Thinking of Starting an Indie Label

[Bare Bones]

I've been contemplating starting a small indie label, mainly releasing limited-release 7" singles and otherwise focusing on digital distribution. I would look to sign indie rock-type bands.

 

Although I have a business degree and have been successful in the marketing field for over a decade, this would definitely be dipping my toes into new waters. I've been reading a ton about the business, have studied the marketing and business approaches of small labels, and may take some online courses at Berklee to further educate myself.

 

I have a successful career, so while I would be committing a lot of time and be behind it 100%, I'm not looking to get rich from the endeavor (not that it happens much on the label side anymore). I want to be very fair to the artists, and would view the label as a stepping stone for them (not signing long-term deals, etc.).

 

I'm wondering if anyone on here has experience w/small, indie labels, either on the business or artist side? Words of advice, stories, and if an artist, your experience and what you look for in a small label. If all goes well, I hope to take the first steps in the spring.

[Ronan Murphy]

My very strong recommendation is to find a way to take a couple indie labels owners out to lunch and get their take on what its like to own a label, how they have seen it change over the last several years, and where they see it going.

 

I am not trying to talk you out of it, but the financial and lifestyle realities of actually making a label work are usually quite different than most people would expect.

[fatusstratus]

 

I have a successful career, so while I would be committing a lot of time and be behind it 100%,

 

 

This part is something to think about - It's easy to say "behind it 100%" but if you have another career...can you really do that? I mean 100% is "totally"

 

 

Like let's say, for example, the label gets going...but it's on the verge of folding unless you quite your other career and work on just the label (not that doing it would guarantee success, but not doing it would guarantee failure) or it needs an infusion of cash in the form of your life savings -- are you still behind it? 100%?

 

 

Not trying to jerk your chain or playing semantic games - I just mean it's something to be really honest with yourself about so you can gauge risks and resources and all that

[Inazone]

From my perspective as an artist who was signed to a label that ultimately failed by trying to be "everything to everyone," it's good to pick your niche early on, such as the limited releases you mentioned. Personally, I would LOVE to work with a label with a fairly narrow focus; I'm trying to find the best way to do something very similar myself, in my situation being a concept album in a digipak with an extensive booklet. The labels I've talked to aren't terribly receptive to this.

 

But that may be very telling. Artists only need labels if the labels provide things that the artists can't provide alone. That may be the discount pricing available for high-volume manufacturing, established industry contacts or a great promotional team. Some small labels are offering mostly distribution-type deals, expecting the artist to finance some or all of the manufacturing costs of a physical product. Some artists will then balk at the whole idea.

 

Since you're thinking of going into a niche market, give some serious thought to what you can really offer artists, and how - especially with something like 7" singles from bands in a crowded genre like indie rock - you can at the very least sell enough to cover your costs. My first thought would be to keep the limited-release idea, but be open to either 1) including other formats or 2) expanding into other musical genres. In some genres, physical sales will be limited to live gigs, while others may appeal to a demographic that is very inclined toward paid downloads. I honestly would only expect to sell 7" singles at shows, or to diehard fans of a particular band that want to have a physical product but can't make it out to see the band live. For anyone else, a $1 download from iTunes probably makes more sense, and artists really don't need labels for that.

[Jason_S]

Indie label owner here. Safe to say five years into this I am still learning! I've done a lot of things that went right, but also a lot of things that went wrong. I will say that even as a smaller label, there is a wide array of things you need to have in hand. Some good advice already posted, don't try to be all things and definitely define your niche. Just as any business, you want to identify your target audience, how you are going to reach them, and what makes you different from the next guy.

 

Some essential books to start you off, these are on my bookshelf above my PC as I write:

 

All You Need To Know About The Music Business (Passman)

Music Law (Nolo)

Managing Artists In Pop Music (Weiss)

Start & Run Your Own Record Label (Schwartz)

[D.o.l.l.a.$]

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www.dollarsthaproducer.com

http://www.youtube.com/user/DollarsProductions

[daddymack]

but you certainly can't spell...

[Bare Bones]

Thanks for all the advice - thought this thread was dead after 4 weeks of no replies

 

I'm still in learning mode and have signed up for a few classes at Berklee next semester. If my schedule permits, I'm also hoping to attend SXSW in hopes of making some contacts.

 

If I move forward, I definitely plan to stay within the indie niche w/specific distribution formats. However, I've started playing with numbers and am coming to the realization that even breaking even will be a struggle. Because of that, I have spent the last few weeks brainstorming other things that could be done to bring in revenue (e.g. partnering w/others to be involved in more aspects of business & providing a more comprehensive option to artists).

 

I've found the two parts of the business that shy me away the most are the actual signing of artists (in terms of time commitment watching bands play every night of the week for long periods of time) and legal costs for contracts, etc. The first I can deal with (I see bands 3+ times/week as it is), the second seems like it could be a killer for a small label.