A demo (from "demonstration") is a song or group of songs recorded for limited circulation or reference use rather than for general public release. A demo is a way for a musician to approximate their ideas in a fixed format, such as cassette tape, compact disc, or digital audio files, and to thereby pass along those ideas to record labels, record producers, or to other artists.
Musicians often use demos as quick sketches to share with bandmates or arrangers or simply for personal reference during the songwriting process; in other cases a songwriter might make a demo to send to artists in hopes of having the song professionally recorded, or a music publisher may need a simple recording for publishing or copyright purposes.
Demos are typically recorded on relatively crude equipment such as "boom box" cassette recorders, small four-track or eight-track machines, or on personal computers with audio recording software.
Songwriters' and publishers' demos are recorded with minimal instrumentation - usually just an acoustic guitar or piano, and the vocalist. Both Elton John and Donovan gained studio experience early in their careers by recording publishers' demos for other artists, since their managers also handled music publishing, as did Garth Brooks, who was so impressed when recording the demo of "Friends in Low Places" that he asked to release the song himself (when he did in 1990, it became a major worldwide hit).
Many unsigned bands and artists record demos in order to obtain a recording contract. These demos are usually sent to record labels in hopes that the artist will be signed onto the label's roster and allowed to record a full-length album in a professional recording studio. However, large record labels usually ignore unsolicited demos that are sent to them by mail; artists generally must be more creative about getting the demos into the hands of the people who make decisions for the record company.