Should I be charged by a record label to sign with them?

Question by Ese Zey: Should I be charged by a record label to sign with them?
I spoke to a record label about possibly signing up with them and they are an indie label working hard to come up. I sent the owner a 5 track demo and he enjoyed.

In the labels short 5 years existence the owner mentioned that he has had a couple bad expiriences with investing money on some artist only to have them not want to push it further and drop out. So now due to this he says he is willing to sign artist he’s interested in if they’re willing to invest in themselves as well. I understand his version but I spoke to my cousin and he let me know that he has never heard of a label charging but to follow my insincts. The price is $ 500 and once that and the contract is settled we will immediatly start working on music and pictures for promotion/album-cover. Once finished the music will be on ituns, and be sold in some countries in Europe and Japan as well.

Please help me understand this situation a little better. Maybe direct me to a website that answers these questions professionally or your own opinion.

Best answer:

Answer by S K
Absolutely absurd to charge you.

Add your own answer in the comments!