Why Every Artist Should Upload Their Lyrics (And How to Do It)
Why Every Artist Should Upload Their Lyrics (And How to Do It) One of the most important decisions an artist will ever make is determining how they want to structure their relationship with a record label. At the highest level, every record deal comes down to two key issues: Ownership Revenue Understanding how these two elements work will help artists make informed decisions about their careers. The Traditional Record Label Model Traditional record labels include major companies such as and historically, these labels have structured deals in a way that gives the label the majority position in both ownership and revenue. Ownership In a traditional record deal, the label typically owns: 100% of the master recording rightsIn most cases, ownership is granted to the label in perpetuity, meaning the label owns the master forever. Revenue A traditional new artist deal often pays approximately: 88% to the label 12% to the artist Some deals may be structured at 85/15 or other variations, but the label typically receives the overwhelming majority of revenue. Why Would An Artist Agree To This? Because the label is in a majority position on both ownership and revenue, they are often willing to invest substantial amounts ofmoney into developing an artist’s career. These investments may include: Recording costs Radio promotion Marketing campaigns Publicity Music videos Tour support Staffing and administration Digital advertising However, these funds are generally considered recoupable advances. Understanding Recoupment Recoupment simply means the label gets its investment back before the artist receives additional royalty payments. For example:If a label spends $2,000,000 developing an artist and the artist receives a 12% royalty rate, the artist’s share of revenue is applied toward repaying that $2,000,000 investment. In practical terms: The label receives its contractual share of revenue. The artist’s royalty account is charged against the recoupable balance. The artist must fully recoup before receiving additional royalty payments. Even after recoupment is complete, ownership generally remains unchanged. The label still owns the master recordings. Forever. The Label Services Model There is another approach that has become increasingly popular among independent artists.This model is often referred to as a Label Services Agreement.CDX Records operates under this philosophy. Revenue The revenue split is structured as: 80% to the artist 20% to CDX Records This means the artist remains in the majority position on both ownership and revenue. Ownership With CDX Records:The artist owns 100% of the master recording.CDX Records never takes ownership of the master.Instead, the artist grants CDX Records an exclusive distribution and exploitation right for a defined term. Artist Ownership: 100% CDX Ownership: 0% Term Rather than owning the master forever, CDX Records typically receives: Exclusive distribution rights For a term of 36 months At the end of the agreement term, the artist continues to own their master recordings. Why Doesn’t CDX Records Advance Marketing Funds? The answer is simple. Because CDX Records is in a minority position. We do not own the master. We only receive 20% of revenue. Because of this structure, we generally do not advance large sums of money for marketing, promotion, or artist development. Any marketing, promotion, publicity, radio, or content creation expenses are typically funded by the artist. This keeps ownership where it belongs: With the creator. The Real Difference: TEAM Many artists focus entirely on ownership percentages and revenue splits. While those are important, they are not the biggest difference between successful artists and unsuccessful artists. TEAM The biggest difference is: Every successful artist eventually builds a team of experienced professionals around them. That team may include: Project Management Digital Marketing Social Media Management Radio Promotion Press and Publicity DSP Distribution Digital Advertising Playlist Strategy Rights Management Sync Licensing Booking Representation Business Management Major labels provide these services internally through their staff. Independent artists must build that team themselves. The CDX Records Approach At CDX Records, we believe artists should be able to retain ownership while still having access to experienced industry professionals. Over more than three decades in the music business, we have assembled a network of professionals who are: Experienced Connected Well-respected Results-oriented Passionate about artist development Artists can select from a menu of services based on their goals and budget. Our services include: Everything Your Release Needs In One Team. Music Distribution Global delivery through Sony and The Orchard, done right. Learn More Radio Promotion Real airplay via CDX Nashville with TRACTION tracking. Learn More Publicity and Press Coverage that builds credibility and demand. Learn More Social and Digital Content strategy and ads that grow your audience. Learn More Project Management Branding, positioning, and long-term leverage. Learn More Booking & Live Stage readiness and booking via Joseph Henry Agency. Learn More Our Philosophy We believe artists should have options. Some artists want the resources of a traditional major label. Others want to maintain ownership and build their careers independently. Neither path is right for everyone. Our mission is to help artists understand the difference, make informed decisions, and build sustainable careers on their own terms. At CDX Records, you own your music. We help you build the team. Ready to Turn Your Next Release Into Real Momentum? Tell us about your music. We’ll show you the plan. Request a Conclusion Quote Contact Us