Quote Originally Posted by Dustin Zahn
P&D deals are nearly a thing of the past. Most distributors do them for some people, but those people (medium to big names) generally are safe-bets. If you're lucky, know the right people, and have promising music you can probably still score a P&D.

The positive thing about P&Ds is obviously...your checkbook isn't at stake right away. If your release bombs and ends up costing money, the distributor is going to come knocking on your door. Another nice thing about P&D deals is it may be less work in general. This means the distributor will either do the work or have a company like "Handle With Care" do all the organizing for you (getting it cut, send to pressing plant, send the printing plant the decals, etc.). You'll still be responsible for promoting your label, A&R, and the rest of that jazz.

The negative side: Your profits are split in half (on avg) with the distributor, you have less control over the physical production, some distributors demand/suggest a certain amount of control or say over the label, and finally...if the distributor goes down (i.e. Prime), good luck getting any outstanding balances, your masters, and the rights to your music!

Now, a lot of the above details are negotiable with distributors but I'm willing to bet the deal would be very similar.
great advice dustin... i wish i had this advice from the start heh :)