Sunset Clause

Category: Music Business

What is Sunset Clause?

A sunset clause gradually reduces percentages owed to managers, labels, or business partners over time after a relationship ends.

Sunset Clause explained

Sunset clauses address the reality that managers and labels often contribute to success that continues beyond relationship termination. Rather than immediate cessation of payments, sunset clauses phase out percentages over two to five years. A typical structure might reduce management commission from 20% to 15% in year one, 10% in year two, 5% in year three, then zero. For artists, sunset clauses provide predictable transition costs when changing teams. For managers and labels, they ensure compensation for past work that continues generating returns. Negotiating appropriate sunset terms protects both parties during inevitable relationship changes.

Why Sunset Clause matters for independent artists

Understanding Sunset Clause helps you make better promotion decisions on SoundCloud and other streaming platforms. On Reposter Network, artists apply concepts like this every day when they trade real plays, likes and reposts with other musicians instead of buying fake engagement.

Related terms

• Artist Manager: An artist manager handles business affairs, strategic planning, and day-to-day operations, typically earning 15-20% of artist income.
• Recording Contract: A recording contract grants labels rights to an artist's sound recordings in exchange for funding, distribution, and promotional support.
• Royalties: Royalties are payments made to rights holders whenever their music is played, performed, reproduced, or licensed commercially.

Browse the full music marketing glossary or read the guide on SoundCloud repost networks.