National Lawyers Guild
Soho House
Fractured Atlas

What Kind of Expenses Count as Deductible Advances?

Most artists think of the advance as the amount of money they are paid upon signing or upon completion of the record under a record deal. It is true that that money is called an “advance” and that it is counted as an advance that must be recouped from your royalty account before you receive any royalty payments on sales of your album. What many artists don’t realize, however, is that the record company may also count as advances the recording costs, touring costs, producer costs, promotional expenses and many other expenses associated with turning your music into a marketable product.

This means that as well as repaying itself out of your royalty account for any upfront money it gives you when you close the deal and along the way, the record company will also repay itself for its other expenses – out of your royalties – before you are considered fully “recouped” and entitled to any royalty payments.

Be sure to understand what types of expenses are being considered advances – in addition to your advance payment – before you sign!

Client Reviews
"Deborah is smart, pragmatic and forthright" Townes, Filmmaker.
"Deborah has the unique ability to present an 'ask' in a way that is undeniably clear and justified. She has fundamentally changed the way I approach my valuation in the industry by removing the 'cringe factor' from discussions around compensation. She brings a charming touch of grace to negotiations representing my company's value and supporting its reputation while simultaneously securing fair and equitable compensation. Don, TV Producer / Showrunner.
"Deborah made a confusing and painful process understandable and linear. We could not have asked for a better lawyer." Podcast Production Team.
"Deborah makes reviewing legal documents so easy. I know she always has my best interests at heart. It's a pleasure working with her." Melissa, Executive Director of artist not-for-profit organization.
"Deborah is simply amazing. She is a master at protecting her clients. She will protect you and always have your back. I am so lucky to have found her." Warren, TV Series Writer & Creator.