Start Own Record Label?

  • Thread starter Thread starter Diffusion
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Diffusion

Future Astrophysicist
I have been thinking a lot about this lately, and I was just wondering what it would take to start and run my own record label. Eg, how much money to start it off, any qualifications, what kind of people I would need, how difficult, etc? Any opinions on this would be appreciated.
 
The only thing you need to start a record label is a desire to release records and musicians who would like you to release their records. If you want to make a profit, you should make a business plan and maybe register as a business with your city, which is like $15 or something to incorporate. Otherwise, meet up with musicians, help them distribute and promote their albums.
 
grn said:
The only thing you need to start a record label is a desire to release records and musicians who would like you to release their records. If you want to make a profit, you should make a business plan and maybe register as a business with your city, which is like $15 or something to incorporate. Otherwise, meet up with musicians, help them distribute and promote their albums.
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true, but I was refering to more of a "major label", not a local label...
 
Businesses are like kids.. Even Billy Gates started out of his dorm (or the guy he ripped off did prolly).... Scratch that... Steve Jobs and Woz started Apple out of a garage...
 
Diffusion said:
true, but I was refering to more of a "major label", not a local label...
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In my opinion, major labels are more of a bank than anything. They give out loans to people that fit their qualifications. They pay copious amounts of money for those people to record and release (in advances) and if that person does not meet their loan payments (i.e. record sales) they are now in debt to the record company. So, if you want to start a "major label" you should probably have at least several million in the bank to get good artists, recording studio time, and another several million for advertising. Or you can be one of the lucky ones (like sub pop) and strike with a certain genre while the iron is hot (read: lucky).
 
I'd probably put the figure closer to a half billion dollars or more... multiple good artists and enough money to "build a partnership" with Clear Channel... you don't just "start" a major lable :)
 
zekthedeadcow said:
I'd probably put the figure closer to a half billion dollars or more... multiple good artists and enough money to "build a partnership" with Clear Channel... you don't just "start" a major lable :)
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And you dont just "get" half a billion dollars either. If it were that difficult Im sure there would not be many major labels today.
 
Sorry man.. You can't be serious... Look up the history of Columbia...
 
there aren't many major labels... there are five. there are a ton of independent labels. if you don't have billions of dollars, you don't have a major label. you have to start off independent. it takes years of work. it will probably take at least 10 to 20 years before you reach major label status. some of these companies have been at it since the phonograph was invented.
 
TroyHutson said:
In my opinion, major labels are more of a bank than anything. They give out loans to people that fit their qualifications. They pay copious amounts of money for those people to record and release (in advances) and if that person does not meet their loan payments (i.e. record sales) they are now in debt to the record company. So, if you want to start a "major label" you should probably have at least several million in the bank to get good artists, recording studio time, and another several million for advertising. Or you can be one of the lucky ones (like sub pop) and strike with a certain genre while the iron is hot (read: lucky).
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This is technically true, but it sounds a little misleading.

If the record company advances you $500,000 for an album, then yes, all that money is recoupable. And you won't see a dime from it until you've recouped that $500,000. BUT ... if you don't ever recoup fully, you don't owe the label the difference. They just eat the cost.
 
ok, I see your points... now let me rephrase my question: What would it take to run my own successful independant label?
 
Knowledge, contacts, luck, more than just a question on a home recording forum. Why not try your hand at an internet record label? ;)
 
it's just a lot of work. you can do it, but you have to start extremely small. contact local artists and see if you can help them put out a record. then do consignments with local record stores and promote them. you have to invest a lot of your time and your money. you probably won't make a profit at all the first year.
 
grn said:
it's just a lot of work. you can do it, but you have to start extremely small. contact local artists and see if you can help them put out a record. then do consignments with local record stores and promote them. you have to invest a lot of your time and your money. you probably won't make a profit at all the first year.
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Here's a good article.

http://www.musicbizacademy.com/articles/mg_startlabel1.htm
 
Buy a book on it, there are lots of good ones out there. You are going to need some money though. Unless you have money to put into a band (Recording, distribution so on) there is no point (from the bands point of view) doing business. If you have the money to put out a record and be able to push it then your set. I guess maybe like $1000 for a band. Depends how far you want to go with them.

If your really serious you should look to take out a loan and shit. Get some legal advice first. Its a serious business, you cant just blag your way through and hope for the best. IF you break even your doing well. There is no money in it, most people who run indie labels do it for the love of music not the rewards.
 
I want to start a major car company...Not a minor one. Where should I start? Any thoughts.
 
RAMI said:
I want to start a major car company...Not a minor one. Where should I start? Any thoughts.
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Yea man, that's easy you just get your business license, then build a million or so cars the first day, and then 500,000 thousand or so every day after that. BAM! Major car maker.
 
Oh god, all I can say is...


If you're ready for all the bullshit that comes with it....go for it. It's more control, but with that control comes the ability to lose control of your networking, artists and your money.

Record labels are in the business of losing money in most cases. With good managment, they stay afloat at most.

You're going to need alot of things. You need

-legal advice (a good legal team)
-funding/loans (investments and those who are going to invest in your cause)
-proper networking (which often affects your funding)
-A&R to scout out good investments (your money making artists).
-a good public relations team

-what your goals and "visions" are in terms of genre. All great companys function off a main idea. For example, Harely Davidson prides themselves off of building tough bikes and being "American made muscle". If you think about it, that's a great concept because thats the american mentality.

-What music are you going to represent? Hows the market for that music? How much do you want to start with? How much are you going to put in? For how long? Where do you see it in 5 years? 10? 20?


-Your artists and your audience. These are the most important. Without good talent you can't hope to succeed with a record label. Even more importantly, without an audience that demands that style of music, you won't make a dime of that invested money back.




So many things to consider. Trust me, in another life, I would of loved to be a record label owner. Just not my cup of tea. Good record label owners are good business people that come with a money making background. They have a knack for the music industry network.
 
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