Hey guys,
I have been curious about Master P’s financial success. With his estimated net worth of around $250 million, thanks to his music career, No Limit Records, and various business ventures like Rap Snacks and real estate, how do you think he managed to build such an impressive fortune?
From 1992 to 1998, No Limit Records sold $120 million worth of albums. In 1998, Master P’s different businesses made over $160 million.
Master P had a lot of business sense, but the big game-changer was how he handled his record deal. Instead of getting a big label to front the money, he used his own cash to record his album and only had the label act as a publisher. This way, he paid for his own recording sessions and kept the rights to his music.
Consider this: an independent artist like Master P might make over $5 per album sold, while a major label artist might get less than $0.10 per album. Master P only needed to sell 10,000 albums to make a $50,000 profit, while a major label artist would need to sell 500,000 albums to make the same amount. Plus, major labels often take back their advance payment for studio time before paying the artist royalties, which means the artist gets less money until the debt is paid off.
So, A) Master P negotiated a much better deal that let him keep his royalties and music rights, which still earn him money. B) He doesn’t need to sell as many albums as a major label artist because a larger share of each dollar goes directly to him. C) He made smart investments afterward, branching out into No Limit Records, artist management, real estate, media, and beverages—similar to what Jay-Z and Puff Daddy did with their money.
He also played for the Toronto Raptors in the NBA.