3.0 The Proposal

3.1 False Hopes

Typically, artists suffer a series of false starts. Record companies frequently offer encouragement, leading to misplaced optimism on the part of the artist. Too often, record companies appear keen when they have no real enthusiasm. In the worst cases (again, not uncommon) a company may ask for more demos, or suggest other changes, without any genuine expectation of signing a deal. The artist is sometimes led down a cruel cul de sac.

3.2 Who Makes the First Move?

Nevertheless, with luck, sooner or later a record company will decide to proceed. At that point, the record company will ask what deal the artist is looking for. Often, the artist’s reaction is to panic, because he or she does not know what he or she is looking for. Logically, a company which has expressed interest in signing an artist should put forward its proposals for a deal. This often fails to happen in practice. The company may prefer the artist to put forward a proposal. The initial proposal is one of the most vital stages of the negotiating process. All of the team members should be involved in formulating it. However, the initial proposal should not be over complicated. It should deal with the suggested length of the deal, the territory, the product commitment, and the basic financial terms for the initial recordings. It is probably better not to complicate the initial proposal with the financial arrangements for subsequent recordings. However, the proposal should also raise features of the deal which are thought to be important but nonstandard.

3.3 High or Low?

The artist should take care that the proposal is pitched sensibly in terms of what the record company is likely to agree to do and to pay. The artist must avoid asking for too little but there is a danger in asking for too much. The artist therefore needs a team member (perhaps a manager, but probably a lawyer) with experience of comparable deals.