Whether your band or radio station finally made it to the big time by finding a record label as a sponsor, the challenges do not end there. A record label has their interests as your band does and sometimes, these may conflict. To ensure that every party gets a fair deal out of the contract, you need to watch out for the following contract loopholes.
1. “Product First, Payment Later”
Most big-time and long-staying record labels usually impose a product first payment later basis when sponsoring a band. This means that you have to shell out for what you need and the studios would have to issue a billing statement to reimburse you. The bad side of this deal is that you can lose money if the studio’s quality does not match up the quality the record label is looking for.
2. “Exclusive Brand Endorsement”
Some record labels may require you to endorse certain brands or backers of the record labels themselves. While nothing is wrong with the setup, you are bound by contract to avoid endorsing other products in the same industry. You could also earn from the endorsements that you receive.
3. “Intervention on Creative Process”
Your band has a sound that is unique, which is why the record label signed you up in the first place. However, some record labels may indicate they also have a say in your band’s creative process. If you think this can affect or change the sound of your band, you could have a conflict with your record label here.