50 REASONS

WHY YOU SHOULD START A

RECORD LABEL

Starting a record label can be a rewarding and fulfilling venture for those who are passionate about music and the business of music.

A record label gives you the opportunity to discover and nurture talented artists, release and promote their music, and potentially even shape the direction of the music industry.

Additionally, starting a record label can also be a lucrative business if done well, as it allows you to monetize your music releases and potentially earn income through various streams such as merchandise, touring, and licensing.

Here are 50 reasons why

you should start a record label…

Reason #1

Artists need advocates.

Musicians often face challenges in navigating the music industry, such as contracts, intellectual property rights, and financial management. An advocate can help them by providing guidance, representation, and support in addressing these issues.

Reason #2

Fans appreciate curators.

Fans appreciate curators because they help to discover and highlight new and exciting content within a specific genre or theme. Curators also help to organize and present this content in a way that is easy for fans to consume, making it easier for them to find and enjoy new music, art, or other media that they might not have come across on their own.

Reason #3

You are unique!

A person's taste in music and art is influenced by a variety of factors, including their personal experiences, cultural background, and individual preferences. Additionally, exposure to different styles and genres can shape a person's taste in music and art over time.

Reason #4

It is easier than ever.

Starting a record label today is easier than ever due to the proliferation of affordable digital tools and resources that make it possible to record, distribute, and promote music without the need for a large budget or physical infrastructure. Additionally, the rise of streaming platforms has made it easier for independent labels to reach a global audience, giving them more opportunities to find success and make a name for themselves in the music industry.

Reason #5

There is a community waiting for you.

A community can be beneficial for record label owners and musicians because it can provide a sense of belonging and support for those involved in the music industry. Additionally, a community can be a valuable source of information and resources, as well as a means of networking and promoting oneself or one's music.

Reason #6

Most musicians don’t enjoy the business side.

Some artists may not enjoy managing the business side of the music industry because it requires them to focus on tasks that are unrelated to their primary passion of creating music. Additionally, many artists may not have the skills or knowledge necessary to effectively navigate the business side of the industry, and may prefer to leave these tasks to professionals such as managers or lawyers.

Reason #7

A great side hustle idea.

Starting a record label can be a good business idea because it allows you to discover and nurture new talent, and to monetize the distribution and promotion of music. By building a roster of successful artists, a record label can generate revenue from record sales, digital downloads, streaming royalties, and live performances.

Reason #8

It can be very fulfilling.

Owning a record label can be fulfilling because it allows you to support and promote the music and careers of artists whose work you admire. It also gives you the opportunity to contribute to the cultural landscape by introducing new sounds and ideas to the world through the music you release. Additionally, owning a record label can be a rewarding experience because it allows you to be involved in the creative process and to have a hand in shaping the direction of the music industry.

Reason #9

A great creative outlet.

Running a record label allows you to be creative in a number of ways. First, it gives you the opportunity to discover and sign new talent, which allows you to be involved in the process of nurturing and developing the careers of up-and-coming artists. Second, it allows you to be involved in the creative process of producing and promoting the music that is released on your label, giving you the chance to shape the sound and direction of your roster of artists. Additionally, running a record label allows you to be creative in the way you market and promote the music, finding new and innovative ways to reach audiences and build buzz around your artists.

Reason #10

Self-release your own music.

Owning a record label allows you to control the distribution and promotion of your own music and retain ownership of your intellectual property. It also allows you to maintain a larger share of the profits from your music sales. Additionally, it gives you a chance to be your record label’s own guinea pig.

Reason #11

Great way to financially support musicians.

Running a record label is a great way to financially support artists because it allows you to invest in the development and promotion of their music, which can help them to build successful careers. By signing artists to your label and releasing their music, you can generate revenue from record sales, digital downloads, streaming royalties, and live performances, which can help to financially support the artists on your roster. Additionally, by providing resources and support to your artists, you can help them to build a strong foundation for their careers and achieve long-term financial stability.

Reason #12

Great way to financially support the arts community.

Running a record label is a good way to financially support the greater arts community because it allows you to invest in and promote the careers of individual artists, which can help to generate revenue and create opportunities for others in the music industry. By releasing and promoting music, a record label can contribute to the cultural landscape and help to support the broader arts community members like photographers, mix engineers, copywriters, publicists, graphic designers, and more.

Reason #13

Great way to support an artist’s mental health.

A record label can support the mental health of artists by providing resources and support to help them navigate the challenges of the music industry. This can include things like financial assistance, professional development opportunities, mental health resources, and access to a support network of industry professionals. By offering these types of resources, a record label can help to reduce the stress and anxiety that artists may experience as they pursue their careers, and can create a more positive and supportive environment for them to work in. Additionally, by promoting the music of its artists and helping them to achieve success, a record label can contribute to the overall well-being and mental health of its roster.

Reason #14

It’s not (yet) a crowded field.

Starting a record label requires a significant investment of time, energy, and resources, and can be a challenging and risky endeavor. It can be difficult to find and sign new talent, produce and promote music, and navigate the constantly changing music industry. If you are confident in your ability to achieve these surmountable tasks, then your ambition can help you stand out amongst the crowd. Your own unique skills, tastes, and perseverance will help you outlast more fleeting entrepreneurs.

Reason #15

Major labels suck.

Independent record labels are often considered to be better than major record labels because they offer more flexibility, creativity, and control to their artists. Independent labels are typically smaller and more focused than major labels, which allows them to be more responsive to the needs and desires of their artists. This can give artists more freedom to explore their creative vision and to develop their careers on their own terms. Additionally, independent labels often have a stronger commitment to supporting their artists and helping them to build long-term careers, rather than just focusing on short-term profits. This can create a more positive and supportive environment for artists to work in.

Reason #16

Great stepping stone into the music industry.

Starting a record label is a good stepping stone into the music industry because it allows you to gain practical experience and knowledge about the inner workings of the industry, and to build valuable relationships with artists, industry professionals, and other stakeholders. Additionally, owning a record label gives you the opportunity to be involved in the creative process of producing and promoting music, and to have a hand in shaping the direction of the industry. This can provide valuable insights and experience that can be useful in other roles within the music industry.

Reason #17

Great way to meet other like minded music fans.

Owning a record label is a great way to meet other likeminded musicians and music fans because it allows you to be a part of the music community and to connect with others who share your passion for music. As the owner of a record label, you will have the opportunity to work with and support the careers of a variety of artists, which can expose you to new sounds and ideas and bring you into contact with other musicians and music industry professionals.

Reason #18

Great way to network with industry professionals.

Owning a record label is a great way to network with other industry professionals because it allows you to be actively involved in the music industry and to build relationships with a variety of stakeholders. As the owner of a record label, you will have the opportunity to work with artists, music managers, booking agents, promoters, and other industry professionals, which can provide valuable opportunities to learn from and collaborate with others in the industry. Additionally, by releasing and promoting music, you can engage with a wider network of industry professionals through social media, live events, and other marketing channels, which can help you to build your network and open up new opportunities.

Reason #19

Great way to give back to the music universe.

Record labels give back to the universe by supporting the careers of artists and helping them to create and share their music with the world, which can bring joy, inspiration, and cultural enrichment to people around the globe.

Reason #20

Great way to leave a legacy.

Releasing music is a great way to leave a legacy because it allows you to share your creative vision and talent with the world and to make a lasting impact through your art. By releasing music, you can create a body of work that can be enjoyed by future generations and that can continue to inspire and influence others long after you are gone.

Reason #21

Great way to learn.

Starting a record label is a great way to learn because it requires you to be involved in a wide range of activities and to gain practical experience and knowledge about the music industry. By signing and working with artists, producing and promoting music, and navigating the constantly changing landscape of the industry, you will have the opportunity to learn about the creative process, marketing and promotion, business development, and other key aspects of the industry. Additionally, by building a network of relationships with industry professionals and stakeholders, you can learn from others and gain valuable insights and perspectives on the industry.

Reason #22

It’s not that hard.

Starting a record label is not necessarily hard, but it does require a significant investment of time, energy, and resources, and can be a challenging and risky endeavour. To start a record label, you will need to have a strong passion for music and a clear vision for what you want to achieve. Some tasks may not be easy, however, they are not necessarily hard, and with the right combination of passion, persistence, and expertise, it is possible to start a successful record label.

Reason #23

All it takes is consistency/persistency.

Persistence and consistency are key to a successful business because they help to ensure that you are able to stay focused and committed to your goals, even when faced with challenges or setbacks. By maintaining a consistent approach and staying committed to your business, you can build momentum and establish a solid foundation for growth and success. Additionally, persistence and consistency can help you to build trust and credibility with your customers, employees, and partners, which can be essential to the long-term success of your business.

Reason #24

A chance to showcase your integrity.

It is important to showcase your personal integrity through your business because it helps to establish trust and credibility with your customers, employees, and partners, and can have a positive impact on the overall reputation and success of your business.

Reason #25

It’s practically free to get going!

Unlike other more traditional businesses, starting a record label does not necessarily require any upfront costs or fees. The only potential costs would be related to producing and distributing physical copies of music, marketing and promoting the label and its artists, and possibly hiring staff or contractors to assist with these tasks.

Reason #26

The possibilities are endless.

As the owner of the label, you have the ability to shape the direction and image of the label, and to pursue partnerships and collaborations with other industry professionals and organizations. This can open up a wide range of creative and business opportunities for the label and its artists. Of course, running a label comes with its own set of challenges, however, there is always the hope and chance that an artist, album, single, or video will go “viral” or strike a long lasting chord with music fans.

Reason #27

Renewable opportunities.

Artists and labels who release new music on a regular basis are able to continually expose themselves and their music to new audiences and industry professionals. Each new release can serve as an opportunity for the artist (or label) to showcase their growth and evolution, and to reach new fans through promotional efforts and media coverage. Additionally, new releases can help to maintain the artist's visibility and relevance in the music industry, which can lead to additional opportunities such as tours, festivals, and collaborations. By consistently putting out new music, labels demonstrate their dedication and commitment to their craft and their artists, which can further strengthen their reputation and reach.

Reason #28

Great tech platforms to help you out.

Modern digital platforms, such as streaming services, social media, and online music stores, can greatly assist a musician's career by providing a wide reach and low barrier to entry for distributing and promoting their music. These platforms allow musicians to easily share their music with listeners around the world, connect with fans and industry professionals, and potentially earn revenue through streams, downloads, and merchandise sales. For record labels there are incredible platforms such as CD Baby or DistroKid (digital distribution), Infinite Catalog (royalty software), Bandcamp (merch and digital sales), among others.

Reason #29

Creative start-ups are trending.

Creative start-ups, such as those in the music, art, and design industries, are popular right now due to the increasing demand for innovative and authentic content. With the proliferation of digital platforms, it is easier than ever for creative individuals to share their work with a global audience and build a following. This has led to a surge in the number of creative start-ups.

Reason #30

There are fans who love the same things as you.

The power of the Internet’s global reach allows indie record labels the chance to connect with other like-minded music fans. In fact, even if you have very specific musical tastes, there is likely a group of music fans who also share your unique preferred genre combination.

Reason #31

Physical records are popular again.

Physical music media like vinyl and cassettes have become popular again in recent years due to a resurgence of interest in physical formats and the nostalgia and collector's value associated with these mediums. Many music fans appreciate the tangible aspect of owning a physical copy of an album, as well as the ritual of playing a vinyl record or cassette on a dedicated player. Additionally, the production of vinyl and cassettes has increased in recent years, making these formats more widely available and appealing to a new generation of music fans.

Reason #32

Because… Bandcamp.

Bandcamp is a great tool for indie labels and artists because it provides a platform for them to easily sell and distribute their music directly to fans. Bandcamp takes a smaller percentage of sales than some other online music retailers, making it an attractive option for independent artists and labels who want to keep a larger share of their revenue. Bandcamp also offers a range of features for artists to customize and manage their own pages, including the ability to sell physical merchandise and offer exclusive content to fans.

Reason #33

Royalty sharing has become 50/50.

Indie record labels may choose to do a 50/50 profit share with their artist royalties as a way of supporting the artist and fostering a more collaborative and mutually beneficial relationship. This arrangement can provide financial stability and security for the artist, while also incentivizing the label to invest in the success of the artist's career. A 50/50 profit share can also be seen as a more equitable and fair arrangement for both parties, as it allows the label and the artist to share in the financial rewards of the artist's success.

Reason #34

Picking a name is easy.

Picking a name for your record label is easy to do because there are many resources available to help you choose a name that is memorable, unique, and aligns with the values and mission of your business. These resources may include online name generators, trademark databases, and legal services that can assist with the process of selecting and registering a business name. It is also important to choose a name that reflects the nature of your business and resonates with your target audience, and to ensure that the name is not already in use by another company or organization. At the end of the day, it is most important that you don’t waste too much time worrying about your record label’s name. Don’t let this process hinder your plan to discover and share great music.

Reason #35

Launching is not that hard.

Ultimately, you don’t need much to get going. You can discover new artists in your local community, digitally release music for free on Bandcamp, and utilize social media for promotion. Once you’re established, there are a range of services and tools available to help labels with tasks such as production, marketing, and financial management, which can make the process of starting a label more streamlined and accessible.

Reason #36

You can be just a digital-only label if you want.

A digital only record label is a label that releases and distributes music exclusively through digital channels, such as streaming services, online music stores, and social media platforms. This type of label may not produce and distribute physical copies of music, such as CDs or vinyl records. Starting a digital only record label can be an attractive option for independent artists and labels because it allows them to reach a global audience and sell their music directly to fans without the need for physical distribution and manufacturing. Digital music distribution platforms, such as Bandcamp and CD Baby, can make it easy for labels to upload and sell their music online, and to manage their releases and sales. However, it is important for a digital only label to have a strong online presence and to be strategic about promoting and marketing their music in order to reach and engage with their target audience.

Reason #37

Artists will be attracted to your enthusiasm.

A label owner who is enthusiastic about music is more likely to be motivated and committed to supporting the careers of their artists and helping their music reach a wide audience. Enthusiasm for music can also help a label owner connect with other music fans and industry professionals, and to foster a sense of community and collaboration within the label. Artists will be drawn to your fan-like enthusiasm and will value your dedication in lieu of your lack of industry experience or accolades.

Reason #38

Indie record stores love local indie record labels.

Indie record stores are often supportive of indie record labels because they both operate within the independent music ecosystem and share a common goal of promoting and supporting independent artists and music. Indie record stores may carry and promote the releases of indie labels in their store, and may also work with labels to host in-store events, artist signings, and other promotional activities

Reason #39

Streaming is helping monetize back catalogs.

Streaming is good for an artist's back catalog because it allows the artist to monetize their older releases and potentially reach a new audience. Streaming platforms, such as Spotify and Apple Music, make it easy for listeners to discover and stream an artist's entire discography, including their older releases. This can help to expose the artist's back catalog to a wider audience and potentially generate new streams and revenue for the artist.

Reason #40

A&R really isn’t that hard.

A&R (artists and repertoire) is a term used in the music industry to refer to the department within a record label that is responsible for discovering and signing new talent, as well as developing and promoting the careers of the label's artists. A&R professionals often work closely with artists to help shape their artistic vision and direction, and to identify opportunities for the artist to grow and reach new audiences.

Reason #41

You don’t need to worry so much about the legal stuff.

Technically, you can start a record label without a lawyer, you can get started right away (this is not legal advice). Having said that, it is generally advisable to seek the guidance of a lawyer when starting a business, especially if you are planning to sign contracts with artists or other industry professionals. A lawyer can help you understand the legal implications of starting a label, and can assist with tasks such as registering your business, drafting contracts, and protecting your intellectual property.

Reason #42

There are lots of online and offline promo opportunities.

The internet provides record labels and artists with unique promotional opportunities through a range of online channels, such as social media, streaming platforms, and music blogs. These channels allow labels and artists to directly reach and engage with their audience, and to promote their music and other content to a global audience.

Reason #43

There’s more support for you than ever before.

In addition to great platforms like A2IM, Bandcamp, and your local arts community… Here at Other Record Labels, I have tons of resources and tools to help you on your way, including my FREE private Facebook Group.

Reason #44

Older labels can mentor you.

You will be amazed at how open and forthcoming other mature record labels can be if you ask for their advice… Asking other record label owners to mentor you can provide valuable insights and guidance on the challenges and opportunities of starting and running a label, and can help you build a network of industry contacts and resources.

Reason #45

You can find inspiration from other record labels.

An artist or record label can learn from older, more established record labels by studying their business practices, seeking advice and mentorship from industry professionals, and observing the successes and challenges of these labels. Learning from the experiences of more established labels can help an artist or label to better understand the music industry, to identify best practices and strategies for success, and to avoid common pitfalls and mistakes. This can be especially valuable for newer labels and artists who are just starting out and looking to build a sustainable and successful career in the industry.

Reason #46

You can redefine what it means to be a record label.

Starting a new record label gives you the chance to define the new music industry by shaping the direction and image of the label, and by discovering and promoting new artists and styles of music. As the owner of the label, you have the opportunity to set the tone and vision for the label, and to pursue partnerships and collaborations that align with your values and goals. By taking an innovative and forward-thinking approach, you can help to shape the future of the music industry and contribute to its evolution and growth. This can include record labels that are focused on mental health, equality, and generosity.

Reason #47

It’s the ultimate expression of your love for music.

Starting a record label is the ultimate expression of being a music fan because it allows you to directly support and promote the music that you love, and to discover and develop new artists and genres. As the owner of a label, you have the opportunity to shape the direction and image of the label, and to work with artists and industry professionals to bring your musical vision to life. This can be a fulfilling and rewarding experience for music fans who want to make a meaningful contribution to the music industry and support the careers of artists they admire.

Reason #48

It’s fun.

Honestly, for a music fan, it can be the most fun you’ll ever have. To discover under-appreciated music and to share that with other like minded music fans, is the greatest feeling on earth. Try it!

Reason #49

There’s a bunch of free resources for you.

It is my goal to provide you with as many free tools and resources to help get you on your way. Check out my free downloads and articles at otherrecordlabels.com — You can also sign up for my weekly Record Label Insights Newsletter at otherrecordlabels.com/insights. Honestly, for a music fan, it can be the most fun you’ll ever have. To discover under-appreciated music and to share that with other like minded music fans, is the greatest feeling on earth.

Reason #50

I’m here for you.

Drop me a line if you have any questions and connect with me on YouTube and Instagram! I’d be glad to help answer any questions you might have! Good luck and have fun!

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How to start a record label? FAQs

How much does it cost to start a record label?

I suppose it’s possible to say that it can cost “nothing” but that would probably limit your marketing abilities and your distribution reach. A digital-only label releasing exclusively on Bandcamp can start a label for almost zero dollars assuming you have a logo. On the other end of the spectrum, if you had an endless budget you could give your artist a $10,000 advance, register your trademark for $2000, hire a music attorney for $1000 to draw up a contract, press a vinyl run of 300 records for $2500, and hire a publicist for another $2500. Somewhere in between is entirely up to you and your available budget.

How much does a label take from the artist?

Major labels have been known to take upwards of 90% of net sales. Mid-size independents royalty rates average between 50-75%. The most common royalty share amongst small indie labels is 50/50. You can even offer a more lopsided royalty in favor of your artist, something like 35% for the label and 65% for the artist. Check this out for some help with managing your record label’s royalties…

Can you recommend a lawyer, publicist, manufacturer, etc?

I often get asked about where to find vendors or reputable industry service providers. The best thing you can do is ask people you trust in the industry who they have used in the past. You can also find companies who have been previously hired by artists/labels you admire.

Also, I am compiling a list of hand-picked, trusted industry services that you can check out here…

How do I get my music on Spotify, AppleMusic, etc?

At the time of writing this, there isn’t any way to upload directly to one of these services. Instead, you have to use an aggregator like CDBaby, DistroKid, Ditto, Tunecore, etc. There are plenty of blogs online that will break down the pros and cons of those services. You can expect to pay a one-time fee per album/single or an annual fee to keep your music up online. The good thing about these services is that they will upload to all of the many DSPs (Digital Service Providers) across the globe, including any future DSPs that come to market.