How to Create Contracts
Contracts are the hub of all royalty processes - they are used to store down contract terms, match the catalogue to, & track your artist's balance. Please watch our introduction to Contracts in the video below. We provide notes and further reading further down this page.
How to Create Contracts
Add Contracts via the Interface
- Select the Payee – Specify in which portal you would like the statements of this Contract to be published.
- Name your Contract – For your and your artist’s reference, pick a name that is clear and consistent.
- Select the Accounting Period – How often do you wish to account to this artist? More info
- Select the Contract type – Is this a Royalty or Flexible Profit Share deal? In a Royalty deal, a royalty percentage will be applied to each sale & cost on a line by line basis. In a Flexible Profit Share deal, Curve will take the sum of all sales & all costs, & apply a set percentage to your artist’s balance. When selecting a Flexible Profit Share deal, an additional Profit Share % field will appear where you can specify the share of the profit you wish to share with your artist. More info
- Set the Opening Balance – Is there any ongoing business going on with this artist? Perhaps your artist is due an unpaid royalty, or there is a loss or advance still to be recouped? Your Opening Balance field allows you to set the starting point for your first royalty statement to build on. This amount is stored in the Contract's Currency. In a Royalty and Flexible Profit Share deal, the Opening Balance equals the artist share. In a Classic Profit Share deal, a positive Opening Balance should equal the artist share, but a negative Opening Balance will be treated as an expense and should equal the total loss of the project. More info
- Set the Minimum Payout – Only balances that hit this minimum payment threshold will be paid to your artist. Generally implemented to avoid having to make payments that hold very little value.
- Enable/Disable Auto-Payment – When enabled, & once the balance of the contract has reached the Minimum Payout, Curve will automatically notify you a payment is due to your artist and mark the balance as paid. When disabled, you will wait for your artists to personally invoice you their balance, & manually deduct payments made from your artist’s balance on Curve. More info
- Set your Sales Terms – The royalty rates are set within the Terms tab, & here you have the ability to pinpoint specific terms for specific use cases. The first line of a term can be read as an “if”. The second line can be read as a “then”. ie If revenue matches the given criteria, then apply the given royalty rate. More info
- Set your Cost terms – As per your Sales Terms; in a Royalty contract, here you specify which share of the costs is to be recouped from your artists. In a Profit Share contract, here you specify which costs are to be included in your profit share pool. More info
Add Contracts via the Excel Templates
The below features are not mandatory to use, but may be helpful to clients with specific requirements. Features with a ✪ icon are available to clients on a Curve Pro plan only and may need to be enabled as an add-on.
Add Advances or Payments as a Transaction - Whenever a balance is paid to your Payee, you will need to mark this balance as paid on the Contract. More info
Assign a different Currency to a Contract (✪ Multicurrency) – By default you will report to your artists in your home currency. Though if you have selected additional currencies in your settings, you will be able to report to your artists in a different currency. More info