What Is a 360 Deal? How It Splits a Creator's Income
A 360 deal gives one company a cut of nearly all your income, from brand deals to merch. Here's how the split works for creators and which clauses to check.
By Scott Fidgett, Partner and COO, 1DS Management · Published · 4 min read
A 360 deal is a contract that gives one company a share of nearly everything you earn, from brand deals and YouTube ad revenue to merch, tours and licensing. The company pays for that share with an advance, services or both. Whether it's a good trade comes down to what the company puts in against what it takes out, one income line at a time.
This guide covers where 360 deals came from, how the split works on a creator's income and the clauses to read before you sign. It's written by the team at 1DS Management, a US talent management company that represents 107 creators, athletes and entrepreneurs.
Where did 360 deals come from?
360 deals come from the record business, where labels began taking a share of artists' income beyond recordings, such as touring and merchandise. The name comes from the reach of the deal, which wraps all the way around a career.
The U.S. Copyright Office described the arrangement in its 2015 report, Copyright and the Music Marketplace. It noted that recording artists earn from live performances, merchandise and other sources, and that "under so-called '360' record deals, artists may be required to share a portion of these additional revenues with their label."
One of the best-known examples came from a concert promoter. In October 2007, the Associated Press reported that Madonna had signed a 10-year deal with Live Nation, worth about $120 million according to a person who spoke to the AP anonymously. It covered her albums, touring, merchandising, fan club and website, DVDs, music-related TV and film projects and sponsorship agreements.
Creators run into the same structure under other names. It can show up as an "all income" clause in a management contract, a multi-channel network (MCN) that collects your ad revenue, or a studio that funds a show or a product in exchange for a share of everything.
YouTube's own MCN help page says MCNs "typically take a percentage of revenue from the creator's portion before paying them." It also tells creators to check the fees, services, contract length and how to terminate before they sign.
How does a 360 deal split a creator's income?
A 360 deal applies one percentage, or a set of percentages, across several income lines at once. The fastest way to see what that costs is to run a year of your own income through it.
Here's a hypothetical creator with $200,000 in gross income, compared under 2 offers: a 20% commission on brand deals only, and a 20% share of everything.
| Income line | Gross for the year | 20% of brand deals only | 20% of all income |
|---|---|---|---|
| Brand deals | $120,000 | $24,000 | $24,000 |
| YouTube ad revenue | $40,000 | $0 | $8,000 |
| Merch sales | $30,000 | $0 | $6,000 |
| Affiliate links | $10,000 | $0 | $2,000 |
| Total paid out | $200,000 | $24,000 | $40,000 |
Same percentage, $16,000 more a year.
Gross versus net matters most on merch and products, where costs run high. If that $30,000 of merch cost $18,000 to make and ship, the profit was $12,000, and a 20% share of gross takes $6,000 of it. That's half the profit on the line, for a share that looks like a fifth.
So compare offers in dollars, on your own numbers, and ask each company to show its math in writing before you decide.
What should the company give you in return?
A 360 partner should bring something you can't easily get on your own, tied to the income lines it takes a share of. Money up front is the most common trade, and services come second.
Typical contributions include:
- An advance against your future earnings
- Funding for production, a product launch or a tour
- A team for editing, sales, distribution or brand partnerships
- Introductions to buyers, licensing partners or investors
Two terms decide what that money costs you. An advance is usually recoupable, which means the company pays itself back out of your share before you see more cash from the covered lines. Cross-collateralization lets the company recover a loss on one line, like a product launch that didn't sell, out of your earnings on another, like brand deals.
Ask what happens to an unrecouped balance if the deal ends early. Some contracts write it off and others make you repay it, and that difference can decide whether leaving is affordable.
Which clauses decide whether a 360 deal is fair?
A handful of clauses do most of the work. Read these first, and have an entertainment lawyer read the whole contract before you sign it.
| Clause | What it controls | What to ask for |
|---|---|---|
| Covered income | Which income lines the share applies to | A written list, with income you built before signing carved out |
| Gross or net | Whether the share comes off before or after costs | Net on merch, products and tours, where costs run high |
| Term | How long the share runs | A fixed term with exit points tied to agreed results |
| Advance and recoupment | How upfront money gets paid back | Recoupment from named lines only, with no repayment if the deal ends |
| Cross-collateralization | Whether a loss on one line comes out of another | Separate accounting for each line |
| Post-term share | What the company keeps after the deal ends | A short tail, limited to deals signed during the term |
| Ownership | Who owns your channels, handles, content and name | You keep your accounts, name and content library |
| Audit rights | Whether you can check the company's statements | Regular statements and a yearly right to audit |
| Key person | What happens if your main contact leaves | A right to exit if that person goes |
Ownership deserves its own read. If any clause transfers the copyright in your videos, federal law says the transfer is valid only when it's in writing and signed by the owner or the owner's authorized agent (17 U.S.C. 204(a)). Look for assignment language anywhere in the contract, including the boilerplate at the end.
Legal & Business Affairs is 1 of our 10 services, covering contract negotiation, IP protection and business entity strategy. We work through commission rates and covered income in how much influencer managers take, and our guide to influencer management contracts covers the terms that sit around them.
When does a 360 deal make sense for a creator?
A 360 deal makes sense when the partner funds or builds something you couldn't build alone, and its share stays tied to the lines it's helping grow. It's a poor fit when the share reaches income you built yourself and the company adds little to it.
Signs it could work:
- The company funds a specific project, like a product line or a tour, with a budget in writing.
- Its share covers only the lines it actively works on.
- You can leave at fixed points if agreed results don't arrive.
- Your channels, handles and content stay in your name.
Signs to walk away or renegotiate:
- The share reaches income you were earning before you signed.
- Renewal happens automatically, with no performance test.
- A share of your income continues forever after you leave.
- The company would own your channel, handle or name.
If your income already comes from several places, map each line before talks start. Our guide to content creator income streams is a good place to list them. If you'd like a manager reading these offers with you, you can apply for representation with 1DS.
Questions creators ask
Is a 360 deal bad for creators?
It depends on the trade. A 360 deal that funds a launch you couldn't pay for, with a fixed term and a share limited to the lines being built, can be worth it. One that takes a cut of income you already earn, for services you don't need, usually costs more than it returns.
What percentage does a 360 deal take?
There's no standard rate. Published figures come mostly from music and vary from deal to deal, so the useful test is your own: run your last 12 months of income through each offer and compare the dollars you'd keep.
Do talent managers do 360 deals?
Some management contracts take a commission on every kind of entertainment income, which works a lot like a 360. Our commission at 1DS runs 10% to 30%, and whoever you sign with, get the list of covered income in writing.
Does a 360 deal take a cut of YouTube ad revenue?
It does if the contract covers platform payouts. YouTube says networks typically take a percentage of the creator's revenue before paying them, so check the covered income list for ad revenue, Shorts payouts, memberships and other platform money.
Can you get out of a 360 deal?
Usually only on the terms the contract sets, or by negotiating an exit with the company. That's why termination rights, performance tests and the post-term share matter so much before you sign, and why a lawyer should read them.
How is a 360 deal different from an equity deal?
In a 360 deal, a company takes a share of your income. In an equity deal, you take a share of a company, usually as stock in a brand you work with. The two can sit in the same contract, so check which way the money and ownership flow on each line. This guide is general information, not legal or tax advice. Talk to a qualified professional about your situation.
Written by
Scott Fidgett
Partner and COO, 1DS Management
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1DS Management represents more than 100 creators and athletes across brand partnerships, content strategy and monetization.