees every month."
"Yes, there are specialized companies in the industry that handle these things, but we're a team with completely aligned interests. Aren't we more trustworthy than outsiders?"
"Allen, what's the typical licensing fee rate for merchandise for a top-tier band like KISS?"
"10%-15%? I'll give you a fixed 8% royalty rate. That's a very generous offer for any new band."
"We handle all the risks and costs, including production, sales, warehousing, and promotion. I also came up with the idea. You don't need to invest a single penny; you can earn money passively. Moreover, this mask is far more unique and memorable than ordinary T-shirts, badges, stickers, and other mass-produced merchandise."
"It will become a symbol of identity for Spider-Man fans, just like KISS's makeup and leather jackets, forming a unique symbol. Just imagine, fans wearing our masks appearing on the streets, at parties, and at concerts—everyone is a free living guy. This effect is much better than throwing money at outdoor advertising and radio promotions."
"Of course, no problem, Jimmy. If you want to sell some, I'll give you the cost price—absolutely fair."
After filming the outdoor scenes for the day, Zeke began a high-intensity persuasion campaign for the Spiders at the villa that very night.
In addition to being inspired by Peter Chris, Tino also figured out the production cost of this improved version of the domino mask, which made Zeke really want to make band merchandise.
The bulk quote from a legitimate unionized clothing factory in New York City was less than eighty cents per unit.
If they were to partner with sweatshops controlled by the Brooklyn mob, Tino expects the costs to be reduced even further.
So-called sweatshops are underground factories that employ a large number of immigrants without legal status. They are not union members and are paid far below the legal minimum wage. Without legal status, they naturally do not receive social security, medical insurance, or overtime pay.
The benefits of working with these sweatshops are not just the lower prices, but also the fact that all the risks of labor disputes, police raids, and worker strikes are borne by the gangster bosses.
The surrounding businesses are completely legal, and as the design contractor, Zeke is in an absolutely safe ecological niche.
Once these trendy gadgets are sold as band merchandise, selling them for $5.99 is no big deal. Zick and Tino figured that if they upgraded the fabric, refined the texture, and made a limited-edition signature model, the price could double, resulting in ridiculously high profit margins!
The most crucial point is that the connections are readily available – Henry's boss, Jimmy, controls several such sweatshop clothing factories, and although Jimmy is currently in prison, this channel remains open.
This was almost a sure-fire deal, and Zeke and Tino hit it off immediately, planning to go for it together. The only prerequisite was to obtain the official license for the Spider Band.
Zik's carefully prepared speech successfully moved everyone.
Amanda and Keith weren't really concerned about the small gains; they were simply persuaded by the long-term plan. Jimmy, Anton, and Holly, on the other hand, were overjoyed and brimming with excitement.
The band has already secured a stable side income even before releasing an album, which will undoubtedly greatly alleviate their daily expenses and financial pressure.
Everyone nodded in agreement, and the proposal was unanimously approved, thus finalizing the preliminary plan for cooperation in the surrounding area.
With the surrounding matters settled, Alan Grubman, who had already returned from Casablanca, immediately got down to business.
After all, their auditing operations have to be coordinated with the company's finance department's working hours; they can't work day and night.
"Amanda, next we'll talk about the production and delivery contract for the single 'Sweet Dreams'."
Allen didn't rush to offer a price. Instead, he pushed a document over, his tone assertive: "Zick not only handles the songwriting, arrangement, and production, but he also took care of your styling and music video planning. His previous single, 'YMCA,' has already surpassed one million in sales, and its popularity continues to soar."
Herbert chimed in at the opportune moment: "Industry experts generally predict that The Villagers' new album, *Macho Man*, will easily achieve platinum sales. Renowned music critic Robert Crisco believes that *YMCA* is the only track on the album that can truly carry the show."
Marco chimed in, "Not only that, I saw the singles data today. YMCA alone shipped nearly two million copies in North America, and orders are still increasing. Both the 7-inch standard edition and the 12-inch deluxe edition are selling very well. I have no reason to lie; you can call Larry anytime to ask."
After a series of impressive statistics, Allen finally made his offer:
"Based on this achievement and market popularity, the $15 production advance for this top hit single is completely reasonable and not an exorbitant price."
"This 15 is the production delivery package and exclusive recording/distribution rights for 'Sweet Dreams' as the Spider Band's exclusive single. Part of it is considered as Zeke's advance payment for his participation in the publication as a songwriter, and the other part is the producer's fee and a deposit for the project delivery."
Allen spouted technical jargon, but Amanda listened quietly, her expression calm.
"15 is just the price of a vacation villa for me, but what I value is your vision, Zeke."
Zik maintained a humble smile on his face, but his mind was in turmoil: "A vacation villa? That's a whopping $150,000! I've been an airport thief for $500, and I have to haggle with sweatshop owners over a few cents for fabric for those measly scraps of profit. You don't even blink at $150,000? Having a rich dad to back you up is really awesome!"
A fleeting glint of envy crossed his eyes, but it was quickly masked by his confident demeanor. No problem, I can earn the money for the vacation villa myself.
"Amanda, I guarantee this is absolutely the best deal you've ever made," Zeke said confidently.
Amanda's lawyer pressed further, "So, what percentage of the profits are you asking for from the songwriting and production this time?"
Allen opened the latest issue of Billboard magazine and pointed to the ranking data:
"YMCA has already broken into the top five of the Billboard charts, and its popularity is undeniable. Zeke's new song can no longer use the same low-budget approach as before."
"Our plan is: for sales under one million, Zeke will take 3% of the producer's share, according to industry standards; for sales exceeding one million, the share will double to 6%."
"Regarding the band's revenue, Zick receives 30% of the single's royalties and 20% of the album's royalties."
Finally, Zeke confidently added a betting clause: "This part also follows the betting rules. If the final sales fail to break platinum, I won't take a single penny; all the profits will go to the band."
The team's cooperation was so logical and well-founded that Amanda's lawyer couldn't find any way to refute them.
"Even by the most stringent judging standards in the industry, this is an extremely generous contract, even biased towards the band," Tino said calmly. "As their manager, I even think Zeke has given up too much."
Zik chuckled inwardly. Tino had timed it perfectly. He spoke frankly, not at all like he was favoring himself, but rather like he was advocating for the band's interests.
"But that's precisely where my confidence in Zik lies." Tino looked at Amanda with sincere eyes. "He dares to take this gamble because he knows better than anyone how big this song can be. All we have to do is sit back and ride this wave."