As mentioned earlier, it is crucial to understand that the master recording is the main upfront licensing fee. The master means the final product transcribed onto a physical medium (a songwriter can also have part of this, depending on the agreement). The song is made up of two parts: the music and the lyrics.

You will need to know how much percentage is gross or net from the sales of the masters, the compositions (the music), synchronization fees, mechanical license fees, and your performing rights slice of the pie. You should usually be getting 100 percent of your writer's share, which is 50 percent of ASCAP fees for public performances (the other 50 percent goes to the publisher).

Sometimes, you will hear of a work-for-hire agreement. Bear in mind, this means that the publisher is signing a songwriter to a work-for-hire agreement. This entails that the person doing the hiring is now the sole creator of the music and now owns the copyright and publishing. You may still have your rights to your writer's share (from PRS) and other shares as a songwriter of the music, but the work-for-hire owner makes you sign over the copyright. Understand this concept fully and weigh up the pros and cons.

Term and territory are two other key terms in a publishing agreement, besides exclusive or non-exclusive. You always want to consult a lawyer or entertainment attorney to view legal agreements. We have reviewed the key terms and concepts when you are a composer or songwriter, so we will quickly touch on the same concepts when you are an artist on a record.