On a hot summer
day in 1991, two brothers named Bryan and Ronald Williams launched a rap label called
Cash Money Records.
They hoped Cash Money would some day pull them out of one of New
Orlean’s most wretchedly poor housing projects. Neither of them had any
experience running a record label, or even working in the
music industry.
They didn’t own a recording studio and they didn’t have any artists on
their roster. But what they did have was a dream and the willingness to
do whatever it took to be successful. The Williams brothers also may
have had around $100 thousand dollars in cash at their disposal, that
may have allegedly been provided by their drug kingpin half-brother
Terrence.
Allegedly. But that’s besides the point. Fast
forward 22 years and today Cash Money Records is one of the most
successful and prolific record labels in the music industry.
And its two founders Bryan “Birdman” Williams and older brother Ronald
“Slim” Williams are two of the richest and most powerful people not just
in hip-hop, but in all of entertainment. How did two guys from the
projects, with nothing but a dream pull this off? Their story is pretty
incredible…
How Did Birdman Become So Rich?
Cash Money Records Is Born
When the Williams brothers founded Cash Money Records in 1991, the
underground hip-hop scene in New Orleans was just starting to catch
fire. A trend called “bounce music” was exploding all over Louisiana
thanks to artists like DJ Irv and TT Tucker. The opportunity for a
couple of ambitious entrepreneurs was ripe. To launch Cash Money Records
(CMR), the Williams brothers first reached out to their father, who
owned a popular local bar/nightclub. Unfortunately, a few thousand
dollars from their dad didn’t provide nearly enough for Cash
Money to get off the ground.
The real money that launched CMR came from their half brother Terrence
Williams who was the founder of a notorious drug crew called the Hot
Boys (not to be confused with the Cash Money rap group of the same name
that came years later). Ronald and Bryan chose the name “Cash Money Records”
as a reference to the recently released film “New Jack City”, in which
Wesley Snipes played a wealthy New York City gangster who runs a crew
called the “Cash Money Brothers”.
With their start up capital secured, the Williams brothers began signing
local talent. Their first roster artist was a 16 year old kid named
Kilo-G. Pretty soon they had around a dozen artists most notably Lil
Slim, Mr. Ivan, PxMxWx and U.N.L.V. In those early days, the Williams
brothers organized local shows then sold their artist’s records right
from the trunk of their car!

One of the most fundamental events in the history of CMR happened in
1993 when the label signed a talented DJ/producer named Mannie Fresh.
Before Mannie Fresh came along, Cash Money’s lyrics and sound were very
raw and gangster rap influenced. On the other end of the spectrum, Manny
Fresh had just spent more than a decade mixing and producing pop
influenced house music beats for DJs in New York City. The combination
of Manny’s more consumer-friendly beats, with Cash Money’s gangster
image and lyrics, quickly came to be known as “Gansta Bounce”. Gansta
Bounce instantly struck a nerve with hip-hop fans throughout Louisiana.
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| Mannie fresh and Birdman |
Major Labels Come Calling
Through sheer hustle and talent, Cash Money records signed dozens more
artists between 1994 and 1997. Even more impressively, their albums were
selling between 25,000 and 50,000 copies without a distribution or
promotional
deal from any major label. U.N.L.V.’s second album sold 60,000 copies.
The Hot Boy$’ debut album sold an astonishing 300,000 copies in its
first few months alone, almost exclusively in the greater New Orleans
area. The Hot Boy$, who were barely old enough to drive, featured the
rappers Juvenile, B.G., Turk and a 15 year old who went by the name Lil
Wayne.
At the beginning 1998, every
major record label
the world made the trek from New York City to New Orleans seeking out
the infamous Williams brothers. Even if Cash Money had sold a few
hundred thousand albums independently, most labels sought to sign them
to a standard rookie deal. That deal typically involved a small cash
advance, plus a 50/50 split of all profits earned on albums sales. Also,
the record label would maintain ownership of any current and future
master copies of albums and publishing rights.
You can imagine
the shock
each
major label executive felt when they heard what the Williams brothers
were demanding. Birdman and Slim wanted an 80/20 pressing and
distribution deal, plus a multi-million dollar cash advance. This was
nothing short of unprecedented for an unsigned indie label.
A pressing & distribution deal meant that Cash Money would continue
finance their own albums and therefore maintain ownership of all their
masters, royalties and publishing. Essentially they were looking for a
company that would finance their entire label with millions of dollars,
in exchange for a measly 20% cut of the profits made only when a
consumer physically purchased an album. To say this was unheard of, is a
massive understatement. As Russel Simmons explained at the time, this
was the kind of deal an artist like Madonna or Michael Jackson is lucky to get after a decade being on top of the charts.
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| lil Wayne and Birdman |
Cash Money Cashes In
Amazingly, despite their insane demands, two labels were still
interested, Sony and Universal. Both companies knew they wouldn’t ever
make
much money off the deal, but Cash Money represented something far more important:
Market share. Making a deal with Cash Money would give the winning
record company
an instant foothold in the rising southern hip-hop market. It would
allow them to court future artists and sell their current roster to
people they had never successfully reached before. With that prize up
for grabs, Sony and Universal made their pitches. In the end,
Universal’s offer was just far too much for Sony to match. Not only did
Universal bow to every single demand made by the Williams brothers, they
arranged for Cash Money to immediately receive a $3 million cash
advance plus $1.5 million for every album they produced each year. In
total the deal was worth a mind boggling $30 million.
The magnitude of this deal’s uniqueness can not be understated. Imagine
if after selling few hundred thousand copies of an ebook on my own, a
publishing company agreed to pay me millions of dollars for 20% of my profits. Then also imagine that the publishing company
agreed to book my on every major talk show and get me prominent display
in every bookstore around the world, at their expense.Wouldn’t happen. A
publishing company is more likely to pay me $50,000 and take 80% of my
profits. Plus they would own all my intellectual property and sequel
rights.
This pressure was definitely on for Birdman and Cash Money to deliver.
Fortunately one their first releases was a massive hit. Juvenile’s 1998
solo debut “400 Degreez” sold 4 million copies right out of the gate
thanks to the hit single “Back That Azz Up”, and set Cash Money on the
world map.
From then on the Cash Money team became a hit making machine. Between
2001 and 2003 alone, CMR sold over 10 million albums worldwide thanks to
artists like Big Tymers (which featured Birdman himself), B.G. Lil
Wayne, Hot Boy$ and more.
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| Cash money platinum records |
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| spraying money |
Billion Dollar Brand
Cash
Money Records is arguably the only major label in the world that
has stayed relevant continuously for the last 20 years straight. There
have been a few minor weak periods, but overall CMR has been able to
sell millions of records every year since the launch of their incredible
deal with Universal. Recently, Cash Money has even begun to
aggressively diversify its artist roster in to non-rap areas of music.
They won a bidding war to represent Canadian super star Drake, they
signed Kevid Rudolph, Nicki Minaj, Busta Rhymes, Limp Bizkit, Jay Sean
and even Paris Hilton. Birdman has stated publicly that Cash Money’s
ultimate goal is to release 100 albums a year from artists in every
single genre of music. Even more amazingly, Birdman believes Cash Money
Records is on pace to become the first billion dollar music brand of all
time, within the next five years. In total, artists from Cash Money
Records have sold over 150 million albums worldwide to date.
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| slim williams and birdman |
Thanks to the phenomenal success of Cash Money Records, today Birdman is
sitting on an extremely impressive $170 million net worth. He drives a
$5 million Bugatti and is rarely seen without wearing at least $10
million worth of jewelry. He lives in a stunning $14.5 million mansion
on Miami’s exclusive Star Island. As for Ronald “Slim” Williams, he
recently spent $7.5 million purchase the largest house in South Florida.
And the best part? He paid cash. As we all know, Lil Wayne is one of
the most successful and active artists in the world today. Wayne’s net
worth recently topped $130 million.