Music Business: The Songwriter Development Deal
There are an increasing number of singer-songwriters in the music industry making it harder for music publishers to place songs on albums. However, if a publisher has faith in the product of a songwriter, they may offer a development deal. While they are custom made to the needs of the individual business, there are certain facts that can be reviewed in each contract.
- A set period of time will be established for the term of the “development” of the artist
- There will be a set number of songs the artist must have completely produced
- A recording session schedule is often built in to keep the songwriter on deadlines
- The amounts of money that the publisher will pay for recording expenses per song
- Any advances or “paychecks” to be given to the songwriter with dates to measure monies to be additionally handed out or recouped
- Any songs created as part of the deal will remain licensed to the publishing company and can not be sold to other entities without their knowledge and approval
- If a record deal is offered to the songwriter, the publisher of the development deal is still entitles to their portion of the royalties
- A guarantee of the minimum amount of money that will be paid out that is not possible to be recouped
- Album guarantees including number of songs to be produced on any record
- Minimum royalties both standard and custom for each possible act of licensing
- Incentives for a record deal as that has the highest profit potential of any future deal

