Is it common practice for companies involved with intellectual properties such as record labels, book/magazine publishers, movie studios, etc. to ask for your submissions and then charge you for them if they are selected for inclusion on a larger piece of work? I realize that may be a tad confusing, so I’ll provide the following hypothetical situation:
Let’s say I’m a budding recording artist and [insert record company here] offers workshops on writing, recording, and all other related ways to get my music to the masses (for a fee, of course). While recording an album of original songs, I see that the aforementioned [insert record company here] is seeking music to fill a themed compilation disc featuring a well-known recording artist. If my work fits the theme suitably, [insert record company here] will use my new recording on the disc, but there’s a catch. I’ll have to buy 500 discs (at a discount at least) to promote the compilation disc. I will not receive any funds for my work as all the proceeds will go to [insert record company here] and the well-known recording artist.
I understand in this scenario that I’m getting exposure, quite possibly a lot of exposure, and sometimes it’s difficult to put a price tag on that. However, in this case, it just feels like extortion. It seems like it’s an unethical business practice at the very least.
Am I naive?