Posts Tagged ‘Independent Labels’

Who Can Start an Independent Label?

Monday, June 8th, 2009
Ty Cohen asked:

Are you a struggling artist who just wants their music to be heard or are you someone who is frustrated with the major labels and everything that comes along with them? It doesn’t matter who you are or what you have accomplished, anyone who has the desire can learn how to start an independent label. Over the next few minutes, we are going to explore why starting an Indie label is such a great idea.

Let’s say you are that struggling artist who can’t seem to catch a break. You want your music recorded and released to the public but can’t seem to get signed. Well, now-a-days, this isn’t a problem. Even if you thought you didn’t know how to start a record label before, you are about to learn just how easy it is.

Get in the studio, record your album and start selling. Is it really that easy? Well, yes and no. Yes, that is what you do and once you have accomplished the first step then you are well on your way.

Some people say they want to know how to start and run an independent label but they are worried because they aren’t artists themselves. That is absolutely ok. Maybe you are just a fan or just a lover of music, not a performer. This may be a plus for you. Although not always true but sometimes the creative artsy types have a harder time running the business side of a label. Maybe you should team up and have the best of worlds, a lover of and a performer of music.

Independent labels offer freedom for artists and owners. They also are known to have a bigger return on investment because there are less people to split profits with. You will retain complete creative control and all the rights to your music. If you have been searching for how to start an independent label, then look no further. The future is in the palm of your hands. It is relatively inexpensive in the beginning and when profits are generated then you will expand.

The time is now because the music market is expanding and the door is wide open for independent labels. It is better than ever so you need to act. Find a mentor that can help you learn how to start a record label if you need to. But you need to get in while the getting is good.

Profit Potential in Starting an Indie Record Label

Sunday, June 7th, 2009
Kc Smith asked:

There are varying opinions about how much money (if any) a person or group can earn by starting an independent record label. The truth is that there is real money to be made, but you definitely earn it through hard work. Believe it or not, sometimes the artist ends up making more money through a small indie label than he or she would signing with one of the “big boys.” Now, that’s what we like to hear!

It’s true that the return on investment can be higher for an independently released album than for one that goes through the more traditional channels. The explanation for this revolves around the amount of money spent to get the album into circulation. Plus, indie labels are more likely to work equally for all of their artists. The bigger labels choose which artists to back with the most support. This is a bit of a catch-22, though, because the more money they spend promoting the music, the more sales have to be made to break even. The artist won’t see any money until those costs are recouped.

The independent record label is going to spend a lot less when promoting their artists, which may seem unfortunate, but they also have to sell significantly less copies before they start making a profit. If the indie label spends $1,500 producing and distributing an album, they only need to sell 100 copies at $15.00 each before they start profiting. On the other hand, if a larger label spent $30,000 promoting an album, they would need to sell 2,000 copies before breaking even. You may also be able to offer the artist a higher royalty rate, too, as the overhead expenses for your business are probably much smaller than those of a big label.

Because the small, independent labels have less funds to contribute to promotion, they often become masters at finding free and low-cost ways to do the job. Of course, one of the first orders of business is to create a web site so fans can order the music online or purchase any merchandise that may be promoting an artist or the label. Including that address on every item sold ensures that anyone who listens to someone else’s copy of a CD has the information they need to go online and buy one themselves. Live performances are also a great way to make sales. Often the band manager or even the artists themselves will set up a table at performances and sell copies of the CD. It’s even possible to set up CD signings at local music stores.

While these methods for selling albums aren’t as glamorous as cardboard cut-outs of the artist at the local music store franchise, they are necessary for the indie label. An event that leads to 20 CDs sold can add up to more money for the artist than having 1,000 sold through a huge record label. Remember that anything sold after recouping the original investment is pure profit!

Starting an Indie Label: Not As Hard As You Think

Thursday, June 4th, 2009
Ty Cohen asked:

Independent record labels have been around since the beginning of records themselves. The biggest problems in the past, when figuring out how to start an independent record label, have had to do with funding and the generation of profits. “Indie” labels more recently though have exploded on the music industry scene for many reasons. Over the next few minutes, we are going to go over how to start a record label and why it is not as hard as your think.

Learning how to start and run your own record label is not an impossible feat by any means. In fact, the whole process has become much easier with time. Up until the 1990’s recording equipment and products were gigantic and quite expensive. But now they have not only shrunk in size but the price has shrunk as well. This has made things much easier for all those out there who were trying to figure out how to start an independent record label with very little cash flow. So, that solves your equipment problem. Now, where to put it…

Once you have the equipment, you are going to need some sort of make-shift studio. Some people may have the luxury of starting this business at home. But this all depends on where you live and the set up of your home. Deciding to start an independent record label from home can cut your costs tremendously. If this is not an option for you, then a rented space can be surprisingly cheaper than you would think. If you just want to test the waters before totally committing, then renting a pre-stocked ready-to-go studio for around $100/hr. is another option to consider. Remember, you are just starting out so you don’t have to go “all out” in the beginning.

Now you can see that there are many options for those contemplating how to start a record label. The Indie record label market is on the rise, so what exactly are you waiting for? As you can see, the cost of starting up are minimal and believe me, in the long run, the profits can be great.

Starting your own label can be risky business but risk is something that every entrepreneur has to take at some point. With proper guidance and the right amount of determination, learning how to start and run an independent record label should be no problem at all.

Who Starts an Indie Record Label?

Tuesday, June 2nd, 2009
Kc Smith asked:

Creating an independent record label can be a dream come true for the right person. Go online and look up “indie record label,” and you will find thousands upon thousands of articles. This means that there are other people out there who share your passion. Of course, it means that there is competition, but most independent labels are narrowly focused, so the majority of other indie labels out there most likely have nothing to do with the genre you choose to pursue.

So, who are these people? Most of the people who start indie labels do so because they truly love the music and want to share it with the largest audience possible. Many of those who get involved in this business are musicians themselves, and they have created a label to produce and distribute their own work. Others are fans of a particular band or type of music and decide to use their enthusiasm to spread the love. It’s not unusual for a small indie label to only have a handful of artists, but others have built relative empires.

With the amazing marketing power provided by the internet, indie labels have a whole new avenue to promote their products. These two enterprises have become incredibly intertwined with the advent of online music dissemination. It is very helpful if the independent record label entrepreneur is computer savvy, as it will speed up most aspects of the business and will make the music available to a much broader audience.

One of the best indicators of who will create a successful record label is the person’s tenacity and stick-to-itiveness. He or she should be willing to do some research so that things are done right the first time. Go online and read up on others’ mistakes and take their advice. There are a lot of “how-to” type articles on the internet. Plan ahead to ensure that your label is setting and reaching its goals. It’s impossible to reach goals that were never created!

Finally, the person who starts an independent label is probably less concerned about making money than in supporting the music. That’s not to say that there is no money to be made in the indie realm, because there certainly is. However, it takes hard work and dedication to see a profit. In general, folks are more interested in sharing their music or helping a band they appreciate. In addition to recording and distributing music, some labels will also help bands tour and may even sell merchandise. Again, here’s an area where being online will be a big help.

So, do you see yourself in this description of an indie label “mogul?” If so, then you may just have what it takes. Spend some time planning for your enterprise. Use online sources to gather as much information as you can, or maybe consider checking out a how-to book (or three). One of the best ways to prepare yourself for this type of venture is to do an internship at another independent record label. You will have the opportunity to see what is required to run the label, and you’ll even get some hands-on training that will be invaluable when you start your own.