What Is a 360 Deal?

What It Is

A 360 deal (also called a "multiple rights deal") is a recording contract where a label gets a percentage of ALL your revenue — not just album sales. That means they take a cut of your touring, merch, endorsements, publishing, and sometimes even acting income.

Why It Exists

Labels used to make most of their money from record sales. When streaming destroyed that revenue, labels started saying: "If we're going to invest in developing you as an artist, we need to participate in all your income streams."

How It Works

In a traditional record deal, the label only earns from your recordings. In a 360 deal, the label takes a percentage (usually 10-30%) from multiple income streams:

• Recording revenue: 80-85% typically goes to the label until recoupment
• Touring: 10-25% of net touring income
• Merchandise: 20-30% of merch revenue
• Endorsements: 10-20% of brand deal income
• Publishing: Sometimes 10-15% of publishing income

The Real Problem

The issue isn't that 360 deals exist — it's that artists often sign them without understanding what they're giving up. A 20% cut of touring income might sound small, but touring is often an artist's biggest revenue stream.

Common Mistakes

• Signing a 360 deal when you don't need label support in those areas
• Not negotiating carve-outs for income streams you built yourself
• Not understanding what "net" vs "gross" means in the contract
• Assuming the percentages are non-negotiable

What You Can Do

• Negotiate carve-outs: If you already have a merch business, exclude it
• Cap the percentages: Push for lower cuts on non-recording income
• Add sunset clauses: The label's cut should decrease over time
• Define "net" clearly: Make sure expenses are reasonable before the label takes their cut
• Get a lawyer: Never sign a 360 deal without an entertainment attorney reviewing it