What to Look for in a Record Contract

I talk to artists every day who are looking for any way to get a leg up in the industry, whether it's a recording studio, a music distributor, radio promotion, a booking agent, or a manager. In my experience as a signed artist and now an A&R representative for a label I've repeatedly heard the same needs and concerns. The problem I continually come across is that artists in general don't know how the industry truly works or what an "industry contract" looks like. They get all their knowledge from what they see on television. Based on this, here are a few of the most important things I feel you should look for when searching for the right record label for you:

1. Look for a label that lets you keep your rights. You should never give up the rights to the music that you wrote and poured your heart into! You wouldn't work for a company that asked you to sign over your personal property so why would you sign with a label that did.
2. Look for a label that lets you maintain a level of creative input concerning your project. Why would you spend time writing an upbeat rock song only to have a label turn it into a country ballad?
3. Don't get tied down for x number of albums or x number of years. If it didn't work out for you for the first album or your needs and ambitions change, wouldn't you want the freedom to move on?
4. Typically the label is also your manufacturer. Ask whether there's a minimum product purchase. Who wants to be stuck with 1,000 albums in their living room or the trunk of their car? The label should meet your needs where you are at. There is no need to tie up capital in a mass amount of CD's if the demand is not there yet. That is money you can invest in your music elsewhere.
5. Read the fine print. If you're fortunate enough to be one of the few who are offered an advance or the label is fronting 100% of costs (very rare in today's industry), be sure you're prepared to pay that back in full if your CD, merchandise, and ticket sales don't cover the label's investment in you. In the industry, this is called recoupment and is a very common practice. Recoupment clauses typically state that an artist must fully pay back the label prior to them being able to earn royalties or profit from the project. I large misconception of the industry is that the music business is a giant ATM machine handing out money and resources. It is a business and a business doesn't have longevity if it just throws money away.

If you want to see how TMG works and the opportunities and resources we provide get in touch with me. I am glad to answer your questions. I hope this helps with your search for representation in the industry. tdavenport@tatepublishing.com.