3. 360 Deals

A 360 Deal is a contract where the record label receives a percentage of every income stream an artist generates, not just record sales.

Scope: The label takes a cut of:

• Touring / Live Performance
• Merchandise
• Endorsements / Branding
• Publishing (sometimes)
  
  The Logic: Labels argue that since they spend millions on marketing to make you famous, they should benefit from all the “fame-based” revenue you earn.

Considerations: Only sign a 360 deal if the label provides significant “Tour Support” or marketing that you couldn’t afford alone.