Labels & Contracts · Topic 10 of 27
What is a 360 deal?
The label earns not only from your recordings, but from almost everything.
In a classic record deal, the label earns from your recordings, meaning streams and sales. In a 360 deal the label shares in almost everything, all the way round: shows, merch, publishing income and brand deals too.
Why does it exist?
Streams alone often don't earn a label its investment back anymore. In return it often invests more: in marketing, videos, tour support and building your brand.
Upside and catch
- Upside: a partner who cares about your whole career, not just the next song.
- Catch: a percentage also comes off income the label does little for. Often it's something like 10 to 20 percent of areas like live or merch.
What to look out for
- Which income? Gross or net? And for how long?
- Cross-collateralisation: is money from shows set against your advance?
- Does the label actually work in these areas? Only then is the deal fair.
In shortThe label earns everywhere and often brings more power in return. Always have a lawyer check this kind of contract.
All figures are rough guidelines for beginners and focus on Germany. They are no substitute for legal or tax advice.
