So you've been approach by a record label. They like your vibe and you're chuffed to bits. You've made it, right?

As attractive as it may seem, sometimes signing a recording deal isn’t always the best thing that can happen to musicians. Musicians need to know that by signing a recording deal, they are partnering with an investor who loans them money based on their ability to perform. Record labels typically get a cut of the profits which means that they are going to be more focused on the financial side of the business which could lead to creative limitations and other challenges for the artist. Still, a record deal does mean exposure for the artist or band and the right record label could help launch a successful music career. 

It is important for musicians to understand these possible pitfalls before signing a recording deal: 

• It Is Not Always Profitable- for some musicians, recording deals might feel like a rip off. For every £1,000 gained in sales, contracted musicians can get £50 or less. That’s a 5% margin or lower. Labels will argue that they need to manage recording, marketing, live shows and production. The record deal can be a tricky minefield of fees and hidden costs. Some labels calculate royalty for musicians out of profit. So, if an album is less successful, the hard-working musician gets very little. There are, however, many record labels that take very good care of their artists and cater to most of their needs. 
• Some Labels Won’t Sign Deals Without A Large Following- major labels typically won’t sign a musician who doesn’t have a big enough following. They like to see artists who are either already popular, or who show a great deal of promise. 
• Labels Encourage Marketable Music- for innovative and incredibly creative musicians, major record labels can be their worst nightmare. Musicians often have a very specific music style that appeals to a narrow target market. Labels don’t want to be associated with some of the most forgettable music ever. Major labels are regular businesses and they want to sell profitable products. For innovative musicians, a smaller record label might be a better fit. 
• Some Musicians Get Intentionally Shelved- labels want to give the audience the latest and most popular musicians. This may cause some experienced, highly skilled musicians to get shelved intentionally by major labels. Another record label might pick up their contract, extending their career. 

Now, this doesn’t mean that record labels or recording deals are bad. It just shows that there are many factors today’s artists should be aware of when signing a record deal.

What are your thoughts and experiences? Feel free to comment below.