🚩 CONTRACT RED-FLAG CHECKLIST

Read this before you sign anything in the music business.

If you see two or more of these in one agreement, pause.

If you see four or more, walk away.

💰 PAYMENT & FEES

⬜ You are required to pay to collaborate, feature, or be “considered”

⬜ Fees are framed as “mixing,” “mastering,” “admin,” or “security” costs

⬜ Payments must be sent to a specific individual, not a verifiable company

⬜ You are not allowed to use your own engineer or vendors

⬜ Deposits are non-refundable with no clear deliverables

👉 Red flag rule: Real opportunities pay you or recoup later. They don’t invoice you upfront.

🎧 OWNERSHIP & CONTROL

⬜ The contract does not clearly state who owns the master

⬜ Publishing splits are mentioned but not defined in writing

⬜ Language uses “net royalties” without listing deductions

⬜ You don’t receive stems, files, or backups

⬜ One party maintains exclusive control over the music indefinitely

👉 If you don’t control the files, you don’t control the record.

📅 RELEASE & TIMELINES

⬜ No guaranteed release date

⬜ Release depends on “discretion,” “clearance,” or “internal approval”

⬜ You are prohibited from releasing your own verse elsewhere

⬜ The company can delay release without consequence

⬜ You have no exit clause if the song never drops

👉 Exposure that never releases is not exposure.

📊 ROYALTIES & ACCOUNTING

⬜ Royalties are paid “semi-annually” or “at discretion”

⬜ You can’t audit without paying significant fees

⬜ Accounting standards are vague or undefined

⬜ No third-party distributor or PRO registration is specified

⬜ Statements are not tied to actual platform data

👉 If you can’t verify the money, assume there is none.

⚖️ LEGAL & INTIMIDATION LANGUAGE

⬜ Threats of criminal charges for civil matters

⬜ Excessive confidentiality clauses with vague penalties

⬜ Big law firm names used without direct confirmation

⬜ Arbitration forced in a distant or inconvenient state

⬜ One party has legal representation while the other is discouraged from seeking counsel

👉 Contracts should clarify, not scare.

✈️ PERKS & “EXPERIENCE” BAIT

⬜ Luxury travel or housing used as an incentive

⬜ “Exclusive” recording experiences offered for an added fee

⬜ Vibes, access, or status emphasized more than ownership

⬜ Perks replace actual compensation

⬜ Upsells appear after initial commitment

👉 Perks are not payment.

🧠 BEHAVIORAL RED FLAGS (JUST AS IMPORTANT)

⬜ You’re rushed to sign

⬜ Questions are discouraged or dismissed

⬜ You’re told “this is standard” without proof

⬜ Multiple artists receive the same agreement

⬜ Social proof is used instead of transparency

👉 Pressure is a strategy.

✅ GREEN FLAGS (WHAT YOU SHOULD SEE)

✔ Clear master ownership language

✔ Written publishing splits with PRO info

✔ No upfront payment to participate

✔ Independent verification of legal counsel

✔ Exit clauses if deliverables aren’t met

✔ You’re encouraged to get your own lawyer

🧾 FINAL RULE

If an “opportunity” requires:

Your money

Your silence

Your control

Your patience

Your faith

Before it earns:

Your trust

Your ownership

Your compensation

It’s not an opportunity.

It’s tuition.