Starting a record label...

[illpressureurhinges1]

My dream has always been to start my own record label. The only issue right now is money. While I try to work up the money, I was wondering if anyone had any tips as to preliminary things I could do to better prepare myself. Anything I need to know? Types of people I need to get involved with? All advice would be most appreciated. I just need some hints as to where to start getting ready it, so that when I come up with the proper money(and how much money do you think that would be?) I will be prepared.

[jasonresno]

I'm doing the same thing, it's why I'm asking all of these questions here. Actually now that I think of it I don't even want to kill it a label. What I am doing is setting up a studio and offering to help manage (as in advertise, book shows, and record) bands that can't afford big studio prices or don't want to have to use them. Instead I leave my saturdays open and offer any band that wants to come in some free time in my little homecooked studio. its not great but i can produce demo worthy stuff.

i think the most important thing is having a decent studio, knowing bands that'd be interested at least to get you started, and the rest will flow from there..

[illpressureurhinges1]

I'm doing the same thing, it's why I'm asking all of these questions here. Actually now that I think of it I don't even want to kill it a label. What I am doing is setting up a studio and offering to help manage (as in advertise, book shows, and record) bands that can't afford big studio prices or don't want to have to use them. Instead I leave my saturdays open and offer any band that wants to come in some free time in my little homecooked studio. its not great but i can produce demo worthy stuff.

i think the most important thing is having a decent studio, knowing bands that'd be interested at least to get you started, and the rest will flow from there..

OK. Because I probably won't be able to get this started for another year or so, since I'm about to go to college and I'm kinda short on money, but when I have the knowledge and time and money, I really want this to be a big part of my life. So I just want to really be ready for it when the time comes to get it all started.

[Seafroggys]

Major labels are responsible for three things: recording, promotion, and distribution. Indie labels usually cover only two (or sometimes even one!) of these aspects. So I'd only pick to two aspects and stick with them. Like you may run a studio and promote the band, but go to an outside distribution company (something like CDBaby). Or any combination thereof.

[Motleyguy]

I'm reading a book on the business right now. Apparently quite often indie labels will cut distribution deals with majors.

[illpressureurhinges1]

I was actually thinking more of an indie label with mostly just management and promotion. For the recording and distribution, I could hook up with other, bigger companies that can handle those things for me.

[The Chemist]

Labels also need $$$$$. They fund recordings, like a loan, then demand that ALL album sale earnings up to the cost of the session are given solely to the label to get their money back, and only after that point does the artist actually make money from the album sales. Running a label is more than representation. It's like a bank, promoter, boss and nagging woman all in one.

[illpressureurhinges1]

Labels also need $$$$$. They fund recordings, like a loan, then demand that ALL album sale earnings up to the cost of the session are given solely to the label to get their money back, and only after that point does the artist actually make money from the album sales. Running a label is more than representation. It's like a bank, promoter, boss and nagging woman all in one.

I kinda figured something like that. I knew a lot of money was going to be needed. So record labels often pay for their artists to do studio sessions with a seperate recording studio?

[The Chemist]

I kinda figured something like that. I knew a lot of money was going to be needed. So record labels often pay for their artists to do studio sessions with a seperate recording studio?

Few labels own their own studios nowadays. I think Capitol is the last.

[illpressureurhinges1]

Ok. So how much starting money are we talking about? What would be a good amount to start with so that I have the ability to make loans so that bands can go into the studio?

[The Chemist]

Ok. So how much starting money are we talking about? What would be a good amount to start with so that I have the ability to make loans so that bands can go into the studio?

$50,000 should do it.

[illpressureurhinges1]

Ok starting will probably take a little longer than I expected. How do shows work? Do venues pay bands or their promoters or whoever to play or do the bands pay to play?

[The Chemist]

The band's manager arranges shows, so don't worry bout that.

PS: I think maybe 6-9k will suit a starting label, thinking of it.

[illpressureurhinges1]

Ok. Yah, I'm not planning like huge thing, I just want a little thing that will kinda give small bands a chance to get off the ground. It will just be a side project thing for me to work on while I'm college and then after I've graduated, maybe I'll turn it into something more if I start seeing a larger amount of cashflow.

[fuzzyhair]

Ok. Yah, I'm not planning like huge thing, I just want a little thing that will kinda give small bands a chance to get off the ground. It will just be a side project thing for me to work on while I'm college and then after I've graduated, maybe I'll turn it into something more if I start seeing a larger amount of cashflow.

yeah recently I have started a recording studio for small bands.

I'm just going to specialize in demo recordings and such.

Look into people like me who need business. See if you can crank a deal with them where you send them your bands and they get paid for recording, and in return you promote them and get money from promotion and record sales.

I wish I could get someone to do that.

[illpressureurhinges1]

Ok. See that's the kind of stuff I'm talking about. I would love to help, but I haven't really gotten started yet. Waiting til I build up some more money first.

[Valhall]

Gee, let's forget to ask the forum member who just started his own label if he knows anything helpful......:p

Anyway, it seems to me that you have a lot of reading up to do, maybe even some classes to attend, before you even attempt this kind of thing. Here's a few really good books I would recommend reading; they have been of ENORMOUS help to me in my endeavours:

Million Dollar Mistakes by Moses Avalon
Confessions of a Record Producer by Moses Avalon
All you Need to Know About the Music Business, 5th Edition by Donald Passman
Music Business Handbook and Career Guide, 8th Edition by David Baskerville

These books will give you an extremely detailed look inside the music business, music law, and how to survive in the industry, from both an artist and a label perspective. Starting a label is no easy task, and even the small label I recently started took a lot of work, time, paperwork, money, etc. Read those books, because honestly, it would take me 5 pages worth of posting to scratch the surface of what you need to know if you are honestly serious about this.

I would also highly recommend taking some Music Business classes at a local college or university if they offer them. At bare minimum, take some Business Management classes.

[comptonassrobert]

If you're low on cash you shouldn't worry about starting a studio yet. You should start it as a more informal thing. Make friends/contacts with every booking company, promotions company, and venue that you possibly can. Start out by managing bands. That's where you'll start to build up your roster, your contacts and your cash moneyyy. Find decent bands looking for booking help, get them a certain number of shows a month in the areas they want, get them a good $100 guarantee and ask for %50 of that for each show. That way, the bands get $50 every show which more than covers gas, and that's not including any merch they sell which is all profit, and you get $50. It's a win-win for everybody :)

From there, you start getting more and more bands and experience under your belt, then you can start your own studio and further develop it into whatever you want

[fuzzyhair]

get a myspace and add a load of bands. Post bulletins a few times a day advertising your services. Start out as a promoter for bands and go from there.

[illpressureurhinges1]

Gee, let's forget to ask the forum member who just started his own label if he knows anything helpful......:p

Anyway, it seems to me that you have a lot of reading up to do, maybe even some classes to attend, before you even attempt this kind of thing. Here's a few really good books I would recommend reading; they have been of ENORMOUS help to me in my endeavours:

Million Dollar Mistakes by Moses Avalon
Confessions of a Record Producer by Moses Avalon
All you Need to Know About the Music Business, 5th Edition by Donald Passman
Music Business Handbook and Career Guide, 8th Edition by David Baskerville

These books will give you an extremely detailed look inside the music business, music law, and how to survive in the industry, from both an artist and a label perspective. Starting a label is no easy task, and even the small label I recently started took a lot of work, time, paperwork, money, etc. Read those books, because honestly, it would take me 5 pages worth of posting to scratch the surface of what you need to know if you are honestly serious about this.

I would also highly recommend taking some Music Business classes at a local college or university if they offer them. At bare minimum, take some Business Management classes.

Ok. I'll definetely check those books out, because I am very serious about this. I'm going into college next year, so I'm also planning on either majoring or minoring in business, so that'll help too. So around how much money did it take for you to start your label up?

And to comptonassrobert: I think I will start trying to do that soon. I really want to get started small and work my way up once I know more people and get more money.

[comptonassrobert]

Yeah, it's a good idea and a good way to get more contacts, friends, money etc. If you're a good guy and easy to work with too, the word will spread fast between bands and you can do a lot of things with a good reputation

[illpressureurhinges1]

Yah. Im going to get on that asap. It'll be a good way to get my name out there to the crowd that I need to know my name.

[illpressureurhinges1]

Ok. So I started up a little promotion thing on myspace and have been messaging bands asking them if they needed some help with promotion or finding shows, and one responded so far. The thing is they want me to help them find somewhere to take professional pictures... Anyone know of a place that does that kind of stuff in the southern california area that doesn't cost too much?

[comptonassrobert]

Message different photographers. There are about 500 trillion billion people on myspace who consider themselves photographers, most of which don't charge too much. Add as many people as you possibly can, then just post a bulletin asking for photographers

[illpressureurhinges1]

Ok. I'll try that. So say I find someone and they do it and works out. How do I get pay from this? Does the band pay me for helping them?

[comptonassrobert]

No lol

you're not going to be making millions a week after you start "managing." you have to build a small reputation. finding the photographer for the bands isn't necessary, but you can if you want.

what i think you should start doing, is making friends with venues and people who books shows, and other managing companies/labels. book bands shows, and they will love you. the scene is kinda dwindling, so a lot of bands these days kill for shows. so if you get them shows, they'll be all over you. do that for a few different bands, then "roster" them. book shows for them and get a cut of it, that's how you start making money. granted it wont be a lot at first, but the more bands you get, the more money you get. the more money you get, you can get equipment for a studio, you get a good studio, you make big money. you get a good reputation, and a good studio, you can start your own label and actually sign bands. all their shows are going to be through you, which means all of the money they make, is related to you, and the cut you take is your choice. don't take a high cut because that is a jerk thing to do and nobody will sign with you, but it adds up man.