Working in the record label/music publishing world has been quite interesting to say the least. In terms of fairness, the contracts that have come across my desk have touched both ends of the spectrum and everywhere in between. At the end of the day, I have learned what and what not to do when dealing with label contracts, which allows me to give advice to up-and-comers who want a record deal but have no idea what it entails.
An op-ed on Huffington Post lists out a few of the things to watch out for when entertaining a label deal, and for the most part it is spot-on. You have to look past the money and the person selling you on the deal, and consider what happens once you sign on the dotted line (which ironically will most likely not be dotted).
The Investment From The Label
At its core, a label deal is an investment loan: the label is acting as a managing investor into your product (i.e. your music) with the expectation of a profit, and you won’t see a dime until they make back the money they invested. It is important to know where, who, what, why and when money is being “invested”, because it is money that you have to pay back. Musicians, engineers and craft services ordered during studio sessions, consultants hired to push your records to radio, billboards and flyers, promo CDs and more: it all comes from your budget.
Term Of The Contract
This is how long you are legally bound to this agreement. Recording contracts typically include one or more terms (i.e. album cycles) with the option for the label to renew several more times at their choice. The agreement will also most likely include language that gives the label the right to use the music and your likeness beyond the date the agreement is terminated.
Creative Control
As the managing investor in your product/career, they have ultimate veto power: they can control who you work with, what songs you record, your styling choices, performance schedule, marketing, etc. You have to be confident in their ability to steer your product, and/or work your creative control into the contract language.
Label Ownership
It’s important to know who actually owns the label and how invested they are in the success of your music. Label executives can believe in your dreams completely and convince you that together you will reach the top, but what happens if that exec leaves his position? Many artists have been caught in this predicament: sometimes it works out, sometimes it doesn’t.
Day-to-Day Support Staff
In line with the point above, it’s important to be confident in the abilities of the label staff. If you sign a 360 deal, which gives the label a share in the profits of areas outside of record sales (like touring, publishing, etc.), there should be label employees that can help support those other areas.
All that being said, I encourage you to read the op-ed that inspired this post, and continue in your quest for success in the music industry.
…and don’t sell out for a piano like Alicia Keys almost did.
