Let this be a lesson to all the aspiring artists out there. While it’s definitely changed over the past decade or so, it seems like there’s still this commonly-held belief that the best way to become a superstar in country music is to get a deal with a major label. And that’s not to say that there aren’t benefits to getting a record deal: Labels have deep pockets and decades of experience in the music industry, as well as connections that are invaluable when it comes to getting your music produced or promoted. But over the past decade, we’ve seen more and more independent artists who are choosing to forego – or at least postpone – the major label and still finding mainstream success. And as it turns out, if you can do that, you might end up making quite a bit more money on down the road. Without getting too into the weeds of how recording contracts work, often times labels will front the money for an artist to record and release their album. Basically, the label gives them the money upfront, but the artist has to pay that amount back when the checks start coming in. (There’s generally at least a portion that’s not recoupable and doesn’t have to be paid back). Obviously though, a label isn’t going to front massive amounts of money to an artist just to recoup their initial investment: They want to make a buttload more off of that artist. So if they’re putting up an advance for an artist, that means the artist’s contract is going to be structured in a way that the label can profit on the back end of the deal – through percentages of their album sales, ticket sales, even merch sales and other revenue streams that don’t necessarily have to do with the music. But if an artist comes in and DOESN’T need that advance, and isn’t dependant on the label to sell tickets and promote their music…well, that artist has a lot more leverage to get a better contract that will allow them to keep a lot more money down the road. (This is all a gross oversimplification, but you get the general idea). That’s exactly why Luke Combs says getting passed over by his record label was one of the best things that ever happened to him. Luke is gearing up to drop his sixth studio album, The Way I Am, on March 20, and ahead of the album’s release he stopped by the Bussin’ With the Boys podcast where he discussed his early days of moving to Nashville and trying to make it in the music industry. The “Hurricane” singer would eventually sign a deal with Sony Music Nashville, where he’s still at today. But Sony passed on Luke the first time – something that would ultimately work out pretty well, because by the time they DID decide to sign him, he had more leverage in the negotiating process: “I got passed on by Sony my first year in Nashville, and then I ended up signing wtih them two years later, and that is one of the best things that ever happened to me. Because two years later I’ve got, my first album is done, I basically own the entire thing, I license it to the label, I’m already selling out my own shows. So then when it comes down to negotiating the points of the deal, I’m like, ‘Well I could just not sign and keep doing what I’m doing. I don’t NEED to sign.'” Of course he also recognized one major benefit to signing with a label: Their ability to get your song played on radio. “You couldn’t do that on your own. You need a team that knows how to play ball.” But because he had already established himself as an artist, with both a completed record in hand and an established fanbase that was buying tickets for his shows, Luke wasn’t desperate to sign a record deal – which gave him some leverage to negotiate a deal that would pay off for him in the long run because he didn’t need the advance “I’m like, ‘Don’t need it.’ I’d rather have the the percentage points back over time and say, ‘Well, maybe you guys keep no percentage of my merch and no percentage of my tickets and you keep 10% of the record because it’s huge now.’ So, the 10% may be more than the deal you were already offering me.” Now, that’s not to say that there’s anything wrong with one way or the other, and it’s not even a slight at the record labels: If they’re taking the risk and paying millions of dollars to sign an artist and put out an album before they even know whether they’ll get that money back, I completely understand why they’d want to ensure that they’re able to profit if that album takes off. For every Luke Combs at a label, there are 10 more artists who never reach his level of success. And there’s no doubt that the relationship between Luke and Sony has been a profitable one for both sides. I have a feeling they’re both ecstatic about how things worked out now that Luke’s one of the biggest names in country music. But it just goes to show you: Sometimes it’s better to wait than taking the first deal that comes your way. Or as in Luke’s case, it can be a blessing in disguise to not get offered a deal at all. The post Luke Combs Explains Why Being Passed Up By His Record Label Ended Up Making Him A Ton Of Money first appeared on Whiskey Riff.