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Starting an Independent Record Label.

Andy Robertson

There are a wide variety of reasons why someone creates their own independent record label. In an industry dominated by multinational corporate record labels how can a new independent label compete. What are the driving forces behind differentiation and financial success for a new label just starting out.


Any artist or musician that is having difficulties finding a record label to sign them or at least give them favourable terms can be drawn to creating their own label. Other routes to label creation also come from artist and DJ collectives that are perhaps too specialist to interest a major label. The history of independent record labels demonstrates that these routes to creation as the most typical providing a source for publishing unknown artists. They are not competing with the major labels but providing access to publishing for unknown or niche artists and musicians. 

Why a New Independent Record Label. 
The major international corporate record labels are only really interested in signing established artists who can provide a good reliable source of material to generates sales revenue. Although they do sign new and up and coming artists, they can be very selective and risk averse usually imposing unfavourable terms in any deal. Creation of a new independent record label enables artists to publish their own material and sign-up other artists in a similar situation. A new label may not generate sizable sales revenue often seen at the major labels but can provide a stable income from associated activities. 

Defining a Niche to Differentiate. 
Major labels will focus on artists with mass market appeal, and this enables a new independent label to differentiate themselves by focusing on niche markets that are ignored by the big labels. Successful independent record labels are common amongst genres like heavy metal, punk, country, folk, jazz and the plethora of EDM sub genres. Focusing on genres not being published elsewhere helps define the identity and brand for the new label. Collectives are a common source for new independent labels with an established group of artists already working together in the same niche genre. 

Set up and Legal Status. 
Ideally it requires someone with industry knowledge and an entrepreneurial flair to establish a new label. With the right connections they may be lucky enough to have access to funding which will be required to create and register a new company. This is also required to recruit talent, set up office space and make arrangements for producers, engineers and studio time. Sources of funds can also include personal savings, crowdfunding or loans for example. It is essential that professional contracts are created for all parties involved and that all material is protected by copyright along with any appropriate licences. 

Artist Acquisition and Development. 
If the new label has been created by a collective there will already be a register of artists signed up, but the new label can only succeed by acquiring new artists. Scouting at festivals and gigs in their chosen niche can help identify potential new artists. Any new signings will need help to develop their material, and a label has a responsibility to support them with new material creation, recording, distribution, marketing and assistance with legal issues. 

Distribution and Marketing. 
Any new label operating in a specific niche will have knowledge of the most beneficial distribution channels for their signed artists. This will usually include all the streaming platforms as well as physical formats. The distribution channels will need promoting and this will require the use of social media channels to reach audiences. Working with strategic partners can help promote a new artist perhaps getting them a support role on a tour or small gigs and festvial appearances. Getting on radio or TV playlists can be very challenging as these channels are often dominated by the major labels. Having a good balance of streamed music, digital media marketing and live event appearances is the most cost-effective way to reach potential audiences. 

Financial Success.  
Any new business will take time to become profitable so good financial planning, cash flow and reliable funding will be key aspects in the formative years. Any revenue will come from copyrighted broadcasts, merchandise sales and live event fees. Contracts and agreements will specify the proportion of revenue split between the label and the artist. Maintaining a solid roster of artists will be ok in the short term but an independent label should always be looking for new artists to sign and develop to secure their future business. 

For independent record labels planning live events for their artists using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, cashless payments and contactless ordering.

Image by cottonbro studio via Pexels

Andy Robertson
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