My friend and I have just VERY recently got a band together. We havn't
even all been together in the same room. Said friend, Jacob, happens to
have neighbors who own an indie record label ( www.lessavenged.com ).

These label characters have heard Jacob play two or three songs
accompanied by his brother and sister on cello and violin respectively.
No shows have been played, band hasn't practiced.

Less Avenged wants Jacob to sign with them for a one-cd deal that will
span one year. These are the details:

Jacob has to take care of the recording and pays for it, then delivers
the CD to Less Avenged by August 1st.
Less Avenged does promotion, merchandising, website management, and we
have to pay for CD manufacturing through them (1,000 Cds for $950).
CD sale profits split 60% to jacob, 40% to Less Avenged. And this is
after Less Avenged has "covered costs" (wait, costs of what?). I'm a
bit hazy on this last part.

My major question: Does this deal seem shady or subpar in comparison
with the "normal" sort of contract extended to new artists? I thought
that a record deal meant that the label pays for recording!

Any comments are very appreciated, and I will definitly show them to
Jacob in my effort to reason with him!

Philip