Many artists sign record deals they don’t fully understand. CREATE/OS has created a record deal simulator to help artists, managers, and labels model deal options and forecast profits. It’s a rough guide to better understand the finances of how record deals work.

Music publishing is confusing. CREATE/OS created a publishing simulator for the streaming era to help you make sense of publishing income from streams. This tool also gives insight into how publishing deals work.

A record deal for an upcoming artist still holds significant value, but its dynamics and impact have evolved compared to previous decades. Here’s a breakdown of what a record deal can mean for an upcoming artist in the current music landscape:

1. Validation and Support: Signing a record deal provides a level of validation and recognition for an artist’s talent and potential. It signifies that a record label believes in their music and sees marketability in their artistry. The label’s support can range from financial backing for recording, production, and marketing expenses to access to professional resources, including producers, engineers, and marketing teams.
2. Increased Exposure and Promotion: A record deal often comes with an extensive network and established promotional channels that can significantly boost an artist’s visibility. Record labels have the expertise and connections to secure radio play, playlist placements on streaming platforms, media coverage, and tour opportunities. This exposure can help introduce the artist to a broader audience and increase their chances of success.
3. Industry Expertise and Guidance: Record labels bring industry expertise and experience to the table. They understand market trends, consumer behavior, and effective marketing strategies. Working with a label means gaining access to professionals who can guide an artist through the intricacies of the music business, including branding, marketing campaigns, tour planning, and navigating legal matters.
4. Financial and Resources Support: A record deal often includes financial support that can be crucial for upcoming artists. Labels typically invest in artists by providing advances for recording expenses, music videos, and promotional activities. Additionally, they may offer resources such as studio time, equipment, and access to established musicians or songwriters, which can elevate the quality of an artist’s work.
5. Distribution and Licensing Opportunities: Record labels have established distribution networks that can ensure an artist’s music reaches a wide range of platforms and territories. This access to global distribution can be challenging for independent artists to achieve on their own. Moreover, labels may have existing licensing partnerships that can lead to opportunities for placements in films, TV shows, commercials, and video games, expanding the artist’s reach and revenue potential.
6. Potential Drawbacks and Considerations: While a record deal can offer numerous benefits, artists should carefully evaluate the terms and conditions before signing. Some considerations include the length of the contract, royalty rates, creative control, and ownership of masters. It is essential to ensure that the deal aligns with the artist’s long-term goals and artistic vision.