(Updated February 7, 2010)

We often get asked by musicians, potential contributors or the press: "How does your process work?" Here are the essential steps, though THR might deviate a bit on a case-by-case, based on the individual circumstances and/or needs of a particular project:

1. Once THR "announces" (goes public with) a project, it generally takes 1-6 months to raise $$ from Threadheads, the band's fans, and/or other investors. If a project's fundraising goals are not met, the musician/band will need to find alternatives sources of $$ to supplement the loan from THR. If such supplementary funds cannot be secured within three months after THR ceases fundraising, the project will be terminated and all $$ will immediately be returned to investors.

2. THR loans (not gives) the money that has been raised to the musician/band for its project, subject to the terms below. Such loans can be considered similar to a "microloan" (defined as a very small, short-term loan at low interest to a self-employed person).

3. Because of the availability of sound recording tax credits in Louisiana, THR signs the checks for costs incurred up to and until completing the masters for the CD. The musician/band will write the checks for costs incurred after that (including CD design, artwork, photography, printing of CD's etc.). To get tax credits from the state, THR needs to write the checks for the sound recording costs. (Note: such tax credits are available only for money spent in the State of Louisiana.)

4. Musicians are required to pay THR back within six months of a CD's release to the public, or within 12 months from receiving funds from THR (whichever is first). Musicians are encouraged to begin paying back as soon as sales begin on the CD. Additionally, within that same six month (or 12 month) period, THR also requests 10 percent over what was borrowed to be contributed to a charity that THR chooses (likely a combination of the Musician's Clinic, and the Threadhead Records Foundation).

5. All monies (except for that 10 percent) that are paid back by the musicians get returned to the investors (from step 1 above).

6. THR would like our logo (small, unobtrusive; it can be seen on the other albums THR has done) to be placed on the outside back cover of the CD.

7. THR will need a box of 45 CDs from the artist for press distribution (which will be distributed to our press contacts). Otherwise, the musician is responsible for getting the CD distributed to local record stores, onto iTunes, etc. However, THR has much experience with getting product on to iTunes (via CD Baby), and we are happy to assist you with this process. THR will also sell your CD via our Amazon.com store and our online digital download site on Bandcamp (THR will keep a small percentage of such sales).

8. If the THR-supported CD ultimately gets picked up by a record label, or any songs get licensed and/or picked up for a compilation CD or by a television show, commercial or movie, or for ringtones, THR would like a flat fee or a small percentage, which is negotiable (we don't ask for much).

9. In order to qualify for a THR loan, the musician(s) (at least one if a band) must join and show evidence of joining The Recording Academy.

Updated February 7, 2010