360 Deals involve a label investing heavily in an artist, almost like in a partnership. They might be funding the startup costs like recording, touring, and marketing, in return for a share of all revenues generated by the artist, such as from merchandising, sponsorships, publishing, and licensing. Under typical Music Contracts only the music is covered, but with a 360 Deal, the label takes a percentage of everything the artist earns. Under 360 Deals, the label usually owns the master recordings and takes a larger share of the royalties (and other income) than the artist does.
360 Deals have come with some controversy. On the one hand, the artist gets a team who is aligned with their goals for success, and will invest heavily in launching their career. On the other hand, artists have complained about giving up such a large share of their earnings over time. Some artists also claim that the label has total control over their image.