Guide
Record deals and 360 deals explained for artists
A record deal can pay for your music and put a team behind it, but you usually give up income and control in return. The advance is the number everyone notices, while the terms decide what it really costs. This guide explains the main deal types and what to check before you sign. It's general information, not legal advice.
Updated November 2, 2026
Short answer
A 360 deal gives a label a share of your income beyond recorded music, such as touring, merch, endorsements and publishing. One published estimate puts that share at 10% to 25% of net income from those sources. In a traditional deal, the label usually pays for and owns your recordings, and it keeps your royalties until your advance and agreed costs are paid back. Have an entertainment lawyer read any offer before you sign.
What to do, in order
Work out what you need
Decide whether you need money, marketing, distribution or industry contacts. You may be able to get some of them without giving up your recordings.
Build your own numbers
Releases, an engaged audience and steady growth give you leverage. Soundcharts notes that market data can help you get better terms or avoid a 360 deal altogether.
Research labels that fit
Look at who releases music like yours and how they treat their artists. Talk to artists on the label, and follow its own instructions for sending music.
Be careful with upfront fees
A record deal normally pays you. If someone asks you to pay to be signed, slow down and get advice before sending money.
Get a lawyer to read the offer
Use an entertainment lawyer who works on music deals. Ask them to explain ownership, length, recoupment and any income beyond recordings.
Negotiate, then get it in writing
Terms can often be negotiated. Make sure anything you agree to is in the signed contract, not only an email or a conversation.
The main types of deal
The names are used loosely, so read what a contract actually does and don't rely on what it's called.
| Deal | What it usually means | Who usually owns the recordings |
|---|---|---|
| Traditional label deal | The label funds, markets and distributes your music, and pays you an advance and a royalty | The label |
| 360 deal | A label deal where the label also shares income from areas like touring, merch and endorsements | Often the label |
| Licensing deal | The label gets the right to use your recordings for an agreed period | You |
| Distribution deal | A company delivers your music to stores and takes a fee or a share; some also offer advances or marketing | Usually you |
Every contract is different, so check yours.
What a 360 deal takes
A 360 deal lets a label share in more than your recorded music income. That can include touring, merch, endorsements and publishing. Soundcharts puts the usual range at 10% to 25% of net income from non-recording sources.
The label should give something back for that wider share, such as tour marketing or merch support, but that isn't automatic. Ask what it'll actually do, and try to get those commitments written into the contract.
Advances and recoupment
An advance is money paid up front against your future earnings. Recoupment is how the label gets it back: it keeps your share of the agreed income until the advance, and often other agreed costs, are repaid.
In many music deals, you won't have to repay an advance out of pocket if the music underperforms. That depends on the contract, though, and Symphonic warns that some agreements include fees, collateral, personal guarantees or delivery requirements. Look closely at these too.
What deals can look like
Mixcloud published these ranges in 2026. They're rough estimates, not rules, and many artists won't be offered numbers like these.
- Major or large independent label: an advance of $250,000 to $3 million, with a 15% to 20% royalty.
- Mid-level label: an advance of $50,000 to $300,000, with an 18% to 25% royalty.
- Small or boutique label: an advance of $5,000 to $25,000, or a 50/50 split of net profit in place of an advance.
What to check before you sign
Ask your lawyer to walk you through each of these.
- Ownership: who owns the recordings, and do they ever come back to you?
- Length: how many releases do you owe, and can the label extend the deal?
- Recoupment: which costs count against you, and what share of your income goes toward them?
- Cross-collateralization: can losses on one project be recovered from another?
- Other income: which sources does the label share, and at what percentage?
- Control: who approves your music, artwork, release dates and licensing?
- Release commitment: does the label have to release what you deliver?
- Accounting: how often are you paid, and can you audit the label's statements?
Getting rights back in the US
Under US copyright law, an author can generally end a grant of rights during a five-year window that starts 35 years after the grant. If the grant covers publication, the window starts at the earlier of 35 years after publication or 40 years after the grant. Notice must be served 2 to 10 years before the termination date.
This doesn't apply to works made for hire, so how your contract describes your recordings matters. Ask your lawyer about this specifically.
How Traxure helps
A new deal can mean your catalog moves to a different label or distributor. If it does, Move Guard keeps your UPC and ISRCs together and checks the new upload is live everywhere before the old one comes down. After that, Traxure checks your Spotify profile every 12 hours and your full catalog on 12 platforms every day. It emails you if a release goes missing on one of the 8 platforms it alerts on. Monitoring starts with a seven-day free trial.
The figures here come from the sources below, checked on 2 November 2026.
Questions artists ask
What is a 360 deal?
It's a record deal where the label shares in more than your recorded music income, such as touring, merch, endorsements and publishing.
Are 360 deals bad for artists?
Not automatically, but you give up part of more income streams. It depends on what the label will do in return, the percentages and how long the deal lasts. Have a lawyer check those before you sign.
How do you get a record deal?
There's no single route. Most artists do better by releasing music, building an audience and approaching labels that already work in their genre, following each label's own instructions.
Do you have to pay back a record deal advance?
Usually it's recouped from your future earnings, and you may not have to repay it out of pocket if the music underperforms. That depends on your contract, so check it with a lawyer.
Who owns the music in a record deal?
In a traditional deal, the label usually owns or controls your recordings. In licensing and distribution deals, you usually keep them. Your contract decides this.
Sources
Traxure
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