If you’re a musician, I’m sure you’ve considered starting a record label before.
So let’s discuss the factors in starting a record label of your own. I’m not going to get into the legal issues though. If you want to read about that, there are plenty of other websites to look at. What I’m more concerned with is the mindset needed to undertake a project such as this, as well as the day to day responsibilities.

First, Check Your Mindset!

When most people think of a record label, they think of the name of some company that produces and distributes CD, and puts their logo on the back cover. Believe me, it pains me to say this, but it is simply not feasible to release albums on CD anymore. As a record label, you’re main business plan in 2009 should be electronic distribution on the internet. Not everyone is connected to the internet though. I know that that’s a silly idea to those of you who inhabit the world wide web, like a metaphorical spider, but it’s true, so having your music on CD is not a bad idea. I’m not trying to discourage you from putting your music on CDs. However, hoping that you’re going to make money selling those CD’s is where you might be a little naïve.

A lot of people feel strongly that a brand new record label should only put out music from the same genre as they become known for. For example, if you start putting out rap albums, then all of the other artists that you sign should also be rappers. I disagree. Instead, you should try to put out music that will appeal to the same group of people. Not everybody can be pigeon-holed, and fit into a stereotype. There are many people who enjoy many different types of music. There’s no reason that you can’t market to people who enjoy metal and calypso, or country and gangsta rap. If you can find a way to make them work together, then congratulations! You now have a target audience, who will love you for bringing to them what they want to hear. You are, in essence, being a hero to them for filling a void in their life, and giving them value!

Create An Internet Presence

Once you’ve decided on a name for your record label and checked to see if anyone else is using it, go and register a domain name. That’s important. If you can’t afford a domain name and web space, then you’re probably not serious about starting a record label. It’s one thing to be a struggling artist with only a myspace. But when it comes to record labels, people tend to think of it as a business, and won’t take it seriously unless it comes across as a business. Put your music on your site, and give people an opportunity to learn about the artists, converse with them, and how to see them perform live.

Concentrate on one or two groups when you are first starting out. Don’t worry about building up a huge roster of artists. Nobody is going to remember all of them anyway. Work on a select few artists, or even just one if you have to, and make each one special in their own way. Don’t spread your efforts too thin! I’ve seen labels starting out that have had something like 15 artists on their roster, all with ridiculously stupid names. All I can think is “Who’s going to remember these losers?”. So keep it simple!

Don’t Forget About CDs

Burn some CDs, with your artist or band’s name, and also the web site URL on the CD itself, that way you can continue to promote your record label and music while offline. You never know who’s going to end up in possession of these CD’s, which is why having the URL written on it is a good idea. Imagine if a friend of yours gave you a giant pile of CD’s, and you listen to one of them, and it blows you away. It’s the most amazing song you’ve ever heard, and you’re prepared to buy more music by that artist. However, the disc is blank, and you don’t know the name of the artist or song. Guess what, you’re probably never going to hear that band again. Don’t be responsible for this happening to your music!

Distribute those discs wherever you can. Most people, with one notable exception will rarely turn down a free CD. That notable exception is a group of people who are gathered together to see a band that they already like. I do not recommend that you hand out discs to people at autograph signings or concerts, unless the audience you’re targeting is known to be open minded. Otherwise, you will most likely end up seeing your discs tossed on the ground, or in the garbage bins.

Get Out There And Create The Future

Get on MySpace and Facebook, and network. Don’t get on there and “hustle”. Get on there, and really connect with people. Listen to other artists’ music and let them know what you think. Contact their fans, and be personal with them. Don’t spam! Add friends EVERY DAY, and keep them informed about what you’re doing. Make your posts funny, insightful, whatever you want, but make them memorable.

I believe that the internet will continue to spawn some truly hard hitting record labels in the years to come. Music is being taken back by the artists themselves, and being snatched away from the white collar executives who are looking for a quick buck. We’re in the midst of a major revolution. The young blood is taking music back from the entertainment industry, and there’s not a damn thing they can do to stop it.