Contracts — What to Sign and What to Run From
I've seen artists and producers sign deals that paid them nothing on records that sold millions. I've seen 360 deals strip artists of touring money, merch money, even side business income. This module is your contract education — the knowledge that prevents you from signing away your future.
The 5 Contracts Every Music Professional Needs
Producer Split Sheet
The most important document in the recording session. Signed BEFORE recording begins. Defines publishing splits, master splits, credit requirements, and royalty provisions. Never skip this — ever. A handshake deal in the studio costs fortunes when the song blows up.
Beat License Agreement
Covers every beat sale or lease. Defines exclusivity, usage rights, royalty provisions, credit requirements, and what happens if the song becomes commercially successful. Have 3 versions: non-exclusive lease, premium lease, exclusive purchase.
Recording Contract (Know What You're Signing)
If a label offers you a deal — read every word or hire a lawyer to do it. Key terms to watch: advance amount and recoupment terms, royalty rate (industry standard: 15–20%), ownership of masters, creative control provisions, term length and options.
Artist Management Agreement
If you manage artists or hire a manager, this defines commission rate (standard: 15–20%), term, services provided, and how disputes are resolved. Get this in writing before anyone manages anyone.
Collaboration Agreement
When co-producing with other producers, this defines who owns what percentage of the master and publishing, decision-making authority, and revenue distribution. Don't let ego or friendship keep you from documenting the deal.
Red Flags in Music Contracts
360 Deal
Label takes a percentage of ALL your income — touring, merch, endorsements, acting, books. Avoid unless the advance is enormous and you have strong legal representation.
Ownership of Masters
You create it, they own it. You make pennies, they keep everything. NEVER sign over master ownership without major compensation and reversion clauses.
Perpetual Term
"Perpetual" means forever. A deal that never ends is a deal that traps you forever. Always negotiate a term with a defined end date and reversion of rights.
Recoupment From All Sources
Label recoups their advance from ALL royalties, not just recording royalties. Means you could sell 100,000 records and owe money. Never acceptable without negotiation.
Self's Pro Tip
Entertainment attorneys typically charge $300–$500/hour. For a record deal review, budget $500–$1,000 total. That investment has protected me from potential losses of hundreds of thousands of dollars. Never sign a major deal without legal review. The right lawyer will pay for themselves 100× over on the first deal alone.
Module Exercise
Download a free producer split sheet template from ASCAP.com or BMI.com. Fill it out for your last recording session (even if retroactive). Then write your own simple beat license agreement covering: license type, usage rights, credit requirement, and royalty terms. Having these documents ready before you need them is what separates professionals from amateurs.