Everything You Need To Start And Operate A Record Digital Label

Anyone with a talent for music - particularly an interestdrawn to a special style or genre - or just someone
or specialty in a particular area of music - is now sittinginterested in music in general - here's what you can do
on a potential gold mine.to start your digital label: Firstly, you'll need a good web
Before I discuss the advantages of running your ownhost. Basic as this sounds, some people go with an
digital label - I'd like you to imagine what it would haveoutfit they think is good - then, six months later they
been like starting a physical label just ten years ago. Avanish into cyber space - leaving you and your site
minimum investment of $350,000 would have beenhigh and dry. So, please do homework before opening
needed. This would have enabled you to rent an officea web host account. I personally use Ipowerweb but
sufficient to hold yourself plus a secretary, an a&rit's very much a matter of choice who you go with. I
manager, a talent scout, a plugger/ promoter, and arecommend you check for independent reviews on
receptionist. You would also need a copyright andhosts you're thinking of going with. Once your web
royalty manager.host is confirmed, you should get a confirmation email
Your next task would have been to acquire goodfrom your host confirming your space is ready so that
commercial recordings - with emphasis being on theyou can move forward and publish your site.
word "commercial". Finding recordings was one thing,Some people are very creative and skillful in being able
(as is the case today), finding good commercialto create their own web site. Others, like me, are not. I
product is something else. Unless you were able towas contemplating having someone design my web
acquire ready made masters under license from asite for me when, by chance, I came across a web
third party, you would have had to pay for your artistsdesign system called Xsitepro, but there are many to
to record the masters yourself. In addition to hiring achoose from. As with the web host, look for
recording studio, you would also have had to pay aindependent reviews before making a decision.
producer - plus a recording engineer (although theNext, make sure you have an up to date digital
engineer's costs were usually included with the studiocontract - one you can offer artists (or the owner of
hire) - thus eating further into your $350,000 budget.the masters). If you're not an artist yourself, you can
Assuming you could had got your team working nicelyenter into a license deal with any artist or production
together- and sales from your first album had startedcompany willing to have you promotes and sell his/her
to feed back from around the world, eighty percent ofproduct. By knowing a particular field or style of music
your income would have been taken up in overheadswell, will help you no end build your catalog faster than
through royalty payments to the artist, producer andif you're someone learning as he/she goes along.
the music publisher (mechanical license). Then, thereHowever, enthusiasm will go along way. What you
would have been your general overheads: salaries,need to do when you start off is to ask yourself this
expenses, office rent and so on.question - "Why would an artist license his/her rights to
But we're getting ahead of ourselves. before sellingme and not someone else?"
any records you would have needed a reliableFirstly, to have an artist (or production company) freely
manufacturer and an effective distributor to createlicense his rights to you - you need to convince him/her
and disperse your cds, (and maybe some dvds tothat you have a powerful distribution system. Unlike
promote the records), to the shops. This, however, isphysical labels, with a web site, you have the ability to
where it gets tough. Distributors, always alert to storescreate your own "built in distribution system". Having a
and outlets unwilling to give shelf space to unhearddigital distribution account is an excellent idea - but you
artists, (i.e. artists yet to achieve a playlist position onwill still need to promote your product if you want to
radio), would refuse to represent the the label. Notdraw large numbers to your site. In my view, a
surprising when, given the choice, retailers couldnewsletter, blog or e-magazine, is the one of the best
choose from any of the big selling artists such asways of drawing a high reading audience. Ten
Nickelback, Beyonce, Pussycat Dolls, Justin Timberlake,thousand plus is a good target to work toward. This
James Blunt etc against the poor new artist. So, youwill help you pick up more recordings from artists
with your new label and new artists, would be forcedlooking for a site attracting thousands of hits -
to plough more money to promote your record, in theassuming of course artist's genre works well with your
hope of getting on the playlist - and thereby securinglabel. There are some excellent publishers, blogs and
that elusive distribution deal. At this stage you would benewsletters hungry for good topical articles, presenting
wondering why you had started a label in the firstyou with another outlet. Keep your articles fresh and
place.original, and your audience will grow steadily with each
So, what enormous monstrosity of a thing happened inarticle.
the music industry to change the old physical methodSince distribution is the key to your success - this is
of selling records? Enter, the golden dawn of digitalwhere you need to concentrate if you want your label
music. Now, suddenly every artist, songwriter, producer,to expand and prosper. Obviously, if your newsletter or
engineer and, even manager who once had a notione-magazine readership is increasing, it's because
of starting his/her own physical label but didn't have apeople are enjoying the articles and information you're
$350,000 budget - is able to start and operate his/herpublishing - and more people will want to buy your
own digital label for about the price of a new laptop.product. A healthy situation all round.
For the first time - individuals have a great opportunityNow, a note on your digital agreement, you can use a
of developing their own label from zero up - andcontract repeatedly for different artists. I would
making a very healthy living. Unlike the older physicalrecommend you acquire rights non-exclusively. Keep in
system of starting and operating a label - with all themind that a contract may need to be updated from
huge overheads - the digital label operator can start atime to time as new copyright laws come into effect
catalog and operate it at his own pace without theto deal with technological changes. As a rule of thumb
need to employ several individuals. You can start withyou can check back every six months to see if your
as little as two tracks - and build a catalog at yourcontract needs updating.
own pace - concentrating on your niche in the musicNext, ensure you have a terms and conditions policy
industry, testing and probing the markets as you goon your site. Anyone starting off a digital label, should
along. Compare that to a physical label spending wadshave a general list of conditions, setting out criteria for
of money hoping their records chart. Failure to chartaccepting product online, together with a privacy policy.
would often spell disaster for many a physicalNext, you'll need a strong accounting system. No
independent and domestic label - leaving only thematter how effective you are selling product online - if
majors to compete. Not so for a digital label. If ayou're not accounting to your artists accurately and to
particular recording isn't selling over a period of time -the letter of your contract - you're dead in the water. In
you simply delete the product from your site. Updatingmy view there is nothing worse than a company with
his catalog can be done in minutes. Some digital labelsa bad reputation for paying royalties. For me, trust and
regularly update their catalogues every few days. Areputation is everything.
digital label, too, doesn't require the staff and individualsWork closely and be up front with the artists who put
required of its physical counterpart.their faith and trust in you. Your good reputation and
If you're not an artist yourself - but someone who isname will spread.