What to Know Before Negotiating Your First Record Deal
A record deal is not a finish line — it's a business arrangement. Before you sign anything, here are the clauses, terms, and red flags every South African artist needs to understand.
Getting a record deal offer feels like validation. And it might be. But the terms of that deal will affect your creative freedom, your income, and your ownership of music for years — sometimes decades.
Before you sign, understand these fundamentals.
Key Deal Types
Licensing Deal
You retain ownership of your masters. The label licenses the right to distribute and market your music for a defined period. This is the most artist-friendly structure.
Distribution Deal
Similar to licensing but typically involves no label investment in marketing. You get a higher revenue split (often 80–90%) but less support.
Traditional Major Deal
The label funds recording, marketing, and distribution in exchange for owning your masters and a significant portion (often 80%+) of recorded music revenue.
Red Flags to Watch For
- 360 deals: The label takes a cut of touring, merchandise, endorsements, and more. Only accept if the investment justifies it.
- Undefined term length: Deals should have clear end dates or defined release commitments.
- No reversion clause: If the label doesn’t release your music within a defined period, ownership should revert to you.
- Broad definition of “the work”: Make sure the deal doesn’t inadvertently capture music created before or after the term.
Before You Sign Anything
- Have an entertainment lawyer review the contract — not a general attorney, a specialist
- Understand exactly what rights you’re giving up and for how long
- Negotiate a reversion clause
- Get clarity on the royalty accounting schedule
A bad deal is worse than no deal. Take your time.