Recording Contracts and Budgeting for New Recording Artists.

        The music business downside for most new artists is understanding the language of the recording contract. New artists are so happy to be signed they neglect to read the fine print in the contract. Therefore, most new artists sign bad contracts for four albums or more. The contracts keep the artists broke and stagnated for many years. According to article, “How Recording Contracts Work” artists should receive 10% of royalties for the sale of each CD. However, most record companies pay based on wholesale rather the retail price. Therefore, many artists will struggle to make any money back from album sales. According to article, "Label Music Contracts most recording contracts are exclusivity record contracts. This means artist will not be able to record for anyone else other than record company during the “term” of your contract. The music business is designed for record companies to make money. Lastly, the bottom line in this new digital era signing to independent label is an artist’s best option. This allows an artist to have more control of their masters, destiny, and profit sales. I feel personally that independent is best alternative to being happy about your recording career. However, new artists need to inquire entertainment lawyer and be business savvy in terms of budgeting and balance their money. In many cases, record companies issue an enormous advance to new artists with an attached recording budget all in one. Many times artists in the end of contract will owe the record company; the artist’s spent the advance money and album sales were minimum. Therefore artists were unable to recoup the money back from advance or make any profits. Lastly, budgeting your advance money and your recording budget is very important. An artists must really be educated have awareness the music business. The music business is 90% business and 10% talent.