HOW TO START A RECORD LABEL
Do you have a passion for music? Are you an independent artist intending to add some credibility to the product of your effort? Are you a music-lover who has what it takes to contribute to the success of artists you considered your favorites? Or a producer who wants to push further to take the credibility of releasing the records of artists that you have produced? If you fall into any of these categories, setting up your record label is a great deal you should consider.
It’s no news that the internet has turned the world around and the music business has revolutionized globally. In this modern age, the internet plays a major role in making record label set up easier, unlike the past few decades that it was a great deal. In this article, I’ll discuss the key tasks to create a record label successfully.
Below are a few things to consider to get a new record label up and running quickly and efficiently.
PLAN YOUR BUSINESS
To start any business, a formal business plan is an essential key to success. It will serve as a road map and a description of how the goals of the business will be achieved. Necessary information to help you make a good business plan can be obtained through extensive research into the operations of established record labels. To the best of my knowledge, this will include startup and ongoing costs, your target market, how to charge your customers, the type of music you will specialize in, how you will record the music, how your music will be manufacture into physical or digital products, advertising and marketing plans, sales outlets, distribution strategies and many more.
CHOOSE THE MUSIC
There are millions of artists singing different genres of music and obviously, the majority of them are still looking forward to joining a record label which makes your label a target of thousands of them.
Choosing the music you’re going to sell is one aspect you must put effort to get right, take your time to make the right decision in order not to end up wasting your money. Take into consideration what will be acceptable by your target audience, deliberate on whether to sell physical items or it’s going to be online downloads.
Consult with experts, survey the market well because producing physical materials cost a lot, and unable to sell after production might be a step to losing your business. Do not have the mindset that you can help everyone, you must be business-oriented and be prepared to identify and to work with only artists that can produce what will be acceptable by your target market.
CREATE A BRAND IDENTITY
After determining the genre of music to sell, the next step is to create a brand identity for your record label. It’s a vital aspect of your startup because it will be your shop window.
Suggest a list of names and test with family and friends. Consider the availability of the name and ensure it can blend well when included in your record label website. Secure your chosen name by doing the registration.
ESTABLISH YOUR BRAND IDENTITY
Apart from your record label name, brand identity is your brand visible elements such as logo, color, design, and others that identify and distinguish you in the minds of your audience.
The more professional your brand appears to the public the more your chance of gaining people’s hearts. Many get this wrong by doing this themselves, it is not a bad idea if you can but a touch of professionalism will make a huge difference.
You do not need to stress yourself over this as you can hire a professional either online or offline that can interpret your ideas. Fiverr and Upwork are a perfect place to hire professional online.
CREATE A WEBSITE FOR YOUR RECORD LABEL
Your website is your online shop, it serves as an information store where your customers can access all they need to know about you, your record label, your releases, videos, and a new signing. Also, creating social media channels to complement your website won’t be a bad idea. Both website and social media channels can serve as a linkage to your business.
TRACKING
This is the product you are taking to the market, when you are ready to release your first product, ensure it sound professional. Compare your product with that of your competitors, listing to it with your team, friends, family, and others that you think are good in criticizing several times with different speakers and ensure mixing and arrangement are perfect. Register your track with Nielsen’s Sound Scan service. This service can help you with the tracking of sales and as well broadcasts of your music for rating and charting purposes.
PROMOTION
The internet has huge benefits to offer when it comes to promotion, use the internet to your advantage. Facebook, Soundcloud, Instagram, Youtube, and Twitter are perfect tools for your promotion. If time or experience will not permit you to use it to the fullest, hire experts. Be active online and ensure your page is a lovely place to visit. Color, content, and updates should be what people want to see.
CONTRACTS
For your record label to be profitable, you must know your contract most especially when you are releasing music made by other artists. Contact an entertainment lawyer to assist in your contract drafting if you cannot do it yourself. The most important thing is that contracts between your artists, studio, publisher, producer, and others involve in your production are fair and binding, clearly documented, and legally signed by parties involved. If anything goes wrong, your contract will be your backup.
LIVE PERFORMANCE A KEY TO BUILDING A FAN BASE
Playing out is a great way to sell your physical products (CDs) and an avenue to increase your fan base. Through this, you can as well make extra profit by selling your record label and artists merchandise such as T-Shirts, caps, etc.
COLLECT ROYALTIES
Royalties collection make take time but it must be included in your plan when releasing a track. Sign up with the PRS and MCPS but ensure you have the right information about what they offer. Broadcast Music Inc., American Society of Composers, Authors and Publishers, or Society of European Stage Authors & Composers are also the organization you can register with. Search for more information about royalties and it will lead you to other information you need to know.
ACCOUNTS/INCOME TAX
Income Tax is a necessity, so it is advisable to account for every pound and penny. Have a record for everything regarding your business, your expenditures, and income. It will help a long way in fulfilling your lawful responsibility (tax payment).
ADDITIONAL TIPS
* If you don’t have a lot of music industry experience feel free to learn from those that know, be honest and realistic, take your time to know before you kick-start
* Ensure you understand your contract with your artist, studio, producer, and publisher before you sign. Do not promise what you cannot do. Transparency will help your business and reputation.
* Don’t chase trends. Set a standard for your label, do not compromise quality. Pay total attention to every single track you want to release. Ensure it’s of good quality before you release it. Do not overlook any flop.
* Be creative and hire professionals to handle your brand identity. Every artwork has a way of communicating with your audience.
* Treat your label well by dedicating your time and resources for its promotion.
If you have any questions or suggestions feel free to contact us.
