What is a music advance? In a contract, a music advance is money which is lent to a recording artist from a publisher or record label. Generally, a record label will advance monies to an artist or artists with sufficient funds to record an album, purchase accessories, tour expenditures and for self support.
A music advance may be extremely large however, when an advance is issued to an artist, it is basically a loan. A music advance is required to be repaid or ‘recouped’ prior to any profit income.
Covering the costs of record production and overall management often takes up most of a music advance, and rarely leaves ‘extra’ funds for an artist(s). While artists may receive monumental advances, if record sales do not earn back substantial sales amounts, artists are often abandoned by record labels and left to the wayside. It is because of this reason alone, that it is imperative that recording artists completely comprehend the terms of a music advance so not to become bankrupt and financially unable to recoup funds.
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