Before You Sign Anything: The Questions to Ask
A plain-language checklist of questions every independent artist should be able to answer about an agreement before signing it.
Key takeaways
- Know exactly which rights are granted, and whether they are assigned or licensed.
- Term, territory and reversion decide how long a decision follows you.
- Understand advances and recoupment before you count any money as yours.
- Read the agreement as written, not as it was described to you.
Excitement is not a review process
An offer feels like validation. That is exactly why it deserves a slow read. An artist should understand the agreement before celebrating the agreement.
This guide does not tell you whether to sign. It gives you the questions that a careful artist — and their attorney — should be able to answer about any music agreement.
What is being granted?
- Which rights does this agreement cover: masters, publishing, name and likeness, merchandise, live income, or something else?
- Is it an assignment (ownership transfers) or a license (permission to use)?
- Is it exclusive or non-exclusive?
- Does it cover only these songs, or future songs too?
For how long, and where?
- What is the term? Is it a fixed period, a number of releases, or tied to recouping money?
- What is the territory? One country, or the world?
- What happens to the rights when the term ends? Is there a reversion of rights to you?
Where does the money go?
- Is there an advance? Is it recoupable, and from which income?
- What costs are charged back to you before you see royalties? This is recoupment.
- How is your share calculated, and from what amount — gross receipts or net after deductions?
- How often will you receive statements, and can you audit them?
Does it reach beyond music sales?
Some agreements share in income from touring, merchandise, endorsements and other activities. These are sometimes called 360 deals. They are not automatically bad, but you should know exactly which income streams are included and why.
What does the other side actually do?
- What specific services, budget or support are committed in writing?
- What happens if those commitments are not met?
- Who is your day-to-day contact?
Can you leave?
- What are the termination rights for each party?
- What happens to unreleased music if the relationship ends?
- Are there key-person clauses or options the other side can exercise to extend the deal?
The final question
If this agreement went exactly as written — not as described in the meeting — would you still sign it? If you cannot answer, you are not ready to sign. Bring it to a qualified music attorney before you do.
Do this now
- Download the Before You Sign question list and keep it with any offer you receive.
- Write your answers in your own words; gaps reveal what to ask your attorney.
- Never sign the same day you receive a long agreement.
Common mistakes
- Signing because the opportunity feels urgent.
- Ignoring what happens when the agreement ends.
- Relying on verbal promises that are not in the contract.
Free tool
Before You Sign: Question List
The questions to answer about any music agreement before signing it.
Terms in this article
- 360 Deal
- An agreement in which a company shares in income beyond recorded music sales, such as touring, merchandise, endorsements or publishing. Which income streams are included varies by contract.
- Advance
- Money paid to an artist before royalties are earned. Advances are often recoupable, meaning they are repaid from the artist’s future royalties before the artist receives further payments.
- Exclusive License
- Permission to use a right that only the licensee may exercise, often excluding even the owner, for the term and territory stated.
- Recoupment
- The process of a company recovering advances and certain costs from an artist’s royalties before the artist receives further payment. Which costs are recoupable depends on the contract.
- Reversion
- The return of rights to the original owner after a set period or under specified conditions in an agreement.
- Term
- How long an agreement lasts. A term may be a fixed period, a number of releases, or tied to conditions such as recoupment.
- Territory
- The geographic area in which rights granted by an agreement apply.
Sources & further reading
Written by
Al WestFounder, Masterpiece Recording Group
Al West is an independent recording artist, author and speaker, and the founder of Masterpiece Recording Group. He writes The Masterpiece Artist Blueprint from the perspective of an artist building his own label infrastructure — releasing music on his own platform, selling directly to listeners and documenting what he learns about ownership, money and audience along the way.