It’s smart. He’s using the credit to make more money they promotion. Credit is only good if yu using it to make more money

@UyiIdudolor

6 ай бұрын

Many people forget he his already famous before he go independent like in a record label this is how scammers talk it's called mind play if u ain't connected u ain't getting in

@bluezy710

4 ай бұрын

Exactly. This is why so many people call him an industry plant. He'd never get to the position he is in as an indie artist if it wasn't for him being with majors before. People are too naive to believe he's done it solo.@@UyiIdudolor

This guys is giving out too much information. Protect him

@Chasingtails24

4 ай бұрын

Wtf man the average person has nothing but loans

@LilEshu808

4 ай бұрын

@@Chasingtails24Bro loans business loans aren’t hard to get, Indian and Asian families get bank loans to open gas stations and convenience stores after 2 years of residency all the time

@ChrissyAnn85

3 ай бұрын

Lol. This is regular as$ information everyone knows.

@1pyroace1

26 күн бұрын

This is nothing he simplifying the hell out of it

When I told my rapper friends with absolutely no credit scores about this, they literally laughed out loud. Majority of wannabe rappers are so ignorant to the business. The idea of taking a loan is actually funny to them, because they don’t even realize that an advance is just a loan, so in their minds they’re just gonna get rich overnight one day when one of the songs they released with zero promotional budget gets the attention of a record label who just pays them a bunch money to make more music.

@flyghtmyleage6041

Жыл бұрын

Russ can do this cuz he's big. I'll caution upcoming artists that are broke against this. They do not have the cash to pay 1k a month

@neverhungryagain2187

Жыл бұрын

💯

@ChaceBonanno

Жыл бұрын

@@flyghtmyleage6041 credit lines and personal loans are far better than any terms you can find in a record deal. A lot of artists can easily afford $1k/month, but that’s irrelevant. They should borrow as much as they’re able to pay back. And they should be investing that money into generating more revenue.

@julestroutman2538

Жыл бұрын

However, if you calculate the interest on the line of credit. 500k could eventually growth or balloon to 800k @ 12% interest

@julestroutman2538

Жыл бұрын

I wonder what his interest rate on the line of credit, before I would call it a smart investment

This is BUSINESS credit guys not personal credit !!!!!!!

Artists, don’t be dumb. Fund your own careers (ask bank for loans). Don’t sign record deals (you will be in debt to the record deal equally as the bank). Don’t use distributors( ex.Spotify). Pay for publicity yourself (radio spots, magazine shoots, billboards) . Otherwise you are giving control to others. Just hire your own team.

@Lil.Flammer

8 ай бұрын

Appreciate this!

@juanquintero4773

7 ай бұрын

Exactly any kind of artist solo or groups fund your own career fuck these labels all they do is overwork thier artist for money. Independent is gonna be the new

@obillz064

6 ай бұрын

You got an email ?

@Ghosty716

6 ай бұрын

When you say don’t use distributors like Spotify what do you mean? Are you referring to distorts like distrokid who get your music on Spotify? Are you saying not to release on Spotify?

@KXNDY.KXSH_2

5 ай бұрын

@@Ghosty716I don’t think so cause it’s a way to get music out and paying yearly you save money most the time. You’d make the money back quick if you’re doing it right

Whether they call it a line of credit or advance, either way you go, you’re just getting a loan. You can pay like 2-10% interest to the bank depending on the terms and when you got your loan. Or you can surrender your masters, publishing, the majority of your royalties, creative control, etc. If you get a loan from the bank, the money is not taxable. If you get the loan from the record label, it’s paid to you in the form of a cash advance on your royalties, so the income is taxable despite the fact that you will pay the label back for them to recuperate. Tax rates are between 10-37%. Even if the label let you keep 100% of your masters, publishing, royalties, etc. and took absolutely nothing in return, it would still cost more because of the taxes. For example, if you got a $1M advance from a label, you’ll end up paying about 33% in taxes. If you went to a bank today for a loan, you’d pay somewhere around 4%.

@heiscjay1

Жыл бұрын

Thank you for sharing!

@BTotty

11 ай бұрын

Bro, 500k 7% loan over 7 years is $245,000 in interest. That's 49%!

@cheriebenjamin0315

11 ай бұрын

@@BTotty If you’re paying more than the minimum and more frequent payments though the interest won’t be as much not to mention you’ll still own your IP. The long term of owning your stuff will outweigh that $249,000. Especially if you make a high quality in demand product.

@nd9834

9 ай бұрын

❤❤❤

This is titled incorrectly. More like how to be independent once you have millions. But he spot on. There’s many artist who live off streams and plays.

No income taxes on the loan money. Smart move if low interest rate

Bruh I’m like “why baby tron talkin like that “😭😭

Difference is if a label loans you the money the risk is on them if the project fails. They are stuck with the bill. If you borrow from a bank, you have to pay it back even if the project fails.

@who_is_dis

6 ай бұрын

Sure, but you still owe them.

@michellecandis

5 ай бұрын

@@who_is_disyou dont owe them if they drop you-and they drop you when you haven’t made them money….. they only keep you if you’ve made them money (even if you haven’t) if they drop you, you don’t have to repay. They lose the 💰…. That’s the difference with them and the bank. The bank will come after you for everything owed to them even if you decide to become a teacher or a carpenter 5 years in… they want their money doesn’t matter if you’re in the biz still or not.

Very smart man and informative

You must have a registered LLC first guys! Establish some business credit.

This is what priviledge sounds like try saying yo bank give me half a million dollars and tell us how that goes lol

@truesoundzofficial

3 ай бұрын

Bro he wasn't talking about a starting artist, he was using himself in his current position as an example. Dude, he literally mentioned his project in the same breath, stop hating cuz you're not at his level 😂

Dawg NFTs have been a HUGE blessing, I’ve already made thousands as a TINY artist with less than 200 KZread Subs at the time of writing this🤘🏽🤘🏽🤘🏽

@najee2123

Жыл бұрын

Yoo can you teach me how to use NFTs bro?

@Stainiats

Жыл бұрын

teach me too

@cameobelafonte4975

Жыл бұрын

If you’ve made a good amount off nfts that’s dope. But from what I’ve gathered majority of nft people have made a killing from being known, whether that be a gamer with a huge following like the guy who made the series of the monkey punk rock collection or be a artist like Tory Lanez or the buzz is up as a influencer.

@hurric4n3ike

Жыл бұрын

@@cameobelafonte4975 Yes but the space is so small that anyone who comes in and puts in the ground work to make themselves known can get an infinite amount of benefits, new fans, OG status, innovation potential, and of course getting paid for your music

@johnathanaguilera7245

7 ай бұрын

Give me some then

Thankyou for sharing. Solid solid advice

I can't get approved for a 300 dollar capital one card

@anonymously_me1803

Жыл бұрын

😂😂😂😂😂

@ChaceBonanno

Жыл бұрын

It starts with primary tradelines. You need to either find someone to make you an authorized user, pay someone online to make you an AU, or get secured debt like a secured credit card or loan like Self credit builder. You can’t just borrow money without collateral or any creditworthiness. You need one or the other.

@jesssss12

9 ай бұрын

It’s not about qualifying, it’s about showing you can qualify. They will analyze information not just your past credit history.

Dorian, thank you King for the videos. The advices are priceless. All the way from South Africa PTA

Let’s makes sure we point of that he was already up millions by the time he thought of this

@felixr6307

Жыл бұрын

He’s talking utilizing credit though it applies at all levels. Thousandaires.

@ChaceBonanno

Жыл бұрын

@@felixr6307 exactly. Idiots will always find an excuse to not take good advice. It’s like they’d rather stay financially illiterate and broke, and for some reason stubborn about it.

As a new artists please don't try it if you have no connections. And I'm not saying don't go independent. It's actually the best route to be an indie artsist but you gotta understand music business and put your mouth where your money is.

@quentellawinborne4264

4 ай бұрын

How does one leàrn more about it ?

Why it’s sooo important to build your credit

Big facts

Russ is dope.

You have to be disciplined with money and already have a following to make money in music, don’t be stupid

@gabethegohstwriter2855

Жыл бұрын

No you don’t that’s cap I

@UyiIdudolor

11 ай бұрын

Yep he already famous fooling pple

Thats why alot of people dont make it. Being ignorant is basically shortening your own chances of success. Depriving yourself of growth. Its like cuckolding yourself. Over time you lose interest. Russ is a business man first, that just happens to rap, self taught, mixing master engineer, producer rapperr and marketing genius by merit. But take the music out he would have still be a millionaire. Some people are just too high energy and built like that.

The banks don’t mind doing this because he’s a millionaire with great credit and history

All well and good if you have millions which most don’t.

Reality my dear it’s either you work with them or you opt out

Same people who like this idea are the same who say school is too expensive 😂 grfoh

Very smart

My credit score is 700. Buddy makes it sound easy...

@jonitvofficial8247

9 ай бұрын

Business credit line not personal 😅

It’s sounds good. But reality is a bit different. Remember do what makes sense for you, and your own situation. If you can make your own beats and have a studio to record, yeah sure try his route. But on the other hand if you don’t have access to a studio or you can’t make beats etc etc. used what you can. Try going the record label route might be the best option for you

@swampmonsta87

10 ай бұрын

You might want to specify doing a partnership for licensing and distribution only. Most 360 deals are for life and most artist have a 5-7 year shelf life. You don’t want to be stuck paying that loan forever

❤❤❤

💯💯💯

💯💯

That’s good if you got hella clout but not everyone gonna have that kind of credit. So what then sign to the record label ?

🏁

🐾

👌🏾💯🔥🔥🔥🔥

Russ made them all look stupid, he is a boss!

This works for 1 percent of population the other 99 percent can’t get a half million dollar loan from bank

Dorian, What's Russ Networth? Was that a smart investment for a Times Square add?

@sherarddinkins969

2 жыл бұрын

Yes, it served as a tax write off.

@SnappingTurtle444

2 жыл бұрын

@@sherarddinkins969 The govt doesn't refund you for placing ads. Plus, strategically, my question was if that was the best way to spend $50K on promotion? ? >

@bored2323

2 жыл бұрын

Definitely a horrible investment, IG ads would have of been more appropriate for Russ

@SnappingTurtle444

2 жыл бұрын

@@bored2323 Yea that's sounds like a better route; he could have def. gotten a better bang for his buck. Who does he think he is - #Jay-Z? 😆 As if #Russ can just go viral from one hour with that ... Jay-Z - yes.

@Andrew-sx2st

2 жыл бұрын

@@SnappingTurtle444 it’s called a write off. Debt is tax free - debt does not have to get reported. However the interest you pay from that debt and whatever businesses expenses you incur can be written off thereby decreasing your taxable income

I'm a bit confused, If you have the money to do it yourself. Why wouldn't you? The interest the bank is going to be mad no matter how you look at it.

Can you go more in debt

@JuniorChante

Жыл бұрын

Obviously if your music fails lmao unless your working a 9/5 job to pay back the loan, or you a hustler

@muddalandsounds

Жыл бұрын

Lol I hear him. It's just your word play cold

@DRMZBeatz

Жыл бұрын

Obviously but I don’t think the average fuck up would be taking 500k out the bank or even getting approved for that. So most likely someone getting that is definitely going to hustle to get out of the debt.

Yo can someone simplify this to me I'm kinda lost😂

@KshonDaModern

10 ай бұрын

read the comments bro

Keynesian

60 grand for an hour not smart

@DRMZBeatz

Жыл бұрын

It is if you trying to develop real fans that will spend money to go see you and other things you offer. You’ll make it back in the long run with the right choices it’s called AN INVESTMENT

💰

👨🏽‍🍳

Idk bout this 😂

@emandnistaw3006

Жыл бұрын

No bro he makes sense cause label not only want the given amount but also the tiny puny service they give to u and it can pile up alot and get you fucked up....bank is way much easier

But why’s he wearing a cheap polyester jacket

He still eats out the devils pot

paying 1000 a month for the rest of your life… borrower is always a slave to the lender

@jesssss12

9 ай бұрын

Rather to a bank, thank owing a record label millions in 3 months time.

@therealponton

9 ай бұрын

better to just stay a low key artist industry is boo boo... you can have treasure worth more then gold in your heart... but idk what do i know im just a htown dude wit a kane flow@@jesssss12

@drewdrewson1384

Ай бұрын

they inflating your money away anyways

$500,000 @ $1k per month is 500 months = Russ will be around 101 years old when he finishes paying off that loan at that rate with just a 6% interest rate which is an extra $30,000 aka another 30 yrs.... So he literally will be paying $1,000 a month for the rest of his life... and if he dies...his kids will repay it or the bank will seize his estate... This is not a wealth building mindset.

@racunaalmeida

Жыл бұрын

He paid off the loan 6 months after because CHOMP 2 yielded over 6 times the loan amount. So at the end, his net was close to 5.5 million from a 500k loan. Cheers!

@minkfranchise6389

Жыл бұрын

@@racunaalmeida Please tell me where you get this info from... because ZOO was release in 2018 and just now went gold 3 months ago. So if he would've done that with that album... his career would've died where it stood... Russ put out music for years with little traction, so he's fake to act like some ine else should do this for an album. His highest selling albums came from the period when he was with (YOU GUESSED IT) the record label, Columbia, where he dropped "There's Really a Wolf" (his ONLY platinum album). Russ has out 2 platinium singles without Columbia out aaalll of his recorded music. He made 15 million in one year... higher than his entire net worth... And then claims he turned down 50 million for his catalog which would've funded his misic career for the rest of his life while creating a hopefully higher tier catalog. Bro, this is not the guy to take finacial advice from.

@ChaceBonanno

Жыл бұрын

Ever heard of “buy, borrow, die”? He used this debt to fund an asset (Chomp 2) which generates revenue. That revenue is likely far more than the interest (cost of capital/debt). For that reason, he should pay it off as slowly as possible. Even once paid back, most labels and records are then resold or borrowed against to access even more capital to fund even more assets to generate even more revenue. This is how business and personal finances of ppl who aren’t broke actually works. Nonetheless, the album and debt are likely in an LLC or trust within his estate. His estates other assets are likely all protected from liability of each other. It would be absurd to think he’d actually put himself in the position you’re imagining. His estate could probably keep servicing the debt while collecting royalties in perpetuity. Unless the album just stops generating revenue.

But i still dont get how this is smart unless your apr is insanely low. If you utilize money from a bank you pay interest. If you take out 20K and pay it back monthly you can end up paying back 30k, 40k depending on your interest rate and monthly payment. Please explain how this is a good idea😊😊

@racunaalmeida

Жыл бұрын

The alternative is signing a 360 deal with a label that strips you of your publishing & your masters. Gives you a million upfront but after taxes & % fee’s you net $300k and you havent even began making music with that money. You now owe the label, don’t make money from your songs bc they own ur pubs & masters, and you have to really make good music to pop off.

@Allthatwethink

Жыл бұрын

Ok. From listening to this he’s using half a million on a line of credit per album stating he can pay $1,000 a month for the rest of his life to pay if off. That half a million could end up being 2 million or more you owe for one project and what happens the next year when you are ready to put out another project but you’re still paying on the first? I understand you’re explaining your thoughts on 360 deals but you’re not speaking to whats in the video. I dont think this is sound advice for a indie artist but i will continue to research the topic

@ChaceBonanno

Жыл бұрын

You don’t get how this is smart because you’re not smart. Firstly, taxes: Get $1M advance. Pay $300k in taxes. Receive $700k cash after taxes, but owes label $1M. vs. Get $1M loan. Pay no taxes. Receive $1M in cash. Owes bank $1M. Secondly, cost of capital: Get $1M advance. Label gets 80% of royalties/revenue forever. If the album generates $2M in royalties/revenue in year 1, the label gets $1.6M. If it generates another $20M over the next 10 years, the label gets $16M. vs. Get $1M loan. Bank gets 10% APR until repaid. If the album generates $2M in royalties/revenue in year 1, the bank gets $1.1M. If it generates another $20M over the next 10 years, the bank gets $2M. (All these examples use $1M for advance/loan amount, and industry averages for APR and royalty rates)

This guy can get a $500k loan because he worth millions in assets. Y’all regular folk are worth $0. Those fake Travis Scott and the rest of your sneaker collection ain’t getting you no business loan. If you black you can just turn back around no matter what you’re worth in assets if it’s not in the 10s of millions or if it’s not a solid business plan that’s already generating income it’s going to be rejected or severely lower than what you’re asking for.

A hour for 60 grand #yuhhurdme

You'll ne in debt all your life

how to borrow money...not "make" money

@danielzamora8738

Жыл бұрын

Wrong

then why can’t get spend some money on a haircut ?

How did heh have millions of dollars in the bank. That’s the first step. Totally skipped that part!

dont u need good credit?

Doesn't work if you're not sure you're gonna make money

Yeah but the borrower is now a slave to the one lending, smh typical world view, it sounds good but but look deeper & you'll find its totally flawed!!! reasoning!!!

@JudePhilips

Жыл бұрын

actually you're wrong, sure there is monthly payments but the borrower makes more money out of the lender so it doesn't matter.

@db4695

Жыл бұрын

only a slave when you can’t pay it back. A lot of wealthy people got ahead with loans.

This is not good advice at all. Don’t loan money from anywhere. Bank or record label

🥴 you don’t want to play with your money you’d rather pay thousands of dollars the rest of your life? When its time for a new album then what? Pay it cash work that music and make your money back

That's wrong on so many ways.

@T0NYDADON

2 жыл бұрын

it’s right in all kinds of ways. that’s the whole point of having a business to not use personal money on nothing.

@DeonDavisD_2Shifty

2 жыл бұрын

It’s wrong if you aren’t making any money already

@mrs.s.anderson3884

2 жыл бұрын

Right cause the loan from the bank is just like advance from label... until the bank is paid off the bank owns everything that money was used on...if he got millions he should have used his own 500 grand and owned it all out right not gotten loan to fund the project ...debt is debt if u got it it's stupid to borrow money cause it gains interest whatever I borrow u paying back twice that amount or more. This is not a smart idea..he has some good ideas but this ain't it.

@richie5959

2 жыл бұрын

His music is an asset, if he was to sign to a label they would get a percentage of his streams and album sales. He’s fully independent and wants all his generated sales from his work it’s actually genius. Even his shows is all profit to him maybe a small percentage to his team but that’s nothing and he gets to keep his soul which is worth much more.

@ChaceBonanno

Жыл бұрын

@@mrs.s.anderson3884 a line of credit is unsecured, meaning there is no collateral and the loan is based off of your creditworthiness. The bank doesn’t own any of his music or IP. He simply pays a low interest rate. The rates to borrow money have always been lower than the average returns of the stock market. It doesn’t make sense to spend your money when you can invest it at 10% and borrow at 4%.

If you like paying interest 🤷

Another determining factor: 😊😢Besides 60k X 24hours = 1.4+ million