Have you ever wondered why artists are afraid of music industry contracts? The truth is there are only four elements to the hovering anxiety around these contracts. And if you, as a creative, understand these four elements, then you will transform your anxiety into anticipation effortlessly.
Now, I want to be real with you for a minute. As you progress in the music industry as a creative, you will continuously get contracts handed your way. This will become the norm for you. So, in order for you to tackle your anxiety, you're going to have to learn the value of relationships, time, money, and labor.
These are the anxieties of why you're struggling to tackle maybe your first big contract or just a big opportunity that's in front of you.
This causes you to miss out on new opportunities that will come because of the deal offered to you in this particular moment. And if you're thinking, "I'll never sign a contract with anybody in the music industry, and I'll stay independent," I've got news for you. You'll stay in your bedroom because nothing is done in this business without a contract, especially if it's to be done to a high degree.
The way I built this channel is by asking people for contracts to read so I could better understand the music industry. I wanted to know where the money came from in the business. This led me to truly understand how contracts are structured and what they operate on.
Eventually, I reached a conclusion as all the contracts began to read the same way. This is why I firmly believe that every music creative should know how to read a contract—you're actually running a business, and a successful business owner doesn't want to get trapped in a bad deal that stifles growth. That's how this channel was born.
You see, to earn any substantial money in this industry, I had to sign contracts and overcome my anxiety about them. I worried about "how much work is this going to be?" Will I get paid fairly and on time?” Who is this contract with?” “How long will I have to do this?” But once I pushed through those fears, everything became a piece of cake.
Contract Element 1: The Relationship
The first thing you need to understand about a contract is the people or companies in this relationship. Take a look at your most recent contract. Look at the top section. That's called the Preamble. Yes, just like the Constitution. There, you will find the people involved in the relationship of this agreement. You must be careful, though, because most people think the relationship may be with that company specifically; however, that company may be involved with another company that you might not approve of. In some cases, you may think you're signing with one company, but the name on the contract is totally different. Research the company, and you'll find that it may be a division of the main company. Finding out who your relationship is with will decrease some of your anxiety.
Contract Element 2: Time
The second thing you need to understand about a contract is the time, otherwise known as the term. It lets you know how long you will be involved in this relationship and if this relationship will be renewed after its time is up, otherwise known as an option. Most artists believe that the original term is what it is but are tricked by the option periods. This is the main culprit for how you get stuck. If this contract is longer than you intended, negotiate it to make it fit how long you're willing to work. Because the one resource you can't get back is time. Doing this decreases anxiety a bit more, actually a lot!
Contract Element 3: Labor
The third thing you need to understand about a contract is labor. How much labor are you expected to put in to get a return on this relationship anyway? Many creatives think, "Oh well, the labor is just part of the deal; I can do it as long as I get the money." But how much labor is too much before you end up being a slave? You get stuck here because you can't actually see when the labor is too much for the money or too little for the money, so there ends up being a catch. Labor is the most negotiated section of the contract! If you think you have anxiety now, think about how much you will have when you realize how much work you have to do halfway in!
Contract Element 4: Money
The last thing you need to understand about a contract is the money involved. Compensation, consideration, whatever you wanna call it—somebody is paying you for something, and you're doing something for that money. This is why it's called consideration. If it's not enough money, negotiate for all of that labor. Run it up! Money doesn't decrease anxiety by a long shot, but it can definitely justify the job if it doesn't risk your morals.
Now, of course there are other things that are important, like rights, name, likeness, and credit, but they are subcategories of these main four.
Here’s what you can do!
Now you can stay where you are and let the anxiety mount or take control of your career and finally step into the life of a successful artist or music creative that isn't easily fooled by weak predatory industry contracts and tactics.
The real question isn't "Should you do this?" Or "That's not going to happen to me, is it?"—it's "how much longer can you afford NOT to know the rules of the game while you're working in this game climbing to the top!"
If you're serious about making this happen, grab a copy of the 60 Day Record Label beneath this video today!"
What if knowing these elements doesn’t work?
Now, you don't have to be a legal expert to know that these are the core elements. As a creative or even new label owner you do have the capacity to do this. However, at the end of the day, it's not about signing the deal for the most money, least time, least labor, or best relationship. It's about signing the deal that has the best value for you!
What’s it going to cost to do it yourself
I know you're going to watch quite a few YouTube videos on this topic, but just like you've learned in today's video, time is an asset you cannot get back. So you will lose time guiding yourself through this process, getting confused, using your energy, ultimately ending up saying, "Man, forget this. Let me just make some music."
At the End of the Day
If you were struggling with:
Understanding the base elements of contracts
The Time, Money, or Labor involved
Making a wise choice to sign or not to sign
You now have the means to become the legally aware artist, creative, or executive you've always wanted to be.
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