If you think signing a contract means you’ve made it… hold up.
That same contract could be the reason you’re broke five years from now.
Did you say God forbid? Good, but you should also forbid with the right knowledge and action too.
Because here is the truth: artists don’t get trapped because they’re not talented. No. They get trapped because they didn’t read the fine print—or didn’t even know what to look for.
This is your wake-up call. Whether you’re about to sign with a label, a manager, or a distribution platform, this guide breaks it down plain and clear.
Let’s get into it. No suits, no legal mumbo jumbo. Just what matters—and what could mess you up if you ignore it.
First, What Is a Music Contract?
A music contract is a legal agreement between you and someone else in the industry. This someone else could be a label, manager, producer, distributor, etc.
It spells out who does what, who owns what, and who gets paid what.
Sounds simple? Not much so.
A lot of artists sign hype, not contracts, because that paper comes with a promise, a pen, and pressure.
But once you sign, you’re locked in. And what you didn’t understand will come back around—with interest.
⚠️ Key Things to Watch Out For
Here’s what to always look out for in any music deal:
1. Ownership of Your Masters
This one is huge.
If the contract says the label owns your masters, that means they control your recordings—and they make the real money from streaming, licensing, and sync deals.
Look for who owns the master recordings now and in the future? If you anywhere that says, “in perpetuity”, that’s legal for forever-ever
2. Royalty Splits
You need to know how much you’re getting paid per stream, sale, or deal.
Some artists are getting 10% or less after the label takes their cut.
So, look out for clear percentage breakdowns for different income sources. If you see vague terms like “industry standard” or “to be discussed later”, clarify or run.
3. Advances (and the Trap Behind Them)
An advance looks sweet on the surface like a big bag upfront. But it’s not a gift. It’s a loan.
And the label won’t pay you another dime until they recoup every cent from your royalties.
As you read through, take note of the amount of the advance + what it covers (studio time? videos?). If the contract does not mention the recoupment terms, you’re not safe.
4. Length of the Deal (Term)
You need to know how long you’re tied in. Some deals last years, others go by albums or songs.
So, take note of the number of projects, not just time. Auto-renewals or “at label discretion” are subtle traps through which you may be ambushed when it’s time for you to go.
5. Exclusivity
Some contracts stop you from working with other producers, distributors, or brands—even on the side.
Ask, what exactly are you giving up control over? If the answer to that is blanket exclusivity with no end date, you need to reconsider.
6. Creative Control
Are you free to drop music when you want? Can you say no to a song the label picks?
Carefully read (and see through) the language around approvals, releases, image, and marketing. Whatever hands over full control without artist input is not good for you.
Bonus Tip: Always Get a Lawyer
Not your cousin. Not your friend who “knows contracts.” Get an entertainment lawyer—someone who understands music, rights, and royalties. Yes, it might cost, but not knowing costs way more.
And know this: contract isn’t a dream.
More often than not, it’s the test. Read it. Understand it. Question it. Because once you sign, you’re not just an artist anymore; you’re now a partner in a business.
The future ahead of you is too precious to get yourself locked into a bad deal.
So next time someone hands you a contract, don’t just ask “Where do I sign?”
Ask “Where’s my lawyer?
