What does it take to run a label?

[Nightfire]

Ok, so by now you must be thinking "oh no, not this crap again, another bad singer who cant get signed so he wants to make his own label".
Well, thats not true (except the bad singing part, that is most definitely true).
I am not interested in doing it myself, but would love to learn more about it.
So, what does it take?
How can someone promote local up and coming artists until they get signed by a bigger label? Pay studio bills, book gigs, organize tours, get them some air time? All this stuff does not just come about easily. I would love to hear from some of you who have attemted, or are currently running a label. Success or failure? Profession or hobby?


Mike

 

[pandamonk]

Ok, so by now you must be thinking "oh no, not this crap again, another bad singer who cant get signed so he wants to make his own label".
Well, thats not true (except the bad singing part, that is most definitely true).
I am not interested in doing it myself, but would love to learn more about it.
So, what does it take?
How can someone promote local up and coming artists until they get signed by a bigger label? Pay studio bills, book gigs, organize tours, get them some air time? All this stuff does not just come about easily. I would love to hear from some of you who have attemted, or are currently running a label. Success or failure? Profession or hobby?


Mike

Money!

I will be encorporating a label into my new business. I think you just have to be really determined. You gotta really work hard.

I'd say to start with, unless the band already have a reasonable fan base, the best tour would be a supporting tour. Find lots of bands/promoters around the country and ask if your artist can support them/play at their gigs.

Maybe play college campuses. Try and get as much air-play at each campus in the weeks before each gig.

Contact lots of local radio stations and try and really push your artist.

The best idea for studio time, is to have your own studio, imo.

You have to really go everywhere you can to push your artist, internet is a good place to start. Try to get as many reviews of the music done as possible, especially by well known reviewers.

Organise a big event on the night of your first release in the area where most of the band's fans are. Offer something to intice people(and their friends) along. Just contact a local venue and tell them what you want to do. You can usually work out a deal, eg there's a club locally to me that do free venue hire, you just have to pay the bouncers(£70). They make their money from drink sales.

Take on fans for a street team(if they really love the band, they might even do it for nothing, although i'd offer them something).

You really have to have loads of contacts! Good contacts!

Erm i don't really know what else to suggest. Only sign really good unique bands who are already quite well established.

EDIT: Make yourself out to be something bigger than you are when you're trying to push your band...

 

[mikeh]

Having a "record label" is easy. Choosing good talent, making sure that talent gets plenty of exposure, financing recordings, etc. etc. - that gets a little harder

I've always felt having a record label means nothing if you don't have distribution channels - and distibution has always been the hardest thing for independant labels. Certainly on line distibution has helped level the playing field.....a little, but....bottom line is, if you can't move product, you can't make money. If you can't get recordings into the hands of the public....why would acts sign???

I know a few bands who signed with small "indenpendant" lables...because they would have "artistic freedom". However, the labels had no distribution, meaning no real revenue - which in turn meant no cash to provide tour support, etc. etc.

 

[pandamonk]

Having a "record label" is easy. Choosing good talent, making sure that talent gets plenty of exposure, financing recordings, etc. etc. - that gets a little harder

I've always felt having a record label means nothing if you don't have distribution channels - and distibution has always been the hardest thing for independant labels. Certainly on line distibution has helped level the playing field.....a little, but....bottom line is, if you can't move product, you can't make money. If you can't get recordings into the hands of the public....why would acts sign???

I know a few bands who signed with small "indenpendant" lables...because they would have "artistic freedom". However, the labels had no distribution, meaning no real revenue - which in turn meant no cash to provide tour support, etc. etc.

Yeah, for some reason i forgot actually selling the record. Of course you need distribution, which is a hell of a lot easier online. Only problem with it being easier is that so many more people do it now. So you need to really promote/get some exposure for the artist.

I think regular gigging(not to the same tired fans) is a good way to do that, along with radio/tv play and high end reviews.

You also need to have everything in place, so as soon as someone hears of the band they can find them. So a video, on youtube etc., a website, a myspace etc., songs on itunes etc., even song on illegal file sharing places, so you can at least attact people to the band who wouldn't otherwise find them.

Also latch onto similar bands, if you can. Even something as simple as posting your artist's video as a response to a similar band who get a lot of views.

 

[Steve Henningsgard]

It's been said, but it hasn't been stressed so I will re-state in the appropriate font-size:

MONEY!!!

Labels are essentially banks with media/distribution connections. They lend a band money for recording/touring/etc., hoping that the band will get big enough that the label will at least break even (which usually doesn't happen). If you don't have any money, you can't run a proper label. Get financial backing somehow, and make a ton of contacts. It really is all about who you know, so get to know EVERYONE!

Hope this helps

 

[pandamonk]

It's been said, but it hasn't been stressed so I will re-state in the appropriate font-size:

MONEY!!!

Labels are essentially banks with media/distribution connections. They lend a band money for recording/touring/etc., hoping that the band will get big enough that the label will at least break even (which usually doesn't happen). If you don't have any money, you can't run a proper label. Get financial backing somehow, and make a ton of contacts. It really is all about who you know, so get to know EVERYONE!

Hope this helps

I wouldn't say that a label can't be run without much money. Money is definitely important, but if you are willing to give your time instead of money, then this saves the need for it.

If you don't have much money, then you will have to do most parts yourself. If you have a gig planned then you have to be the sound guy. If on tour, you have to be the bus driver. To record, you should have your own studio.

It won't seem hugely professional, but everyone has to start somewhere! Obviously there are certain things that you do have to fork out money for, but you should shop around as much as possible before doing so, and try and make some money back before you need to fork it out.

 

[Steve Henningsgard]

I wouldn't say that a label can't be run without much money. Money is definitely important, but if you are willing to give your time instead of money, then this saves the need for it.

If you don't have much money, then you will have to do most parts yourself. If you have a gig planned then you have to be the sound guy. If on tour, you have to be the bus driver. To record, you should have your own studio.

It won't seem hugely professional, but everyone has to start somewhere! Obviously there are certain things that you do have to fork out money for, but you should shop around as much as possible before doing so, and try and make some money back before you need to fork it out.

It all depends on your definition of "much" money! If you've got your own studio and you're recording your own label's bands for free, you still have to pay yourself so you can eat and pay your own bills. Pressing-wise, to put out a small release of say 1,000 CD's, it'll cost you at least $100-1300, and then all you've got is the CD's, so you need to figure out how to distribute them. Online distribution at iTunes and such can be had for peanuts ($30 or so?).

If you want to advertise your releases, it'll cost you a fair sum for either digital or print advertisements. Then, to put your band on tour, that'll take some money too (although the band usually has to front this).

I'm not saying you need a million bucks to start a label, I'm just saying you need to be prepared to spend some cash AND work your ass off to promote each and every release just to hopefully break even several years down the road when the band's 2nd or 3rd CD gets them some decent exposure.

Good luck either way! Times are a changin', and with the advent of cheap-to-free digital distribution, and the iPod generation, it might be entirely possible to operate a successful digital-only label for very little startup cash!

 

[pandamonk]

It all depends on your definition of "much" money! If you've got your own studio and you're recording your own label's bands for free, you still have to pay yourself so you can eat and pay your own bills. Pressing-wise, to put out a small release of say 1,000 CD's, it'll cost you at least $100-1300, and then all you've got is the CD's, so you need to figure out how to distribute them. Online distribution at iTunes and such can be had for peanuts ($30 or so?).

If you want to advertise your releases, it'll cost you a fair sum for either digital or print advertisements. Then, to put your band on tour, that'll take some money too (although the band usually has to front this).

I'm not saying you need a million bucks to start a label, I'm just saying you need to be prepared to spend some cash AND work your ass off to promote each and every release just to hopefully break even several years down the road when the band's 2nd or 3rd CD gets them some decent exposure.

Good luck either way! Times are a changin', and with the advent of cheap-to-free digital distribution, and the iPod generation, it might be entirely possible to operate a successful digital-only label for very little startup cash!

I agree with what you say, and what i was talking about was mainly the last paragraph. Obviously if you want to go the physical product route it will take quite a bit of money.

Obviously you need to pay yourself, but like anyone else in the music biz, you get paid wen the product starts selling. So you've recorded for free, but once the music starts selling, you will get paid a good percentage(for doing all these things, and saving a lot of money). You just gotta try and use as many free/cheap mediums for promotion/advertisement as possible.

 

[Nightfire]

Thank you very much for these replies.

Mike

 

[pandamonk]

Thank you very much for these replies.

Mike

You're welcome . Hope they help

 

[BudgetMC]

I'll add another critical component here.

Time.

Back in the late '90's, my brother and I set up a record company. It started as a vehicle for our own work, but quickly snowballed to include friend's bands... and friends of our friend's bands. Mind you, this was in the salad days of the internet bubble, and we were doing internet music distribution (anybody have warm & fuzzy memories of when MP3.com paid you for plays??). Anyway, it got so crazy that we wound up releasing three CDs in the US for Afrigo, a very big Ugandan Band. Suddenly, what we had started as a lark was getting to be a huge time vacuum... demanding more time than we really had to offer. Fortunately for us, the whole internet bubble popped and we were given an excuse to bow out... Had we wanted to do it full time, however, I always kind of had the sense that it was building up into something real.

So... in a nutshell, from my limited experience, running a lable is like, WORK. You need a lot of time if you want to do anything more than dabble. Oh yeah... and as Steve said, money.

 

[max havoc]

Indie labels

Lots of good advise in the other replies.

I was a principal at at a fairly large independent label from 1990 through 1996 so I know a few things about the world of independent labels (though some of it may be a bit dated by now.) By the time we sold the label in 1996, we had developed a network of about 16 different independent music distributors, which allowed us to get our music in stores everywhere in the U.S., Canada and Western Europe.

Back then, distribution was certainly one of the key elements, and made our label a particularly attractive company to buy. With Nirvana breaking big through an independent label, independent distributors (as opposed to major label distributors) became a viable and desirable alternative.

Independent distribution is very hard to get these days. The 'major' independents don't want to waste time distributing a label that does not have seasoned veterans running it; that is, a label without an experienced promotion department (radio), publicity department (press), sales department (working the retailers). Of course, all these "departments" can be hired on as independents on an outsourced basis, but it can get expensive ($500 or so a week will get you a radio promoter and a publicity person.)

A good place to start is working colleges. When I was doing it, there was a trade magazine called CMJ (College Music Journal) that listed all the college radio stations and their respective play list, along with a contact name and phone number. College radio is not as regimented as commercial, and its a bit easier to get a hold of the music directors. You just call them and talk to them about your band, send them a record, and follow up to close the sale (get it on the air!) Colleges also have newspapers for reviews, and venues for the bands to play at...a kind of micro community.

If you get enough college stations to play the record, you have a story to tell commercial radio stations and press. Advertising with the press you want to get written up by doesn't hurt either. Signing bands that are ready, willing and able to go on the road was also critical. It's much easier to sell the project when the band is "coming to your town". Interviews are easier to get, as well as radio play.

Running an independent label is a bit like the "proverbial chicken and the egg". To get distribution, you have got to create a demand for your product. Creating demand without having distribution (your product in the stores) can be equally difficult (promotional entities like radio and press don't like to promote things that are not available for sale.) However, all is not lost! You can always begin regionally and put your records in the local music stores on consignment, and there is now the added blessing of selling via your own web site and other Internet channels.

Billboard Magazine has a number of trade journals available for sale (radio station listings, retailers, distributors, etc. and Poll Star (sp?) magazine list all the venues for bands to play at (at least they did when I was doing it.)

The most important part of the independent record company equation is the music + desire + dedication + determination + diligence to get it heard.
A little money doesn't hurt either.
Hope this helps.
Good luck,
Max Havoc

 

[pandamonk]

Lots of good advise in the other replies.

I was a principal at at a fairly large independent label from 1990 through 1996 so I know a few things about the world of independent labels (though some of it may be a bit dated by now.) By the time we sold the label in 1996, we had developed a network of about 16 different independent music distributors, which allowed us to get our music in stores everywhere in the U.S., Canada and Western Europe.

Back then, distribution was certainly one of the key elements, and made our label a particularly attractive company to buy. With Nirvana breaking big through an independent label, independent distributors (as opposed to major label distributors) became a viable and desirable alternative.

Independent distribution is very hard to get these days. The 'major' independents don't want to waste time distributing a label that does not have seasoned veterans running it; that is, a label without an experienced promotion department (radio), publicity department (press), sales department (working the retailers). Of course, all these "departments" can be hired on as independents on an outsourced basis, but it can get expensive ($500 or so a week will get you a radio promoter and a publicity person.)

A good place to start is working colleges. When I was doing it, there was a trade magazine called CMJ (College Music Journal) that listed all the college radio stations and their respective play list, along with a contact name and phone number. College radio is not as regimented as commercial, and its a bit easier to get a hold of the music directors. You just call them and talk to them about your band, send them a record, and follow up to close the sale (get it on the air!) Colleges also have newspapers for reviews, and venues for the bands to play at...a kind of micro community.

If you get enough college stations to play the record, you have a story to tell commercial radio stations and press. Advertising with the press you want to get written up by doesn't hurt either. Signing bands that are ready, willing and able to go on the road was also critical. It's much easier to sell the project when the band is "coming to your town". Interviews are easier to get, as well as radio play.

Running an independent label is a bit like the "proverbial chicken and the egg". To get distribution, you have got to create a demand for your product. Creating demand without having distribution (your product in the stores) can be equally difficult (promotional entities like radio and press don't like to promote things that are not available for sale.) However, all is not lost! You can always begin regionally and put your records in the local music stores on consignment, and there is now the added blessing of selling via your own web site and other Internet channels.

Billboard Magazine has a number of trade journals available for sale (radio station listings, retailers, distributors, etc. and Poll Star (sp?) magazine list all the venues for bands to play at (at least they did when I was doing it.)

The most important part of the independent record company equation is the music + desire + dedication + determination + diligence to get it heard.
A little money doesn't hurt either.
Hope this helps.
Good luck,
Max Havoc

Great info!