Protect your music career by learning to identify and avoid the most common pitfalls, predatory contracts, and business mistakes that can derail independent musicians.
Get The Full GuideAfter helping hundreds of independent musicians navigate the complex music business landscape, we've identified these common red flags that can seriously damage your career. Learn to spot them before they cost you money, rights, or opportunities.
Many record deals require artists to sign away ownership of their master recordings permanently. This means you'll never control how your music is used or monetized, and you'll receive only a fraction of the revenue your music generates.
Negotiate for limited-term licensing deals rather than permanent transfers of copyright. Consider independent distribution options that let you maintain ownership while still reaching global audiences.
Publishing deals that last "for the life of copyright" (70+ years after your death) lock you into arrangements that may not serve your career long-term, especially if the publisher isn't actively promoting your catalog.
Negotiate for term-limited deals (3-5 years) with clear performance requirements. Include reversion clauses that return rights to you if minimum thresholds aren't met.
Advances that are recoupable but don't clearly define what expenses count toward recoupment can leave you in perpetual debt to labels or managers, who may charge everything from marketing to travel against your future earnings.
Ensure all contracts explicitly state what expenses are recoupable. Negotiate for non-recoupable marketing budgets and caps on recoupable expenses.
Labels increasingly want a percentage of all your income streams (touring, merchandise, endorsements), but many don't provide actual services in these areas, essentially taking a commission for doing nothing.
Only grant revenue shares in areas where the partner provides actual services. Include sunset clauses that end revenue sharing after the deal term expires.
Contracts that don't clearly define what constitutes "commercially satisfactory" material give labels the power to reject your work indefinitely, holding your career hostage while still keeping you under contract.
Insist on objective delivery standards. Include clauses that release you from obligations if your work is repeatedly rejected without specific feedback.
Many record deals are silent on mechanical royalties (payments for each copy of a song made), allowing labels to deduct these from your royalty share rather than paying them separately as required by law.
Ensure your contract explicitly states that mechanical royalties will be paid separately and not deducted from your artist royalty percentage.
Many independent musicians fail to properly register their compositions and sound recordings with the Copyright Office, limiting their legal remedies if infringement occurs and making it harder to collect royalties.
Register all compositions with the Copyright Office before release. Join a PRO (ASCAP, BMI, SESAC) and register with SoundExchange to collect digital performance royalties.
Creating music without clear written agreements about ownership percentages, credit, and usage rights can lead to costly disputes later, especially if the song becomes successful.
Use split sheets for every collaboration, documenting ownership percentages and roles before releasing music. Have all parties sign work-for-hire agreements when appropriate.
Operating your music career without a proper business entity (LLC, S-Corp) exposes your personal assets to business liabilities and prevents you from taking advantage of tax benefits available to businesses.
Form an appropriate business entity for your music career. Separate personal and business finances completely with dedicated accounts and record-keeping.
The most dangerous red flag is signing any music industry contract without having it reviewed by an entertainment attorney who specializes in music. Standard contracts are almost always heavily slanted against artists.
Always have contracts reviewed by a music attorney before signing. The few hundred dollars spent on legal review can save you thousands or millions in the long run.
Our comprehensive guide includes 50+ red flags, detailed contract clauses to watch for, real-world case studies, and actionable strategies to protect your music career. It's the resource we wish every musician had from day one.