By now, most serious artists that have been looking for a record deal have heard of the “360” deal. However, many people are still unfamiliar with what that means. So let me help.

A “360” deal is a situation where an artist and label can theoretically become partners in the artists career. There are a few different variations, but in concept, an artist would sign to XYZ Records (for a substantially larger advance than traditional deals), XYZ Records would then not only record and promote the artists’ new album, but would also take on the role of agent and begin booking shows, set up merchandising deals, movie/TV roles, and any other venture an artist may be exposed through from their music career. In short, XYZ Records becomes the artists 1 stop shop for total exposure. 360 deals generally let the artist keep 70% of all income derived through exploitations, and the label will keep the other 30% (This has been seen in a few cases, however this structure is so new to major deals, there is no definitive amounts [UPDATE 08/2018 – This is no longer a new model, but expected practice. A full updated article will be coming soon on how they’re structured and how you should negotiate] so if you find yourself at the bargaining table with a 360 deal in front of you, NEGOTIATE! Get what you feel your career is worth.)

Sound sorta good? Well, it can be. If done correctly, it brings the industry back to Artist Development. It only makes sense for XYZ Records to build you up as a total artist instead of a 1 hit wonder, because the bigger and more famous you get, the more money there is in it for them. And we all know that’s the bottom line.

But why 360 deals now? Simple. Your fans are not buying CD’s anymore the way they used to. In my opinion, in a few years, no one will (This was written in 2007. As of December 2009, CD sales have dropped about 30-40% since.) So how can a Record label make money selling records if no one buys them. They can’t. And they have no intention of closing up shop. Instead, they will push singles to build your career, and then cash in on you. If all goes well, it’s a win – win.

So what’s the down side? GOOD QUESTION! Although this can be a positive turn for artist/label relations, there is a dark side. A few of them. First, as an artist, you must remember, these large labels have been in business for decades pushing records/tapes/CD’s. NOT promoting artists and exploiting them as a brand. Successful artists have been paying Agents and Managers to do this. They are the ones with all the connections and know how. Don’t think that just because these Mega labels have money, they can just BUY their way in. If that was the case, they would not be in such a panic now. So are you willing to turn your career over to someone with NO experience in booking shows, working Film/TV deals, getting you your own shoes!!! And not to stereotype All labels, but we know how some have had a field day with “Royalties”. A platinum selling artist has trouble making money from these guys…what will they do when they control ALL of your income? And back to experience, Majors are about 10 years back on this little fad called the Internet. Can they really streamline themselves to stay AHEAD of the curve on new technology, let alone stay current with it? All things to think about. And of course, I’ve been declaring for years now, that the 360 Deal is coming, but not from labels. I predict you will begin to see Fortune 500 Companies getting into the business. Some of them are spending HUNDREDS of MILLIONS of dollars to advertise EVERY Year. Imagine if they can endorse an artist, who may eventually also be in Film/TV, to promote their products, and they only have to release a few albums? It’s happening. Need I remind you of the MASSIVE Live Nation/Jay-Z deal? How about TAG Body spray and Jermaine Dupri?

In either case, 360 deals will be an interesting venture to watch, and now that you know a little more about it, maybe you will know what to ask for when your opportunity comes.