The term for Distribution Agreements varies, with terms being anywhere from 5 to 15 years. I try to limit the term as much as possible—especially when there is no advance, or a meager one.
Contracts are made up of three basic parts – an offer, an acceptance and consideration. The offer and acceptance are what the purpose of the agreement is between the parties.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, elements of consideration can be satisfied by a valid substitute.
Here are the steps to find and negotiate a distribution agreement: Step 1: Meet with the distributor. Step 2: Discuss the terms of distribution. Step 3: Review the details, such as marketing materials, catalogs, or product literature. Step 4: Hire a lawyer or an expert to draft the agreement.
Negotiating a Distributorship Agreement: Five Critical Steps to Success Execute a master agreement. Define the relevant goods subject to the agreement. Address all relevant intellectual property issues. Make sure renewal options and termination clauses allow the parties to adjust to changing market conditions.
A distributor offering services will take a percentage of gross revenue, usually 15-20%, but sometimes as high as 50%. Read the fine print of any deal you're thinking of signing and have it looked over by a reputable entertainment lawyer.
The best way to find the best deals for your needs is to research and compare different offers, different labels and distributors, which will help you get the most out of your music. Start your research by looking at the market share of a company and see companies they distribute to, among other things.
Negotiating a Distributorship Agreement: Five Critical Steps to Success Execute a master agreement. Define the relevant goods subject to the agreement. Address all relevant intellectual property issues. Make sure renewal options and termination clauses allow the parties to adjust to changing market conditions.
Building relationships with labels that use their own distribution services takes time. You need to establish yourself in the music world with a few solid releases, build your social media following and grow your network in the music industry if you want to get attention from a big label.