record labels-points

ive heard a number of musicians reference “points” having to do with a label. the context is something like “theyll give you four points for this record”. anyone know what that means?

[WAG mode on]
I figure they’re using it like it’s used in real esate sales - points is the shortened “percentage points”, so the rock star that says “I’m getting $5000 front loaded with 2 points on the back end” would be effectively saying “EvilRecordLabel XXX is going to pay me a $5000 advance for the studio, then 2 percent of the net take on sales once the $5000 is recouped”.
[WAG mode off]