Record Labels
Record Labels: What a Deal Really Costs You
Advances, recoupment and ownership — the core terms to understand before signing to any label.
An advance is a loan
Label advances are recoupable — the label pays itself back from your royalty share before you see more money. Recording, video and some marketing costs are often recoupable too.
Common deal types
Traditional deals usually give the label master ownership. Licensing and distribution deals let you keep ownership for a set term. 360 deals take a share of touring, merch and more.
Before you sign
Always have an entertainment attorney review the contract. Focus on term length, royalty rate, ownership, recoupable costs, and what happens if the label stops releasing your music.
Key Takeaways
- Advances are recoupable
- Know who owns the masters
- Never sign without an attorney
For More Insight
Go deeper with CHI books
40 Crucial Things Every New Music Artist Should Know
The essentials every new artist needs before they start — rights, teams, deals and mindset.
Fund Your Sound
How to fund your music career the smart way — budgets, revenue streams and investment.
Sources
CHI Entertainment Network provides general educational information and does not provide legal, tax, financial or professional advice.