A Contract Clause is liek a parachute pretty much. Like "if this happens, then that happens as a result and/or if this does NOT happen, that happens as a result". Like...their contract will say you have to produce X amount of albums over Y time frame (which is standard for any contract, albums/time). Your clause may say that you'll have that span to produce the amount of albums if they supply a certain amount of funds to back the projects. This is an EXTREMELY simplified example and it's actually a lot more dynamic than this but you get the idea. In reality of course, they could decline your clause or simply counter it with something like:

"Joe Schmoe Record Label, LLC will provide said amount of funds per album provided said act can sell [a]500,000 or greater units per release over a span of 6 months OR [b]250,000 units AND $4,000,000 in ticket sales in a 1 year span post album release provided said project commences within 8 months of one fiscal year from prior project debut accompanied by a minimum of 6 (six) album signings and 21 live venues. In the event such terms can not be met "Joe Schmoe record Label, LLC" will reduce project funding to an amount no lesser than 8% of said net sales, and no greater than 14.6% if within etc etc etc etc."

^^this is what an actual clause will look like. It'll have more terms than I had the patience to type but they look just liek this. BTW - everything beyond the first paragraph or two will be nothing but clauses. You're just playing chess back and forth, but with legalities (and "LLC's" aka Limited Liability Corporations" are another matter entirely. Make sure you get an Entertainment Lawyer to review your contract for you and breakdown how you'll get trapped. Your first signing is ALWAYS gonna be a rape job. Just a matter of how much lube they decide to use. *The industry is built to keep you in debt because that's what makes you work*. <--never forget that. If they say "yeah, heres $100,000 up front!! and you start thinking of all the shit you see on TV, Guarantee you'll have to generate 200,000 to pay them back and generate it REAL fast - not ot mention the fact that they'll be telling you what to spend it on to increase your image. BTW, there's NO money in selling CD's. You'd be lucky to get 12¢ off of them (seriously) unless you're indie. The money comes form concerts where you'll make like 4-8 bucks a ticket or a chunk like 6k per show (depending on venue size). CD's just tell you who's prolly gonna show up to your concerts which is why the music companies never broke down on people DLing music on the net nor bootlegs. That's teasers and free advertising that the artist woudl rather have you spend the same $20+ on a concert ticket where they'll see WAY more of it, than on a CD. Sorry to go on so long, lol. 1

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