How to Spot a Scam in the Music Business

Tom Servo
Tom Servo, Yahoo! Contributor Network
Jun 19, 2007 "Share your voice on Yahoo! websites. Start Here."
Spotting a scam in the music business is a lot like spotting any other type of scam; If anyone asks you for money up front, it is most likely a scam. Often times, though, it can be difficult to recognize when someone is trying to con you in the music industry. Internet scams and get-rich-quick schemes are usually very impersonal. They are usually set up on a website through a company, and are easy to spot. However, people in the music business will often try to scam you directly to your face. They will be personal, friendly, and very direct with you. Most people don't trust companies, but they trust other people. That is why every day musicians and artists get scammed in the music business.

When I was in high school, I was approached by an "A&R" guy after playing a gig one night. He told me that he worked for an "up and coming" record label, and that he thought my music was great. He wanted me and the other guys in my band to meet him at the label's office/recording studio, so we could discuss signing with their record label. Later that week another member from my band and I went to the label's studio to have a meeting. The studio was really nice. They had a pool table, big screen TV, video games, a lot of really nice recording equipment and guitars. I was really impressed.

After a brief tour of the studio, we all sat down and they made us an offer. I was so excited. They gave me a copy of the recording contract to take home with me, so I could read it over a few times before I signed it. That's when I realized the whole thing was a total scam.

The deal was, they would record us for free in their studio, manufacture 500 copies of our CD, and then... SELL THEM BACK TO US FOR $5 A PIECE?!!! Not to mention, they were going to own the master rights to the songs and have complete creative control. So, this "free" recording process was going to cost us $2,500, and we wouldn't own any of our material. I was embarrassed that I ever even had a meeting with this label.

Since then, I have been approached with very similar scams about a dozen times. The person putting on the scam is always super cool and friendly, and everything is 100% free until you read the fine print. There is a guy named Mike Galaxy who has set up a nice little scam. He selects bands to be on his "compilation CD" that he mails out to over 2,000 "industry professionals." The only catch, is that it costs about $400 to have your song added to his compilation CD.

First of all, who calls them self "Mike Galaxy?" Am I supposed to believe that his last name is "Galaxy?" Second of all, if Mike Galaxy is so confident in the bands he chooses to be on his compilation CD, why does he charge $400 per song? I should also mention that he is not offering a simple service, like "Pay me $400 and I'll mail your demo to A&R people." He claims that he his so confident in your music, he will be able to get you a record deal. Of course, after you get a record deal, he expects to keep a percentage of your signing bonus. Anytime someone says they can get you a record deal, but they want you to pay them up front, it is a scam.

I hope that these stories will help you avoid some common types of scams. There are a lot of people in this business that will do and say anything to make a quick buck. Don't let one of them fool you. Good luck with your music career, and be careful!

Published by Tom Servo - Featured Contributor in Health & Wellness and Lifestyle

I have been a professional freelance writer since 2007. I write under many pen names for a wide array of publishers. I am an excellent researcher and I like to write about any topic that interests me. In add...   View profile

More from
  • Con artists will make you think they're your friend.
  • Never pay for anything up front.
  • If it sounds to good to be true, it probably is.

6 Comments

Post a Comment
  • DyeVeronika 11/28/2010

    Yo the reason the higher ups are saying there's no money in music, is because they are making so much from digital music and tours revenues, they fear people hating them for taking everything. The reason independents are not getting paid for digital sales is its being sucked up by majors-independent sales are a threat to them, and if artists can collect and generate their own money-they will really be out of business.
    Do you know what the overhead is for a digital release compared to a cd? Think about it, a CD costs alot alot in manufacturing, physical sales, shipping. With digital sales it costs pennies to send files online. No trucks are needed, cases to package, retail merchants to pay- a cd costs about $5 for each to make and distribute a digital copy maybe penny. The overhead alone is gone. Major labels fired staff, downsized, closed the doors to independents, found new artists to use which could perform anything they design, and kept some old faces- they washed out Myspace

  • hochunk 4/25/2010

    Get a life people. What do you think someone is going to record your band for free and just give you free money? It's a business, they want to make money off of the sales and give bands a percentage. What's so bad for recording for free and having to buy a cd at $5 and selling it for $10 or more dollars? The record company is taking a risk. What, is their time worth nothing? You guys really need to take a look at things a little deeper than your shallow egos and blame legit industry professionals for your lack of knowledge about the real industry.

  • PK 10/12/2009

    I have known Mike Galaxy for about 15 years or so. Mike is legit. I have never heard of anyone being actually "scammed" by Mike. He has a reputation to uphold in this extremely fickle business, which is, at the present time, in the worst shape it has been in in the history of popular music. If someone had felt "scammed" they should consider what the real circumstances were and not simply blame a trusted veteran music professional for their failure to succeed in the Biz. The truth is, that success in the music business if one of the most difficult things to accomplish in this world.

    For years, Mike Galaxy produced and hosted one of the most successful and prolific music showcases in Hollywood, 'Mike Galaxy Presents'. Mike is a true music lover, and I am sure he mostly produced the showcase for "the music", and certainly not to get rich. That was not a possibility when it came to promoting unsigned bands in a weekly showcase. Not every band is good enough to get signed. A ban

  • Jake Records Scam 7/29/2009

    Had similar deal with Seattle based Jake Records.The Owner is a downright crook that took money to promote my record through his connections and oulets. He blamed all miscomunications on the distributor and never looked back. When he feels the pressure and the heat, he dropped me. This happened to several artists. There goes my $$. I'm planning to sue. But I really believed his storys. Whats disgusting is, he even used his family in the same conversations as my deal. What a loser. I look him up occassionally, but can never find his real information. Isn't all that a matter of public record? I hate the Music Business because of him. Mike Galaxy can't hold a candle to this slug. 10k lost!

  • The Realist 7/10/2009

    Obviously, they were a small-time start up record company and you guys were a small-time band that was new to the industry. If you know anything about how the music industry works, it's pretty much how you explained it. The label pays for the album to be recorded, keeps about 50% if not more of the ownership, and the artist has to purchase albums to sell at shows. The label is the company who's taking on the risk of dishing out the cash for recording, marketing, manufacturing and distributing the album. The risk the artist takes on is having to "re-coup" or pay back the label for the whole process. It's basically like taking out a loan and having a company work for you. NOTHING IS FREE! It's an investment in your own music. If it's good enough and will sell, $2500 is pocket change and will turn into $7,500 fast (if the CD's are sold @ $15). If it doesn't sell, you both lose, because I'm sure their time and services were worth more that $2500.

    As far as the Mike Galaxy thing goes...

  • sisterofmercy 9/30/2008

    I'm actually researching this "Mike Galaxy" dude and his little scam. Turns out his last name actually is Galaxy, but so far I haven't found any proof that his samplers are actually being sent to all these "contacts".

Displaying Comments

To comment, please sign in to your Yahoo! account, or sign up for a new account.