Record Label Deal Types: From 360 to Distribution Deals

Signing a record deal can be a game-changer for a music career—but not all deals are created equal. Understanding the different types of record label agreements is essential for negotiating fair terms, maximizing revenue, and retaining control over your music.

From comprehensive 360 deals to simple distribution agreements, this guide breaks down the key deal structures, their revenue implications, and what to consider before signing.

Types of Record Deals

Record label agreements typically fall into four main categories, each with unique benefits, risks, and revenue structures.

1. 360 Deal (Multiple Rights)

Overview: In a 360 deal, the label participates in nearly all of the artist’s revenue streams—not just recording royalties.

Revenue Participation Includes:

Typical Split: Labels often take 15–30% of non-recording revenue, in addition to standard recording royalties.

Pros: Labels provide significant upfront investment and resources across multiple areas of an artist’s career. Cons: Artists sacrifice a substantial portion of income outside music sales, which can reduce long-term earnings.

2. Traditional Record Deal

Overview: The classic model where the label funds recording and owns the master recordings.

Key Features:

Pros: Provides financial support for recording and access to professional marketing and distribution. Cons: Artists often earn less until the label recoups costs, and creative control can be limited.

3. Licensing Deal

Overview: The artist retains ownership of their master recordings but licenses them to a label for a set period.

Key Features:

Pros: Artists maintain control of their masters and can negotiate favorable royalty percentages. Cons: Less upfront funding and limited label support may require the artist to handle some marketing themselves.

4. Distribution Deal

Overview: The label handles distribution only, without taking ownership of the recordings.

Key Features:

Pros: Maximum revenue retention and ownership of masters; ideal for independent artists with marketing capability. Cons: Requires more self-management and financial responsibility for promotion and campaigns.

Choosing the Right Deal

Selecting the best record deal depends on several factors:

Career Stage: Emerging artists may benefit from 360 or traditional deals for funding and support.

Control vs. Revenue: Licensing and distribution deals offer higher income retention but less financial support.

Long-Term Goals: Consider ownership of masters, creative control, and potential for future earnings.

Support Offered: Evaluate marketing, tour support, and publishing administration included in the deal.

Use our Streaming Royalty Calculator to model how different royalty percentages impact your potential earnings. This can help you make informed decisions before signing any contract.

Key Takeaways for 2026

By understanding the nuances of each record deal type, artists can make strategic decisions that balance support, creative control, and long-term revenue potential.