That Advance Is Not Free Money

"Signed. God did." We have all seen the post. But picture an artist offered a $20,000 advance plus $30,000 in recording and marketing costs, at a 20% royalty. It feels like $50,000 of support, yet all of it is paid back from her earnings, so the label must make $250,000 before she sees another cent.

A label is an investor: it brings money and reach, and usually takes ownership of your masters in return. A distributor is a service: it delivers your music and pays you, and you usually keep your masters. Neither is automatically better. The real question is whether what they give you outweighs what they take, and for how long.

Never sign on the day you are handed a contract, and always get a lawyer to read it first. Music Industry 101 explains the main deal types, what A&Rs really look for and how to do the maths before you sign. Take the course on Crux Global Academy: cruxmusic.global/academycrux.

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