360 Deal

In-Depth Explanation

A 360 deal (or multiple rights agreement) is a recording contract where a record label takes a percentage of all the artist's revenue streams, including touring, merchandise, publishing, and sponsorships, rather than just earning money from recorded music sales.

How a 360 Deal Works

Under a traditional record deal, the label only earns from record sales and streaming royalties. A 360 deal expands the label's reach into income sources that were previously the artist's alone. The label takes a cut from nearly every dollar the artist earns.

The specific percentages vary by contract and by revenue stream. For recorded music, the label typically keeps 50% to 80% (the standard record deal split). For non-record income like touring, merchandise, and endorsements, the label takes 10% to 30%. These percentages are negotiable, and the exact terms depend on the artist's leverage and career stage.

There are two main structures:

• Active 360 deals: The label takes a hands-on role across multiple income streams. They actively manage merchandising, tour routing, and brand partnerships. The label takes a higher percentage because they provide operational support, not just funding.
• Passive 360 deals: The label's role is primarily financial. The artist retains operational control over touring, merch, and branding. The label takes a smaller percentage since they are not providing day-to-day services.

Revenue Streams Typically Included

A standard 360 deal may give the label a cut from:

• Recorded music: Streaming royalties, physical sales, sync placements
• Live performances: Touring revenue, ticket sales, VIP packages
• Merchandise: T-shirts, physical goods, e-commerce sales
• Publishing: A share of the artist's publishing royalties if they write their own music
• Endorsements and sponsorships: Brand deals, acting roles, appearances

Cross-Collateralization

Many 360 deals include cross-collateralization clauses. This means income from one stream can be used to cover shortfalls in another. If an album flops but the tour is profitable, the label can apply touring income toward the unrecouped advance balance from the album. This significantly extends the time before the artist sees any royalty payments.

Real-World Example

An artist signs a 360 deal with a 20% label cut on non-record income. Over one year, they generate $200,000 across three streams:

The label collects $70,000 total. The artist receives $126,000. However, if the artist received a $50,000 advance at signing, that $50,000 must be fully recouped from the artist's $126,000 share before they receive any additional royalty payments. The artist walks away with $76,000 the first year.

Now compare this to a traditional (non-360) deal where the label only takes the standard 70% of recorded music. The label would earn $42,000 instead of $70,000. The artist keeps the full $140,000 from touring and merch. That $28,000 difference is the real cost of the 360 deal.

Why It Matters for Independent Artists

A 360 deal trades long-term income for short-term resources. Before signing one, calculate exactly how much non-record revenue you would surrender over the contract term. If you already have a profitable touring and merch operation, a 360 deal may cost you more than it returns.

Negotiate hard on three things: the specific percentages for each revenue stream, which streams are included at all, and whether cross-collateralization applies across all income sources or is limited to recorded music. Some labels will exclude touring and merch from the deal if you can demonstrate you already have strong infrastructure in those areas.

For artists with an established fanbase and existing revenue, consider alternatives like distribution deals or label services agreements. These provide funding and marketing support without claiming a percentage of your live and merch income. Read our full breakdown in What Is a 360 Deal and Should You Ever Sign One? and Types of Record Deals Explained.

Use our Tour Revenue Calculator to estimate your live income and see exactly what a 20% label cut would cost you.

Related Terms

• Advance
• Recoupment
• Record Label
• Sync License
• Master Recording