Glossary / Rights

Industry terms

Advance

An advance is money a label, publisher or distributor pays an artist up front, which it then takes back from the artist's future royalties.

Also called: record advance, label advance, advance payment

By Aulto · Last reviewed

Is an advance a loan?

Not exactly. It is usually paid back only from your royalties under that deal, not from your pocket, so if the music never earns enough you normally don't owe the difference. But you see no royalties until it has been paid back.

What should you ask before taking one?

What it is recouped from, and at what royalty rate. Whether recording, video or marketing costs are added to what you must pay back. How long the deal lasts, and what rights you give in return, such as owning the masters for years.

Is a bigger advance always better?

No. A big advance on a low royalty share can mean years before you earn anything more, while a smaller one on a fair split may pay you sooner.

Example

A Punjabi singer takes an advance from a label for her first EP, and her statements show nothing paid out until the advance is recouped.

  • 360 deal

    A 360 deal is a contract where a label takes a share of more than music sales and streams, such as touring, merch, brand deals and publishing.

  • IPRS

    IPRS (the Indian Performing Right Society) is the copyright society in India that collects royalties for songwriters, composers and music publishers when their songs are used.

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