Simply put, distribution deals are the agreements between a company (or label) and artists for the allocation of their product. It is the way in which your music reaches potential customers so that you can obtain money by it. The first step to get one is, of course, to have finished the recording of your sample, EP, or full album. Afterwards comes the exploration of different options of distributors. The last element is, then, learning about what a distribution deal is and how to obtain it in a way that is most beneficial for you.
Distribution Deals: Relevant Nuances
Before the digital era took hold of our everyday lives, when people said “distribution deal” they usually meant the definition in the previous paragraph. However, now that we are deeply immersed within the web of technology, the term “distribution deal” can mean at least three different things. We will broadly explain what these are so you can be better informed when approaching this stepstone in your career.
Traditional Distribution Deal
This occurs when a record label signs an artist. Its role, as mentioned in traditional music distribution, is to manage the recording, producing, mixing, mastering, marketing, and promotion of your product. Once this happened, the negotiations between the label and the distributor company began. This ensured physical records (vinyls, cassette tapes, and CDs) got to the retailers and, thus, the audience. In short: the label record is in charge of everything including shipping, inventory, and more deals with the chains that sell your music.
Digital Distribution Deals
In contrast to the previous deal, this one is the most sought out by emerging artists. It consists of uploading your content to the distributor’s online platform. In turn, this figure will ensure your music reaches relevant streaming platforms. The ultimate goal is that your creations get to more listeners and, then, you receive your due royalties.
It is worth noting that in this transaction you usually sign a Terms & Conditions document; i. e. the small print of the website. The most common feature of this is paying a fixed annual fee for unlimited uploads and distributions. This translates to you keeping all of your royalties. (Yay!)
The Distribution Deal that is Something Else
The existence of this category is due because, sometimes, companies take advantage of the independent artist’s ignorance. It is still a deal and it still will allow people to listen to your product, but it has a price that might not be so much worth the pay. What usually occurs within this transaction is that the distributors promise the usage of their network, their contacts, and their infrastructure so you can obtain more streams or synchronizations in your music. Yet, they take a huge part of your royalties (somewhere between 10 and 30 per cent). In addition, the offer comes with exclusivity clauses… which might not be ideal if you’re just starting your career. In short, these distribution deals will tie you up more than they will boost you.
