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An artist development deal is usually the first of a recording artist's contracts with a major record label
Record label

In the music industry, a record label can be a brand and a trademark associated with the marketing of recorded sound and music videos. Most commonly, a record label is the company that manages such brands and trademarks, coordinates the Record producer, manufacturing, distribution , marketing and promotion, and enforcement of copyright protec...
. In lieu of high royalties
Royalties

Royalties are usage-based payments made by one party to another for ongoing use of an asset, sometimes an intellectual property right.Royalties can be determined as a percentage of gross or net sales derived from use of the asset or a fixed price per unit sold....
 or other desirable rights, the label will promise to develop the skills and public profile of the artist. These types of deals are sometimes most helpful to the artist, but the label often takes control of the artist's management and publishing rights (dubious practices that have been compared to having a mini-monopoly with respect to the artist).






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An artist development deal is usually the first of a recording artist's contracts with a major record label
Record label

In the music industry, a record label can be a brand and a trademark associated with the marketing of recorded sound and music videos. Most commonly, a record label is the company that manages such brands and trademarks, coordinates the Record producer, manufacturing, distribution , marketing and promotion, and enforcement of copyright protec...
. In lieu of high royalties
Royalties

Royalties are usage-based payments made by one party to another for ongoing use of an asset, sometimes an intellectual property right.Royalties can be determined as a percentage of gross or net sales derived from use of the asset or a fixed price per unit sold....
 or other desirable rights, the label will promise to develop the skills and public profile of the artist. These types of deals are sometimes most helpful to the artist, but the label often takes control of the artist's management and publishing rights (dubious practices that have been compared to having a mini-monopoly with respect to the artist). Historically, such deals have been abused by both record labels and managers. Motown records made extensive use of this type of contract, and many argue that is was the sole reason for the massive success of the label in the 1960s. Berry Gordy
Berry Gordy

Berry Gordy, Jr. is an United States record producer, and the founder of the Motown record label and its many subsidiaries....
, Motown founder, likened his approach to digging for oil and discovering a field full of gushers. Later, Motown was accused by some of its artists of practising professional extortion
Extortion

Extortion, outwresting, or exaction is a crime, which occurs, when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion....
.

After departing Motown's roster in less-than-favorable circumstances, Florence Ballard
Florence Ballard

Florence Glenda Ballard Chapman, nicknamed "Flo" or "Blondie" , was an United States singer, and one of the co-founders of the Hall of Fame Motown group The Supremes....
 was unable to refer to her reputation as part of the Supremes in any future professional ventures.