What to check in a music distribution contract before signing

A distribution contract determines how much you get paid, when, and what happens to your music if you ever want to leave. These are the points worth reading carefully before signing. They do not replace a lawyer's advice, but they help you know what to ask.

1. How much the distributor keeps

It may be a fixed annual fee, a commission on what you earn or a mixture. Check whether the commission is calculated on everything the distributor collects or only part of it, and whether there are extra costs: set-up, changes, takedowns, ISRC or UPC codes.

2. Who owns the rights

Under a distribution contract, the master recording should stay yours. If the contract talks about transferring ownership of the master recording, it is more than distribution: it is a different kind of agreement, and you need to be aware of that.

3. Term and renewal

How long the contract lasts, whether it renews automatically and how much notice you need to give to stop it renewing.

4. Advances

An advance is money paid upfront against your royalties: you receive nothing more until it has been recouped. Check how it is recouped, over what period and what happens if it has not been recouped before the contract ends.

5. When and how you get paid

How often the distributor pays out and what breakdown you get: by platform, country and song. And if other people are involved in the song, whether each can receive their share directly (splits) or you have to divide it up yourself.

6. What happens if you want to leave

It is the clause nobody reads and the one that matters most. Check how much notice you need to give, that your catalogue will not be taken down from the platforms before it is with your new distributor, and that you will receive all the metadata (with the same ISRC and UPC codes) to take with you.

How we do it

At MusicAdders, we work on commission, clearly and with no fine print, no unfair contracts and no advances you can never recoup. We earn when you do: if your music earns nothing, we charge nothing. You keep 100% of your rights, get paid between the 1st and 5th of every month and, if you ever want to leave, we take down your catalogue as soon as you tell us it is safe to do so, and all your metadata is in Workstation for you to take with you.

To find out more, read our guide to choosing a music distributor or get in touch.