Either way, before you can officially set up a record label, it needs a name. Ready to outfit your studio? You may not have a large budget when you start, but there are several DIY marketing steps that work with little to no money. Work through this list to get started:. Another thing to consider as you learn how to set up a record label is what kind of label to start. You can start a major label or a subsidiary, but most beginners go with an indie label. Usually, a record label sticks to a single genre like rap, rock, pop, or country.
Starting a record label is an exciting and challenging business idea. Startup costs can be on the high side and the business is competitive. But if you have the experience, connections, and ambition, the music industry has potential to deliver high rewards.
The music industry is constantly evolving and the fans are, too. Bigger stars who negotiate a more favorable royalty split still usually share around 50 percent of music revenue. Just like in anything, in any industry — it depends on how good or evil your boss will be. Record labels basically would like to make money by selling you and your music.
When you sign a record deal, in a sense, you are selling your soul. You no longer have percent input into what you are going to write about, who you can collaborate with, how often you release material, and your overall image, etc.
If you enjoy creative control, then this is not the move for you. Your email address will not be published. As record labels have come to see artists as products in recent years, some artist development departments have been renamed "Product Development. Business Affairs - This department deals with the business side of things. It takes care of bookkeeping, payroll and general finances. Label Liaison - This is usually one person, or small group of people, who serves as the liaison between the record company's distribution company either an entirely separate division under the huge corporate umbrella or an outside company responsible for getting the CDs into the stores and the record company.
The label liaison also helps decide when to release an album when the album goes on sale to the public and makes sure it doesn't conflict with any of the other labels the record company owns. Legal Department - This department is responsible for all the contracts that are made between the company and the artist, as well as contracts between the record label and other companies.
Any legal issues that arise such as lawsuits between an artist and the company go through this department. Marketing Department - This department creates the overall marketing plan for every album that the record company will release.
It helps coordinate the plans of the promotion, sales and publicity departments. New Media - This department is in charge of dealing with the newer aspects of the music business, including producing and promoting music videos for the artist.
In addition, this department is often responsible for helping an artist create a presence on the Internet. It deals with the new technologies in which artists can stream music and music videos through the Internet. Promotion Department - This department's main purpose is to make sure that an artist is being played on the radio. It must get an artist's new songs on the radio in order to ensure the future success of the record company.
This department makes sure that all the other departments are communicating about the best way to sell the artist to the public. This can be the responsibility of this department or in conjunction with the New Media department. Publicity - This group is responsible for getting the word out about a new or established artist.
It arranges for articles to be written in newspapers and magazines. They also deal with radio and television coverage of an artist.
Many artists also have their own independent publicists who help coordinate publicity with this department as well. Sales - This department oversees the retail aspect of the record business. It works with the record store chains and other music stores to get new albums onto retailers' shelves.
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