A new app has launched to helps artists navigate the world of label deals, The Record Deal Simulator. It’s a simple, easy-to-navigate way of unpacking labels model deals, offering financial transparency and making the business side of things more artist-friendly.
“Many artists sign record deals they don’t fully understand,” the app pledges. “We’ve created the @createos.app Record Deal Simulator to help artists, managers, and labels model deal options and forecast profits. This is a rough guide to better understand the finances of how record deals work.”
The app breaks down three types of deals: royalty, net profit and distribution. Artists then enter the split between them and the label, the advanced received and the marketing costs involved. It then breaks down exactly how many streaming numbers an artist will need to amass to pay back the advances before they start seeing a profit.
Try the simulator for yourself here.
Did you know that 90% of Spotify royalties go to 1% of the artists.