A 360 deal means the label takes a cut of everything you do, not just your records. Recorded music, publishing, touring, merchandise, endorsements, even acting gigs can all fall under the label’s commission. Before you sign, you need to know exactly which revenue streams are included and which are excluded, because every stream you hand over is money you will never fully control again.
Typical 360 commissions run 10 to 30 percent on touring and merch, sometimes higher on endorsements. That might sound reasonable until you realize the label is taking a cut of income streams they did nothing to build. Push for carve-outs on revenue you already had before the deal, and cap commissions on income the label does not actively help generate.
The biggest trap is the all-in structure with no real marketing commitment attached. Labels love taking 360 rights while spending the bare minimum to promote you. Your contract should tie their commission rights to actual spending and effort. If they are not putting real money behind your project, they should not be eating off your tour and merch table.
Get an experienced music attorney to mark up every 360 provision before you sign anything. Never let the label’s lawyer be the only one explaining the deal to you. A 360 deal is not automatically bad, but an unread 360 deal is how artists end up famous and broke at the same time.
The bottom line on 360 deals is leverage. The more you bring to the table before signing, audience, revenue, cultural heat, the more streams you can carve out or cap. Never sign a 360 deal from a position of desperation, because desperation is what the other side is counting on. Build first, then negotiate from strength.
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.