💡✍️ADN #090: Do You Want A Record Deal?

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ADN:090 - Do You Want A Record Deal

Every artist seems to dream of one day signing a record deal.

It’s a common question I get from readers of this newsletter and people in my community.

How do I get a record deal?

If you’re considering this question, here’s a slightly different question to ask yourself: Do I want a record deal?

That’s what you want to know before seeking a label.

So today, I’ll share the pros and cons of signing a record deal so you can make the best decision for your artist development, brand, and business.

We’re going to cut through the daydreams and look at some facts.

Let’s get into it — ->

The Numbers Don’t Lie (And They’re Hard To Dig Out Of)

First, let’s talk royalties.

The average major label record deal pays you “20 points” (aka 20%) of your earnings after recoupment of any money spent previously in the agreement you signed.

That means you are most likely signing up for debt.

After the label pays you an advance, covers recording costs, and markets and promotes your album, you have rung up a tab that needs to be paid off before you get a check for any earnings from your albums.

Typically, the more you earn, the more everyone is inclined to spend, which can create a cycle that makes it challenging to dig yourself out of the cost of signing your deal.

Most record deals these days are licensing deals, which favor the artist more than in previous deal structures.

A license means the artist ultimately owns their music.

The license is for a fixed amount of time, say 7–10 years.

So, even if you can’t recoup your deal within the life of the deal, you could still profit from your ownership of your album a decade down the road.

Ultimately, you have to decide which game you want to play.

A highly funded one with a label team that provides infrastructure, relationships, and energy to your project.

Or an independent one with smaller budgets and less help in the early years, but with complete ownership and upside if your music takes off.

The Real Work Behind Record Deals

Before you sign a deal, let’s discuss some of the work involved in being on a label.

Because it’s a lot more than #1 albums and hit radio singles.

If you decide on signing a record deal, here’s what you’re actually committing to:

1. Consistent Music and Content Production: First, you must produce a lot of music and content to promote your creations. That means consistently creating week in and week out.

You’ll need to be willing to put yourself out into the world and regularly be vulnerable, funny, and honest. You’ll have to find your musical voice and communicate effectively with your audience.

2. Audience Building: Building an audience is more complicated than it seems and probably harder than you expect. (NOTE: This is true, deal or no deal.)

You’ll have to create consistently solid songs, videos, and social media content, optimize your website, and maybe even run paid ads to attract followers and fans.

It’s not as simple as posting to your social media accounts that you’ve signed a record deal and watching fans flood in.

‍With so many artists, why should someone let you into their already-crowded playlist?

3. Audience Engagement: Your audience is your outcome. A record deal can help you pour gasoline on your time horizon to build a larger audience, but you can’t count on someone else to create your career. If you have the opportunity to sign a record deal, it is because someone at that label believes in you and your ability to connect with an audience.

You must stay focused on your fans above all else.

Constantly give to your audience. Create a world they can get lost in, and they will support your effort with their time, energy, and hard-earned money.

4. Analytics and Optimization: Lastly, you’ll need to monitor your audience engagement closely and utilize your team of experts for creative ways to stay on top of the ever-changing digital landscape.

Best practices and tools are changing every week.

To maximize a record deal and the label you sign up with, you must constantly strive for iteration and improvement with your team.

When I Think a Record Deal Makes Sense (And When It Doesn’t)

So, the big question is, should you sign a record deal?

Honestly, it depends on your goals. Here are some scenarios where I think a deal makes sense and what to consider if you want to stay independent.

1. You’re Playing the Long Game: You probably won’t be successful overnight because you signed a record deal. The more likely outcome is that it will take you three or more years to break through. A deal is about building with a bigger team with deeper pockets vs. going it alone and self-funding. If you’re willing to put in consistent effort for years, a record deal or independence can both be incredibly powerful.

2. You Have An Audience: If you have an already thriving audience, a process for writing and recording songs, and a killer live show, then a record deal is an excellent way to build more momentum. If that’s you, I think a record deal is one of the best ways to grow from an independent artist to a superstar. If you are at this inflection point, ask yourself what you value most before you sign a deal. Is it your independence or the opportunity to discover how big your audience can become? The two aren’t necessarily exclusive, but 99% of the world’s biggest artists eventually end up signing record deals.

3. You Want A Shot At A Larger Audience: If you have music you believe deserves more ears and eyes, the right record label still provides the most resources and relationships to turn your words on a page into a hit recording that plays on the radio and fills arenas full of fans.

On the flip side, a record deal might not be the best use of your time if you’re not interested in fame, aren’t willing to create weekly content (it’s harder than you might imagine), don’t have a clear message, or audience in mind yet, or aren’t interested in touring.

If you’re only looking to be an artist sometimes or enhance your career on social media, a record deal probably isn’t the best tool for you to do that. It could amount to a lot of work and expectations that you aren’t cut out for.

The Truth

Being a recording artist is hard. It’s one of the hardest things I’ve done, whether it was as a signed artist or independently.

Record labels are your partner. Any partnership requires a lot of effort to succeed.

If you’re willing to work hard, a record deal can be one of the most powerful ways to connect your music with a broader audience.

You’ll have an opportunity to travel the world, build a unique brand, and earn significant revenue over time.

So remember: like anything worth doing, being a signed or independent artist is not about how fast you can be successful. It’s about showing up consistently and playing the long game.

So what do you think? Are you ready for a record deal? Or are you better off focusing your energy independently?

Only you can answer that question. But now, you have the facts to make a more informed decision.

That’s all for today.

See you next Sunday,

Neil

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