Record labels typically take between 60% to 90% of an artist's earnings, though the exact percentage varies depending on the type of deal and the artist's negotiating power. Let me break down exactly what artists can expect from different types of record deals.

For a traditional record deal, labels usually keep around 80-85% of revenue, leaving artists with only 15-20% of their earnings. This might seem unfair, but labels justify this split by covering initial costs like:

• Recording expenses
• Marketing and promotion
• Music video production
• Tour support
• Distribution costs
• Radio promotion

In a 360 deal, labels take an even larger cut by claiming a percentage of all artist income streams, including:

• Merchandise sales (25-40%)
• Live performance earnings (10-25%)
• Publishing rights (15-50%)
• Licensing fees (20-40%)
• Digital revenue (50-80%)

Distribution deals are generally more favorable to artists, with labels taking 15-25% of revenue while allowing artists to retain their rights and creative control. However, these deals typically offer less marketing support and upfront investment.

The streaming era has introduced new complexities. From streaming revenue, major labels usually take:

• 50-80% of the streaming income
• Additional deductions for marketing and promotional costs
• Recoupment of advances before artists see any profits

Independent labels tend to offer better splits, typically taking 30-50% of revenue, but provide less financial support and industry connections.

To maximize earnings, artists should:

• Negotiate royalty rates carefully
• Read contracts thoroughly
• Consider hiring an entertainment lawyer
• Understand recoupment terms
• Look for sunset clauses that terminate the deal after a specific period

It's worth noting that newer artists typically receive less favorable deals, while established artists can negotiate better terms. Some successful artists have managed to negotiate deals where they keep 50% or more of their earnings, but this is relatively rare in the industry.

Remember, these percentages aren't set in stone – they're negotiable based on factors like an artist's popularity, bargaining power, and the label's investment level. The key is understanding these numbers before signing any agreement.

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