Q&A: Does a record label take money from the artist?

Saturday, May 3, 2014
By admin

Question by Its Meh: Does a record label take money from the artist?
If an artist signs to a label, does that label give them money when they’re going to sign a deal? Also, when signed does it take a percentage from what the artist makes? Lastly is it better to stay independent. What are the goods an bads on being signed? Sorry guys I have a lot of questions on this topic. ^.^

Best answer:

Answer by Aarif
Sounds like you’re gonna get yourself in that. And i dont know enough about it by the way, maybe it depends on record lable. But i think they dont. Cuz a artist names Adam Young (Owlcity) had not enough money to record a album, even a song. He just uploaded his sound on iTunes and Myspace and then a Record Lable took him in wing. So..

Know better? Leave your own answer in the comments!

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3 Responses to “Q&A: Does a record label take money from the artist?”

  1. 1
    MCXD *Tyrannicide* Says:

    yes, how else would they get paid? percentages and whatnot are discussed prior to the actual signing. if you want money you sign major, if you just want to be an artist without dealing with bullshit stay indie.

  2. 2
    Billy Says:

    Artists aren’t always given an advance at signing. Advances are a recoup expense that a label will offer only if they believe the Artist can generate enough revenue to recover the loss through withholding the Artist’s royalties.

    Labels will always take a percentage of what the Artist makes. Thus is how record companies work and make money. If record companies did not take a portion of the Artist’s profits, they would not be able to fund their Artists nor even function as a record company. For example: Let’s say a label shares profits with an Artist 85/15 (label gets 85% and the Artist 15%). The percentile may seen unfair until you factor in that the labels share goes to help finance the Marketing Department, the A&R Department, New Media, Legal, PR, Artist Development, the Art Department, Manufacturing, Distribution, the Sales Department, Business Affairs… And every other department which makes the company function. Now it puts into perspective why the label take such a large cut.

    There are some Artists that are better off being signed and those that are better off remaining independent. The Artists that are better off remaining independent are the ones that have a realistic grasp on how the industry works and how to manage themselves. The Artists that are better off signed are the Artists that have the potential to sell millions of albums, but do not have the resources to d so.

  3. 3
    Landok Says:

    of course you choose the answer thats wrong.

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