debts, known as recoupable expenses. These expenses arise from the cost of such things as album packaging and artwork, tour support, and video production. An additional part of the recoupable expenses are the artist's advance. An advance is like a loan. It allows the artist to have money to live and record with until their record is released. However, before they can gain any royalties, the advance must be paid back in full to the record label. Since only the most successful artists recoup production and marketing costs, an unsuccessful artist's debt may carry over to their next album, meaning that they see little to no royalties. Major label advances are generally much larger than independent labels can offer. Major labels are able to offer artists advances in the range of $150,000–$500,000. Some smaller independent labels offer no advance at all; just recording cost, album packaging, and artwork, which is also recoupable. If an artist gets no advance at all, they owe their record company less money, thus allowing them to start receiving royalty checks earlier; that is, if sales warrant any royalty checks at all. However, since the record label typically recoups so many different costs, it is actually to the artist's advantage to get the largest advance possible because they may not see any royalties checks for quite some time; again, that is, if sales warrant any royalties checks at all. Another advantage of getting an advance; the advance money the artist owes the label is only recoupable through the artist's royalties, not through a return of the advance itself. Independent label contracts Independent label contracts typically resemble contracts offered by major labels because they have similar legal liabilities to define before representing an artist. There are differences, however, usually with regards to less advances, lower studio costs, lower royalties, but fewer album options. Due to financial constraints, independents typically spend much less on marketing and promotion than major labels. But with lower royalties rates typically paid to artists and lower production and promotion costs, independent labels generally can turn a profit off lower volumes of sales than a major label can. Although not common, there have been instances of profit-sharing deals with independent labels in which an act can get as much as 40–50% of the net profits. In this type of contract, the net gain after all expenses have been taken out are divided between the