An advance is an upfront payment to an artist provided by a record label against future contractual cash flows. This cash advance is a prepayment or loan for the artist's master royalties.
When put into practice, the artist will retain their earnings once they have "recouped" or paid back their cash advance. For example, if a label advances $100,000 to an artist for one album and two singles, the artist would have to pay back $100,000 from the sales of one album and two singles before personal profit.
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