dognovel Chapter 68 Everyone thinks they've made a profit
Chapter 68 Everyone thinks they've made a profit
Upon hearing Tian Chuanjun's offer of either "20 for the whole package" or "5 for ringtones," Lin Feng did not immediately make a counter-offer.
He picked up the contract again, his gaze lingering for a moment on the "two thousand yuan" transfer fee, before gently placing it back on the coffee table.
"Teacher Tian, it's clear from your two proposals that you have high expectations for this song. However, we all know that the market has its own rules."
The value of a song ultimately needs to be validated by the market. Your contract was signed in 2002, and the price at the time was two thousand yuan.
In less than two years, you're asking for 200,000—a hundredfold premium! Even if the song truly has potential, this price increase far exceeds industry norms. This return on investment would probably impress even Warren Buffett.
Let's be honest. In the current market, unless it's a major hit by an established singer or a masterpiece produced by a top producer, it's hard for any record company to make such a move.
After all, releasing a new song requires real money in production, distribution, and promotion, and the risks are considerable. You said two companies have inquired, and I believe you, but the terms they're offering are probably quite a distance from 200,000… right?
Lin Feng pointed out that the other party was making an exorbitant demand, which was not accepted within the industry. However, his tone was not sharp; it was more like a discussion based on common industry knowledge.
Tian Chuanjun flicked his cigarette ash, neither admitting nor denying it.
Lin Feng continued, "As for the ringback tone license, the price is 50,000 yuan separately. 50,000 yuan is only enough to buy the copyright of a ringback tone service that is just starting out and whose future is uncertain..." Lin Feng shook his head and gave a wry smile.
"Teacher Tian, to be honest, we scraped together all the money we could get our hands on when we came to Beijing this time, and the total budget we prepared was only about 10,000 yuan. We just wanted to take a gamble on this new channel."
Fifty thousand? We really can't afford that. If this is your bottom line, then we'll accept it, even if it's an eye-opening experience for us. We can only blame our lack of ability for missing this opportunity.
He once again "retreated to advance," placing himself in a "gamble" position, which actually made it easier for the other party to weigh the pros and cons.
Is it better to insist on a price that the other party absolutely cannot accept, causing the deal to fall apart, or to reach a deal at a price that the other party might barely be able to afford, and get cash immediately?
Tian Chuanjun glanced at his two subordinates and smiled, "As the saying goes, 'Ask the sky, ask for the moon; haggle the ground.' The price is negotiable."
Once the other party relented, Lin Feng realized that Tian Chuanjun wasn't so insistent on the price and was also thinking about monetizing the copyright he bought two years ago as soon as possible.
He held up one finger: "Ten thousand. Teacher Tian, ten thousand in cash to buy out the ringtone copyright. Sign today, and the money will be paid immediately. For us, this is a desperate gamble; for you, it's a sure-fire, immediate cash inflow."
Lin Feng casually added, "Before we came here, we also talked to Mr. Wang Hu of Taige Impression. I only quoted him eight thousand, but I quoted you ten thousand."
This is because Teacher Tian initially spent two thousand yuan, while Wang Hu's cost was zero.
If things don't go well, there's no telling what he might do. Teacher Tian, you should know him better than I do.
At that point, it might not just be a matter of ringback tone authorization for you; you might even have to argue with him about the "exclusivity" of the contract you have.
To get involved in this kind of lawsuit for a song that hasn't even really sold for a good price yet, and drag it out for a year or two, even if you win in the end, it's probably not worth it.
Lin Feng has once again brought up the potential threat of "Wang Hu," and escalated the consequences to the point where they could shake the very foundation of Tian Chuanjun's "exclusive copyright."
Tian Chuanjun silently smoked his cigarette, his mind racing. Ten thousand yuan was a far cry from the fifty thousand yuan he had offered.
But what Lin Feng said was true; he had no idea how much of a business the ringtone thing could actually generate.
He knows perfectly well that the claim that "record companies are interested" is misleading. Wang Hu is indeed a problem; if this kid really turns around and cooperates with Wang Hu, even if it only creates some disputes, it would be disgusting enough.
Going to court? That's what he hates most.
"Ten thousand? Do you think this is for beggars?" Tian Chuanjun's tone was very aggressive, but his attitude had changed from "hoarding a rare commodity" to "price negotiation".
"My exclusive contract, in black and white, is only worth ten thousand? It's at least thirty thousand! Not a penny less!"
"Thirty thousand is indeed far beyond our capabilities, Teacher Tian." Lin Feng looked troubled, but he wasn't intimidated.
Lin Feng raised his offer: "Okay, Teacher Tian, let's be realistic. You invested two thousand initially, and we'll calculate a tenfold return and give you twenty thousand."
With this 20,000, we're not buying back the entire copyright; we're only buying out the copyright to the "ringtone" service, a new business that might not even be profitable in the future.
All other rights to the song, including the record releases, commercial performances, and any other forms of use that you desire, remain firmly in your possession and are unaffected in any way.
Lin Feng looked directly at Tian Chuanjun: "In other words, your initial investment of two thousand yuan can now be immediately recouped to twenty thousand yuan in cash, a net profit of eighteen thousand yuan, a tenfold return secured. No matter how you look at it, you're guaranteed to make a profit, and a huge one at that."
Lin Feng's words accurately grasped the broker's mentality of "buying low and selling high".
Tian Chuanjun quickly calculated in his mind.
A tenfold return, 20,000 in cash... that's certainly an enticing figure.
As for ringback tones? He really didn't think that thing could amount to much. It's just a phone ringing, how big of a market could it be?
Compared to the tangible benefits of record releases and performance fees, the paltry profits from ringtones are easily given up...
He was already tempted, but he couldn't immediately back down. "Mr. Lin, you certainly know how to calculate. No matter how new the ringback tone is, it's still an extension of the value of my copyrighted song! Twenty-five thousand, not a penny less! I'm already being very lenient with you!"
From 50,000 to 25,000, it's already been cut in half.
Lin Feng knew that the time was almost right. He frowned, looked at Yang Chengang's pleading face, and finally seemed to have made a great decision.
"Teacher Tian, you're pushing us to the brink... but we accept it! We'll treat it as making you a friend. Twenty-five thousand it is, we'll pay after we sign the ringback tone copyright transfer agreement!"
"Deal!" Tian Chuanjun, fearing that Lin Feng might change his mind, immediately made the decision, and the "reluctant" expression on his face instantly disappeared.
Next, the three parties signed a copyright transfer agreement for the ringtone "Mice Love Rice," transferring the copyright to Fengchi Digital Studio. All other rights remain with Party A, Tian Chuanjun.
All three parties signed and affixed their fingerprints. Subsequently, Lin Feng arranged for Liu Qian, the studio's accountant, to wire 25,000 yuan to Tian Chuanjun's studio.
"Alright, you guys can handle the ringback tones. Don't come to me with anything like that again." He waved his hand, clearly in a good mood.
Lin Feng and Yang Chengang walked out of the room, and before they had gone far, they could vaguely hear Tian Chuanjun's slightly smug voice coming from inside.
"Two thousand dollars for twenty-five thousand, and that's just selling scraps... What a shrewd deal!"
Then his two henchmen chimed in, "Brother Tian has a sharp eye! He saw this song was something special!"
"That's right, without even looking at who bought it, it's increased tenfold in two years, that's an amazing investment!"
On the other side, Lin Feng got into the car, put the agreement into his pocket, and then let out a long sigh of relief.
Only he knew that the seemingly high acquisition cost of 25,000 yuan was negligible compared to the future revenue generated by the song for ringtones.
Both parties felt they had made a profit; this is what is known as a win-win deal.