Challenges for New Musicians
In order to become a successful musician or singer, you need to develop your musical skills, but you also need to know about recording contracts, management agreements, and publishing deals. Contracts with record companies allow those companies to sell recordings and earn revenue from an artist's performance in return for royalties. A well-negotiated contract is essential to avoid exploitation and secure fair compensation (Salmon, 2007).
In order to become financially successful, musicians often have to sell CDs and book venues. To sell CDs and engage fans, artists can set up merch tables at gigs, create an online store on platforms like Shopify, and leverage email lists for personalized updates. Platforms like Bandcamp and local record stores can expand reach, while social media campaigns and Spotify integrations boost visibility and sales (Sorensen & Ingram, 2023). To book venues, musicians can start locally, use an Electronic Press Kit (EPK), and build connections with venue promoters (How to get gigs in 2024, 2023).
Engaging fans authentically on social media in increasingly important, using short-form content, live streams, and hashtags to increase reach. Consistent posting across platforms ensures fans stay connected. Examples like Ed Sheeran, HAIM, and Chance the Rapper highlight successful strategies (10 Best Music Social Media Marketing Strategies, 2023).
Recording Contracts and New Musicians' Challenges
The landscape of music has shifted in a way that can make it hard for new artists to generate revenue from streaming, which impacts their ability to negotiate fair deals, especially in recording contracts. Artists, especially newer ones, may not earn enough revenue from streaming to support their careers, often due to the terms of their recording contracts, which might not offer fair compensation. We asked Donald Woodard, a music and sports attorney in Atlanta, Georgia, about the impact of the shift from vinyl to CDs to digital streaming and how it has affected artists in terms of reaching audiences and generating revenue:
Management and Multiple Roles in Artist Representation
We asked Donald Woodard about the difference in representing emerging artists versus established ones:
New artists may lack a full support team, which can leave them vulnerable to signing management or recording agreements that might not be in their best interest, as they might rely on one person to handle multiple roles.
We asked Woodard about the key members of a new artist's team and the challenges young talent face when starting out in the music industry:
An artist’s support team provides skills and perspectives the artist will need in the long term. Lawyers know negotiating a deal will take time and thus know how to temper the client’s expectations in terms of the finalized recording contract terms. Agents and managers have contacts and general knowledge about the industry and can help the artist secure a better recording contract and succeed. However, most new artists can’t afford these personnel, so they have to wait until they have made enough money.
Music Industry and Copyright Issues
We asked Woodard about the biggest trends in the legal and transactional aspects of the music industry, and he discussed the importance of understanding the impact of AI:
We asked music attorney Lita Rosario-Richardson for her advice for new artists entering their first recording contracts:
Recording, Management, and Publishing Contracts and Their Complexity for New Artists
Based on our conversations with Ms. Rosario-Richardson and Mr. Woodard, we learned how new musicians may rush into signing recording contracts or management agreements without fully understanding the consequences, often resulting in unfair terms that benefit the label or manager more than the artist. This reflects the unfair nature of such contracts, where young or inexperienced artists may sign away more than they realize. There also are publishing deals where artists, particularly new ones, may sign away the rights to their work for immediate compensation, often at the cost of long-term earnings and control. This speaks to the exploitation that can occur when an artist does not fully understand the long-term implications of such publishing agreements.
An example of how unfair treatment can happen:
We reviewed a standard form recording contract from a small recording company. It contained the following clause:
“Royalties: The Artist shall be entitled to receive royalties as follows: [80]% of net sales revenue from the exploitation of the Product, and [80]% of net licensing revenue from synchronization, performance, and other exploitations of the Product.”
The contract promises the artist 80% of royalties from both sales and licensing, which seems straightforward and generous. But the contract does not define “net sales revenue” or “net licensing revenue,” or how those sums will be calculated and what recording company or other costs are deducted. And Ms. Rosario-Richardson warned that in modern deals, artists might initially receive a fair share of streaming royalties like 50% but could later face lower percentages, like 12%, due to royalty sharing agreements in joint ventures. So, while it looks good at first, the share can change and lower the artist’s earnings.
Ms. Rosario-Richardson emphasized the need to carefully review contracts before signing, making sure to understand every clause like this one to avoid issues down the line. Getting a lawyer to review the contract is crucial to avoid future financial problems.
Ms. Rosario-Richardson also stressed that artists should aim to maintain creative control over their music and image, including music videos. Creative control is something artists should be aware of and negotiate for, especially if the initial version of a contract doesn’t mention it, in order to ensure they have a say in their brand and public image, rather than being controlled by the label’s vision. This can help preserve their career and relevance over time.
Eric Taft is an accomplished producer, engineer, musician and songwriter. While as a student at UMBC, he mixed records in his dorm and produced music for other artists. In 2010, he founded his music recording studio, Buzzlounge, which is now located in Columbia, Maryland. He has worked with many established and rising stars such as Depeche Mode, Plain White T’s, and Underoath, and continues to help other rising stars become successful. Taft also writes and performs with Baltimore pop-rock band “The Great Heights Band.”
We asked Mr. Taft what sets successful new artists apart in such a competitive field. He thinks it’s important for artists to be authentic, referencing Chappell Roan and Billie Eilish:
Mr. Taft shared his experience working with a music lawyer during a record deal, whose expertise not only helped him understand the terms but also guaranteed that he wasn’t taken advantage of:
Mr. Taft shared some ideas new artists should consider when presented with a recording contract:
Signing with a label can provide access to industry connections and promotional opportunities, but Mr. Taft also emphasized the trade-offs, including loss of creative control over the artist's music.
Donald Woodard explained how new musicians often face the risk of signing unfair recording contracts that could strip them of important rights, such as music and publishing rights, in exchange for minimal upfront payments. Low low-paying offers might appeal to new artists but can lead to loss of music rights, 360 rights, and publishing rights, limiting their control and income.
Conclusion
The music industry can be tough for new artists, especially when dealing with contracts and rights. Donald Woodard and Lita Rosario-Richardson highlight the risks, like unfair terms and not knowing about intellectual property, showing how important it is for artists to get legal advice.
Eric Taft’s journey shows that hard work, flexibility, and focusing on talent can lead to long-term success. His work with both up-and-coming and established artists proves the value of artist development.
These experts stress the importance of smart decisions, good representation, and ongoing learning. New artists can use their advice to better protect their creative and financial futures.
References:
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3. Salmon, R. (2007, April). Recording Contracts Explained. Recording contracts explained. https://www.soundonsound.com/music-business/recording-contracts-explained
4. Sayana. (2023, January 19). Beginner’s Guide to Performing Rights Organizations (pros)- blog. Splice. https://splice.com/blog/performing-rights-organizations-guide/
5. Sorensen, S., & Ingram, A. (2023, June 29). 7 effective ways to rock your CD sales. Atomic Disc. https://www.atomicdisc.com/blogs/news/7-effective-ways-to-rock-your-cd-sales#:~:text=Approach%20independent%20record%20stores%20in,that%20sell%2C%20reducing%20their%20risk
6. Tsioulcas, A. (2019, May 23). Not bitter, just sweet: The Rolling Stones give royalties to the verve. NPR. https://www.npr.org/2019/05/23/726227555/not-bitter-just-sweet-the-rolling-stones-give-royalties-to-the-verve
7. 10 Best Music Social Media Marketing Strategies in 2024. RSS. (2023a, January 12). https://dittomusic.com/en/blog/10-best-music-social-media-marketing-strategies