This Artist Recording Agreement, also referred to as an Artist Recording Contract, is used by an independent record company to enter into a contractual agreement with an individual, group or band for their exclusive services as a recording artist for that record label. Instead of a traditional record royalty based on the sales price of the record, this agreement pays an artist a percentage of the net profits of the sale of the record. This makes it easier for a small label to calculate what the artist is paid after all expenses are paid back to the record label from sales of the record.

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