In the “glory days” of the recording industry (i.e. after Elvis, before the Internet), there was a very common type of deal offered by record labels called the Artist Development Deal, sometimes known as a “Demo Deal”. The idea was fairly simple: if a label liked you but didn’t want to commit fully with a record deal, they’d offer you an Artist Development Deal. I like to think of them as the ‘promise ring’ of the music industry: a commitment, but not taken seriously by anyone outside of the relationship.
What is an Artist Development Deal?
In theory, the Artist Development Deal was the best of both worlds for the artist: the commitment of funds and development from the label, without signing away your soul. However, there was often more to these deals than meets the eye. The deals often gave a significant cut to the label on live and publishing revenues, often involved horrible royalty payouts, and many times included a right of first refusal clause that made the commitment as significant as a full recording deal, without all the perks. Kind of like a promise ring with the consequences of an engagement ring.
These deals still exist, but the entire artist development infrastructure has changed. Long story short: the major labels are no longer paying for artist development. But who is? For the most part, artist development has fallen on artists, and record labels only become interested when an artist has built up a major following both on and offline. But there is a whole new industry emerging in the area of artist development, led by young entrepreneurs, small businesses, and music fans, as opposed to multinational corporations. In other words, the “new” Artist Development Deals are coming from startups trying to build a legacy, rather than protect one.
What does an Artist Development Deal look like in 2019?
The new Artist Development Deals range from mutually beneficial and artist-friendly to downright exploitative. What they have in common is the investment of time and resources by the ‘developer’ in the short term, in exchange for a piece of the artist’s revenue streams in the long term.
Here’s an example: in exchange for “developing” the artist for the next 3 years, the developer will be entitled to 15% of all revenues generated during the term, and 10% of all Sunset Revenues earned over the 10 years following the term (known as the “sunset period”). Sunset Revenues are defined as gross revenues earned during the sunset period from all master recordings and compositions recorded/released during the term, as well as revenue earned from all deals negotiated during the term but received in the sunset period (including sponsorship and endorsement deals).
What are the Pros and Cons of an Artist Development Deal?
One of the advantages of signing an Artist Development Deal is obvious: the developer should open up doors that otherwise would be closed, such as providing industry contacts, booking shows, helping develop your live show, song writing, image, and brand generally.
A clear disadvantage of the Artist Development Deal is that the revenue pie gets split further, so each band member earns less. If you sign with a manager or record label or publisher, the pie gets divided further. Now, you need all of these additional parties at some point in your career, so it’s a question of ‘when’ rather than ‘if’, whereas not every artist needs the help of an artist development team.
So that is the real question you need to ask yourself: to what extent can the developer truly “develop” your career? What are they offering that you cannot already do yourself? If self-managing isn’t something at which you and your band mates excel, you will benefit more from an artist developer, and sooner rather than later.
As always, email me with questions and comments.
108 Responses
Like what your doing here, just read “Fortunate Son” John Forgarty/ CCR. Think of the body of work he could have given the world if he had proper legal support at the start.
Thanks Gerry. I haven’t read that book but have been meaning to. And you make a great point: so many legends could have done so much more with proper help from the outset. Thankfully, Fogerty made it through the tough times to come out on top.
Kurt Dahl
Entertainment Lawyer
Can a rwcord company legally sign an artist to a recording/managment contract or is that a confkuct of interest?
It can happen and does happen often. But you want to minimize the conflict by having checks and balances in place. A good lawyer can help ensure that this is the case.
Kurt Dahl
Entertainment Lawyer
I have a few questions…i was just approached by a record label and hey said something about an artist entry pass…i need to kniw if i am being duped
Email me with what they’ve sent you, thanks
Kurt Dahl
Entertainment Lawyer
I have the same problem
Hallo my name is Kevin I live in Belgium. I was offered an development deal and in the deal they told me I have to pay if I signe the deal. My Question is do u really have to pay for development deal ?
Hi Kevin,
I’m always leery of development deals where you have to pay a sum, of any kind. They should be similar to a management deal, where they only earn if you earn, i.e. a percentage of revenue generated.
I hope this helps.
Kurt Dahl
Entertainment Lawyer
My son’s band was recently contacted by someone in LA who is interested in managing them along with A&R. We were excited, especially when we found out he’s worked with some known bands and industry people. After asking several times, he finally told my son it would cost them $300.00 per month. That didn’t sound right to me. Thanks for your comment on this thread.
Hi Susan,
I’m always suspect of monthly fee arrangements, but at least the amount in question is low. I highly recommend that something be put in writing, or if they’ve sent you a contract, that you have it reviewed. Email me at kdahl@murphyandcompany.com and we can discuss further. Happy to help, and I work with deals like this all the time!
Kurt Dahl
Entertainment Lawyer
$300 is cheap. What happens is that your son and his band could end up paying out more on the back end if services are not paid for upfront. Remember that an Artist Development Deal can be negotiated from month to month or short term. No one forces you to stay in Artist Development. Also what a lot of people need to consider as well as respect is that Artist Development costs. Why should it be the full financial burden of the developer to help you achieve your dreams. Your dream, their efforts and most times their money as well. It doesn’t balance out well for the developer if you decide you don’t want to do this anymore (entertain). It doesn’t balance for the developer if you don’t put into practice what you’re being taught, that effects their rep. It doesn’t balance for the developer if you get signed and pretend that you don’t remember the services rendered to you all of a sudden. For you to assume that you shouldn’t pay a service fee is disrespectful to those who are flawless developers and churn out some of the best talent you’ve seen thus far.
I am a man with very good original material. I am also an attorney, though I am clueless as to what I should do to further my music career. I want to proceed to at least a demo, but I am unable to self fund. I live near Nashville, and I play out as often as possible. I have great musicians willing to work with me based on my facebook videos. I have a showcase (covers) as well as many of my own songs. I know that music is my future. I just do not know where to begin. Any advice? My email address links to my fb profile if you care to check my material. Thanks
Thanks for your comment Michael. Please feel free to email me some originals to check out. Living near Nashville surely helps, as so much exciting stuff is happening there at the moment. I know some good people there, lawyers and otherwise, who might be worth connecting with. Email me for starters.
Thanks
Kurt Dahl
Entertainment Lawyer
Is it common for a major label to offer a 360 deal with a big signing bonus but charge an amount for artist development that has to be paid before you sign the contract ? (Virgin records)
Hi Rob,
I’m always suspect about Artist Development Deals that require a fee to be paid by the Artist. If you’re not making money, neither should they.
Email me to chat further.
Thanks
Kurt Dahl
Entertainment Lawyer
Hi Rob,
We have the same situation with the same label. Did you sign the and pay for the Artist Development?
I would suggest you get legal advice on the deal no matter what Sheila. From an entertainment lawyer. Please email me if you’d like me to help.
Thanks
Kurt Dahl
Entertainment Lawyer
I have been looking into artist development deals and found a few in my area that I’m interested in. However, the one that I am leaning towards requires $25.00 for the initial consultation. I don’t mind paying if it is a legit company but I was curious if this was standard? The company has a good overall rating on various sites but I’m still anxious about giving them any money. Does this sound like a scam?
I’m usually suspect about fee for services deals, but $25 is nominal. Feel free to send me the contract to review.
Thanks
Kurt Dahl
Entertainment Lawyer
Hi. Within the next year I was wanting to open an artist development company, but the way you have it described here makes me second guess my plans. I think maybe my vision of what I want isn’t tangible after reading this article. I am only in the beginning stages of this, but am wondering if you could answer a couple of questions, via email, in your spare time.
Definitely Paige! There are many successful and cutting edge artist development companies out there, many are my clients. So it’s definitely doable. Email me to chat further.
Thanks
Kurt Dahl
Entertainment Lawyer
Hi guys i am professional singer/songwriter with as very good relationship with the BBC and having done all this on my own so i know where my path lies. However, after good success on the radio i have two managers, one of whom i know really well through childhood and the bother who knows a thing or two about the music industry having worked there before, they approached me and i’m in a deal paying a lump sum a month for their services to develop my career and manage however i feel after paying over a grand already that they actually aren’t doing anything i could have done myself and are just using money to set up their own business and benefit themselves as i seem to be out of pocket all the time with no resources to expand my music catalogue, photoshoots, promotional material as i have given money to them and i fear i have made a mistake because they saw success and jumped at it. i also have had no shows for nearly a year and have a big show next month which will definitely open doors but again i feeel its me who has paid for thew budgeting of the show as i have received nothing as of yet from my investment
Sounds like you need to have a serious conversation with these managers, and perhaps stop paying the monthly fee until they can provide certain deliverables.
Thanks,
Kurt Dahl
Entertainment Lawyer
I have a couple of artists who I believe have the talent to “make it”. I am willing to commit my time and money to make this happen. However, I need to make sure that I will get paid for my services.
What type of deal should I get them to sign?
Hi Darrell,
Either a management deal or an artist development deal. But the “fairness” of both really depends on what’s included in the agreements. If you’re in Canada or the US, I can help. Email me for more.
Thanks,
Kurt Dahl
Entertainment Lawyer
Hi, Should I pay the $2,900.00 fee for 4 to 5 months of artist development with Capitol Records? They want me to send the money before. They fly me out to Los Angeles to meet with them. Does this sound right?? Thank you in advance for any advice offered.
Email me and we can discuss further. I am always wary of rushed deals like this.
Thanks
Kurt Dahl
Entertainment Lawyer
Brandi on November 15, 2017 at 11:02 pm said:
This is what we are experiencing currently with the same company. Can you tell me if this worked out for Brandi?
Hi, Should I pay the $2,900.00 fee for 4 to 5 months of artist development with Capitol Records? They want me to send the money before. They fly me out to Los Angeles to meet with them. Does this sound right?? Thank you in advance for any advice offered.
Hi Sonya
I keep seeing this Capitol Records Artist Development Deal. And that’s not a good thing. I don’t think it’s legitimately affiliated with Capitol but do your due diligence.
Kurt Dahl
Entertainment Lawyer
Hey! I’ve gotten an artist development deal from Virgin Records here in Los Angeles, but I am very weary as I need to pay $3900 initially for a 5 month contract, and they want me to sign the contract before I meet with them/fly me out to New York to execute the deal. I’ve seen some similar stories in this comment section, so I’m just curious if this is a legit deal or something I shouldn’t move forward with?
Hi Taylor,
I would have to see the full agreement, but it definitely raises some red flags. Firstly, make sure it’s actually Virgin and not an imposter.
Thanks
Kurt Dahl
Entertainment Lawyer
Good afternoon my son was approached with the same type deal from supposedly someone from Capitol also I don’t have a good feeling what’s your thoughts???
Depends on the deal! I’ve seen some deals recently that have the Capitol logo but are complete fakes. Be careful.
Kurt Dahl
Entertainment Lawyer
Hello Kurt,
I wanted to ask you where I can get contracts for Artist Development deals for someone like me who is starting out?
Hi Christopher,
You would have to contact a trusted entertainment lawyer in your area. I wouldn’t trust generic agreements that are pieced together on the Internet. You get what you pay for with these sorts of things.
Thanks
Kurt Dahl
Entertainment Lawyer
Hello Kurt
My son is doing his first showcase on Saturday April 21st and the production company really like his music and reach out to him to get on the ticket. They say this could lead to a deal. He writes all of his lyrics and this could lead to a deal. I don’t want him to sign anything with out have the contract looked at by someone with the legal ability to explain everything. Is there anything he should look for or questions he should ask. I do see that you are very cautious about the artist paying the fees.
Hi Kim
I would send the agreement to a trusted entertainment lawyer, as there are dozens of factors to consider and weigh against each other before making a decision.
If you’re in Canada or parts of the US, I’m happy to help.
Thanks,
Kurt Dahl
Entertainment Lawyer
I’ve had an underground rap label coming out of new York called 6017 productions offer me an artist development deal and live performance!! Is this normal? Should I take it??
That all depends what’s in the deal my friend!
Kurt Dahl
Entertainment Lawyer
Did you take this deal? They are offering me something similar and it sounds fishy. The cost is cheap to get an artist manager but they won’t clarify what they have to offer in advance.
Hi, I recently was sent an Artist development contract from Captiol Records . I’m seeing obviously there’s a scam going on but the email checks out . I’ve been in contact with who I believe to be David Wolter but never saw his face. Now I’m wondering should I even sign this contract . They also was asking for a fee which is understandable. I just need to know if this is real .
I’ve seen a lot of scam Capitol Records deals in the last year. Be careful on this one and don’t sign anything until you meet someone in person and have obtained sound legal advice. Best of luck
Kurt Dahl
Entertainment Lawyer
This is the same scenario we are faced with. Was it legit?
So was this real cause I’m talking to someone saying they David Wolter from Capitol Records i’m worndering what happened to you was it real.
I am a female artist looking to go independent or network for a good deal any connections in ohio
Try Safe House Music Studios in Dayton, Ohio.
will a development deal be a conflict of a record deal?
will the development deal be a conflict of a record deal?
Not sure the question here
Kurt Dahl
Entertainment Lawyer
How does a Artist Development Deal work with someone who is underage? Should they get a legal guardian to co-sign it or can they sign the deal alone?
Yes, a parent/guardian would have to guarantee the performance of the minor
Kurt Dahl
Entertainment Lawyer
My son is an up and coming rapper. He an email with a declaration of interest attached. In it it says that he/my son would pay $300 for an Artist Pass Entry. A supposed $850,000 deal, 80% sales of his music, an apartment, a car and so on. I’m not to sure about this. I don’t think this is legitimate.
Sounds sketchy Mrs. Montgomery. Email me the deal and I can provide more detail there.
Kurt Dahl
Entertainment Lawyer
Hi I just recieved the exact same deal for an artist I manage…. From a guy at Afro Music…..
Hey I actually received the same exact declaration of interest.. stating that I would an 850k advance… a car..and also 80% of sales… and it seems sketchy to me… but by chance what was the name of the label that contacted your son ?
Hi, my 17 year old daughter has been contacted by an Artist Development Comp In fact, several. The company is out of Nashville. As parent we think she is awesome but not sure if these folks are legit. They have requested a few of her originals and some covers she has done. They would like us to drive up to Nashville this January. Before getting my kids hopes set too high, I just want to be sure this is right. Any advice?
Thanks
Hi Jill,
Do as much research as you can on the company, including reaching out to past and current clients. Do research online. Ask them questions and see how they respond. And when they send an agreement, send it to me.
Thanks
Kurt Dahl
Entertainment Lawyer
Hi do you mind if I send you over the contract that David Wolter has sent over?
Sure Zoey, please do
Kurt Dahl
Entertainment Lawyer
Sony Record Label is interested in my music. What sign on bonus should I accept and how long of commitment to a contract
It all depends on the deal and how bad they want you! Email it to me and I can give a better opinion once I see the entire deal. Also, congrats
Kurt Dahl
Entertainment Lawyer
My daughter has been contacted by a Talent Scout by a company that “cannot be named” until she reply’s Yes to an NDA. This NDA says she will not mention the company’s name on any social media or contact any clients of this company. I saw where you told someone to contact the company’s clients to check them out. We personally know some of the people/celebrities they claim have as clients. Because my daughter replied “yes” to the NDA, she doesn’t feel comfortable contacting those people/celebs.
Does this sound as fishy to you as it does to me? Are NDA’s normal up front? I feel like they’ll ask for $$$ next. Waiting…
Sounds fishy to me. I rarely see labels/artist developers require that an NDA be signed. You should be allowed to do your due diligence about a company before getting into bed with them!
Kurt Dahl
Entertainment Lawyer
We’ve had the same experience. Just wondering how much money they asked from you up front…
Hi,
We’ve been approached by a producer to work on some new material, and he wants us to sign an Artist Development contract. He claims that the industry standard for splits is 50% of all revenue made from the master recording, or a 360 deal of 15% of all revenue (music sales, licensing, touring, merch, etc).
Does this seem right to you? We feel like we already have a well crafted product and that the only thing he would be offering us would be contacts.
Any advice would be appreciated! Thank you!
-Adam
Hi Adam
I would say that there is no industry standard these days, every deal is different. And I would have to see the whole deal, as the numbers alone aren’t everything. The fine print can make two 50/50 deals radically different. So send me the deal if you like.
Thanks
Kurt Dahl
Entertainment Lawyer
is there successful story about those established artist on demo agreement?
Kurt Dahl, thanks for this post. It has really been helpful. I met with an artist development company here. I will mail you the details of the deal when they show me. I didn’t get your email though
Hi, I’m looking to contract with an Artist Management, who I personally know, who will be providing various services such as marketing (social media, getting music on radio and radio interviews, artist development, overseeing Album project, and co-producing at studio sessions. The Management is charging $1,350 per month. Does this sound correct? I haven’t signed the contract yet and I will be seeking an attorney to review the contract prior to signing.
Thank you.
For that fee, they better be doing great work and have a great track record. Do your due diligence and research them online, looking for reviews etc. That fee is a red flag for me.
Kurt Dahl
Entertainment Lawyer
Thank you!! I sure will due my due diligence…
i have a 10 yr old daughter who sings and was asked about doing a artist development deal and everything will be split 50/50 is that a good deal or what should i be looking for because i dont know anything about record contracts or the industry
I’d have to see the deal Shona! So many factors at play. Email it to me
Kurt Dahl
Entertainment Lawyer
Great post. So are there good Artist Development deals out there and what do they usually look like? I’m guessing you have reviewed a few in your day!
There are some good ones for sure. It really depends on the terms and the length of term etc. A lot to discuss in terms of what a good one looks like, but they are indeed out there.
Kurt Dahl
Entertainment Lawyer
Really great article definitely helped answer some questions I have. I was recently referred to a music consultant/A&R. They’re charging me $10,000 grand for development services. I’m trying to figure out the legitimacy of it. The whole thing seems very casual, but the individual appears 100% legit. Just wondering are these deals usually signed on paper? Are any agreements Usually drafted?
Yes, always put it in writing especially with that amount of $$. Ask them for an agreement, or have an entertainment lawyer draft something up. I might be able to help. Email me
Kurt Dahl
Entertainment Lawyer
Hello Kurt,
I manage my daughter along with other producers and artist’s. My daughter recently was confronted bt Diamond and Platinum Chart braking Producer and Engineer . He said that my daughter is for sure a arist to make it, and he wants to be involved. We have
Recorded about 7 songs and i was approached by text stating the next time we meet it would be a developmental agreement for us to sign, so we can yake things to another level. However at the beginning i was told that we would split 50/50. What is it that i should be expecting to see in this agreement.?
Exciting Chanel. For me to put down what you should expect in the agreement would take all day to write, and I’d likely be wrong. So why don’t you send it to me once received and we can have a phone call. Good luck!
Kurt Dahl
Entertainment Lawyer
I got an message stating something about an artist entry pass for 300 and the management taking care of the flight and hotel. Is this customary or a scam?
I’d have to see more but sounds fishy James!
Kurt Dahl
Entertainment Lawyer
Hello. I’ve been contacted by a big, legit label which almost has a monopoly on what music becomes successful in my country. They have heard some of my covers and are interested in working with me. It’s all early stages and all but they’ve sent me an example Artist Development deal to look over, as well as a songwriter deal (I haven’t sent them any official demos of mine yet). One thing that worries me is a part of the deal where it says that after the end of the development deal I won’t be able to record the songs made during the deal for anybody else but them for five years, and also that during the deal they have full rights to say what I do and don’t release creatively. Is that normal in such deals? Will I be able to use my music again after the deal if I sign it? Thank you in advance
A “re-recording restriction” is quite common but I would have to see the rest of the deal for context. Feel free to email it to me!
Kurt Dahl
Entertainment Lawyer
Forgot to mention, the length of the time of the example deal is three years long.
Hey Kurt,
My name is Omar and recently my Instagram began to catch a lot of traction, meaning tens of thousands of impressions in just a week. Recently I was approached by two claimed managers for capitol records they dm’ed me claiming that they had a proposal for me, which would be a “temporary contract” from 14-21 days that could potentially turn into a real contract if performance went well. I get an email tomorrow from them with full contract details. Can you check over it my email is in this bio. I have a cousin who works for we create music group and said he would look over them and look into it, but I figured it would also be good if you were able to look at it.
Thanks,
Omar Pasha
I’ve seen a lot of scam agreements from Capital Records in the last two years – so beware!! Send to me and I can send my thoughts, but my guess is that the deal requires YOU to pay THEM not the other way around, which of course is a red flag.
Kurt Dahl
Entertainment Lawyer
Hi Kurt, I have been working with a young artist for almost 5 years now and he has greatly developed with me, and benefitted from me, and we have a verbal agreement that we will always be a team even after stardom has been reached. He has never paid me for my many services as a producer, promoter, developer, and manager. We want to take things to the next level and make sure we are doing things legitimately. If any label becomes interested in working with just the artist, how can I protect my investment-to-date? What contract may be right for this situation?
Thanks for reaching out Kev and thanks for emailing me, glad to be working with you
Kurt Dahl
Entertainment Lawyer
Hi, would it be alright if I sent over a message that a small production company sent me just to verify legitimacy?
You bet Maxamo, please send over
Kurt Dahl
Entertainment Lawyer
Bentley Records would like to offer you our signature Artist Development Platform™ Deal. What does this mean
Well, send me the deal
Kurt Dahl
Entertainment Lawyer
Can I get the info about that Bentley records deal aswell
Hi so Around December of 2018 I signed a contract with a producer for an artist development deal stating we would have the album done by March of 2019.. Didn’t happen. We paid him an initial deposit and there were other deposit dates needing to be made up until the album is finished in “March” Never happened and we paid him in full. For “Studio” Time the contract states he will help structure the songs I have written as well as write new ones with me. Hasn’t happened, He has sent me a couple demos and I wrote to them and sent the back to him and nothing has been done further. I have a solid 2 songs that aren’t even done but recorded and it’s 2021. I am a solo artist and play guitar and write and he needed me to get all of the pre production stuff done on my own that wasn’t in the contract? I was looking to him for help and that’s what the contract says. The beginning of last year I ended up giving him another $7500 because we “Need more studio time to finish the record” I was in the studio once all year of 2020. I don’t know what to do. I’m 24 and feel like I’m wasting so much time.
Hi Hanna. Sounds like you need to hire a lawyer in your area to communicate with this producer, as this doesn’t sound right.
Kurt Dahl
Entertainment Lawyer
Hi there, I was offered Artist Development Deal by Bentley Records with a one time access fee of $300. I need an advice on this because my music’s already doing good numbers on all music platforms. I produce, mix & master all my songs then I write all my songs and promote them all by myself, which I enjoy doing… I distribute via UnitedMasters, I really don’t know if it’ll be worth it to sign this deal or sign a major deal all by myself where they pay me instead. The question is, as an unsigned/independent Artist that knows what he’s doing, do I really need Artist Development deal for my music career?
Don’t sign it! Bentley Records seems like a complete scam to me, based on what I’ve seen!
Kurt Dahl
Entertainment Lawyer
Hey I got the same offer from Bentley any updates ?
Hey I got the same offer from Bentley any updates ?
Was offered an artist development platform deal from Bentley Records. There is a $299.00 fee. My music is already on major internet platforms such as Spotify, Amazon, Pandora etc. I do need help with booking shows/touring and,having more followers/fans. Bentley Records proposal to me is offering a lot of good things that could help but not sure if this company is legit. I have Google the company but have not seen any negative reviews.
Don’t sign it!! Everything I’ve seen from Bentley Records is incredibly sketchy. It seems like a scam to be honest.
Kurt Dahl
Entertainment Lawyer
What are your thoughts on online artist development programs? Are they worth it? Are they helpful for young artists? There’s one 3 month program- $5250 that covers music production, launching your career, songwriting, networking, marketing, weekly coaching from mentors/coaches/producers, etc, etc. It seems costly to me.
It 100% depends on the program. Some are money grabs. Some are great. But you’re right, many are very expensive so do your due diligence and send any questions to me.
Kurt Dahl
Entertainment Lawyer
So I am a singer/songwriter and I was reached out to by AHM Media To be taken on as an artist in development. It sounds like a great oppurtunity to open doors in the industry as Ive been looking for such platform to build from. However he wants me to sign a contract agreement between himself the producer and myself the artist, furthermore he wants to charge me about 3 thousand dollars for the production expenses. At the end of the 4 month development I will record the song in a studio in LA to be mixed/mastered/edited. I’m super excited and optimistic about it as I have been in speaking with him over the phone about the deal however is this the way into the industry? Should I be paying all this money? Is paying my way to open doors and get recognition/help/production team the only way? I would love some direction to steer me in the right way and help me make the best choice for this big decision. Thanks!
I would have to see their agreement as the devil is in the details!
Kurt Dahl
Entertainment Lawyer
I received a artist development deal from Bentley Records and I have to pay 199.00 upfront one time fee and the contract is for 1 year I’m a little leary can you please give me advice
I have seen their deal dozens of times! To be honest, it’s a scam. Do not send them money.
Kurt Dahl
Entertainment Lawyer