Business

Escalation clause

Your rate improves once agreed targets are hit.

Royalties can step up after a sales or streaming threshold, or after each option period. Get the trigger and the calculation written out with an example.

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More business terms

  • A&R

    Artists & Repertoire, the person at a label who finds and develops artists.

  • Advance

    Money paid up front by a label or publisher, recouped from future royalties.

  • Recoupment

    The process of a label earning back its costs from your royalty share.

  • 360 deal

    A deal where the label takes a share of income beyond recordings.

  • Licensing deal

    You keep the masters and license them to a label for a limited period.

  • Label manager

    The person running a label's day to day operations.