Illinois Compact Disc (CD) Distribution Agreement
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FAQ
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
A distribution deal at these companies might also come with an advance albeit not the same amount that a record label would give but still an advance.
Same as before, digital distributors might take a percentage of every sale before the funds reach your bank account, but this percentage is usually under 15%.
Aligning their interest with the artist, distribution partners take a stake in the recording royalties, that can go up to 50%. Also, the distributor will often offer an advance to the artist, recouped by the future cash flows.
A distribution deal can be beneficial for artists in many ways. It can help them get their music out there to the masses, increase their sales, and make connections with other industry professionals.
A physical distribution deal, on the other hand, covers physical mediums such as CDs, vinyl, or cassettes. In exchange for their distribution services, the distributor usually takes a cut of the artist's revenue. These cuts can vary but typically are in the range of 20 ? 30% of total revenue.
