What a 360 Deal Actually Means
A 360 deal (also called a multiple rights deal) means the label takes a percentage of ALL your revenue streams — not just record sales. This typically includes touring income (10–20%), merchandise (10–25%), sponsorships, acting work, and more. In exchange, they usually offer more upfront money and more promotional support.
The Label's Justification
Labels argue 360 deals make sense because they invest heavily in breaking an artist, and record sales alone rarely recoup that investment in the streaming era. By sharing in live revenue — which grows directly from their promotional investment — they see a return on their risk. This logic isn't entirely wrong.
Where It Goes Wrong For Artists
The problem is that many 360 deals are poorly negotiated. Clauses that trigger the label's cut are vague, audit rights are limited, and percentage points are often non-negotiable at first offer. Without careful legal counsel, you can find yourself paying a label a cut of a sold-out tour they had nothing to do with, years after they stopped promoting you.
How To Approach It
Never sign without a music lawyer reviewing it. Key negotiating points: limit the 360 clause to the initial contract term only; insist on a revenue floor (they only participate after you earn a certain amount); exclude touring income if possible; build in sunset clauses. A good entertainment lawyer pays for themselves many times over in a deal like this.