Most bad music contracts are not signed by fools. They are signed by excited people at 2 a.m. who were told it was "the standard version". This guide explains, in plain words, what to look for in the agreements independent artists meet most often. It is not legal advice; for anything involving real money or a long commitment, have a lawyer read it.
Four questions for any contract
Whatever the document is called, it answers four questions. Find the clause for each one before you read anything else.
- Term. How long does it last? A fixed number of months or years, a number of releases, or "in perpetuity"? Can the other side extend it on its own?
- Territory. Where does it apply? One country, a region, or the world?
- Rights. What exactly are you giving? There is a big difference between a licence (permission to use something for a time) and an assignment (you transfer ownership). Check also whether it is exclusive, which means you cannot give the same rights to anyone else.
- Money. Who gets what, from which income, after which deductions, and when? How will you see the numbers?
Then add a fifth: the way out. How can the contract end, with what notice, and what happens to the music released while it was running?
Producer and featuring agreements
These are often settled in a chat message, which is fine for small projects if the message is clear. Make sure it covers:
- Credit: exactly how the name appears, for example "feat." or "prod. by", and on which tracks.
- Master share: a flat fee, a percentage of the recording's income, or both.
- Composition share: if the producer or guest wrote music or lyrics, their writing share, which is separate from the master.
- Approvals: who decides on the final mix, the release date, the artwork and use in videos.
- Beat exclusivity: whether a leased beat can still be sold to others.
For a feature, also agree on which artist profile the release goes out on and whether the guest can promote it on their own channels.
Management agreements
A manager works for a share of your income, so the details matter.
- Commission base. Is the percentage taken from gross income or after certain costs? Which income is included: live, recording, publishing, merch, sponsorship?
- Term and trial period. A clear end date, or a short first period after which either of you can leave, is safer than an open-ended deal.
- Sunset clause. After the contract ends, managers often keep a commission on deals made during the term, for a limited time. Check how long and on what.
- Authority. Can the manager sign contracts in your name? Usually you should keep that power.
- Key person. If you are signing with a company because of one person, what happens if that person leaves?
Nərmin Sahil signed a one-page management deal with a friend of a friend. It had no end date and took a commission on "all income from the artist's activities". Two years later, long after they had stopped working together, it was still technically in force. One extra sentence about the term would have saved a long, awkward conversation.
Label deals
Label contracts vary more than any other kind, so read them slowly.
- Ownership of masters: does the label own the recordings forever, or license them for a period after which they return to you?
- Advances and recoupment: an advance is usually repaid from your share of income before you receive anything more. Find out which costs are added to the amount to be recouped.
- Commitment: how many releases or albums you owe, and whether the label can extend that.
- Creative control: who chooses singles, artwork, producers and release dates.
- Other income: some deals take a share of live shows, merch or publishing too. Make sure that is a choice you made, not something you missed.
Distribution agreements
A distributor delivers your music to platforms and collects the income from them. Check whether the agreement is exclusive for the releases you deliver, what you pay and for how long, whether you keep ownership of your recordings, and how you can take a release down or leave.
With CULT, for example, plans are annual and the artist keeps their rights. Whatever service you use, the questions are the same: who owns the masters, what you pay, and how you get out.
Before you sign
- Read the whole document, including the definitions at the start. Words like "Income" or "Records" are often defined in surprising ways.
- Ask your questions in writing and ask for changes in writing. A promise made on the phone is not in the contract.
- For anything long-term or involving significant money, pay a music lawyer for an hour. It is cheap compared with the cost of a bad clause.
- Keep a signed copy where you can find it, with the date and all attachments.