With the ever-increasing progression of music technology over the past decade, the continent’s CD stores continue to lose popularity as the modern demand for digital music downloads continues to crush them further into the archives of history. With more than half of the world’s music buying audience, digital music distribution is the predominant music marketing method the world offers us today.

More and more musicians are appearing on stage with highly polished albums, mostly produced entirely on their own. They have become unique empires full of resources, with exclusive rights and authenticity as unrestricted producers and marketing agents of their own products. These musicians are ready to take on the world by partnering with one of the many distribution companies available today.

But as an independent musician, what are you really committing to in a distribution deal?

Many digital retailers offer musicians the opportunity to have their music available on many of the popular and well-loved music outlets; Apple iTunes is one of the most popular playgrounds for today’s music consumers. But while they may promise to get your music on the right track, how will it rank among the billions of other artists vying for sales? Consider that most mainstream artists have far more dollars invested in their publicity and marketing persona than the unsigned musician could afford. The big acts are financed by deep pockets that guarantee the best opportunity for sales.

One response to this is that many unsigned musicians feel that having their music available alongside major artists is a boost to their credibility, giving them and their music much greater distinction. Sure, a good deal can give your music a triumphant victory if it manages to populate vintage music sites. Your only subsequent goal is to actually make sales on them. Otherwise, what is the purpose after all?

Offers, terms, and conditions vary from company to company, so it pays to shop around and research which type of distribution method is right for you. There are many valuable offers, and probably just as many scams, circulating on the information superhighway.

If you are considering accepting a distribution agreement, before signing the dotted line it is important to ask questions such as:

o Does the agreement include advertising or promotional benefits for the artist?

o Are there any payments I need to make, statutory, collective or otherwise?

o What percentage of royalties will I receive and how are payments handled?

o Can you provide me with an estimate of how profitable your distribution methods are?

o What are my rights when terminating the contract?

o Am I solely responsible for my net income tax returns?

Other things to check before you sign are the ‘exclusivity’ terms. These could greatly inhibit your freedom. Does a deal involve licensing your music digitally (via preferred online formats) or does the deal also include physical sales? Some are very exclusive in nature, while others give you rights to continue marketing your music through other channels.

Please note that many reputable and authorized distributors, such as CDBaby, will not allow an artist to exploit other distribution channels, as both parties risk putting their music on the exact same sites. A hassle that major retailers and distributors can do without, and an understandable clause too.

You must read the terms of an agreement in its entirety. It is absolutely essential that you fully understand what is expected of you and what is being offered to you!

Here is an example warning:

A music distribution site currently offers a deal for the sale of both digital and physical music (the terms of the deal are publicly available for download on the site).

The site appears to charge $99.99 as a one-time payment. However, checking their terms of agreement, it states:

“After one year of promotion, we may archive, delete and/or suspend your Works from the Service without terminating this Agreement.”

So what happens if the agreement is still in place but your work is no longer available on your site?

“You may pay an annual fee, to be determined, to ensure that your Materials are not archived, but rather displayed and offered for sale after the first year of Service.”

So if you refuse to pay this annual fee, the site still has all the rights to license and sell your music as stated in the agreement you already signed!

This is not necessarily bad, but is it what you want? Always check the fine print and read any agreement carefully. As a general rule, beware of sites that ask you to pay to distribute their music. On the basis that a site’s marketing strategies were successful and they believed their music is good enough to make a profit, why would they ask you to pay them up front? Suffice it to say that not all sites that ask for payment from an artist provide subpar service. Talk to other artists whose music is being distributed and see how they’re doing. If something doesn’t sound quite right on any deal, check with the dealer. If you still receive an insufficient response, you can always seek a legal opinion. But if you’re really in doubt, maybe you’d better not!

If you are marketing your music through a label, you should take good care of their interests. A reputable label that ensures all terms in a distribution environment are clear and fair to all parties involved. Being part of an honest label is often a good way to free yourself from some of the finer pressures associated with direct schemes. Of course, they will also expect a share of the profits, but they will often have a good degree of vested interest in keeping their own artists’ affairs properly. If the artist is happy, the label thrives on its good reputation and its integrity towards its artists.

Despite the odds, sales margins have increased for thousands of unsigned musicians, simply due to the greater variety of marketing mediums available. You can not only market your music yourself, but also allow others to do it for you. The more places your music is available, the better your chances of making sales. But as with any business, money and profit are the main goal and therefore you should proceed with caution before handing over your personal work to someone.

There are many reputable dealers, who promise to do the job and actually deliver what they said. But, like everything in life, there are people you’d rather not get involved with. Therefore, do as much research as possible and ask as many questions as you see fit. After all, a year is a long time to get stuck in a deal that you later realized isn’t working for you! A bad deal would not only make you very frustrated with your limitations, but could also undermine your confidence to participate in future marketing opportunities.