Before you sign anything in this business, learn what a bad deal looks like on paper. Most artists get burned not because they lack talent, but because they never read the fine print. A contract is a business document first and a compliment second. If someone is rushing you to sign, that urgency is the first red flag.
Clauses That Should Make You Pause
Watch for perpetuity language that locks your rights forever, vague recoupment terms that let a company charge mystery expenses against your earnings, and options periods that stack up for years. Sunset clauses, audit rights, and clear royalty definitions should be in every agreement. If the contract has none of these, walk away. This is industry guidance, not legal advice — always have an entertainment lawyer review before you sign.
The indie major move is simple: never trade permanent rights for temporary attention. A smaller advance with fair terms beats a big check that owns your future. Read every page, question every clause, and remember that the pen is heavier than the microphone.
Two more traps deserve your attention. Delivery commitments let a label demand multiple albums while holding approval rights over each one, which means they can shelve your project and still claim you owe them records. Cross-collateralization lets the company apply losses from one project against earnings from another, so a flop can eat the profits of your hit. Read the commitment and recoupment sections twice, and never accept unlimited options paired with subjective approval standards.
One last rule: if a clause confuses you after two careful reads, it was written to confuse you. Flag it, get it rewritten in plain language, and never sign confusion.
About the Author – Ruben Burgos: Ruben Burgos brings over 25 years of music expertise and more than 15 years of model guidance to the table. He is the indie major pinnacle to retaining credits for musicians and helping them navigate this wicked industry without the fuckery.