Record Deals, different types and what they are.

360 deal:

In the music industry, a 360 deal is a business relationship between an artist and a music industry company. The company agrees to provide financial and other support for the artist, including direct advances as well as support in marketing, promotion, touring and other areas. In turn, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including sales of recorded music, live performances, publishing and more.

Thoughts on this deal:

While I think this deal has its flaws, I think having the label take care of everything for you, such as touring, promotion and merchandise is great. For this service the artist makes around 15% which isn't a lot, however this is just how it is so you gotta take it or leave it.

Production deal:

A production deal or agreement is signed between a producer and an artist (two parties). The producer is NOT a major or independent record label. In fact, the producer is just a music publisher or in the business of recording music which he can later license or sell to a record company while keeping a percentage of the profit earned from the different revenues that it generates.

Thoughts on this deal:

In essence if you are a musician in this situation the producer is the middle man between you and a label. This is a great way as a musician to hopefully to impress the producer so that they will inform the record label and put you on their radar, now it might not happen, but its an opportunity and I think its a good thing.

Licensing deal:

A licensing deal in summary is a deal where a label will distribute your music for you at usually a 50/50 deal between the musician and the label. There might be some merchandise included in deals as well, but these deals are mostly just distribution of the music.

Thoughts on this deal:

I think this deal is great for band just starting, as the main thing for a beginning band is distribution, and having somebody do this for you for a 50/50 deal is fair to me as you'll be selling A LOT more of your music then by yourself.

Development deal:

An artist development deal is often the first of a recording artist's contracts with a major record label. the label will promise to develop the skills and public profile of the artist. These types of deals are sometimes most helpful to the artist, but the label often takes control of the artist's management and publishing rights. They will also give you a small advance to record a demo.

Thoughts on this deal:

This can work out well for an artist, however these deals have been known to be abused by the labels in the past, I suppose all deals have been abused at some point or other. With this deal It's essentially a trial to see if the label like what the artist/band are making, and they will decide if they want to offer you a full record contract. I think as long as the artist is careful with the legal side then this can work well in their favour.

What percentage of the royalties will the artist make?

When an artist signs a record deal they're are costs that have to be paid before the artist is paid themselves, such as manufacturing, shipping, recording costs etc. The average an artist or a band will make from a record deal will be around 13 to 16%.