Here’s a nice little article from Lissa Monet’s blog giving some more insight into why Drake chose to sign with Young Money and why artists shouldn’t be looking to get signed as quickly as possible to the first label they can find in this digital age:

“When I first heard Aubrey was messing with Lil Wayne, I didn’t get it. I got it, but I didn’t. I saw short term, I didn’t see long term. I never thought it was the perfect fit. To me, the dynamic was completely different as far as ideologies and context of music. Even when they complimented each other on tracks from So Far Gone. I just didn’t get it.

I constantly worried about this as I read stories online about the business riffs between cash money and their former artists. But then again, what independent [or boutique] label run by a chart-topping, platinum selling rapper hasn’t had those problems? I’ve always said, successful rappers who start their own labels have to be finished with their own careers first before focusing on someone else’s.

But to hear about Drake’s deal with Young Money and how it was handled and negotiated, totally made me geek down. I remember having conversations with Drake, he would tell me stories about labels and producers approaching him and wanting him to sign on the spot. It was always some major label or a superproducer trying to get at him or fly him out to some city and i was like, ’sooooo whats the problem? why haven’t u signed ?’ I always thought his indecisiveness was lack of artist management or development, but little did I know this dude was just waiting for the right group of people to come along and show genuine interest in his career. And it doesn’t hurt that they could, with his talent, change the infrastructure of the current state of the music industry at the same time.

Here’s the breakdown of Drake’s record deal:

* Drake is signed with Aspire/Young Money/Cash Money Records and is distributed by [not signed to] Universal Music
* Drake got a $2 million advance – i think the last lucrative advance given to a rapper was Shyne’s $1million – i could be wrong.
* Drake retains the publishing rights to his songs and only pays 25% of his music sales revenues to the label as a “distribution fee”

hellooooo young moola baby.
Do you see why ive started preaching about artists unnecessary obsession with being signed to a major?

The homie Dexter Bryant Jr. breaks down the lesson he wants ALL artists to take from drake’s record deal [you may want to print this out and keep for future reference]:

Record labels do not control the music industry anymore. Artists (once they have proven their talent and profit potential) are in a position to strike the kind of deal that fits their goals and their vision. Drake proved his profit potential with the 600,000+ digital sales of his single “Best I Ever Had”, which was available for free (on his mixtape So Far Gone) four to five months before it was released on iTunes.

Essentially Drake hired his record labels (Universal/Young Money/Cash Money/Aspire) to distribute his music in stores. Drake’s record labels do not own the masters to his music and they do not control his career, he does (with help from his management team, of course).

Obviously Drake did not sign the first deal that was offered to him. If he did he would have regretted it and he never would have gotten the spectacular deal he has now.

You might not have Drake’s management team but you do have common sense.

With that in mind, would you sign a recording contract that leaves you with 0-50% ownership of YOUR masters and YOUR publishing rights? Would you sign a deal that says you only earn 10-18% of YOUR record sales? Would you sign a 360 deal that allows your record label to automatically earn 50% or more of YOUR touring, merchandising, and film/TV licensing revenues?

OF COURSE NOT!

But you know what? All of those things I mentioned come standard in a typical record contract. The powers-that-be in the music industry set this whole system up in their favor, not yours. But while their minds were busy focused on screwing artists (that’s you!), they forgot one important little detail:

Record labels need you–you don’t need them. No record label can operate without an artist roster (or at least a catalog of past hits). What can a record label do if they have no arists to market and no music to sell?

See how badly they need you?

With the internet (and a little bit of money to invest in your future) you have all the tools you need to record, distribute, and promote your music. So why would you ever pay a record label over 75% of the record sales for songs/albums you write?

Be smart. Don’t do it.

Alright students I hope you’ve learned your lesson for the day. Now go out, be independent and make some music!”

- (Man Like)Keezy