The Perils of Record Deals

Many bands feel that being signed to a label is the best thing that can happen. While in some cases this is true, generally it starts a bunch of new problems.

Recording contracts are nothing more than a money advance to be recouped from record sales. If it doesn’t sell to expectation you still have to pay the money back somehow. Music companies are a business and they are there to make money not lose it. It is no different than going to a bank and getting a loan to market your music your self, except the recording companies have the methods to make the product sell, get airplay and distribute the product throughout the country or even the world. Recording companies loan you the money to make the music and get their money back by distributing it.  Typically artists make a small fraction on CDs- most of the money comes through merchandise and tours.

If you get a label behind you music, then you are doing really good. But beware of recording companies who try to influence and change your sound, often to the point of rewriting your songs and even changing members of your band or, worse still forcing you to record songs made by other peoples.

Here are some horror stories that can happen to musicians who get signed and think they are on their way to fill stadiums around the world.

Getting shelved!
A band gets signed; get some money advanced for recording. The songs are recorded and completed but the record company ‘shelves’ your act and you never sees the light of day but you can’t take your product anywhere else because you are already signed. Often you can't do live shows without giving money to the record company. This happened to Billy Joel who waited his five year contract out playing in piano bars.

The song gets changed.
Often you will be all ready to record your songs and the record company will bring in a co-writer or producer who alters your music to “fit in with label’s style.” You started to make a hard rock album and you end up with a rap album with all your instruments removed and samples replacing them.  You thought you were Metallica only to end up like Jack Johnson. Then you have to go and promote something you really hate and your product is no longer recognizable.

Where did all the money go?
Beware the big advance of money, to make and promote your music. If it doesn’t sell you will have to pay the money back, with interest, just like the banks. How do you pay the record company back? Live gigs, touring, radio shows, shopping centres etc for the next ten years.  How do all those artists who make millions of dollars end up bankrupt? All the bills they didn’t know they had to pay. They had so much fun, they never saw where their money went.

Where did my band go?
Quite often musical differences between band members and record companies are solved by the company getting rid of and replacing any member of the band who doesn’t agree with them. They are always trying to get work for their own players and artists who have already been signed. Quite often you will find all your guitar player’s work re-recorded by the studio guy or producer to fit in with the label’s sound or smooth over tensions within the band.

I thought I was a musician not a pop star.
Increasingly recording companies are trying to “cross media” any act in anyway they can. They will market you anyway they can, and they will get you to do things to increase your and their exposure any way they can. You may end up on dog food commercial, on big brother or, god forbid, on Australian Idol. Most companies are just offshoots of large media groups who will use you to re-coup their investment. Most musicians have a short shelf life so companies want to maximize their profit now before the public listens to the next big thing. (We’ve all heard of the sophomore slump!)

Remember that the music business is 95% business and 5% music. Try to go independent if you can, market yourself on the web at sites like Axebay and build your own presence in the world by networking in its guitar forums. The more successful you are in the beginning the more bargaining power you have with the recording companies. If you do get an offer, get a good lawyer. You don't want to waste five years in small bars like Bruce Springsteen.