Music Contacts - Major Labels & Recording Contracts

What is a major label? A Major label is one that demands a high fraction of the yearly retailing of records and has their own distribution system. Maybe you have heard of Warner Elektra Atlantic, BMG, SONY, and Universal Music Video & Distribution?? Well, those are four of the top Labels out there.

Pursuing a Major Label might be a lifelong dream of yours but that mean you should be hasty to sign the dotted line. Follow some of these pointers so you will know the facts and have the right questions to ask yourself before signing.

1. A&R: Better known as the Artist and Repertoire person. Do a little background research on this person. Find out who they helped get signed, who all they have worked with and for and how long they have been working for the label in question before signing any music business contracts.

2. Understand your options. And I don't mean your regular old options. I am talking about the "options" or number of records you are required to record. According to research, the average is around five to eight records.

3. I know it may be exciting to sign recording contracts with major labels but find out some things first. You want to explore how many records that particular label releases annually. This is important because you need to have an idea of how much individual promotion you will be receiving. Don't sign with a label that seems overwhelmed. (No matter how great you are, you don't want to be put on the back burner!)

Now, let's review some clauses in recording contracts that may be confusing or unrecognizable to the average Joe:

1. Ever heard of the Key Man Clause? Well, this is where you have the option of terminating your contract if a certain he/she leaves the label. There is a flip side to this, if a designated member of your group leaves the act then music contracts can become null and void.

2. Auditing and Accounting Clause is crucial. You need to ensure you have access to the books involved in your income and outflow of dollars. The same is true for accounting; you might want to make certain the financial records are reported to you on a regular basis.

3. Will you consider a sideman's clause in your music business contracts? This often allows the band to do studio work on the side. The majority of the time, if you do not include this clause, your record label can prohibit you from working with another band or label on separate projects.

4. How many records are you to record and in what amount of time? Is there a specific duration involved in your recording contracts? This is referred to a term of the contract.

5. Lastly, recording costs and advances. These are crucial because it is all about money. Recording equals time and time equals money. Do not get out of control with recording costs because chances are music contracts are going to tell you that you have to pay this back. The same goes for advances. Advances for living, transportation, videos etc...will all be recouped so a word to the wise is don't get out of control! Save your crazy spending until after you are a bona fide success!

These are the rules of the game! Keep all of this in mind when deciding whether you should sign with any major label. Don't let your lifelong dream cloud your judgment. Your career is the most important thing and it can be ruined by signing with the wrong folks! Be smart and good luck!