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

In the first installment of this article (you can read here) I highlighted the first three questions:

• What do I really need from the record label?

• What is the scope of the contract?

• What costs are recoupable by the record label?

In this second and final installment, helped by a warning from my Editor to conclude the  post and to avoid “to be continued write ups” in the future, I’ll jump right into the last seven questions to ask:

4. Do they believe in me and my music?

Usually, a record label would be interested in you for them to consider you. It is important though that they appreciate not just your music, but you as an artiste and your artistic direction. Do you have chemistry with them?

5. Would they have my time?

Many labels are quick to sign on artistes, without the adequate resources to promote and manage all of them optimally, this usually leads to a situation where artistes within the same label, have to queue up for each others releases and promotions. In music, timing is key,  so you want to be sure they can have not just the money but the dedication and commitment required to grow your brand.

6. Does the contract have a key man clause?

A Key Man is someone within the record Label, e.g. the CEO who really likes your music or an A&R person who discovered you and has shared ideas on how to promote your brand. Sometimes, this person is so key to the implementation of the contract, that if they were no longer available, the relationship would not be useful. To protect yourself from the negative impact of this, you might want to include a key-man clause in your contract, which allows you to sign a new record deal elsewhere.

7. Do they have a proper accounting and auditing system in place?

Artistes have a variety of income streams, ranging from royalty payments on CD sales and performances, endorsements, merchandizing and more recently caller tunes and ringtone downloads. It can be difficult for the label and the artiste to keep track of all of this, that is why it is critical that a system of accounting and auditing is put in place.

8. Are they willing to make a release commitment?

While not very common within the Nigerian Music Industry, artiste should try to secure a release commitment from the record label. This usually include a promotional budget with a minimum marketing spend for promoting the album. Should the record label fail to meet this commitment, the Artistes may terminate the contract and regain rights to his recordings for release under another label.

9. Do I really understand all the jargon? This is another way of asking if you have gotten the advice of a lawyer. This doesn’t need to be an expensive venture, especially for the upcoming artiste and even if it does cost you something, it is always well worth it to get a lawyer to look at your contract. It is important that you get your own lawyer and not that of the record label, even after you have signed a contract.

10. Is there an exit clause?

I have had the opportunity of seeing many record contracts in and from my  part of the world and I’m surprised to see that very few of them have exit clauses. This exit clause may be captured under the termination clause and should essentially give the artiste the option of exiting the contract, in the event that the record label does not meet certain obligations with a timeframe.