Re: Getting funded by a record label
[quote=azrae1l;736484]now i've never been signed by a major label, but i'm under the impression that when you sign that contract your basically an employee. they tell you when you'll be touring, when your shows are, what days and what times and they fund it. in return they take a percentage of the earnings as cost and profit and you get whats left over after everybody has taken their cut.
when you release an album they advance you the money to record, they produce those cd's, distribute them, cover all the radio play and in return they take the money that is made, deduct the advance, again take their cuts across the board and you get whats left.
i know i don't know all the facts of the contracts but i don't see being in debt to them unless you bail on a tour or fail to record your albums in which case your in breach of contract and the last thing you have to worry about then is being in debt. they take their money back before you see a penny. so i'm pretty sure your logic there is slightly scewed...
The way that a band ends up in debt is they get that advance and they get the tour support and then they have to pay it all back. Usually they dont make enough off of the album and the tour to do so. So they go in the hole with the label