Run your own record label by E.J and Lara Winters

Making it in as an artist


These days so many young boys and girls wish to make it in the music industry as artists. Many do not understand how difficult it really can be to make an actual living in such a competitive industry. Talent is a major factor but you cannot get by with talent alone in this business. How hard can it really be? I hear all you ambitious musicians out there saying!!!! Well like any career or business it requires hard work, determination and a lot of learning. Many artists these days are going down the independent route and shunning the majors, being an artist has become like running a business and like any other business it requires knowledge of your field and plenty of hard graft. Essentially being an independent artist is running your own record label, and this is not impossible if you do it properly. There are so many aspects to the music business that you must consider as an artist, whether you would like to go down the independent route or you are seeking a major label deal. To make it easier for you guys I am just going to give you a run down on setting up and running your own record label.




Running your own label

One of the first problems you will come across running your own label will be finance, not just start up costs but ongoing cash flow. To press up 1000 CD’s can cost from £750 to £1000, but then there are additional costs. Promotion, your own basic living expenses etc etc. The music business is a very risky business and investors more often than none don’t get it. Unless you have your own capital from some very rich family members then when it comes to finance you will find it very hard. The best thing to do for finance would be look for a benefactor who has always been interested in the music business who will be willing to lend you the money. There are other ways to generate small start up capital, such as the Prince’s Trust, if you are 16 or over and have a business idea you can get up to £5000 to put in to it. This money does have to be paid back but it is interest free money, so this is a great option.

Once you have set up your label, you can go to distributors, but they will want something concrete, as in finished product. They like to see some track record to instil confidence, it is a good idea to set up as a limited company as distribution companies like to see this and it limits your liability in any court case that may arise. This all may be going over your head but it is very important you know these details if you want to set up as an independent artist and release your material on your own steam.

You will need to sign a distribution contract, but before it can even get to this stage you need to make everything look as professional as possible, for example a company logo and stationary, not to mention a good selection of tracks. The manufacturing process goes from the music mastering to cutting, by now you should be organising your artwork , going through test pressings and getting your initial promotion sorted as well. You then need pressed up promo copies of your material for DJ’s and press. Once you have built up a buzz within the night clubs as this is where it all begins and where it counts, you should be picking up some radio airplay by now (for original material or legit covers) then you should start trying to distribute to shops followed by full on radio promo. From manufacturing to release should normally need 10-12 weeks.

Distribution is very important, you can go around to the shops on your own but it can take a very long time and you will find that it will be a fruitless task. Most shops do not pay much and you will end up with sale or return. You need to know what the distributor specialises in in terms of styles of music. It is a good idea to approach a company with a demo initially.

Now you have a distributor and agreed number of your product in stock what comes after this ?

Promotion. In general there are seven stages of promotion but it is not always the same in every genre of music, but this is just a general frame for music promotion. Start with the clubs, if you have a good DJ contact this is fantastic as it will create the vibe needed to. Then the radio, know who the specialists are and then thirdly the press. Know who the papers and magazines are who are into your type of music. From this we go to live performances, you now have to back this up with advertising, flyers, t shirts and other promotional material. The sixth step should be television as in making a video and trying to get it shown on any of the channels the play your kind of music. However as a start up avoid like the plague channels that ask you for money to play your video. Make sure if you have directed and produced the video yourself that you join Video Performance Limited (VPL) the company that collects your royalties each time your video is played. Lastly there are licensees, if you can get your tracks licensed for compilations in all the various territories you can build up a steady income from this.

I hear you say, this all sounds like a foreign language! It may well do sound like that but you need to know all this if you even think you are going to have a fighting chance of setting up your own label to release your own material.

You need to make sure you are registered with the mechanical collection and performance collection societies (for collecting royalties) PRS and PPL and MCPS. You are required by law to be a member of MCPS to press records. (Google these societies you cant expect everything to be handed to you on a plate now can you!!!! Lol)

Guys and gals!!! Do you still want to set up your own record label???? This might change your minds! What if I told you that it can take a minimum of two years of spending money and not getting any in return. In the music business like any other business you have to establish yourself before you can expect to start making a real profit. If you are running your own label and you are also the artist you will have to work really really hard! There are office hours then club hours, then time in the studio. Essentially you are running your own business and the buck will always stop at you. So think very carefully before committing to setting up your own label and learn the business before you throw yourself into it. There are many downsides to setting up and running your own label but it isn’t all bad news and you shouldn’t dwell on these disadvantages because nothing good ever comes easy.

The upside to going it alone is that, you are doing what you want to do with no one telling what to do, it can be really good fun and working on your own project and seeing it through to its finality can be extremely satisfying. If you are an artist you have all the freedom in the world when it comes to your music, therefore you don’t have to answer to anyone when it comes to creative expression. When you are signed to a major label they are dealing with the masses therefore if your song is not what they think is the next big thing it will get knocked back. However going it alone you can serve your own niche market and stay ahead of the game.

There are some things that an independent label may not want to deal with such as packaging and boxing of the finished product. There are brokers that deal with this and it can save you a lot of time, these companies act as production departments for independents, from cutting and mastering to delivering the finished product to the distributor, they can also organise the printing, these companies can get involved at any stage in the manufacturing process that the label doesn’t want to be involved in.


Running a record label is not easy but it can provide the artist with the freedom to what you want creatively and in the long run it can benefit you highly financially. As said before nothing good ever comes easy so work hard and do the necessary learning before jumping in head first and your business will be a success.

If you want any help and advice do not hesitate to contact me via e mail and I will try my best to help you with contacts and any questions you may need answered.

intrigueonline@yahoo.com

Happy business running guys!!!!!!!!!!!! Always remain positive and you will make it!!!!