Record Deals in Plain English - Part 2

This is part two in a series that breaks down the deal points of a recording agreement into simple language that is easy to understand.

The post below starts with section 4.

You can find the first three sections by reading Record Deals in Plain English - Part 1.

The goal is to give YOU a clear picture of what you are getting yourself into if/when you sign a record deal.

But first… a disclaimer!

I also want to reiterate here that I am in NO WAY anti-label. HOME is built on the following foundational wisdom:

HOME exists to solve the problem of creators trying to do everything ‘DIY’. At HOME, we’re all about ‘community over competition’. But the reality is this:

If you are a ‘DIY‘ competing against a team, the team will win over the long run.

That’s why we say Music is a team sport.

For more thoughts on why you need a team, revisit From DIY to Dream Team.

You do need a team, but it’s very important that the label becomes part of your team, instead of you becoming a part of the label’s team.

It’s a simple, yet powerful mindset shift.

If you want to build an extraordinary life, you must be the leader.

Now that we have that out of the way, let's dive deeper into the critical topics of ownership and control!

4. OWNERSHIP: GUARDING YOUR MUSICAL LEGACY

Get ready for a truth bomb 💣

When you sign a record deal, you're not just handing over your music – you are trusting someone else with your musical legacy.

But don't panic just yet. With the right knowledge and negotiation skills, you can ensure your art remains in your control, even while partnering with major music companies.

Let’s start with some basic knowledge about copyrights.

Record labels deal primarily with the master recordings - the ‘circle p’ copyright. In the biz, they say the job of the label is to ‘exploit the masters’.

Master Recordings: Who Owns Your Recorded Music?

• The label may demand ownership of your master recordings. Forever.

• Those are the recordings they paid for, after all, right? Or did you pay that money back? (See Part 1, Section 2 - The Advance)

• When the label owns the masters, they control the distribution, licensing, and monetization of your music.

• This is a HUGE DEAL – masters can generate royalties for decades, even centuries. (See Part 1, Section 3 - Royalties)

Publishing Rights: Who Owns Your Songs?

• Publishing refers to the underlying composition of your songs – the lyrics, melodies, and chord progressions.

• Owning your publishing gives you more control over how your songs are used, licensed, and earning you royalties in the long run.

• It is common to see writers who retain full or partial ownership of their publishing rights. Most are glad they do, because a hit song can pay out serious money!

  • Publishing agreements are technically a separate contract, but sometimes those rights can be rolled into a record deal.

The Long Game: Envisioning Your Musical Legacy

• Think beyond the next album cycle or tour. Where do you want your music to be in 10, 20, 50 years?

• Masters and publishing are the keys to lasting impact and income.

• If the label owns your masters forever, they control that part of your musical destiny – even if you part ways down the line.

A MAJOR Negotiation Point: Reversion Clauses

• A ‘reversion clause’ gives you the option to regain your masters after a set period, which could be 5-20 years, depending on the power and track record you are bringing to the deal.

• Negotiating for the reversion of your masters is a way to ensure your music eventually returns to your control, even if it takes a while.

• Reversion clauses can be a sticking point for labels, but they're worth fighting for. Your future self will thank you.

The Ownership Mindset: Lifetime Benefits from Your Artistic Output

• Your music is more than just your income stream – it's your creative DNA, your lifetime of dedication.

• When you sign on the dotted line, you're not just inking a business deal. You're shaping the trajectory of your future.

• Ownership is power. The more you can retain, the more you can control how your music evolves and earns for you over time.

Strategies for Ownership Empowerment

• Negotiate Fiercely:

  • Look for partners who will contribute so much value to your project that they truly earn the rights to your masters and publishing.

  • Seek reversion clauses to regain control down the line.

  • Be willing to walk away from a deal that doesn't align with your long-term vision.

• Educate Yourself:

  • Understand the ins and outs of master and publishing rights.

    • If you are new to the industry, be sure to read my 3 Keys to Music Success for a breakdown of some important fundamentals.

  • Consult music industry lawyers (entertainment attorneys) who can advise you on contract negotiations.

  • Know your worth, and don't let the label's expertise and legalese intimidate you.

• Explore Alternative Paths:

  • Consider distribution deals, development deals, or label services agreements that allow you to keep more rights.

  • Crowdfunding and fan communities like Patreon can be the perfect solution for some artists to find funding.

  • Weigh the pros and cons of each approach – there's no one-size-fits-all solution.

The label may have the money and the machines, but you hold the most valuable currency of all – your unique musical voice and brand.

Use it to negotiate from a position of power, and set a goal to create a body of work that outlasts any one deal or distribution channel.

5. CREATIVE CONTROL: PROTECTING YOUR ARTISTIC INTEGRITY

This is where a tug-of-war can form between your artistic vision and the label's commercial interests.

But with the right strategy and contract language, you can retain creative control of your project.

Album Approval: Choosing Your Releases and Artwork

• Who has the final say on your album's track listing, single selections, and cover art?

• This is your musical baby – you don't want the label turning it into something you don't recognize.

• Negotiate airtight approval rights, making it clear that your creative input is non-negotiable.

Musical Direction: Preserving Your Authentic Sound

• Can the label force you to work with specific producers, songwriters, or engineers?

• They might claim it's for your commercial benefit, but hopefully you know your art better than anyone.

  • The key here is being open to feedback and input while also being clear on your artistic vision. Review the Artist Branding Playbook - Part 2 if you need help clarifying your vision 👁️

• Your fans are counting on your signature sound, your ability to channel inspiration, and your capacity to re-create yourself over and over again so that you keep making truly remarkable music.

Brand Deals and Licensing: Guarding Your Artistic Identity

• How can the label use your music in advertisements, TV shows, films, and beyond? Would you be okay with your music appearing in political advertisements? Which ones?

  • This is where your ‘core values’ come into play. Revisit the Artist Branding Playbook - Part 2 for a comprehensive list of core values that you can use to clarify your own.

• Make sure you have a say in these ‘brand alignment’ type of decisions. Your songs aren't just assets – they're extensions of your creative identity.

• You can negotiate limitations on how your music can be used, and you can also negotiate a bigger slice of those licensing fees. Everything is up for grabs!

The Pro Tip: Get It in Writing, Get It Ironclad

• Vague contract language is the enemy of creative freedom.

• Be specific about what you retain control over, and what you're willing to compromise on. Maybe it’s your style, your artwork, your merch, whatever it is, get clear on it.

• The more airtight your creative control clauses, the less room for the label to begin entering your most sacred artistic territory.

The Mindset Shift: Your Music, Your Team, Your Life

• Remember, artistic creativity is the backbone of this entire enterprise.

• There are many labels, but there is only one YOU!

• It is up to you to be the leader of your team and know the business well enough to make strategic decisions. Become the best leader you can be so that your team is motivated to work hard for you!

  • Read Become a Conscious Leader to learn how you can fulfill your potential as the leader of your team.

The most important strategy for retaining ownership and control is to cultivate a loyal fanbase.

Your devoted audience is your superpower. Protect the connection you have with your fans. If a label helps you create a mailing list and other fanbase data, make sure you have access to it and ownership of that information if you and the label part ways.

Read The Fanbase Flywheel to understand why fan engagement is the key to having a massively successful career!

The label knows that your creative vision is what captivates your fans – leverage that.

This is your legacy, your legend in the making.

Fight for it, negotiate for it, and never compromise the vision that sets your music apart. Your fans are counting on you to stay true to the sound that moves them, inspires them, and speaks to the depths of their being.

Stay savvy, stay empowered, and never forget that your music's true power lies in its ability to connect with people on a deep, visceral level.

No amount of label hype can replicate that.