Info to keep in mind...
"Once an artist has the attention of the record labels, there are other benefits to controlling your own destiny. According to many entertainment law attorneys the deals once given as 'standard' deals to new artists can change significantly when a band is being sought-out by a label, The following recording contract issues are more negotiable than ever, if an artist has done some development of their own:
*Better royalty rates: Artists are paid for the records they record from a percentage of the sales of that record, based on a percentage of the list price of their records. A high rate just a few years ago for a new act was 14-16 points whereas 'Buzz Acts' (the name given to acts that are in demand by labels,) can get up to several points higher, if they are in demand.
*Ownership of masters: When an artist can buy back the master recordings they made for a label after their contract has expired, or after the label drops them, they are more in control of their destinies than artists who cannot do this. It can be easier to negotiate a speedier reversion of master ownership if a label wants the artist.
*Creative control issues: Many artists are concerned about labels deciding key issues regarding selection of material, producer, graphic images etc. If these issues are important to you, take the time to develop your career.
*Non-recoupable issues: 'Buzz Bands' have more say in what a label can claim as ‘automatic’ recoupable expenses (promotion costs, videos, % of touring budgets etc.)
*Controlled Composition Clauses: In a nutshell, this is a clause that labels insert into their contracts with most new artists that reduces, to 75%, the amount of money due to the songwriter and publishers for the songs on the record from product sales. The standard rate, (currently 7.5 cents per song, per record or ‘unit’ sold) is more negotiable with ‘Buzz acts’.
These issues are more than enough reasons for artists to examine their methods of securing recording contracts. The more time an act takes to build a modicum of success on their own without a label’s help, the more they secure a position of power when dealing with recording and publishing contracts when they present themselves. "