Embed Label Contract

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Choose Your Business Structure and Label Name. Find Your Music. Indie Label Contracts: Framework and Artist Deals. Figuring Out Distribution. Figuring Out Promotion. Prepare Your First Release. First Release Redux: Ride the Learning Curve. Additional Tips.
Agree on Obligations. Duration of the Record Contract. Agree on Royalties. Set Termination Clauses. Discuss Any Limitations for the Artist. Other Aspects to Consider When Negotiating a Record Contract.
Label deals Call it what you want, but it all equates to a legally binding agreement between the artist and label. Under the deal, a label generally pays for making, distributing and marketing the recordings. The label invests in your music and development, then you pay them back a set amount from your earnings.
Large labels pay about $0.50 to $0.55 per CD on orders of 100,000 or more. Labels that buy less than 10,000 CDs per year pay approximately $1.20 per CD. Record labels pay two royalties: one to artists, and another to composers & publishers. Artists can receive 10% 15% of suggested album retail minus packaging costs.
Per IFP, a record label will typically invest anywhere from $500,000 to $2,000,000 in a newly signed artist. That's a wide spread to be sure, and a large amount of money from the perspective of most. Here's the basic breakdown of how these funds are allocated: Advance: $50,000 to $350,000.
Typically, the initial length of a recording contract is one year. This one year term is generally followed by several option periods, where the record label is free to renew your contract for additional time periods if they like the work you're producing.
Record labels pay two royalties: one to artists, and another to composers & publishers. Artists can receive 10% 15% of suggested album retail minus packaging costs. Composers and publishers receive 30% or more.
Independent record labels make money the same way the big players do. They choose the artists, arrange for recordings, have the tracks mixed and mastered, get cover art designed, and put the music out into the world, either on CDs or digitally.
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