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What is a 360 Record Deal? Understanding the Pros and Cons

As a CEO or entrepreneur in the music industry, you want to make sure that you’re offering the best deals for your clients to ensure their success. One type of arrangement that has been gaining popularity in recent years is the 360 record deal. But, what exactly is it? And, is it the right fit for your clients? In this blog post, we’ll discuss what a 360 record deal is, the pros and cons, and what you need to consider before offering one.


First, a 360 record deal is an agreement between a record label and an artist that extends beyond the standard record deal. In a conventional deal, the label only pays and profits from the sales of recorded music. However, in a 360 record deal, the label takes a percentage of the artist’s earnings from multiple areas of their career. This can include merchandise, touring, sponsorships, and more.

One of the significant benefits of a 360 record deal is that it allows the record label to invest more money in the artist. The label puts in more resources to ensure that the artist is successful in every aspect of their career, not just music sales. This can mean more tour support, better marketing, and promotion. The label is also incentivized to make the most out of the artist’s brand as they have a stake in all income streams, so they have more skin in the game.

However, not all artists benefit from a 360 record deal. Some artists who have a strong brand may not need as much help in these other areas. In this case, the record label’s involvement in these other income streams may not be necessary, and the artists would be better off with a standard deal. Secondly, the percentage of artist earnings that the label takes might be more significant compared to a traditional deal. It’s essential to ensure that the terms are carefully considered before signing a contract to avoid a potentially unfavorable deal.

Another thing to consider is the fact that 360 record deals tend to have longer contract terms than traditional record deals. A conventional record deal typically lasts five to seven years, while a 360 record deal can be up to ten years. Since this type of deal involves multiple income streams and more significant investments, it’s understandable that the label would want a more extended period to earn their return. However, it’s worth considering the artist’s perspective, as the longer-term can limit their earnings and opportunities in the long run.

Lastly, it’s crucial to ensure that the label has the expertise and capability to handle multiple income streams. The artist is, in a way, entrusting their brand in the hands of the record label. It’s important to confirm that the record label has the necessary expertise and resources to manage all aspects of an artist’s career, as promised in the deal.



In today’s music industry, a 360 record deal is becoming a popular option among record labels and artists, as it offers more opportunities for success. However, like any business deal, it’s crucial to weigh the pros and cons before signing a contract. The record label’s increased involvement in multiple income streams can work in the artist’s favor but can also be unfavorable if not carefully considered. As a CEO or entrepreneur, it’s important to ensure that you’re offering the best deal for your clients while considering their needs and goals.