Dear Artiste: Ten Questions To Ask Before You Sign That Recording Contract

As someone who has spent a significant amount of time consulting for both record labels and artistes in Nigeria; 2013 was a heartbreaking year for me.  Why?

We  all saw the scenario played and replayed - before our eyes:

• B to A-list  artiste who had signed  to record label in the midst of hype and high expectations

• A few months or years down the road, for whatever reasons, decides to leave the label (or label decides to drop the artiste)

• Accusations and counter-accusations, lots of talk about contractual obligations until artiste is let go and he starts his own label

• Or artiste goes back  or artiste goes back on new terms, or artiste goes back but sets up his own label

• Or artiste is taken to or takes record label to court and careers are stalled and so  on and so forth.

1. What do I really need? Most new artistes need a range of things from a record label including production support. Some artistes, like one I recently represented, had produced mixed and mastered an album, done a video and was independently promoting her work before the record label got interested. Understanding what you really need from a record label is critical to helping you understand the contract and what to expect from the label. This will also be critical for preparing your recording budget. In Nigeria, many record labels so called, only have a name and a website, but lack the production, promotion and distribution infrastructure that the artiste really needs.

1. What is the scope of the contract? What does the contract cover? Is it just a recording and management contract or is it a 360 contract. In recent times, Nigerian record labels have caught on to this and some insist on a 360 deal. If you opt for a 360 deal, I advise that you are clear on what and how much it is the record label is contributing to each specific income stream, and that the profit sharing ratio reflects this investment. (With endorsements for example, the record label usually takes a far lesser percentage than  it does for  record sales and performances)

1. What costs are recoupable?  Recoupable costs, refers to monies spent on the artiste prior to the point where the artiste begins to generate revenue.  Recoupable costs may include recording costs, promotional and marketing costs, music video and in many cases the artiste advance and/or sign on fee. In some cases like production  and marketing, costs may be recouped 100%, in others such as artiste car and wardrobe it could be less  say 50%) I personally do not encourage record labels recouping sign on fees as I see it as a token of recognition of what the artiste is bringing to the table; it is at this point my record label clients ask “Whose side are you on?” So that’s all I’ll say about that.

©Ese Oraka

So to the artiste excited about a record deal in the offing, here are ten questions to ask before you sign the dotted lines:

To be continued.

Image credits: signing-contract.jpg
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Ese Oraka is a Lawyer and Business Designer. He has extensive knowledge and experience in IP and Business Law, Innovation Management and Business Model Design. He is a founding partner at Adelphi Consulting. You can find him on - Twitter: @eseoraka, Facebook: /ese.oraka.9, or email info@adelphionline.com

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