hmm I've heard small labels do it like this more often lately. Not so strange if you think about the music industry suffering under downloads. Apart from other points, I would certainly take this in consideration: -Do not ever give them rights over your merch and artwork designs -Same goes for your songs -Let them do the distribution for a negotiable percentage of the income -Be lenient towards recording costs, if the above is gained, you will make that money back yourself -You don't need a record label to find a booker. If I were you, I would 'shop' for a label. Smaller labels offering interest could be a sign of them starting up and being a bit oppertunist. I mean if they ask you, they probably see means to exploit the fact non-signed bands would probably do anything to get signed (not, you, this thread being the proof). Oh by the way, that doesn't mean you'll have to avoid small labels I'd say just try and set your own contract rules and go look for a record label that fits your bill specifically music-wise. Afterward you negotiate with them.