
11th December 2007 - by Ty Cohen
Exploring Demo Deals
Demonstrational recording deals are not to be confused with
actual recording contracts. These deals are made with either an
investor or usually a record label itself. They can be
considered a prerequisite to music contracts
These occur when the money is fronted for you or your band to
enter in the studio and record your demo tape. The flip side of
this type of deal is that it is generally treated as an advance
of services meaning the money will eventually be recouped one
way or another.
This money can be recouped in a couple of ways. The first way
is if you are offered a music business contract, then you will
be obligated to pay this back with your earnings. Or if for
some reason you are offered music contracts with other labels
as a result of this demo, then you may obligated to pay back
the original label with earning from this music contract.
You next question may be, how do I get a demo deal? If you have
heard of A&R, then you know that they are the scouts of the
music industry. A&R might take notice of your music but you
may not have a demo yet. In this case, a demo deal may be
offered in order for the actual label to hear you as a recorded
band. Recording contracts may be offered as a result of this,
which I am assuming is your goal.
But, this is the point were an offer will be made to front the
money for the demo. Generally, a label will decide within 30
days or so as to whether they would like to offer a music
business contract. Then music contract negotiations will start.
This is an exciting moment for any artist but keep your cool
and take it slowly.
If for some reason you do not agree with the recording
contracts offer and you decide to look elsewhere then go for
it. Or if the label decides not to offer a music contract to
you then take your demo and look elsewhere. Unfortunately,
either way, you may end up reimbursing the label for their demo
recordings if you sign with another label.
I hope you have gained a better understanding of demo deals and
all that they entail. Hopefully you will be one of those lucky
artists or bands that are discovered and offered this type of
deal and then eventually a music business contract. Good
Luck!
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Online music industry's most recognizable
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label-current owner of Platinum Millennium Pub.
& music industry seminar speaker/panelist.
Author/creator of 40+ best-selling music biz
materials & other "How to" resources, that
helped 1000s of people. Visit http://www.order-yours-now.com/
for more information on music contracts,
recording contracts & music business
contracts.
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