| Have you ever dreamed of starting your own record | | | | syndrome many artist have. What that means is when |
| label independently with no major label distribution. We'll | | | | an artist signs with your record label they now believe |
| now you can since we are in the the digital age of | | | | it is your responsibility to take care of them and all their |
| music. Major record companies are scrambling trying | | | | financial needs, this is a recipe for disaster so let them |
| to catch up with the internet, but this leaves a great | | | | know upfront your financial situation, or give them a |
| opportunity for you the music entrepreneur. Ok, so | | | | small advance upfront and let them know this is all the |
| where do you start when you have decided to run | | | | label can afford to pay you until the record sells. |
| your own record label? | | | | 4. The contract, is very important and when I sign an |
| 1. Come up with a catchy name for your own record | | | | artist I usually will put out two singles and give them a |
| label and find an inexpensive graphic designer to | | | | two album deal with 3 option periods. What is an |
| design an upscale looking logo for you. Go to google | | | | "option renewal period"? An option renewal means |
| and search after other record label logos and start | | | | that if the artist's music doesn't sell the way the record |
| there. Remember this is your brand and identity for | | | | label wants then the label has the right to keep the |
| your own record label so make sure it looks | | | | artist or drop him from the label. This is important |
| professional so an artist will want to sign with you. | | | | because what if the artist sells BIG and a major label |
| 2. Set up your business structure for your own record | | | | wants to pull them away from you, you have those |
| label, are you going to be a LLC., Inc., or you can simply | | | | option periods this will lock in the artist, and the major |
| go down to your local city hall and file for a DBA | | | | label will have to negotiate with you and can't steal |
| license for your own record label. | | | | your artist. |
| 3. Find a great artist with great music to represent. This | | | | 5. Distribution: Distributing an artist in the old days was |
| can be the tricky part because like sports you can't | | | | very expensive because a label had to pay upfront |
| teach speed, its the same with the music industry | | | | for the manufacturer to press up say 100,000 or more |
| either you have a good ear for music or you don't. | | | | CDs to be shipped out to retailers before the release |
| When signing an artist to your label always get an | | | | date. NOT ANYMORE! Everything is digital now CDs |
| entertainment lawyer to review your contracts and | | | | are obsolete. Usually Mp3's and wav files are sent to |
| make sure the artist you are signing has a great single | | | | digital distributors like Itunes or rhapsody. You can |
| and a great album ready to promote. I don't advise | | | | usually find a digital distributor that will handle all this for |
| paying for studio time if your budget is low it's ideal to | | | | your and pay you 90% to 100% royalties via paypal |
| sign an artist with their own production capabilities so | | | | every 30 days. When doing digital distribution it usually |
| they may just hand-in their project to send to the | | | | takes 6-8 weeks for your album to reach all the digital |
| distributor. Also, let your artist know upfront your | | | | stores so plan your release accordingly. |
| financial situation to avoid what I call the "Daddy" | | | | |