Signing a contract? Read this first.

As an indie artist, signing a music contract can be both exciting and intimidating. Whether it’s a record deal, publishing agreement, or sync licensing contract, understanding the fine print is essential to protecting your rights and ensuring fair compensation. Too many artists have signed bad deals that cost them their creative control and income. This guide breaks down the key music contracts and red flags to watch for so you can navigate the business side of your music career with confidence.

Key Music Contracts

1. Record Deals: 360 Deals vs. Distribution Deals

360 Deals:

• The label takes a cut of multiple revenue streams, including album sales, touring, merch, and sync placements.
• Artists receive an advance but often must recoup it before seeing profits.
• Typically favored by major labels but can be restrictive for artists.

Distribution Deals:

• The artist retains ownership of their masters and pays a distributor (like Best Coast Records, DistroKid, or TuneCore) to get their music on streaming platforms.
• Revenue is typically split between the artist and distributor, with no recoupable advance.
• Great for indie artists looking for flexibility and control.

2. Publishing Agreements: Co-Publishing vs. Administration Deals

Co-Publishing Deals:

• The songwriter shares publishing rights with a publisher (often 50/50).
• The publisher handles licensing, royalty collection, and placements.
• Artists receive an advance but must recoup it before earning profits.

Administration Deals:

• The artist retains full ownership of their publishing.
• The admin service (like Best Coast Records, Songtrust, or Kobalt) collects and distributes royalties for a fee.
• More control, but requires the artist to be proactive in securing placements.

3. Sync Licensing Contracts: What to Watch For

Sync licensing allows your music to be used in movies, TV shows, commercials, and video games. Key elements to review include:

• Term Length: How long your song will be licensed.
• Exclusivity: Whether the contract prevents you from licensing the same song elsewhere.
• Fee Structure: Payment terms, including upfront fees and backend royalties.
• Rights Retention: Ensuring you still own your composition and master rights.