Producer points are the percentage of royalties a producer gets for working on an album. The easiest way to look at points is to consider one point to be equal to one percent. Points can be awarded in a few different ways:
- Points on the entire album (for instance, the producer gets 3 points on the whole record, meaning they get 3% of the royalties).
- Points on particular songs on the album (so, if the the producer gets 2 points on 5 songs on an album that has 12 songs, they get 5/12 of 2% of the royalties for the album).
Keep in mind that points are not awarded to all producers, and that the number of album points actually given can vary greatly, from one point to up to five points or more, depending on the producer. Sometimes, deals are structured so that the points a producer receives increases as the album meets certain sales thresholds. You should always get any deal regarding points in writing before you begin the recording process.