What Is a 360 Deal and Why Do Labels Want Them?

A 360 deal (also called a 'multiple rights deal') means the label takes a percentage of all your revenue streams — not just record sales and streaming. This typically includes touring, merchandise, endorsements, and sync licensing. Labels started pushing these in the 2000s as streaming devastated recorded music income. They argue that since they're investing in your career development, they deserve a share of all the fruits.

The Problem

For most artists, touring and merchandise are the primary income sources — the things you actually live on. Giving away 15–25% of your live income to a label that had nothing to do with booking the show, loading the van, or selling the T-shirts is a significant hit to your livelihood. And 360 clauses are often buried in standard contracts and presented as non-negotiable.

What You Can Negotiate

Carve out touring income entirely. This is the most important fight. Labels rarely have a hand in your touring operation and have less justification for a cut. Push hard to exclude it. Many labels will agree if you're in demand.

Cap the merch percentage. If they insist on a merch cut, negotiate it down to 10% or less and exclude digital/direct-to-fan sales (Bandcamp, your own webstore).

Limit the term. 360 clauses that apply forever are unacceptable. Negotiate a sunset clause — the label's 360 rights expire when the recording contract ends.

Define what 'net' means. Labels love to take a percentage of gross revenue. Insist on net (after costs) if they're taking a touring cut.

The Leverage Question

How hard you can push depends on your leverage. If the label wants you badly, you can push further. If you're a new act with no track record, you have less room. But even new acts can often negotiate carve-outs on touring if they simply ask. Most labels expect you to negotiate — presenting their first offer as a done deal is a negotiating tactic.

Always Get a Music Lawyer

Do not sign any record deal without an experienced music lawyer reviewing it. This is non-negotiable. A good music lawyer pays for themselves many times over by catching clauses that will cost you far more than their fee.