17/07/2025
😤
You have negotiate this terms
Dear Artist,
Before you put pen to paper on a recording deal, take a deep breath and make sure you’ve negotiated these industry-standard terms. A bad deal can trap you for years, but a fair one can launch your career.
Here are the most important terms you must understand and negotiate before signing:
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🎯 1. Ownership of Masters
Ask: Who will own the master recordings?
Standard deals give the label ownership, but you can negotiate for full ownership, joint ownership, or a clause that reverts ownership to you after a certain period (called a reversion clause). Owning your masters = owning your legacy.
🎯 2. Advance Payment
This is the upfront money you get. Remember: it’s a loan against future royalties. Negotiate the amount, how it’s paid (lump sum or in parts), and how it affects your royalty payouts.
🎯 3. Royalty Rate
This is your percentage from music sales/streams. Industry standards vary, but don’t settle for less than 15% of the revenue from your music. Negotiate a higher rate as your career grows.
🎯 4. Term (Duration of the Contract)
How long will you be locked in? Negotiate the number of albums or years. Avoid deals that tie you indefinitely or depend on vague success metrics.
🎯 5. Creative Control
Do you decide your image, music style, collaborations, and releases? Many artists regret giving this up. Negotiate final say on your sound, look, and brand.
🎯 6. Marketing & Promotion Budget
What will the label invest in promoting you? Insist this be clearly stated in the contract—don’t let your project die in silence.
🎯 7. Distribution Rights
Who will distribute your music, and where? Negotiate territories (local vs global), formats (physical, digital), and control over where your music appears.
🎯 8. 360 Clauses
These allow the label to take a cut from things beyond music—like your shows, merch, endorsements. Negotiate this carefully or reject it completely. Your live shows and brand deals are yours.
🎯 9. Audit Rights
Always keep your right to audit the label’s books. You should be able to check their accounting and make sure your money is paid correctly.
🎯 10. Exit Clauses / Breach Terms
What happens if either side wants to walk away? Negotiate reasonable termination clauses to protect yourself if the label fails to deliver.
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⚖️ Consult a music lawyer. Never sign alone.
Even if the deal looks sweet, always get professional legal advice. A lawyer will see things you might miss.
🎤 A recording deal is not just about getting signed — it's about getting protected.
