Record Label

  • Thread starter Thread starter greyharmonix
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greyharmonix

greyharmonix

*....*
I didn't know what forum to put this in, but hopefully this place will suffice.

I have a friend who has a friend who wants to start a record label and build a studio. They seem so naive about it though. Then again there's nothing to it but to do it, right? I just was just wondering if people who have started record labels would share their start up stories.

The plan, so far, is to buy a house with a group of guys (me maybe being one of them) and turning a back house into a recording studio (which i've seen alot of guys do on this site). The building of the studio is not really my concern. it's the distribution and selling of records that's concerning me. With the current state of music being what it is do you think starting a record label (they say maybe in June) would be a good idea? between the people i know and the people they know there's a lot of talent that just needs a little nurturing. Especially in the LA scene where bands are overlooked because their genre isn't "what's in." i do feel that a return to a good record label with musicians being the core (instead of big business men) would be refreshing and worthwhile, but i still gotta pay the bills!

And truth is i don't know of any successful indie labels. I think they're all just keeping their heads above water. Anyway, maybe someone who knows more than i could shed some light on the record label situation. Especially people in Los Angeles.

thanks
 
If you're just looking to support some local bands and make some money off it, I would go about starting a "management company", which is essentially the same thing, but sounds like a more realistic thing to do.

Start out with one band. Preferably something small and easy to record, like an acoustic duo.

1. Get them in your studio to do some demo recordings
2. Publicize them on myspace
3. Get them to write an EP and produce it for them
4. Put money into artwork, duplication, etc.
5. Assign one of your guys to be their manager, and have him book them shows and work their merch stand, bringing a cut of their sales back to your company.
6. Find another band, assign another one of your guys to them, and repeat.

Don't forget contracts and stuff.
 
Well, if they are really planning on starting a record label, first they need to make sure they are proficient in the recording part of it. Lots of indie label start and die because of bad engineering and mastering. If they aren't that great in recording, no one will want to make a demo with them much less be signed.
Also, they need to make sure they register the label name before hand so there doesn't end up a lawsuit between them and someone else over a name.

There are some really great books out to help them visualize their goals and reach them.

Start and run your own record label- Daylle Deanna Schwartz
Making a living in your local music market- Dick Weissman
Also, they should get the anual Songwriter's Market. Most big name book stores have them.
Hope this helps a little.
 
greyharmonix said:
The building of the studio is not really my concern. It's the distribution and selling of records that's concerning me. With the current state of music being what it is do you think starting a record label (they say maybe in June) would be a good idea?
Click to expand...
I think you hit it on the head with this statement. Even the "big houses" are stating the difficulties operating in an environment where people just don't buy albums anymore. If you're producing and/or distributing nowadays, there's an absolute need to be familiar with evolving distribution channels. It's often more profitable to have clients listed on iTunes, etc. than on record store shelves. Grassroots marketing is king, and capitalization will make or break you. It's just like starting any other business. If you've got the talent and can stay on the cutting edge, good luck to you. If it sounds like a long shot, it probably is.
 
thanks for the replies i'll definately look up those book next time i have a chance. i think the main mode of profit would be from selling records at shows. i know when i see a good band i buy the record even if it is overpriced because i'm supporting the band. Does anyone have any idea on how profitable something like this could be? i remember once i saw a really good surf rock band and there was a line for about 50 feet of people just standing in line to buy the record. i was one of them. it could be profitable right?
 
If they want to keep profit high, they need to sell at shows. Every store that they sell at keeps a profit; they should haggle the percentage but I wouldn't go over 30% to the store if I were them.
Now a big name band on a big name label at the most will get about 15% of sales. Most of the money they get is the advance from the label. The big labels keep so much because they have to pay off everyone else; publisher, distribution fees, promotion, etc.
If they are planning on having a manager, expect to pay between 10-25% to him/her. If they are making money, that will give the manager more incentive to make things happen for the band. More money for them is more money for him.
 
Don't forget, starting a label is a business first and artistic venture second. Make a plan for copyrights, publishing, royalty payments, distribution, marketing, artist managment, taxes, legal status, etc... then have contracts ready to go for everything.

One of the regulars here has his own label. Search for Mindset and see if any of his posts give insight to starting a label.

Good luck and have fun
 
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