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How to Start My Own Record Label

Contributor
By Jeff O'Kelley
eHow Contributing Writer
(0 Ratings)
Record label owner
Record label owner
(c) 2009 Jeff O'Kelley and it's licensors. All rights reserved.

In recent years, advances in technology, and the way that the music industry operates, have opened the door to many opportunities for music business entrepreneurs. In particular, starting an independent record label has not only become simple, but the norm for many new or unsigned artists. Owning a record label allows an artist to exercise complete control over how their music is produced, published and marketed, as well as enjoy the monetary benefits.

Difficulty: Moderate
Instructions

Things You'll Need:

  • Computer with CD burner (opt)
  • Internet access
  • Original music
  1. Step 1

    Set up a publishing company to protect your publishing rights and ensure that you receive any money generated from your music. Establishing a publishing company is a simple procedure, similar to setting up a small business. If you prefer, most entertainment or music attorneys will complete the standard paperwork for a nominal fee.

  2. Step 2

    Investigate licensing and legal issues associated with owning record label. Although, by default, you already own the rights to any music you create, applying for copyright registration will help prove your ownership in the event someone tries to use your music without permission. To file for copyright protection, use the link provided in the resource section to access the U.S. Copyright Office online. Other issues such as label ownership, partnerships, distribution rights or accounting may require the advice of an attorney, accountant or both.

  3. Step 3

    Register your songs and publishing company with a performance rights organization (PRO) to protect your rights as a writer and publisher, as well as collect any royalties generated from the performance of your music. In the U.S., there are three primary performance rights organizations; BMI, ASCAP and SESAC, but you can only register with one of these organizations. Membership in BMI and ASCAP is free and can be completed online.

  4. Step 4

    Identify production resources necessary to manufacture your music. While most major manufacturers typically require a minimum order of 1,000 CDs or DVDs, some offer short-run production for as little as a few copies at a time. Search the Internet or use the links below to investigate some production options.

  5. Step 5

    Identify resources to distribute and sell your music. For an independent record label, this is often the most difficult part of the process. Most major labels have exclusive agreements, with large chain stores, which effectively require you to deal with them, as well as pay them a commission. Unfortunately, they will not typically deal with an artist who isn't expected to sell thousands of CDs. To eliminate this roadblock, artists have begun to utilize the Internet and the world of digital distribution. This technology allows any artist or record label to distribute music on a worldwide basis, on the same level as the major labels. Digital distribution can be as simple as putting your music up on a website for sale or uploading it to one of the major online music services. Use the Internet to investigate the numerous digital distribution companies in business today and select the one that best suits your needs.

Tips & Warnings
  • Membership in SESAC is available by invitation only and is usually only offered to established artists or publishers. If you intend to record songs by other artists, you will typically need to contact the Harry Fox Agency in New York, to obtain the mechanical rights prior to production. CD and DVD burners for your home computer can offer a simple and inexpensive way to duplicate a few copies at a time. Digital distributors such as iTunes or Rhapsody can offer high visibility for new artists. Don't overlook community, college and independent radio stations as a viable promotional resource for your music.
  • Reputable distributors will charge you a commission on any units sold. Avoid any distributor who asks for an upfront fee. Before you place any production order, consider this: According to The Recording Academy, only 1 percent of all music manufactured each year will ever sell more than 1000 copies. When considering manufacturing options, don't forget to factor in shipping costs.
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