BANDCOCKTAIL.COM

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!

Do you love music and aspire to start your own independent record label? If so, there are several things to consider, and we’re going to lay them out simply. There are definite steps that need to be taken during the planning phase to ensure that your indie label is a success. You will need to consider the who, what, where, when, why and how of starting your label.

Who:
It is not impossible for one person to start an indie label alone. In fact, it’s been done quite successfully. However, you need to take the time to decide if that is the route you want to take. Perhaps you are thinking of creating a partnership with someone who shares your passion. If that’s the case, take some time to figure out what roles each of you will play. Finally, you may decide to have various professionals and paraprofessionals involved. Plan how you will find and keep those people.

What:
Spend some time determining exactly what it is that you would like to create. For example, one of the most important choices you will need to make regards the type of music you want to promote. While it may seem easier to just take whatever comes along that sounds good to you, it is in fact very important to choose a genre and stick with it. Your label will be taken more seriously, and you won’t split your focus.

Where:
The “headquarters” of indie labels are about as varied as the people who run them. Make an assessment of what you have available. Are you planning to package and mail materials at your kitchen table, or do you have an office space lined up? Even your city might be a consideration. There’s a reason so many country labels are located in Nashville. With access to the internet, some of these issues are easier to address than they were in the past. You can have a virtual “store” online, although you still need to plan for the physical part of the job.

When:
When do you plan to get started? Do you need to save enough money to get the ball rolling? If so, set a deadline for yourself and work as hard as you can to reach it. If other people are involved (partners, investors, etc.) check with them to make sure everyone is on the same page about the timeline.

Why:
Decide what is important to you in this venture. Are you simply interested in promoting your own music, or do you plan to represent other artists? Some people choose to start their own labels in order to share good music with the world, while others see it as an opportunity to make a living doing something they love. This can also help you determine how much time and effort you are willing to devote to the enterprise.

How:
Well, that’s the big question, isn’t it? I hope that reading through these suggestions gives you a little better idea on how to go about starting your own indie label. The key here is to really think it through beforehand so that you are prepared for what needs to be done.

Knowing who will be involved, what you want to create, where you’ll be located, when to get started and why you’re doing it at all are the first steps to creating an independent record label that can sustain itself – and maybe even you along with it. Take these how-to steps and put them to work for you.

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.

An artist need not join hands with a major record label to gain fame and fortune. With indie releases outnumbering major record companies today, this misapprehension is quickly fading. Indie record labels are not bound by any “contract obligations”. They run their own record labels and take care of their own publishing. It is all about being your own boss and not about making big bucks and perhaps, this explains why artists are no longer looking to score a major record deal.

Major record labels and independent music labels have their own distinctive way of functioning. When you get into a major record label contract, your artistic freedom gets curbed because such labels would have the final say on your content. Indie record label contracts don’t curtail your creative freedom, simply because they believe in you and your music. When you are a mainstream artist, it is very likely that your career may fall flat on its face if your record sales reach a slump. You may have to fight for attention from your label again. With music downloads on the rise, you cannot really anticipate what the future holds for you but coming to think of it, it is only the Internet that has brightened the future prospects of indie label contracts.

Today, indie record labels do not have to put up an uphill battle to spread their music. There are many online resources such as Tupelo Super Store that help independent labels take complete charge of their career. You can find the best deals with them for marketing your music even without any connection with a major record label. A dedicated team of music lovers like Tupelo Super Store makes it easy even for an indie music label to get tour supports, a strong fan following, avenues to sell their music, a good share of income, and more.

With artist-friendly companies like Tupelo Super Store into the equation, indie label contracts are definitely the way ahead.