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What Is a 360 Deal in the Music Industry?

What Is a 360 Deal in the Music Industry?

As an emerging musician, you’re always looking for ways to get your name out there for millions of listeners to know, and one way to do that is to sign a record deal with a major label. But these days, that’s easier said than done, because the competition is more intense than ever, and label managers already have their inboxes flooded with messages from new artists. At the same time, independent artists have more alternatives that can propel them in the spotlight, including streaming platforms and social media. If you don’t have the budget or the confidence to do it all on your own, you might be looking for alternative funding options to get your music career off the ground. One of these alternatives is what’s known in the industry as a 360 deal. 

What exactly does a 360 music deal entail?

Among musicians, 360 deals have earned a bad rap, because many see them as beneficial to the labels while putting the musician at a disadvantage. But is this an accurate perception?

360 music deals emerged during the 2000s as an alternative to conventional record contracts with major labels. Traditionally, labels and artists profit from the sales of the records, but as the music industry started to evolve and embrace digitalization, companies realized that an artist’s earnings now go beyond physical record sales. Other avenues like digital media sales, live performances, TV and radio appearances, celebrity events, and merchandise became areas of focus for labels. 

Within such an agreement, companies and labels extend their support of the artist beyond the usual confines of a traditional record deal, providing funding and support for live performance, creating and distributing merchandise, digital promotion, and more. The support is beneficial for the artist, but at the same time, the 360 agreement stipulates that the label will receive a percentage of the earnings generated from all the avenues they’ve invested in, including merch. 

This is where 360 music deals get a bad reputation. You’ve maybe heard stories before of highly successful artists who sold millions of records but made very little money, because their contracts were written in such a way that the label got a much higher percentage. Getting professional legal support to go over the details of the contract in thorough detail is crucial to avoid issues in the long run. These 360 deals can make or break your career as an emerging artist, but failing to carefully weigh your options, negotiate terms, and ensure you’ll be profiting from your work can hurt you in the long run. 

Should you sign a 360 deal as a musician?

So if you’re just getting ready to launch your music career and you want to get as much support as possible to get your releases off the ground as soon and as effectively as possible, you might be looking into signing a 360 deal. What should you know before signing on the dotted line?

Pros of 360 music deals

There are several significant benefits to signing a 360 music deal with a company:

  • Extensive support: a 360 deal will get your support beyond traditional record deals, including marketing, promotion, branding, merchandise, and career development. 
  • Financial backing: in a 360 deal, the company you sign with provides a more significant investment upfront, compared to conventional record deals. They will invest resources into your career and all aspects of your upcoming releases, which is helpful if you don’t have the budget to handle these aspects yourself.
  • Diversified income streams: a 360 music deal will enable you to tap into additional sources of income besides physical and digital record sales, including live performances, endorsements, merchandise, event appearances, and more. This can lead to higher income streams over time.
  • Access to resources: a 360 deal can open up doors to a wide network of professionals and help you forge industry connections that can propel your career even further and help you get to the next stage of your career as an artist. 
  • Guidance and advice: established companies signing 360 deals already have extensive experience in the business, and they know the ins and outs of recording, promoting, marketing, and releasing music, so you don’t have to worry about figuring it all out on your own. 
  • Focus on creativity: of course, signing a 360 music deal and having a company handle all the paperwork and processes on your behalf frees up your time and allows you to focus on creating new music, experimenting, and evolving as an artist. 

Cons of 360 music deals

Of course, signing a long-term contract with a company that will get a percentage from everything you create does have its disadvantages, and you need to work with an experienced legal professional to make sure you don’t sign a bad deal.

  • Contractual obligations: just like any other legally-binding contract, by signing a 360 music deal, you’ll have to fully abide by the terms of the contract for the duration agreed with the label or company. You have to be committed and determined to grow a long-standing career and a solid reputation as a dedicated artist, so make sure you know what all the terms in the contract really mean and if you’re ready to commit to them. 
  • Revenue sharing: the most important thing to remember when it comes to 360 deals is that the label will get a percentage of everything they invest and support you in, including merchandise, digital media sales, performances, appearances, and anything else agreed upon in the contract. It’s crucial to work with a legal team with experience in music contracts to help you navigate the terms and reach a mutually beneficial agreement with the company you’re signing with. 
  • Loss of control: many artists nowadays choose to go the independent route and avoid signing contracts with labels, because they don’t want to lose control over their artistic development and their career overall. You have to be aware that signing a 360 deal will enable a label or company to act and make decisions on your behalf. You might have less control over decisions regarding branding, marketing, promotions, which events and performances you attend, and so on, so keep that in mind. If you want full creative freedom and control, you’ll have to invest time, money and effort into developing your career as an independent musician. 
  • Recoupment: when you sign a 360 or a conventional record deal with a label, the company will provide a significant investment upfront to help your career get off the ground. You should be aware that the company will prioritize recouping its investment when you start making revenues, so you might see a delay in your earnings and will have to wait until you’ve paid off your debts before you start making profit. 
  • Long-term commitment: 360 music deals are usually long-term deals, often including several album releases over several years, so you have to be ready to commit to making your music career your top priority. It can also be hard to get out of these deals once you sign a contract, so carefully weigh your decision while also consulting with a legal professional. 

Frequently Asked Questions

How do you get a 360 music deal?

Obtaining a 360 music deal involves several steps: first, build a strong and distinctive musical brand, including a dedicated fan base and impressive live performances; next, create a professional demo or recording showcasing your unique sound; then, research and target reputable record labels or entertainment companies that specialize in 360 deals, tailoring your submissions to showcase how your potential fits their vision; engage in negotiations with legal representation to ensure favorable terms and protection of your interests; finally, demonstrate your commitment, flexibility, and willingness to collaborate while showcasing the potential for revenue growth across various streams beyond recorded music. Success in securing a 360 music deal relies on a combination of talent, persistence, and strategic networking.

Is a 360 deal good or bad?

A 360 deal can be both advantageous and disadvantageous for a musician. On the positive side, it offers comprehensive support, diversified income streams, and access to industry expertise, which can help accelerate career growth and provide financial backing. However, the potential downsides include sharing a percentage of earnings from various sources, longer-term commitments, potential loss of artistic control, and complex contractual terms that could impact overall earnings and career autonomy. Whether a 360 deal is considered good or bad depends on an artist's specific goals, circumstances, and their ability to negotiate favorable terms that align with their vision and long-term aspirations.

Who has signed a 360 deal?

Several prominent artists have signed 360 deals over the years. Notable examples include Madonna, who signed a groundbreaking 360 deal with Live Nation in 2007, encompassing various aspects of her career; Jay-Z, who signed a similar deal with Live Nation in 2008; and Rihanna, who entered into a 360 deal with Roc Nation, covering her music and various ventures. These agreements allowed the companies to participate in a broader spectrum of the artists' earnings beyond just recorded music, including touring, merchandise, endorsements, and more, reflecting the evolving landscape of the music industry.

Want to learn more about what it takes to navigate the music industry nowadays? 

Join Xposure Music and gain access to some of the best music industry professionals in the U.S. Top experts from Sony, Columbia, Def Jam, or Universal have already joined our platform, and they’re ready to give invaluable, on-point feedback on your work, which can help you land that dream record deal or publishing deal you’ve been working towards. Sign up now and reap the rewards.

If you’re looking to kickstart your music career but have limited resources, we can help you get funding for your next project while staying in control of your own work and career trajectory. You keep 100% ownership of your masters and get an advance ranging from $1,000 to $3 million to get your career off the ground. Get an estimate now and start turning your dream into reality.

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ABOUT THE AUTHOR

Gregory Walfish
Co-founder of Xposure Music, Gregory Walfish stands at the intersection of music, tech, and culture. With a software engineering background, he's passionate about artist development and technology.

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