Consider Your Label Wisely

There are thousands of record labels out there and a good amount of them exist to destroy your life as a musician. Once they get you signed, they give you a large advance, which is actually a loan, and you’ll never repay that, unless you give all your proceeds to the record company. Now with record companies paying lower than ever in royalties, it’s a real eye raiser to established artists.

Consider this. Popular bands from the Backstreet Boys, Linkin Park, Madonna, Snoop Dogg, and even Britney Spears, rarely if ever, make money from their Labels. They make their money from Tours, merchandise sales, and endorsements of products. Don’t forget, that even though they wrote the music, they may have to pay royalties to the record label every time they perform live, but we’ll get into that a bit later. Most major labels offer 2% or less royalty to an Artist and that percentage normally goes to their debt against the record company. So where does the other 98% go? Good question.

There are plenty of great Record Labels out there such as Projekt Records, A Different Drum, Komodo Dragon Records, and others. Just remember to read all contracts thoroughly. If it seems to good to be true, it likely is, and avoid labels who give you advances or don’t suggest needing an attorney. If they are working in your best interest, then they should have no problem with you talking with an attorney, in fact they should encourage it and offer references.

Also make sure your Record Label does not register with PRO’s by default, and that they are not allowed to on your behalf.

Record Label Plan