How to get a Music Advance: A Complete Guide For New Artists

Learn how to get a music advance that can fast-track your career. This guide breaks down everything you need to know—from eligibility and funding sources to negotiation tips and smart budgeting.

How to get a Music Advance: A Complete Guide For New Artists

by Chris Robley via Reverbnation Blog

As an emerging artist, getting an advance for your music can be a game-changer.

How many times have you said something like, “I wish I had the money to_______”

• Record my dream album?
• Properly promote my music online?
• Launch a tour with full-band and big production?

Pursuing your dreams, obviously, can be easier with the help of some financial backing. But how do you secure an advance? How much funding should you request? And what’s the best way to allocate that money?

This guide will break down everything you need to know about artist advances. 

By the end you’ll be able to:

1. Determine if you’re ready for funding
2. Know how to approach potential funders
3. Understand the mechanics of advances
4. Assess the potential risks and rewards
5. Be more confident in how to spend the money

What is a music advance?

An advance is a lump sum of money provided upfront by a label, distributor, publisher, or other funding company. This money is often recoupable against future royalties, meaning you pay it back slowly as your music generates revenue. 

Think of an advance as an investment in your career that allows you to:

• Cover production costs
• Finish your project (album artwork, mixing, mastering, pressing vinyl, etc.)
• Fund digital advertising or social video production
• Pay for PR, playlist or radio promo, influencer marketing campaigns, and more
• Support touring and merchandise

However, advances are not free money. The deals aren’t exactly structured like a loan you’d get from a bank, but in a way, it might be helpful to think of an advance as a kind of bank loan; there is usually an expectation that advances be repaid through your future earnings, and they can sometimes come with terms that impact your creative and business decisions moving forward. 

Who offers advances to artists?

Various types of entities provide artist advances, each with its own unique industry focus:

Labels

Both major and indie labels can offer advances as part of a record deal. This funding is often used for music production or promotion costs, but can sometimes be used for tour support, living expenses, or other endeavors. 

Some artists have taken advances for production costs and even used it to build out their own pro studios, which of course sets you up long-term for more affordable album projects in the future. 

Distributors

Companies that make your music available on streaming and social platforms sometimes have label-services teams to provide funding options for artists already generating consistent revenue. 

ReverbNation Levels is one such service that offers financial backing and distribution to promising career-minded artists. 

Publishers

Publishers are companies that exploit the publishing rights to compositions, helping songwriters get paid. They can also provide advances to songwriters and then recoup through future royalties. 

Funding Companies

There are several standalone artist financing services that specialize in offering advances for indie artists based on streaming revenue potential. 

Sync Licensing Platforms

Companies who place tracks in TV shows, films, games, and commercials sometimes offer advances tied to potential future sync licensing opportunities.

Are you ready for an advance?

Before seeking an advance, you should assess whether your engagement metrics and revenue demonstrate a sustainable growth trajectory. 

Keep in mind that advances are often custom-fit to the individual artists. So there can be cases where an advance is given to an artist who shows great promise even if they haven’t yet achieved public engagement metrics. 

But to paint a basic picture, here are some benchmarks:

Streaming performance

• Monthly Listeners: At least 50,000–100,000 for smaller advances; 250,000+for mid-tier offers.
• Total Streams: At least 1–5 million cumulative streams for emerging artists; higher tiers exceed 10 million+.
• Playlist Placements: Regular features in editorial or algorithmic playlists like Spotify’s Discover Weekly or Release Radar.

Social media engagement

• Followers: 10,000+ engaged followers on platforms like TikTok or Instagram.
• Engagement Rates: Averages of 1–5% engagement on posts.

Revenue streams

• Streaming Income: Consistent monthly earnings of $1,000–5,000+ depending on the advance size.
• Touring Revenue: Ability to sell 100–1000+ tickets per show.
• Merchandise Sales: Regular merch revenue of $500–2,000+ per month.

Fan Base Metrics

• Mailing List Subscribers: At least 5,000 engaged subscribers with strong open rates.
• Community Engagement: Active fans via membership program, crowdfunding platforms (e.g., Patreon) or Discord groups.

How much should you request?

The size of your advance should align with your earning potential and immediate career goals:

Requesting too much can lead to repayment struggles, while requesting too little may not provide the support you need. If you qualify for an advance in the eyes of the funding entity, you should have some detailed discussions to make sure you receive an amount that both parties find reasonable. 

What funders need to see first

I mentioned some of the specific benchmark streaming and engagement metrics you’ll want to achieve before seeking an advance. But keep in mind, your future earning potential is perhaps more important than proof of previous success. 

When funders evaluate an artist’s potential to recoup the advance, key factors include:

• Proven Revenue Streams: Reliable income from streaming, touring, and merch sales.
• Consistency: Long-term performance metrics, not one-off viral spikes.
• Growth Potential: Positive trends in streams, social followers, and audience engagement.
• Catalog Performance: Strong retention rates on tracks and growing catalog revenue.
• Professionalism: A clear plan for how the advance will be used to generate returns.

Allocating your advance wisely

When you receive an advance, you’ll want to use the funds strategically to maximize impact. 

Again, expenditures may include some combination of these efforts:

1. Production: Invest in high-quality recordings, mixing, and mastering.
2. Promotion: Fund PR campaigns, playlist pitching, and digital ads.
3. Touring: Cover upfront costs for travel, lodging, and crew.
4. Merchandise: Design and manufacture new merch to boost revenue streams.
5. Team Building: Hire professionals like managers, agents, or publicists.

There is no “correct” strategy, broadly applied to all artists receiving an advance. But you will likely want to allocate money to the areas that will yield the most returns for you. 

In other words, if you don’t plan to make touring a frequent aspect of your career, don’t spend your advance on a single one-off tour. If you can record professional albums on a budget or at home, don’t spend your advance on the production, but perhaps allocate the funds to promotion instead. 

In-kind advances and endorsements

Not all advances come as cash. Artists may agree to terms involving in-kind services or endorsements:

Examples of in-kind services

• Promotional Support: Playlist pitching, PR campaigns, or radio promotion.
• Tour Support: Coverage of travel or logistics.
• Studio Time: Access to professional production resources.

Artist endorsements

In some cases, artists promote the funding company in exchange for better terms:

• Social Media Shoutouts: Posts highlighting the funder’s role.
• Brand Integration: Logos on album art, tour banners, or music videos.
• Testimonials: Public endorsements of the funder’s services.

These arrangements can be mutually beneficial but must align with the artist’s goals, of course. You don’t want to be on the hook to boost a company on social if doing so feels counterproductive to your brand. So, it’s pretty simple: Only accept funds or services if you’re truly enthusiastic about fulfilling your obligations in exchange. 

Negotiating your advance

If a company is willing to give you an advance, it’s likely because they respect your craft or see potential for returns. That also means they should be respectful and open to conversation during negotiations. 

Some things to consider: 

1. Valuation: Work with an entertainment lawyer or trusted expert to ensure the terms are fair.
2. Exclusivity: Avoid overly restrictive clauses limiting future opportunities for your music. 
3. Transparency: Demand clarity on repayment terms and expectations.
4. Deliverables: For in-kind services, insist on specific timelines and measurable outcomes.

Some other questions to answer upfront

Before you sign anything or accept funding, you’ll want to know:

• Are royalties recoupable across multiple releases?
• Are royalties recoupable across multiple revenue sources (streaming, merch, tickets, etc.)?
• Will the funder expect to have active input or control over creative or business decisions? 

Hearing yes doesn’t necessarily mean it’s a bad deal, or that you shouldn’t accept the advance; you just want to make sure you know what you’re agreeing to beforehand. 

There are always tradeoffs in this sorts of agreements. 

So, still want an advance?

Advances can provide the financial boost you need to take your career to the next level. But of course that doesn’t mean a company or unicorn flies in and magically grants you easy success. Taking an advance comes with risks and responsibilities. You want the funder to recoup their investment in a reasonable amount of time!

By achieving key benchmarks, negotiating favorable terms, and allocating funds wisely, you can ensure that the advance works for you, not against you. 

Whether you’re an emerging artist or an independent music veteran with an established record of success, understanding these dynamics is the first step toward making informed decisions. One of those possible decisions, of course, could be to take an advance that ends up unlocking incredible opportunities for your music career in the years ahead. 

Want to get funding for your music project? Check out ReverbNation Levels and APPLY NOW