A 360 Deal: What is it and Why Do Artists Hate Them?

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360 deal
In a traditional record deal, the label takes a percentage of your record sales and other things related to the sale and distribution of your music. However, it is no secret that the record labels have been suffering great losses since the rise of streaming and decline of physical sales. To make up for that loss in income, record labels have been offering young, talented rappers that don't know any better 360 deals. These deals have proven very lucrative for the record labels.
So what is a 360 deal?
A 360 deal is a record deal that encompasses every financial aspect of your fame. This includes the record label taking a cut of your live performances, merchandising, sponsorships, copyrights, anything having to do with the artist. You may have heard that the new way of becoming rich in the music industry is touring. Well the record labels are even taking a cut from tours.

So is it a good thing or a bad thing?
The record labels make the deal sound good and convenient by painting the picture that this is so that you can focus on what you do best, make music. That could be true but as many people know, the further you are from your money, the more everyone else is taking cuts. Many artists aren't even completely aware what kind of deals they're in. When Lil Yachty went on Complex's Everyday Struggle he was asked by Joe Budden "Are you in a 360?" to which he replied "I don't know". As a young artist in the music industry you have to be careful about who has a hand in your money and make sure you are getting properly compensated for your art and success.

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