FAQ

If you don’t use a written agreement like a CD Artwork or Work for Hire contract, yes, they might. Always use a contract that clearly outlines ownership.

Not usually. Most contracts are exclusive. However, an artist may have separate deals in different regions or for different types of rights (e.g., publishing vs. recording).

Only if your contracts allow it. Most label contracts include exclusivity clauses, so licensing to others without permission can breach your agreement.

Yes. Independent artists can distribute music directly through platforms like TuneCore, DistroKid, or CD Baby. A label can help scale your efforts but isn’t required.

Only if the contract allows it, such as with a termination clause. Otherwise, you may have to negotiate a release or buy yourself out.

Yes, but it’s risky. Music contracts are legal documents with long-term consequences. Using a professionally drafted template helps protect your rights and avoid common mistakes.

Usually, no. The label owns the master recordings unless the deal is specifically negotiated to let you retain them.

Yes, even for friends or collaborators. A Musician Release Agreement helps avoid disputes about ownership or royalties down the road.

A record label pays the artist, not the other way around. If you are asked for money upfront, there is the strong possibility of the deal being a scam. There are also vanity record labels that work similar to a vanity book publisher, but these are unlikely to help the career of an artist much.

Sort of. Under the typical record label deal, the artist assign the copyright in all recording for the life of the copyright.

It depends on the specifics of the deal. Typically, if this is done, the artist will receive a lower percentage of the profits, as the label is setting up and promoting the tour.

Well, “no money” is not possible, but you can start a record label on a budget with careful cost management. To do so, focus on what has the most impact at the least cost: a professional website, digital music releases, and handling press and publicity on your own.

RecordLabelAgreements.com is THE website for musicians wanting to start their own record label without spending thousands of dollars on legal fees. Under these deals, the record label pays for various expenses for the artist, such as creation, distribution, and marketing, and in exchange gets a (large) percentage of any money earned.

In legal jargon, this is known as the “term” of the agreement. Normally, there is an initial term of one year. On top of that, the record label normally has the option to extend that typically also for a year at a time. Sometimes the option is unilateral for the record label, sometimes the option has to be agreed to by both the record label and the artist. Generally, record labels prefer longer terms, and artists prefer shorter terms.

It depends what is negotiated. Anything from 10% to 50%, with 20% being a reasonable deal for an artist staring out.

You may face legal consequences, including being sued for damages. Labels can also withhold royalties or block future releases under certain terms.

Your contract usually becomes part of the label’s assets. Rights may be sold to another company, or you might regain ownership, depending on the bankruptcy terms.

A 360 deal means the label shares in multiple income streams, not just music sales, including touring, merch, brand deals, and publishing. Artists often give up more control in exchange for label support.

It means the person doing the work (e.g., a session musician or graphic designer) does not own the final product. The person or label hiring them owns it outright.

A 50/50 deal means that the record label keeps 50% of all profit and the artist gets 50% of all profit (revenues less any expenses).

It’s a contract where the label or artist retains ownership of the music, but a distributor agrees to place it on streaming platforms or in stores, often for a cut of the revenue.

It’s a payment owed to the songwriter or publisher when a song is reproduced, like in a CD, vinyl, or digital download.

It gives you permission to use someone’s image in your video. Without it, they could demand it be taken down or sue for unauthorized use.

An advance is money the label gives upfront, but it’s not free. It’s recoupable from your royalties, meaning you won’t see earnings until the advance is paid back.

It documents how much of a song each writer owns. This is essential for distributing royalties accurately and avoiding future legal disputes.

This is needed when music is used in video, like a movie, TV show, ad, or YouTube video. It’s often a separate contract from your recording deal.

An option gives the label the right, but not the obligation, to extend the contract. This helps them sign you for future projects without committing up front.

Obviously, it varies. For artists just starting out, typically 20% is a reasonable deal. The more popularity the artist already has, the higher the percent possible. Similarly, the larger the label, the higher the percentage they take.

Typically, you assign copyright in the recordings and grant the label control over how your music is distributed and marketed. Always read the fine print.

Key terms include royalty rates, ownership of recordings, contract length (term), options for renewal, marketing responsibilities, and rights to the artist’s image or name.

A record label deals with recordings; a publisher manages the songwriting rights. One controls your recorded voice, the other your written music.

A producer contract governs the relationship between the artist and the music producer. A recording contract is between the artist and the label, covering everything from production to distribution.

An exclusive contract means the artist can’t work with other labels during the term. Non-exclusive deals allow more freedom, but offer less support from the label.

The biggest advantage is that it allows the artist to focus on the creative aspects, and the record label to focus on the business and marketing aspects. Record labels can also help with funding, business expertise, connections, and handling a lot of tasks that would take up the artist’s time.