MUSIC BUSINESS
KNOWLEDGE IN ADVAN FINE PRINT AND GET A F W
ith all the legitimate criticism of record deals we’ve heard in recent years, advances have gotten a bad rap. They aren’t the kiss of death for an artist; when done right, they can benefit your career. “Advance” shouldn’t be a dirty word, though as a music professional, you owe it to yourself to learn what makes an advance helpful versus shady. Not all advances are created equal. Advances can be helpful tools when they’re the right fit for what you want to accomplish as an artist. But you often need a scalpel, not a chainsaw. You can tell what tool you’re being handed by looking closely at your agreement. Whether from a music company or a finance company, advances generally come with all types of fine print. That’s not bad in and of itself; agreements are complicated because life is complicated. Fine print demands close reading, and you should never be afraid to negotiate. I’ve worked as a producer and in finance, and I’ve seen a lot of contracts. I’m going to share some of the basics of how advances work and what you should look out for before you sign for one. Below are three crucial questions to focus on, as you look through that contract. Who’s actually giving me the advance? Sometimes you’ll look at your contract and see something interesting: The distributor/platform offers the advance under a separate financing company using their brand name, like “Distributor Capital, LLC.” Why do you care? Now you have two contracts with two different companies, one for distribution and one for the advance. And what happens if the distribution company or platform tanks? That separate finance company, run by people you do not know, will continue to control your music and royalties. It may be nearly impossible to get them on the phone if you need help or have concerns. You want to know who you’re dealing with. You’re offering them extensive access to your assets and your creative life. You may not want to go through with the deal if you can’t have that assurance.
14 JUNE/JULY 2021 PERFORMER MAGAZINE
