Beats For Sale: Should Artists Lease or Buy Beats Exclusively?
Buying Beats

Beats For Sale: Should Artists Lease or Buy Beats Exclusively?

Today, there seems to be an endless supply of rap beats for sale. One can buy instrumentals from just about any genre of music. Sometimes a fresh beat just grabs hold of you and you can’t help feeling compelled to snatch it up for your newest lyric.

But many swear by the option of leasing beats and instrumentals. Then the rap community – people being people! – has to pick sides and argue about which way is best. The answer, of course, is “Depends.” 

So when is it the right time to choose which option? 

First, some basic terminology. Legalese for “buying beats” is “Exclusive Licensing.” Amazingly, legalize for “leasing beats” is, therefore, “Non-Exclusive Licensing.” Notice that that language is based upon distinguishing when the artist “gets it all” and when the artist is entering into a partnership with the producer. 

Artists who lease rap beats know they have a sales and streaming limit, typically between 2.500 – 15,000 copies and 100,000 – 1,000,000 allowed streams per license, once one of these limits are reached it is required to re-license the beat or upgrade to a higher license. 


There’s another disadvantage in that most Basic packages available also deliver their beats in mp3 format. mp3 works, and it’s fine for iTunes and Spotify, but it isn’t regarded as up to serious recording standards. For a bit more, artists can lease beats in much finer WAV format.

Many artists ready to mix things up make a modestly larger investment and get a Non-Exclusive License in which the producer sends not an mp3 or WAV of a beat but trackouts or stems. These are specific instruments recorded in isolation, ready to be put together by the artist in novel ways. These licenses come with significantly higher uses, typically 15,000. But however unique your mix, the stems are still ultimately owned by the producer.

Leasing Rap Beats: For Whom?

If you’re just getting into your music career and don’t yet have hundreds of fans swooning in the aisles (or lined up waiting for your next track), leasing beats is probably the way to go for you. If you’re at the “hustling mix-tapes” level of the game, first of all, bless you, and second, leasing beats is probably your best option.

Not having exclusive use of the music, and with it the freedom to do literally anything you want with it, has its down side when you really love a particular beat. However, at this stage in your own development, there’s a silver lining in this disadvantage. Turn your transient hold on each rap beat as an opportunity to brand yourself through creating a sensibility.

Being Exclusive

Buying rap beats is a bigger investment in a couple of ways. First, of course, there simply is a price difference. But it’s also an outlay in terms of identity. That music is now you, and it’ll never be anyone else’s sound. Exclusivity also brings with it total freedom to play with the stems.

Exclusivity is the right choice if you’re in one of two situations. First, as mentioned above, you have a following waiting for your work, ready to receive it in some significant numbers. The other situation is when you’re ready to record your first album.

A Middle Way?

Artists also have the option of getting unlimited distribution of a leased instrumental or rap beat through a Premium license. This is essentially the rap artist’s equivalent of a “pay-to-own” program, or “Exclusivity on layaway.” Premium licenses are often the last stepping stone before full ownership. The artist might for instance have a large and quickly-growing following but is short of the number of tracks needed for an album.

So, again, it all depends. There’s a particular license available for almost any artist. It’s all about knowing exactly where you are in your career and seeing exactly what the next rung is on your ladder to success.


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Choose A License

Basic MP3

MP3
License Terms

NON-EXCLUSIVE BASIC MP3 LICENSE AGREEMENT


This Non-Exclusive Basic MP3 License Agreement (“Agreement”) is made effective as of _____ (“Effective Date”) by and between:

Thomas Hodek p/k/a Tellingbeatzz (“Producer” or “Licensor”)
and _____, residing at _____ (“Licensee”).

This Agreement governs the use of the instrumental titled “_____” (“Beat”).

1. License Grant


Upon receipt of full payment of $40 USD (“License Fee”), Producer grants Licensee a non-exclusive, non-transferable, worldwide license to use the Beat to create one (1) new song (“New Song”). This license allows commercial use within the limits defined below.

2. Delivery


The Beat will be delivered as a high-quality MP3 file to the email address provided by the Licensee after purchase.

3. Permitted Uses


Licensee is granted the right to:

• Record vocals over the Beat to create one (1) New Song
• Distribute up to 2,500 copies (digital and/or physical)
• Achieve up to 250,000 monetized audio streams
• Upload up to two (2) music videos
• Achieve up to 250,000 monetized video streams
• Distribute unlimited free downloads
• Perform the New Song live an unlimited number of times
• Broadcast the New Song on radio without limitation
• Monetize the New Song within the limits stated above
• Make minor modifications to the Beat (e.g., arrangement, tempo, pitch)

4. Restrictions


Licensee agrees NOT to:
• Sell, lease, share, or distribute the Beat in its original form
• Upload or distribute the Beat without vocals or additional production
• Register the Beat or New Song with any Content ID system (e.g., YouTube Content ID)
• Use the Beat in television, film, commercials, video games, or other audiovisual productions (sync licensing not included)
• Transfer or sublicense this Agreement to any third party
• Claim ownership of the Beat
Any unauthorized use constitutes a material breach of this Agreement.

5. Ownership


• The Producer retains 100% ownership of the Beat, including all copyrights
• Licensee owns only their original lyrics and vocal performance
• The New Song is considered a derivative work

6. Publishing Split


The underlying musical composition of the New Song shall be split as follows:

Producer: 50%
Licensee: 50%

If Licensee registers the New Song with a Performing Rights Organization (PRO), they must include the Producer’s 50% share.

PRO Information:
PRO: GEMA (Germany)
Name: Thomas Hodek
Composer: Tellingbeatzz
CAW / IPI No: 716014087

7. Royalties


Licensee is not required to pay royalties to Producer for use of the Beat within the limits of this license.
If the usage exceeds the allowed limits, Licensee must upgrade to a higher license.

8. Credit


Licensee agrees to credit the Producer in all releases of the New Song as: “Produced by Tellingbeatzz”

9. Term


This license is valid for hundred (100) years from the Effective Date.

10. Breach & Termination


Failure to comply with any terms of this Agreement may result in termination of the license. Upon termination, Licensee must cease all use and distribution of the New Song.

11. Limitation of Liability


The Beat is provided “as is” without warranties of any kind. Producer is not liable for any damages arising from the use of the Beat.

12. Governing Law


This Agreement shall be governed by and interpreted in accordance with the laws of Germany.

13. Acceptance


By purchasing the Beat, Licensee acknowledges that they have read, understood, and agreed to the terms of this Agreement. Payment serves as a legally binding acceptance.

Licensor (Producer):
Thomas Hodek / Tellingbeatzz

Licensee (Customer): _____
Date: _____

Basic Wav

WAV, MP3
License Terms

NON-EXCLUSIVE BASIC WAV LICENSE AGREEMENT


This Non-Exclusive Basic WAV License Agreement (“Agreement”) is made effective as of _____ (“Effective Date”) by and between:

Thomas Hodek p/k/a Tellingbeatzz (“Producer” or “Licensor”)
and _____, residing at _____ (“Licensee”).

This Agreement governs the use of the instrumental titled “_____” (“Beat”).

1. License Grant


Upon receipt of full payment of $60 USD (“License Fee”), Producer grants Licensee a non-exclusive, non-transferable, worldwide license to use the Beat to create one (1) new song (“New Song”).

This license allows commercial use within the limits defined below.

2. Delivery


The Beat will be delivered as:
• High-quality MP3 file
• High-quality WAV file

The Licensee will receive the files and this license via the email address provided after purchase.

3. Permitted Uses


Licensee is granted the right to:
• Record vocals over the Beat to create one (1) New Song
• Distribute up to 5,000 copies (digital and/or physical)
• Achieve up to 500,000 monetized audio streams
• Upload up to two (2) music videos
• Achieve up to 500,000 monetized video streams
• Distribute unlimited free downloads
• Perform the New Song live an unlimited number of times
• Broadcast the New Song on radio without limitation
• Monetize the New Song within the limits stated above
• Make minor modifications to the Beat (e.g., arrangement, tempo, pitch)

4. Restrictions


Licensee agrees NOT to:
• Sell, lease, share, or distribute the Beat in its original form
• Upload or distribute the Beat without vocals or additional production
• Register the Beat or New Song with any Content ID system (e.g., YouTube Content ID)
• Use the Beat in television, film, commercials, video games, or other audiovisual productions (sync licensing not included)
• Transfer or sublicense this Agreement to any third party
• Claim ownership of the Beat
Any unauthorized use constitutes a material breach of this Agreement.

5. Ownership


• The Producer retains 100% ownership of the Beat, including all copyrights
• Licensee owns only their original lyrics and vocal performance
• The New Song is considered a derivative work

6. Publishing Split


The underlying musical composition of the New Song shall be split as follows:

Producer: 50%
Licensee: 50%

If Licensee registers the New Song with a Performing Rights Organization (PRO), they must include the Producer’s 50% share.

PRO Information:
PRO: GEMA (Germany)
Name: Thomas Hodek
Composer: Tellingbeatzz
CAW / IPI No: 716014087

7. Royalties


Licensee is not required to pay royalties to Producer for use of the Beat within the limits of this license.
If the usage exceeds the allowed limits, Licensee must upgrade to a higher license.

8. Credit


Licensee agrees to credit the Producer in all releases of the New Song as:
“Produced by Tellingbeatzz”

9. Term


This license is valid for one hundred (100) years from the Effective Date.

10. Breach & Termination


Failure to comply with any terms of this Agreement may result in termination of the license. Upon termination, Licensee must cease all use and distribution of the New Song.

11. Limitation of Liability


The Beat is provided “as is” without warranties of any kind. Producer is not liable for any damages arising from the use of the Beat.

12. Governing Law


This Agreement shall be governed by and interpreted in accordance with the laws of
Germany.

13. Acceptance


By purchasing the Beat, Licensee acknowledges that they have read, understood, and agreed to the terms of this Agreement. Payment serves as a legally binding acceptance.

Licensor (Producer):
Thomas Hodek / Tellingbeatzz

Licensee (Customer): _____
Date: _____

Premium Stems

WAV, MP3, Trackout
License Terms

NON-EXCLUSIVE PREMIUM STEMS LICENSE AGREEMENT


This Non-Exclusive Premium Stems License Agreement (“Agreement”) is made effective as of _____ (“Effective Date”) by and between:

Thomas Hodek p/k/a Tellingbeatzz (“Producer” or “Licensor”)
and _____, residing at _____ (“Licensee”).

This Agreement governs the use of the instrumental titled “_____” (“Beat”).

1. License Grant


Upon receipt of full payment of $100 USD (“License Fee”), Producer grants Licensee a non-exclusive, non-transferable, worldwide license to use the Beat to create one (1) new song (“New Song”). This license allows commercial use within the limits defined below.

2. Delivery


The Beat will be delivered as:

High-quality MP3 file
High-quality WAV file
Trackout stems (individual audio files)

The Licensee will receive the files and this license via the email address provided after purchase.

3. Permitted Uses


Licensee is granted the right to:

• Record vocals over the Beat to create one (1) New Song
• Distribute up to 10,000 copies (digital and/or physical)
• Achieve up to 1,000,000 monetized audio streams
• Upload up to two (2) music videos
• Achieve up to 1,000,000 monetized video streams
• Distribute unlimited free downloads
• Perform the New Song live an unlimited number of times
• Broadcast the New Song on radio without limitation
• Monetize the New Song within the limits stated above
• Fully mix, arrange, and modify the Beat using the provided stems

4. Restrictions


Licensee agrees NOT to:

• Sell, lease, share, or distribute the Beat or stems in their original form
• Upload or distribute the Beat or stems without vocals or additional production
• Register the Beat or New Song with any Content ID system (e.g., YouTube Content ID)
• Use the Beat in television, film, commercials, video games, or other audiovisual productions (sync licensing not included)
• Transfer or sublicense this Agreement to any third party
• Claim ownership of the Beat Any unauthorized use constitutes a material breach of this Agreement.

5. Ownership


• The Producer retains 100% ownership of the Beat, including all copyrights
• Licensee owns only their original lyrics and vocal performance
• The New Song is considered a derivative work

6. Publishing Split


The underlying musical composition of the New Song shall be split as follows:

Producer: 50%
Licensee: 50%

If Licensee registers the New Song with a Performing Rights Organization (PRO), they must include the Producer’s 50% share.

PRO Information:
PRO: GEMA (Germany)
Name: Thomas Hodek
Composer: Tellingbeatzz
CAW / IPI No: 716014087

7. Royalties


Licensee is not required to pay royalties to Producer for use of the Beat within the limits of this license.
If the usage exceeds the allowed limits, Licensee must upgrade to a higher license.

8. Credit


Licensee agrees to credit the Producer in all releases of the New Song as:
“Produced by Tellingbeatzz”

9. Term


This license is valid for one hundred (100) years from the Effective Date.

10. Breach & Termination


Failure to comply with any terms of this Agreement may result in termination of the license. Upon termination, Licensee must cease all use and distribution of the New Song.

11. Limitation of Liability


The Beat is provided “as is” without warranties of any kind. Producer is not liable for any damages arising from the use of the Beat.

12. Governing Law


This Agreement shall be governed by and interpreted in accordance with the laws of Germany.

13. Acceptance


By purchasing the Beat, Licensee acknowledges that they have read, understood, and agreed to the terms of this Agreement. Payment serves as a legally binding acceptance.

Licensor (Producer):
Thomas Hodek / Tellingbeatzz

Licensee (Customer): _____
Date: _____

Unlimited

WAV, MP3, Trackout
License Terms

NON-EXCLUSIVE UNLIMITED LICENSE AGREEMENT


This Non-Exclusive Unlimited License Agreement (“Agreement”) is made effective as of _____ (“Effective Date”) by and between:

Thomas Hodek p/k/a Tellingbeatzz (“Producer” or “Licensor”)
and _____, residing at _____ (“Licensee”).

This Agreement governs the use of the instrumental titled “_____” (“Beat”).

1. License Grant


Upon receipt of full payment of $150 USD (“License Fee”), Producer grants Licensee a non-exclusive, non-transferable, worldwide license to use the Beat to create one (1) new song (“New Song”).

This license allows unlimited commercial use as defined below.

2. Delivery


The Beat will be delivered as:

High-quality MP3 file
High-quality WAV file
Trackout stems (individual audio files)

The Licensee will receive the files and this license via the email address provided after purchase.

3. Permitted Uses (Unlimited)


Licensee is granted the right to:

• Record vocals over the Beat to create one (1) New Song
• Distribute unlimited copies (digital and/or physical)
• Achieve unlimited monetized audio streams
• Upload unlimited music videos
• Achieve unlimited monetized video streams
• Distribute unlimited free downloads
• Perform the New Song live an unlimited number of times
• Broadcast the New Song on radio without limitation
• Monetize the New Song without any restrictions
• Fully mix, edit, and modify the Beat using the provided stems

4. Restrictions


Licensee agrees NOT to:

• Sell, lease, share, or distribute the Beat or stems in their original form
• Upload or distribute the Beat or stems without vocals or additional production
• Register the Beat or New Song with any Content ID system (e.g., YouTube Content ID)
• Use the Beat in television, film, commercials, video games, or other audiovisual productions (sync licensing not included)
• Transfer or sublicense this Agreement to any third party
• Claim ownership of the Beat

Any unauthorized use constitutes a material breach of this Agreement.

5. Ownership


• The Producer retains 100% ownership of the Beat, including all copyrights
• Licensee owns only their original lyrics and vocal performance
• The New Song is considered a derivative work

6. Publishing Split


The underlying musical composition of the New Song shall be split as follows:

Producer: 50%
Licensee: 50%

If Licensee registers the New Song with a Performing Rights Organization (PRO), they must include the Producer’s 50% share.

PRO Information:
PRO: GEMA (Germany)
Name: Thomas Hodek
Composer: Tellingbeatzz
CAW / IPI No: 716014087

7. Royalties


Licensee is not required to pay royalties to Producer under this Agreement.

8. Credit


Licensee agrees to credit the Producer in all releases of the New Song as:
“Produced by Tellingbeatzz”

9. Term


This license is valid for one hundred (100) years from the Effective Date.

10. Non-Exclusive Rights


This is a non-exclusive license, meaning:

• The Beat may be licensed to other artists
• Producer retains the right to sell additional licenses

11. Breach & Termination


Failure to comply with any terms of this Agreement may result in termination of the license.

Upon termination, Licensee must cease all use and distribution of the New Song.

12. Limitation of Liability


The Beat is provided “as is” without warranties of any kind. Producer is not liable for any damages arising from the use of the Beat.

13. Governing Law


This Agreement shall be governed by and interpreted in accordance with the laws of Germany.

14. Acceptance


By purchasing the Beat, Licensee acknowledges that they have read, understood, and agreed to the terms of this Agreement. Payment serves as a legally binding acceptance.

Licensor (Producer):
Thomas Hodek / Tellingbeatzz

Licensee (Customer): _____
Date: _____

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