what does it mean to be signed to a record label?
March 42010
What does being signed to a label entail? are recording hours payed for by the label? do they pay for production and distribution? does it change with every band and their contract?
I guess my basic question is: what advantages does being signed have over being an independent musician/band who distributes and produces the music completely on their own?
If you sign to a label they don’t really pay for anything. Some labels will give you a lump sum (called an advance) that you use to fund the recording of the album (including the recording hours), its production and distribution. They then get the money back off you by keeping your royalties until its paid off. They make profit on every CD sold while you make back a smaller percentage. The advance is basically a loan.
No record labels are prepared to pay out now either. They prefer to look for people who produce their own music, then they agree to distribute it so long as they can keep the money. Each deal is different but the label always looks after itself, not the artist. People on larger labels like Leona Lewis get the album paid for automatically but they make no money, no royalties, nothing at all from it. Totally slave labour.
If you do everything independently you own everything and you keep everything. Distribution is easy with companies like CD Baby around and having your own website to deal from. Although you’ll need some money to make your CD, at least you’re not selling your children to pay back a label. Until someone’s prepared to give you a deal where you won’t lose the rights to all your music then stay away from it. Lots of bands are doing fine without label involvement now 
March 4th, 2010 at 11:04 pm
Signing with a record label means they have exclusive rights to distribute and sell anything they produce for you. Depending on the contract, it can also mean you may not produce and distribute your own music except for demo.
References :
March 4th, 2010 at 11:28 pm
If you sign to a label they don’t really pay for anything. Some labels will give you a lump sum (called an advance) that you use to fund the recording of the album (including the recording hours), its production and distribution. They then get the money back off you by keeping your royalties until its paid off. They make profit on every CD sold while you make back a smaller percentage. The advance is basically a loan.
No record labels are prepared to pay out now either. They prefer to look for people who produce their own music, then they agree to distribute it so long as they can keep the money. Each deal is different but the label always looks after itself, not the artist. People on larger labels like Leona Lewis get the album paid for automatically but they make no money, no royalties, nothing at all from it. Totally slave labour.
If you do everything independently you own everything and you keep everything. Distribution is easy with companies like CD Baby around and having your own website to deal from. Although you’ll need some money to make your CD, at least you’re not selling your children to pay back a label. Until someone’s prepared to give you a deal where you won’t lose the rights to all your music then stay away from it. Lots of bands are doing fine without label involvement now
References :