TPS #052: Let’s Talk About the T.R.I.P.

Point #2: Responsibilities

In planning a road trip with friends, everyone has a responsibility: someone is responsible for snacks, drivers are chosen, and the official “aux cord holder” is determined.

These responsibilities give the road trip organization and a sense of purpose.

With record label deals, the responsibilities are outlined to give your relationship structure while keeping both of you accountable to one another.

This accountability provides organization for you and the label by way of you delivering the music to the label for them to oversee your music’s distribution, promotion, and royalty collection.

Depending on your leverage, you may be able increase the responsibilities of the label.

And just like a road trip, despite where you sit in the car, you are still have a responsibility to bring what you have to make the trip enjoyable, memorable and fruitful.

Point #3: Income

On a road trip, income – money – directly affects how much you can spend on food, gas, lodging, and unexpected expenses – to avoid financial stress.

Income is the most important part of the agreement with a label for obvious reasons: your art has value and you should be compensated.

In a recording agreement, your income mainly comes from royalties – master recording, performance, and sync licensing. A percentage of the revenue – usually between 10% and 25% – goes to the artist with the remainder going to the label to recoup expenses.

Another part of income you may be entitled to is an advance. An advance is an upfront payment which is basically a loan that is recouped (read: deducted and paid back) from your future royalty earnings.

The record label cannot guarantee how much money you will make from your music royalties. They can only set the percentage.

Like a road trip, understanding the role of income within a recording agreement eliminates financial stress – and possibly being stuck on the side of the road.

Point #4: Property

Property – your belongings and the vehicle – are important on a road trip.

Your property needs to be protected from theft and damage while traveling. This gives you a sense of safety and peace of mind.

In the case of an agreement with a label, property refers to your intellectual property rights (IP rights) from the music you create. This includes the sound recordings, your lyrics, and even your name and likeness.

In an agreement, your IP can be owned by the record label to an extent, allowing them reproduce, distribute, and commercially exploit (read: make full use of) the elements of your IP. This is done for a specific period of time within certain conditions and limits.

Even though the label holds the right, it is important for you to remember the music is your property and you should retain certain rights to protect your interests, such as the ability to approve creative decisions.

And just like a road trip, protecting your property – your creative work – is important to enjoying and getting the most out of your working relationship with a label.

When an artist is offered a record deal, there is a mix of many emotions – most of which are centered around the artist feeling a strong sense of accomplishment along with being able to achieve even bigger dreams.

However, those dreams can only be realized by artists who are willing to take their time in evaluating what they are signing. Along with good legal representation, an artist should be able to have a working knowledge of, and understand, their deal framework.

Take a deep breath.

You got this.

Related: Signing a record deal is a dream come true for many artists. However, artists have to be careful when chasing their dreams. Brian Zisook, EVP and Global Ops for Audiomack shares the story of the rapper Morray and his label signing experience.