Most musicians want record deals but are unfamiliar about what a record deal means and what they need to be aware of before signing a contract. A record deal is a legal document that specifies the terms involved in a business relationship between an individual or band and a corporation. The main forms of contracts appear in brief below:
Independent Label
This is a contract that uses independent distributors to get the records to stores.
– Make sure the company has a good relationship with its distributors.
– Every label has its own affiliated Music Publishing division, you would have to give part of your publishing to the division – consult your attorney.
– Consider the options in the contract, for example the number of records that need to be sold.
Major Labels
A major label can be defined as a label that demands a high volume of sales of records and has their own distributors.
– These contracts are signed for six to eight records not years.
– Know the company’s history, for example who they have previously worked with.
– Find out how many records have been released in a span of a year. This way you would know if your record(s) would be given enough attention.
– Find out if your contract is exclusive. If so you would be “Married” to the company for the specified time period.