Asake, Courtesy: Instagram
For the typical budding or rising music artist, getting signed to a music label is the stuff of dreams. Any serious independent, up-and-coming music artist fantasizes about being swept off their feet by a staggering record label advance fee. This is logical, as the advance fees from record label deals take a huge fraction of the financial burden on the artiste, providing a rather breezy platform to spread wings and fly as high as momentum care to carry.
Signing a deal is a significant step in a music artist’s career, and it usually brings a great deal of endorphins accompanying the rags-to-riches motif.
However, this chemical reaction is blinding, as most artists are overtly excited about a dream come true moment. Due diligence is shoved into the bin in the rush of blood of the ‘I Done Blow’ spirit.
At this junction, one thing that becomes feasible to the artist is that he or she is about to enter an abundance of cash flow. Anything else prolongs a set date with fate and must be treated with passive disregard.
This is why most do not bother to peruse the terms and obligations of the contract placed in front of them. It is why now and then there is a scandalous litigious bout between bereaved artists and labels, leading to an ugly turn of events amongst parties that once gleefully broke bread.
The most recent excerpt is in the unfortunate case of Shallipopi versus Dapper Music.
In a dramatic unfolding of press releases and statements where both parties expressed grievances mostly based on the recurring narrative of breach of contract, the ignorance of due diligence involving contracts couldn’t have been clearer.
Here are ten things artists should know and consider before putting pen to paper:
Recognize the Various Deal Types:
Record Deal: This usually entails transferring ownership of your master recordings in return for funding.
Distribution Deal: Concentrates on getting your music out there without sacrificing your artistic vision.
360 Deal: Gives the label a cut of many revenue sources, such as endorsements, merchandising, and touring.
Note: Your songwriting rights are covered under the publishing deal.
Rights and Ownership:
The master recordings belong to whom?
If you quit the label, what will happen to your music?
Recognize copyright divides for the tunes you compose.
Terms of Finance:
Advances are loans that need to be paid back; they are not free funds.
Royalty Rates: Find out how much you’ll get for each performance, sale, or stream.
Recoupable Expenses: Find out what costs the label anticipates receiving back from your royalties, like as marketing and studio time.
Creative Authority:
Will you be in charge of your branding, artwork, and music?
Does the label have the last word on collaborations, production schedules, and release dates?
Commitment and Duration:
How long is the agreement? Does it depend on the quantity of albums or on time?
Do renewal alternatives exist, and if so, who is in charge of them?
Marketing and Promotion:
How much assistance will the label offer concerning promotion?
Are they committing to any particular tours or campaigns?
Touring and Merchandising:
Does the label receive a portion of sales from tours or merchandise?
Is that advance refundable if they are paying for tours?
Exit Strategies:
Is it possible to end the agreement early if something goes wrong?
What repercussions result from breaching the agreement?
Legal Representation
Always have an experienced music attorney review the contract.
Avoid signing anything you don’t fully understand.
Future Opportunities
How does this deal position you for growth?
Does it allow you to collaborate with other artists or companies?
In conclusion, dear artist, take your time and do not let pressure or excitement rush your decision. A deal that seems good now could limit your potential later.
