Record Label Management & Promotion

Promotion is a key factor in running a successful record label.

Running a successful record label incorporates elements like promotion, marketing, creativity and timing. A strong staff dedicated to a universal cause (the success of the label) is beneficial. The most important aspect of a successful label is a strong roster of marketable talent.

Artists

Contracts are important for maintaining profitable relationships between artists and label.

Assemble a roster of artists. For an independent label, this may only include one artist or it may include several, depending on the resources available. Legalize all your dealings in contract form. Contracts delineate financial responsibilities between label and artist. These responsibilities include recording costs and budgets, recoupable money, distribution of royalties and ownership of publishing rights and profits.

Manufacturing

Manufacturing of records and CDs is usually handled by the label.

Be sure to have the resources available to produce and manufacture your artists' music. There are many plants that cater to smaller record labels and offer pressing deals that include packaging and artwork at reasonable rates. Digital downloading is a common format for selling recorded music that bypasses the CD-manufacturing phase.

Distribution

Distribution gets a label's music into the hands of consumers.

Distribution is the key to profitability for a label. For tangible products like CDs, it is important to be able to get them into retail chains and into the hands of consumers. For downloadable music, it is important to make your products available to the websites (such as iTunes) that will sell the files online. Direct merchandising is another profitable way for a label to sell its music.

Promotion

Promotion is another essential element to driving sales. The label uses media outlets like music magazines, websites, radio promotions, concert tours and personal appearances. It is important to realize the demographics you are targeting and then market accordingly. A strong marketing strategy can boost music sales.

References

• Music Biz Academy: Radio Promotion 101
• Artist House Music: Putting Together a Marketing Plan That Works