What Is a 360 Record Deal?
A 360 record deal is an exclusive contract between a label and an artist. In a 360 deal, a record label takes a share of the artist’s music sales, and revenues from other ventures such as concerts, merchandise sales, television appearances, or publishing. The goal of these deals is to recoup costs for breaking new artists and launching their careers.
Who is the 360 Record deal Good For?
If you’re an artist, the 360 deal is not your friend. The label will own all of your music and can do whatever they want with it—including selling that same music to other labels. This is a bad thing if you want to keep control over your work and ensure that it’s treated ethically throughout its life cycle.
However, a 360 deal does not last forever. When done right, the artist can come out with more profits than the label, all without spending any of their own money. It’s all a gamble, but with the right audience and strategy, both the artist and label could receive a huge payoff.
Don’t get screwed!
One of the most common ways to get screwed when it comes to a 360 deal is by not hiring a good lawyer.
Avoid signing any record deal without first having a lawyer look over everything to make sure it’s safe for you.
It’s also important to clearly define your splits before signing anything. If one person is getting paid 75% and the other person is only getting paid 15%, then the terms of the agreement should be spelled out clearly so both parties know what they are getting into before they sign anything.
Also, Don’t be afraid to negotiate for additional benefits.
If the label wants a percentage of the merchandise profit, make them have a stake in manufacturing the merchandise.