HFA (Harry Fox Agency) is increasing their commission to 11.5 percent. The following letter was sent out by HFA to clients today (January 20th). A DMN source shared the letter, stating that commission is currently 8.5 percent:
Notice of Commission Change
Dear HFA Publisher or Society:
The Board of Directors of HFA has recently completed a review of the funding needs of HFA. In order to continue to act effectively as your licensing agent, we have concluded with our Board’s approval that we must increase our commission to 11.5%, effective April 20, 2015.
In accordance with the authorization executed by each publisher upon engaging HFA as its agent, this letter constitutes formal notice of the commission rate change described above. As per the authorization, unless we receive written notice from you on or before March 21, 2015 terminating your relationship with HFA, as of April 20, 2015, you will be deemed to have accepted the new commission rate.
In the face of a declining music market, we consistently manage our operations to provide you with the best possible service. This change in commission will allow HFA to continue to support the business interests of the publishing community, and I hope that you will continue to rely upon HFA for your licensing needs. If you have any questions, please email firstname.lastname@example.org and include your publishing company name and publisher number, which you will find on your check vouchers and statements.
President & CEO