# Record Labels & A&R 101

*A practical primer for artists and managers on how labels work, what A&R actually does, how deals are structured, and how to get and pitch a deal. US-focused.*

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## What a record label actually does

A label's core job is to **fund, release, and grow recorded music** and to take a share of the revenue in return. In exchange for money and services up front, the label owns (or controls) the master recordings and recoups its costs before the artist sees a profit share.

A modern label typically provides some mix of:
- **Funding** — recording budgets, advances, marketing spend.
- **Distribution** — getting the music onto DSPs (Spotify, Apple, etc.) and into physical/retail where relevant.
- **Marketing & promotion** — playlist/editorial pitching, press, radio, paid ads, content.
- **A&R** — finding talent and shaping the creative product (see below).
- **Infrastructure** — metadata, accounting, royalty processing, rights administration, sync teams, sometimes touring/merch support.

The trade-off is ownership and control. The more the label invests, the more they typically own and the longer they control the masters.

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## Major vs. Indie vs. Distribution deals

### Major labels
The three majors (Universal, Sony, Warner) and their many imprints. Deep pockets, global reach, radio/press machine, big sync and playlist relationships.
- **Pros:** large advances, serious marketing budgets, global priority push potential, industry weight.
- **Cons:** you're one of many priorities; long contracts; you usually give up master ownership for a long term; harder to get out; lower royalty rates than you'd keep going independent.

### Independent labels
Everything from well-funded indies to boutique genre labels (very common in electronic/house/tech-house). Smaller, more focused, often genuinely passionate about the lane.
- **Pros:** more attention per artist, faster decisions, genre credibility (huge in dance music — the right house/tech-house imprint is a tastemaker stamp), often better splits and shorter terms.
- **Cons:** smaller budgets, less radio/mainstream reach, variable professionalism.

### Distribution deals (and label services)
You keep ownership of your masters; the company provides distribution and optional marketing/services for a fee or a smaller revenue cut.
- **DIY distributors** (e.g., DistroKid, TuneCore, CD Baby): flat fee or small cut, you keep masters and most revenue, no marketing — pure pipe to DSPs.
- **"Distribution+" / label-services** (e.g., the indie-services arms of larger distributors): they take a percentage and add marketing, playlisting, advances, and sync support while you keep ownership.
- **Pros:** retain masters, higher long-term upside, flexibility.
- **Cons:** you fund and drive most of it yourself; less institutional muscle behind a release.

> **Rule of thumb:** the more you need money and reach *now*, the more ownership/control you trade. The more you can self-fund and build traction, the more leverage you keep — and the better any future deal gets.

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## What A&R does (Artists & Repertoire)

A&R is the talent-and-creative function of a label. Two broad jobs:

1. **Finding talent (the "scouting" side)** — discovering artists, songs, and producers worth signing. Modern A&R watches streaming data, social momentum, DJ support/charts (Beatport, Hype Machine, 1001Tracklists in dance), live draw, and word of mouth.
2. **Developing the product (the "creative" side)** — helping shape the music and rollout: song selection, identifying singles, pairing artists with the right co-writers/producers/mixers, sequencing a project, advising on which records to release and when.

A good A&R is part scout, part creative producer, part internal champion who fights for the artist's budget and priority inside the label. A&R is who you're usually trying to reach when you "pitch a label."

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## Deal structures — the key terms

### Advance
Money paid up front. It is **not free** — it's recoupable (the label earns it back out of your royalties before paying you more). A bigger advance often means a worse royalty rate and/or longer term. Think of it as a loan against your future earnings that you repay only out of your share.

### Recoupment
The label keeps your royalty share until it has recovered its recoupable costs (advance, sometimes marketing, video, etc.). **Recoupment ≠ ownership** — even after you recoup, the label usually still owns the masters. Until you recoup, you typically don't see royalty checks beyond the advance.

### Royalty points / rate
Your share of net recording revenue, historically expressed in "points" (e.g., 15–20 points = 15–20%). Streaming-era deals are often expressed as a percentage of net receipts (commonly ~20–30% on indies, sometimes 50/50 on services/distribution-style deals). Higher rate = better long-term upside.

### Term & options
How long the deal lasts, often expressed in "albums" or release cycles, with the **label** holding options to extend. Watch for long terms with one-sided options.

### Territory & rights
Worldwide vs. specific territories; which rights are included (masters only, or also publishing, neighboring rights, etc.).

### 360 deals
The label takes a cut of **non-recording income too** — touring, merch, brand deals, sometimes publishing. Common at majors. Justified by the label investing in your whole career, but it means giving up a slice of revenue streams the label may not directly build. Negotiate which streams are included and the percentages carefully.

### Other terms to watch
- **Master ownership vs. license** — do they own forever, or does it revert to you after a term?
- **Reversion** — masters return to you after X years; very valuable, push for it.
- **Cross-collateralization** — recouping one project's costs out of another project's earnings; try to limit it.
- **Creative control & release commitment** — will they actually release what you make, and on what timeline?
- **Accounting & audit rights** — how often you're paid and your right to audit their books.

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## What actually gets an artist signed

Labels sign **momentum and a clear story**, not just good songs. The strongest signals:
- **Traction you built yourself** — growing streams, saves, playlist adds, a real and engaged fanbase, consistent release cadence.
- **DJ/scene support (in dance)** — plays from respected DJs, Beatport chart positions, support on key radio shows/podcasts, sets at credible parties/festivals.
- **A defined identity** — sound, look, and lane are clear. They can picture how to market you.
- **A catalog / pipeline** — you have more music ready, not one fluke single.
- **Live or event draw** — you can sell tickets / pack rooms (especially relevant where the artist runs their own events brand).
- **Professionalism** — you deliver clean files, hit deadlines, communicate well, and have your splits/metadata in order.

The goal is to make signing you look like a low-risk, obvious bet because you're already working.

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## How to pitch a label

1. **Target the right label.** Match your genre and stage. For house/tech-house, pitch imprints that release that sound and whose roster sits at your level — not a tier above or a mismatched genre. One great-fit indie beats ten random majors.
2. **Find the right person.** Usually an A&R or label manager. Use mutual connections, demo submission portals, or warm intros from artists already on the roster. Cold-DM as a last resort and keep it short.
3. **Lead with traction.** One or two lines: who you are, the lane, and the proof (numbers, DJ support, recent wins). Then the music.
4. **Send finished, well-presented music.** Private streaming link (not an attachment), correctly labeled, with a clear standout track first. Have masters, instrumentals, and metadata ready if they bite.
5. **Keep it short and specific.** Respect their time. Say why *this* label, not just *a* label.
6. **Follow up once, politely.** Then keep releasing and building — your next month of growth is the best follow-up.

> **Manager's note:** Don't pitch before there's something to point to. A label is far more likely to respond to "we did X in the last 90 days" than to a cold demo with no story. Build the proof first, then pitch from strength.

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## Quick glossary

- **A&R** — Artists & Repertoire; the talent/creative arm of a label.
- **Advance** — recoupable up-front money.
- **Recoupment** — label recovers its costs from your royalties before paying further.
- **Points** — percentage share of recording revenue.
- **360 deal** — label shares in non-recording income too.
- **Reversion** — masters returning to the artist after a set period.
- **Masters** — the recorded versions of the songs (a separate copyright from the composition).
- **Distribution deal** — you keep masters; company moves your music to DSPs for a fee/cut.

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*This is an overview, not legal advice. Always have an entertainment attorney review any label agreement before you sign.*
