Artist development deal
Encyclopedia
An artist development deal is often the first of a recording artist's contracts with a major record label
Record label
In the music industry, a record label is a brand and a trademark associated with the marketing of music recordings and music videos. Most commonly, a record label is the company that manages such brands and trademarks, coordinates the production, manufacture, distribution, marketing and promotion,...

. In lieu of high royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...

 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 it was the sole reason for the massive success of the label in the 1960s. Berry Gordy
Berry Gordy
Berry Gordy, Jr. is an American record producer, and the founder of the Motown record label, as well as its many subsidiaries.-Early years:...

, 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 practicing professional extortion
Extortion
Extortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...

.

After departing Motown's roster in less-than-favorable circumstances, Florence Ballard
Florence Ballard
Florence Glenda Ballard Chapman was an American singer and a founding member of the Motown group The Supremes. From 1963 until 1967, Ballard sang on 16 Top 40 hit Supremes' singles, ten of which hit number-one on the Billboard Hot 100. In 1967, Motown CEO Berry Gordy decided to remove Ballard from...

was unable to refer to her reputation as part of the Supremes in any future professional ventures.
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