Creation of a Distribution Company???

  • Thread starter Thread starter DA OX
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DA OX

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Does anyone have or know info to help me understand this process? Any help will be gratefully appreciated!!!

Thanx

L-G.O.D.
 
Hey ox,


I was looking into this awhile back....I'll have to look up the links I had for it...and the book titles....what I got from it though was it is easy to set one up (business & legality wise) ---but very difficult to acquire retail stores because most of them already have exclusive deals with the major music distributors. The whole in the wall record stores is actually who you would pursue first then pending on the sales you get a chance to pitch to your catalogue to the majors....Alot rely's on the labels and their artists roster that you distribute for.....the better the material the more it will sell...the more the stores will want to carry your product...and last but not least it is often times hard to get a record label to have someone who's never sold a record as their distributor......

The best method I came out with was to have your own indie label and find a distributor to distribute for you.....then as you grow you take on other labels and distribute them through your label and cut a profit from it....another words play middle man...


Hopes this gives you an overview
 
Hi ox,

Thanks for starting this thread.

The whole key is marketing----very true---but you can't sell
from an empty store---nor can you distribute....
From a business point of view, how you structure your acquisition
policies and throughput will determine your success long before
you even make a sales call...

If you check out my lo-fi/hi-fi thread, you will see these discussions are related...

Ultimately the success of indie music labels and most of us
that frequent this site will depend on developing our own
international distributing structure using the technology
available and co-operative trust..

I spent half of my life developing such structures for others.

Sometime ago, I started a thread describing a grassroots
structure which has led a small niche label to gross over
$1m annaully---peanuts maybe in the big scheme of things
but I sure would like a taste....

This thread is very worthwhile as it may lead to something
valuable..

Keep talking.
 
Spent ten years developing the distribution network for an indie label, grass roots is where it all must start. That is unless you have the BIG $'s behind you, and I do mean big!

I would be happy to discuss how I did things, although a forum such as this would be difficult to go in depth on. Now I am not saying my way is the only way, but it worked very well for us.

Basically you are going to need radio promotions to get airplay for the various artists, which in turn allows you to consign CD's to stores (Mom and Pops) on a per sale basis. Now remeber, with airplay comes the fact that the band is going to have to perform in that city also. Be prepared to issue a SHITLOAD of UPS call tags.

So now we have phone expenses, shipping, touring expenses, (you WILL lose money here), all on top of manufacturing (You need UPC less promos, one-offs- although the label will eat 99% of this cost.

Thats the start to it, if you need more let me know.
 
Hi Ox,

I have to agree with Craig that the capitalization required to
set up conventional distribution is astromonical...

As I presume we're all sitting here with limited resources,
why not get outside the nine dots and brainstorm some
alternatives..
 
Hmmm.. I would, but certain things might breach non-disclosure ;)

W.
 
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