I Want To Start A Small Record Label... How?

Ok I searched the archives and I have yet found any info on this subject. I would like to start a label that specializes in electronic music. I have been producing tracks for about 5 years now and have performed live a few times in Los Angeles and i have been told I have good tracks. So I thought about sending out demos to labels. I do house music and unfortunately I keep hearing from others that house labels are notorious for saying they like your stuff but due to time and economics that cant release stuff.

So I have been thinking for sometime that i would love to start my own label. I have so many contacts that i could use to get my stuff out and played. I know a few known Djays and have been in the position to pass of records or whatever to them. For instance I went Miami and ran into a few people I knew from Los Angeles and San Fransisco. Some djays some producers and a few scene writers. They all remembered me and thats how its always been. I've just been "that guy" whos at every cool ass party.
Every now and then I will run across a kid with a killer downtempo track or house track. They got no real way to get it out but I do. So i tell them who would listen to it and who would like it, mostly peeps i know in around the scene.
A friend of mine told me if I lived in Los Angeles still I could be a manager or A&R rep for sure, simply because my ear for good quality music and connections I got. I was always selfish thinking "Yeah I save this info for myself when I get my tracks ready.." But I am getting antsy and I want to start using what i know and who i know to help others out who i think need to be heard.
I decided i must start a label. Honestly I always wanted to have my own business. I have two close friends that have thier own. One runs a successful record store (they sell vinyl!) the other runs a UPS Store franchise. I dont have loads of cash like they do but I have the drive to be as succssesful as they are. Having my own business doing what I love, thats the plan.

PROBLEM A: MONEY. Well I hear you can get a loan from a bank if you got a well made business plan. Some say even with no collateral. I dont it will take millions to get a small label off. Anyone really know numbers what am i looking at for a small release 500 or less. Will a distributor even touch that if not then what?

PROBLEM B: MATERIAL. I would like to start with a release of my own stuff. That way i can find out whats it all about. I know about mastering and all that. I got a few demos handed to me when I was chilling with some friends at the Winter Music Conference in Miami. I guess cos they thought I was someone who could do something for them. Most original music what I got was mediocre at best. "Once I listened to some the CDRs I got I thought " WOW, my stuff is better than this." Then again I get here and I must say the alot of the tracks that are on these forums are HOTT!! So I am really humbled. Friends say my stuff is good but will it sell?! Is it good to start with your own track?

PROBLEM C: THE GAME. How long should I wait to hear back from labels? If I release it myself,how do i know I'm not getting the shaft from the distributor, ie money? What kind of money should I expect before letting label take the track? Should I really get a lawyer or manager before a lets say Naked Music,decides to release it? what if a company in the U.K. wants to release it or distribute it? Should I fly there and hammer out a deal?

Is it possible to make a decent profit or should I save my time and money and invest in a Franchise (Quiznos) or something like that? Sorry for all the questions I just knew this was the best place to start thanks again you all.

i cant answer all your questions - im actually in the process of doing the same thing

i would say do it man - follow your dream - we are our own worst enemy.....who's to say u cant be successfull runnin' a small operation?

im currently taking advantage of small business development counseling offered for free thru my city - im sure your locale has something comparable......also i just found out the local library in my town has a small business and non profit center for businesses and stuff like that........also im reading two books on small business development - one is just a generic small business development book - the other is this book i saw on the web so i copped it from the local bookstore - its called "label launch"

thats about all i can recommend - i mean i've pretty much made a determination that im going to do this and that it'll replace my day job

but i will admit i've been reading and working on it like a dog so of course u kno its going to be hard work

but i would suggest doing the leg work and taking advantage of all the free counseling and advisory services out there...........

Hire a lawyer and incorporate...should cost less than $500. Pressing 500 copies shrink wrapped, a press kit, copyrights, and mailing shold run you less than $2000. Follow up the same week. If the A&R person at the major hasn't got it yet, let 'em know its on the way and make the call an introductory one. If they got it and havn't listened yet, try to set a time to call back while you have them on the phone. Understand many major labels don't accept unsolicited material. You've got to figure out a way in the door. With these call first and get them excited about your artist. Another option is to skip the major labels and go after distributors. For what I do, (Jazz) this works better. Expect 1 bite on 100 CD sent out. Also you can skip them all and go directly to the retailers. Even the big guys like Walden Books etc accept consignments. Also send copies out to the trade mags...Guitar Player, Electronic Musician etc....I was able to get a full page with color photo out of Electronic Musician...these type of write ups are free...and invaluable. Another trick is your local newspaper, alternative newspaper etc...get some press going. If you're lucky enough to get a major label interested, get an entertainment lawyer otherwise you'll get killed. These guys are in it to make money. The less you get the more for them....good luck

Wow guys thanks. I really want to do this but I guess I am afraid of success. Success for me would be distribution deal or just selling all 500 copies and not getting reamed. I mean getting picked up by a major, uhh well some big time indie is what I really would like somebody like K7, WestEnd, NinjaTune, or Stonesthrow. I want to hit these guys up thats the audience I think would feel these tracks.
So far I got a friend of mine who just grad from college to do marketing it was her major so... I got a few friends I mentioned in positions that could get music heard by my targeted audience. I am sure they would be willing to play or pass it on to some cat whod make some thing happen. First of all I guess I would need to get money together.

1. I have 2 very close friends who will be doing some producing and singing. Will it be necessary to discuss contracts and lawyers now or wait till the music is done and ready to press or wait till we get a label or distribution deal whatever?
2. Will distributors touch a 500 copy release?

fader-pro wrote:Hire a lawyer and incorporate...should cost less than $500. Pressing 500 copies shrink wrapped, a press kit, copyrights, and mailing shold run you less than $2000. Follow up the same week. If the A&R person at the major hasn't got it yet, let 'em know its on the way and make the call an introductory one. If they got it and havn't listened yet, try to set a time to call back while you have them on the phone. Understand many major labels don't accept unsolicited material. You've got to figure out a way in the door. With these call first and get them excited about your artist. Another option is to skip the major labels and go after distributors. For what I do, (Jazz) this works better. Expect 1 bite on 100 CD sent out. Also you can skip them all and go directly to the retailers. Even the big guys like Walden Books etc accept consignments. Also send copies out to the trade mags...Guitar Player, Electronic Musician etc....I was able to get a full page with color photo out of Electronic Musician...these type of write ups are free...and invaluable. Another trick is your local newspaper, alternative newspaper etc...get some press going. If you're lucky enough to get a major label interested, get an entertainment lawyer otherwise you'll get killed. These guys are in it to make money. The less you get the more for them....good luck

good advice - i think i'll model this as well.......

Don't take this the wrong way because I'd never try to discourage someone from chasing and obtaining their dream. Having said that, Electronica on this continent is a very tough sell. Even though it was made over here, Europe took it and called it their own(the only thing black people let willingly take. For those who don't know, electronica was started in Detroit in the late 60's, early 70's.). Almost the whole European music scence is dedicated to Elecronica/dance(the boom of Propellerhead, Steinberg and Clavia should give you a hint).

That's not to say you yourself can't lead an emergence of new American dance music. In any genre, if the artists, producers and genre purists believe that you can create good(and hot)music and maintain your fan bases, it could happen.

Note: I am a black man who endorses every kind of music, not just hip-hop!!!!!!!


Your main problem is overthrowing this major machine called Hip-Hop/Rap. Our whole generation is in love with it(Rap producers are the majority of U.S. producers on this forum). The Hip-Hop/Rap market is dominating the world music scene(just like southern rappers dominating the U.S. Rap game).

Like I said... It's not impossible, but good luck with that. Electronica is too irrelevant right now. Maybe they should get rid of R&B pop(that Britney Spears music that isn't too black)music and let Electronica back into the game.

nevermind

fader-pro wrote: Another option is to skip the major labels and go after distributors.

good advice, like i mentioned on the other forum Essential Direct are a recommended distributor for new artists

http://www.essentialdirect.co.uk/


i'll be checkin for them first as soon as i'm ready!

Hey thanks for all the info. The help has proven to be extremely valuable. I just got some info on finacing and seems real promising. Getting it done fellas!

scorpion1082 That was by far one of the most intresting replies i have heard (let aline this thread!) It's like how House music started in NY, was rejected by NY and somwhow made its way to chicago ( chi town south side BABY! I miss it from afar in Japan!) via Colonel Abrhams with "Music is the key" and "Love can't turn around" then it went to the UK and exploded. The Various music styles tracing the planet is Huge But NOTHING is impossible because for EVERY type of music there is a FAN who buys it. Good luck fellas I pray that it works for ALL of you because i am there too and I wish no brotha or sista any ill will when it comes to the ARTS.

Yahoo this: "rapcointelpro"
good info.

**** Google.

Buy a book. I'm not trying to be an a-hole with that responce, but if your asking people that don't have a label, I don't think your going to get a good answer. That's like asking a homeless person how to buy a house. I've been working on my label for a little while now, and I learn something new every day. If I had tried to launch it 2 years ago, it would have failed miserably. So seriously, go to your local bookstore, and pick up 2 or 3 books that deal with starting up independant record labels. One single book will not have everything you need, and I can guarentee, if you get 2 or 3 different books, some of the information will be repeated. Get out and meet some of the people that run small labels and ask them questions.. you can probably find alot of label owners on the internet.
Good luck!

roxstar wrote:Buy a book. I'm not trying to be an a-hole with that responce, but if your asking people that don't have a label, I don't think your going to get a good answer. That's like asking a homeless person how to buy a house. I've been working on my label for a little while now, and I learn something new every day. If I had tried to launch it 2 years ago, it would have failed miserably. So seriously, go to your local bookstore, and pick up 2 or 3 books that deal with starting up independant record labels. One single book will not have everything you need, and I can guarentee, if you get 2 or 3 different books, some of the information will be repeated. Get out and meet some of the people that run small labels and ask them questions.. you can probably find alot of label owners on the internet.
Good luck!

good advice...

Mind Reader wrote:Yahoo this: "rapcointelpro"
good info.

**** Google.

i second this.... http://www.rapcointelpro.com this is like the bible of how to's in the music industry. this is just like buying a book, for free. there is a plethora of infomation on that site.

its not that he just saying buy a book, these days with the internet, basically saying buying a book is just saying "read and research" not forums, but as much info you can, from accreditted places