What Is a 360 Deal in Music? How Labels Take a Cut (and How to Negotiate)

A 360 deal is a label agreement where the label participates in more than just recording income. Instead of only earning from the master recordings, the label takes a percentage of additional revenue streams tied to the artist's career.

The idea is simple: the label invests in building the artist, and in return it shares in the upside across the whole business.

The reality is more complicated. Some 360 deals are reasonable. Some are aggressively one-sided.

This article explains what a 360 deal is, what income streams are commonly included, what percentages look like, and what to negotiate.

360 deal definition

A 360 deal (sometimes called a multiple rights deal) is a contract where a label receives a share of several artist revenue streams.

Those streams can include touring, merch, branding, publishing, and more. The label's share is usually a percentage, not full ownership.

Why labels ask for 360 terms

Labels argue that recorded-music income alone may not cover the investment. Marketing, content, radio, playlist pitching, and team-building cost money.

A 360 structure is meant to align incentives:

• If touring and merch grow because the label helped, the label shares in that growth.
• The label can justify spending more upfront.

For an artist, the risk is giving away upside without receiving real support.

What revenue streams are usually included

Not every 360 deal covers the same things. Common categories include:

• Touring income (gross or net, depending on the contract)
• Merchandise
• Sponsorships and brand deals
• Fan club and direct-to-fan memberships
• Sync fees (sometimes)
• Publishing income (less common, but it happens)

The details matter. A contract that says "touring" without defining whether it is gross or net is a red flag.

Typical 360 deal percentages (ballpark)

Percentages vary widely. Still, common ranges you may see:

• Touring: 10% to 25%
• Merch: 10% to 30%
• Sponsorships: 10% to 25%
• Publishing: case-by-case, often handled via a separate deal

Two big modifiers:

1) Is the label participating in gross revenue or net profit. 2) Did the label actually fund the activity.

The biggest negotiation points

If you are offered a 360 deal, focus on these.

1) Define the income base clearly

Gross vs net changes everything.

Net should be defined after legitimate expenses. You do not want a label taking 20% of gross touring before you paid the crew.

2) Tie participation to label support

If the label is taking a cut of touring, what does it do to help touring.

Look for:

• Tour support terms
• Marketing commitments
• A dedicated team and budget

Participation without support is just rent.

3) Set term limits and sunset clauses

A label should not participate forever.

Ask for:

• A limited term (for example, participation ends after X years)
• A sunset where the percentage declines over time

4) Carve outs for pre-existing income

If you already tour successfully or have ongoing sponsorships, negotiate carve outs.

A fair deal recognizes what you built before the label.

5) Audit rights and transparency

If money is flowing through multiple buckets, you need visibility.

Make sure you have:

• Clear reporting
• Audit rights
• Definitions that match real accounting

When a 360 deal can make sense

A 360 deal can be reasonable if:

• The label is investing meaningfully beyond recordings
• The participation is limited and clearly defined
• The deal accelerates your career in ways you cannot self-fund

If it is just a standard recording deal plus extra cuts, be cautious.

The bottom line

A 360 deal is not automatically bad. But it is easy for it to be misaligned.

If a label wants a share of multiple revenue streams, make sure the contract explains what you get in return. That is the only version that makes business sense.