Signing with established record labels does not mean success automatically. Whenever you are signing a music contract, you should read thoroughly through the agreement. In case you do not understand the terms of the deal, ensure you ask questions. If possible, get a lawyer to read and explain the contract to you.
There are situations where an artist is suddenly unhappy with the deal that they accepted. Such cases may lead to a fall out between the label and the artist. Some labels can drop an artist for not being as successful as expected. When signing a deal, always ensure that you sign one that is suitable for you. The following are some of the music deals you can sign.
A record/artist deal is usually the first deal that you can get as an artist. It is considered the most popular contract. In
such an agreement, the label will handle everything for you from recording new materials, promotion and distribution. In some cases, the label can provide accommodation, transportation and wardrobe allowance.
Depending on the agreement, you can have full ownership of your songs and maintain the full creative control. You need to be clear on this with the label. You can expect a twenty percent revenue share from music performances and sales. This is because you will be paying back the label for expenses they procure investing in you.
With such a deal, you have an opportunity to generate more revenue. This type of arrangement is typically limited to established artists and those with the potential of creating money. With this kind of contract, the label/distribution company will make twenty percent from music sales. Unlike the record deal, the company is only responsible for the distribution of your songs online or in stores and collecting money.
Joint Venture Deals
When an artist is affiliated with a given record label, it is likely that they are in a venture deal. In a venture deal, the artist and the label split the work. The label, however, serves as the financial investor providing funds for your studio time. Just like the work is divided, so is the revenue. In most situations, the split is equal.
It is essential to read the terms of the contract and sort out who will own the masters of your recordings. Additionally, if the label gives an advance, you should address how much you will give back to them when the money starts coming.
These are some of the main types of contracts in the music industry. Before signing a contract, it is essential to go through the details to determine if the deal will work for you.