Why You Should Set Up Your Own Record Label, and How To Do It

Music is changing. In fact, the music industry is changing; it is changing even faster than it realises. Major record labels are often up to speed on latest developments, but it is indie music that leads the way in the music world - and everyone else seems to follow. Indeed, with the online music revolution taking place right now, being signed to a major record label is less and less important. However, having your own record label can be more and more beneficial.

Starting out

First of all, you really have to think about the image you want to convey. Every record label has an image, mostly created by the selection of bands on the label. So start off by grouping together with some bands you know that are similar to yours. Make sure that these bands are serious, and that they believe in the record label. You will be doing a lot of band promotion together, and sharing a lot of resources, so you need to trust these musicians, and you need to maintain your brand identity. Because yes; a record label is a 'brand'. Think of certain record labels you know, and you immediately associate them with a certain ethos - a certain type of music. For example, 4AD built its reputation by signing bands like The Throwing Muses, Dead Can Dance, This Mortal Coil, The Cocteau Twins, and of course, The Pixies. It has always been known as an off-the-wall combination of ethereal and edgy rock bands.

First steps - sharing resources

Sharing your resources as a young record label is very important. It is essential that every band on the label helps in the creation by joining in fully. Finding a rehearsal studio is a good first step - find a location that you can all share, and use your own equipment. You will cut down on costs, and you will find that you have more time available for rehearsing. Secondly, if you have some money behind you, try to assemble your own studio. You can maybe contact other studios to see if they have old equipment that they want to sell second-hand, or you can scour the internet for offers. If you have the equipment to record, then you won't have to pay for studio time, and you can take as long as you want to record your music.

This initial investment may hurt you, but a record label is a long-term investment, and if you are serious about producing good quality music, you are taking the right steps.

First steps - Responsibilities

Everyone involved in the record label should know their responsibilities. First of all, you should be looking at getting a distribution deal. This means that someone has to contact the distributors and cut a deal with them, and maintain friendly relations. Distributors will often ask record labels for approximately 40% of the cover price of a CD, which may seem like a lot, but it will get your CDs into the record shops.

Naturally, not everyone buys CDs nowadays. Music is changing, don