by J. Scott “Skip” Rudsenske, Attorney, MusicContracts.com
There are three types of artist development deal relationships that an artist can enter into someone to develop the artist’s talents with the hopes of the artist getting a record deal with an established label. These relationships vary from working with an artist developer or investor to provide resources (time and money) to develop the artist in some or all aspects of their career; a producer who will only produce recordings for the recording aspect of the artis't’s development, and; an artist manager. The three types of agreements that will reflect these type of relationships is a Recording Artist Development Agreement, Producer Artist Development Agreement and Artist Management Agreement.
Artist Development Agreements:
The Recording Artist Development Agreement is used by persons or companies that wish to invest time, money or both in all aspects of the professional development of a recording artist with the intention of securing a recording agreement with a successful record label or entertainment company. During the term of the contract, the development company invests in all aspects of the artist’s career including creating master recordings, live performance promotion, publishing administration and merchandise and other products. The development company will participate in the income of those products and opportunities during and after the contract ends. After the contract ends, the development company will continue to participate in certain income the artist generates. This is similar to a management agreement in that the artist developer will develop the artist in all aspects of their career and share in that income during and after the agreement. The difference to an Artist Management Deal is that the service obligation of the artist developer will upon the artist signing some type of deal for the artist’s recording services. However, this agreement can co-exist with the artist signing a management agreement with the both the artist development company and manager developing the artist.
If development and representative services are performed for the artist both before and after a record deal is acquired, then you would use an Artist Management Agreement (explained below). If you are a producer who is developing the artist and will only provide master recording services to help get the Artist a record deal, then you should use a Producer Development Agreement (explained below).
A more limited development agreement could be entered into between artist and an individual who wishes to support the artist as a one-time investment into a specific area of development in their career, as opposed to all areas of their career for a long period of time. The investor might pay for the recording of a demo or full album, or help with some expenses for a tour or to create merchandise, etc. The investor for providing the money, in turn, will receive a percentage of the profits of the specific product or opportunity for which the investment is made.
The two types of Artist Development Agreements can be found on the website at the following links: Recording Artist Development Agreement and Recording Artist Investment Agreement.
Producer Development Agreement:
This Producer Artist Development Agreement is used when an artist and a producer agree for the producer to provide services as a record producer for the artist on a speculative basis. The producer agrees to provide his or her services free of charge to produce master recordings that will be shopped to record labels to obtain a record deal. The producer will take a percentage of the artist's royalties if successful in obtaining the record deal. The artist also agrees to recommend the producer for the label project.
MusicContracts.com has a Producer Development Agreement on website at the following link: Producer Development Agreement
Personal Artist Management Agreement:
An Artist Management Agreement is the traditional deal used to create a relationship between a personal manager with recording and performing musical artist to develop a new artist and set the terms for managing the artist's career before and after they have acquired a deal. The intention of the parties is that the manager is not only trying to develop the artist to get a recording deal, but then to manage all aspects of the artist’s career. Entering into a written management agreement will make it clear the services a professional artist manager will provide to an artist and make how the manager will get paid. Typically, the manager is paid a percentage of all the income generated by the artist for the management services provided.
MusicContracts.com has 2 versions of an Artist Management Agreement on the website at the following link: Artist Management Contracts