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Everything You Need To Start and Operate a Record Digital Label

Anyone with a talent for music - particularly writing and recording songs - is now sitting on a potential gold mine.

What would have been unthinkable just a few short years back – is now not only possible, it’s being done with enormous success by individuals across the globe. What am I talking about? A digital record label.

Before I discuss the advantages of running your own digital label - I'd like you to imagine what it would have been like starting a physical label just ten years ago. A minimum investment of $350,000 would have been needed. This would have enabled you to rent an office sufficient to hold yourself plus a secretary, an a&r manager, a talent scout, a plugger/ promoter, and a receptionist. You would also need a copyright and royalty manager.

Your next task would have been to acquire good commercial recordings - with emphasis being on the word "commercial". Finding recordings was one thing, (as is the case today), finding good commercial product is something else. Unless you were able to acquire ready made masters under license from a third party, you would have had to pay for your artists to record the masters yourself. In addition to hiring a recording studio, you would also have had to pay a producer - plus a recording engineer (although the engineer's costs were usually included with the studio hire) - thus eating further into your $350,000 budget.

Assuming your product proved to be commercial (after heavy promotional costs), and sales from your first album had started to feed back from around the world. Eighty percent of your income would have been taken up in overheads through royalty payments to the artist, producer and the music publisher (mechanical license). Then, there would have been your general overheads: salaries, expenses, office rent and so on.

But we're getting ahead of ourselves. Before selling any records you would have needed a reliable manufacturer and a distributor to create and disperse your cds, (and maybe some dvds to promote the records), to the shops.

Getting a distributor in the first place was one of the most difficult things for any new record label. Ever watchful of stores and outlets unwilling to give shelf space to unheard artists, (i.e. artists yet to achieve a playlist position on radio), many would refuse to get involved with a new untried label. Not surprising when, given the choice, retailers could choose from any of the big selling artists such as Nickelback, Beyonce, Pussycat Dolls, Justin Timberlake, James Blunt etc against the poor new artist. So, you with your new label and new artists, would be forced to plough more money to promote your record, in the hope of getting on the playlist – in the hope of securing that elusive distribution deal. At this stage you would be wondering why you had started a label in the first place.

So, what enormous monstrosity of a thing happened in the music industry to change the old physical method of selling records? Enter, the golden dawn of digital music. Now, suddenly every artist, songwriter, producer, engineer and, even manager who once had a notion of starting his/her own physical label but didn't have a $350,000 budget - is able to start and operate his/her own digital label for about the price of a new laptop.

For the first time - individuals have a great opportunity of developing their own label from zero up - and making a very healthy living. Unlike the older physical system of starting and operating a label - with all the huge overheads - the digital label operator can start a catalog and operate it at his own pace without the need to employ several individuals. You can start with as little as two tracks - and build a catalog at your own pace - concentrating on your niche in the music industry, testing and probing the markets as you go along. Compare that to a physical label spending wads of money hoping their records chart. Failure to chart would often spell disaster for many a physical independent and domestic label - leaving only the majors to compete. Not so for a digital label. If a particular recording isn't selling over a period of time - you simply delete the product from your site. Updating your catalog can be done in minutes. Some digital labels regularly update their catalogues every few days.

If you're not an artist yourself - but someone who is drawn to a special style or genre - or just someone interested in music in general - here's what you can do to start your digital label: Firstly, you'll need a good web host. Basic as this sounds, some people go with an outfit they think is good - then, six months later they vanish into cyber space - leaving you and your site high and dry. So, please do homework before opening a web host account. I recommend you check for independent reviews on hosts you're thinking of going with. Once your web host is confirmed, you should get a confirmation email from your host confirming your space is ready so that you can move forward and publish your site.

Some people are very creative and skillful in being able to create their own web site. Others, like me, are not. I was contemplating having someone design my web site for me when, by chance, I came across a web design system called Xsitepro, but there are many to choose from. As with the web host, look for independent reviews before making a decision.

Next, make sure you have an up to date digital contract - one you can offer artists (or the owner of the masters). If you're not an artist yourself, you can enter into a license deal with any artist or production company willing to have you promotes and sell his/her product. By knowing a particular field or style of music well, will help you no end build your catalog faster than if you're someone learning as he/she goes along. However, enthusiasm will go along way. What you need to do when you start off is to ask yourself this question - "Why would an artist license his/her rights to me and not someone else?"

Firstly, to have an artist (or production company) freely license his rights to you - you need to convince him/her that you have a powerful distribution system. Unlike physical labels, with a web site, you have the ability to create your own "built in distribution system". Having a digital distribution account is an excellent idea - but you will still need to promote your product if you want to draw large numbers to your site. In my view, a newsletter, blog or e-zine, is the one of the best ways of drawing a high reading audience. Ten thousand plus is a good target to work toward. This will help you pick up more recordings from artists looking for a site attracting thousands of hits - assuming of course artist's genre works well with your label. There are some excellent publishers, blogs and newsletters hungry for good topical articles, presenting you with another outlet. Keep your articles fresh and original, and your audience will grow steadily with each article.

Since distribution is the key to your success - this is where you need to concentrate if you want your label to expand and prosper. Obviously, if your newsletter or e-zine readership is increasing, it's because people are enjoying the articles and information you're publishing - and more people will want to buy your product. A healthy situation all round.

Now, a note on your digital agreement, you can use a contract repeatedly for different artists. I would recommend you acquire rights non-exclusively. Keep in mind that a contract may need to be updated from time to time as new copyright laws come into effect to deal with technological changes. As a rule of thumb you can check back every six months to see if your contract needs updating.

Next, ensure you have a terms and conditions policy on your site. Anyone starting off a digital label, should have a general list of conditions, setting out criteria for accepting product online, together with a privacy policy.

Next, you'll need a strong accounting system. No matter how effective you are selling product online - if you're not accounting to your artists accurately and to the letter of your contract - you're dead in the water. In my view there is nothing worse than a company with a bad reputation for paying royalties. For me, trust and reputation is everything.

Work closely and be up front with the artists who put their faith and trust in you. Your good reputation and name will spread.

Since 1997, Songsalive! is the largest international non-profit membership organization dedicated to the nurturing, support, promotion and education of songwriters and composers worldwide.

Founded in 1997, by songwriters Gilli Moon and Roxanne Kiely in Sydney, Australia   Songsalive! is run by volunteer songwriters for songwriters and has reached the far corners of the globe with over 25 chapters worldwide (International head office in Los Angeles, CA, USA) We provide a "home", a family, for songwriters and composers through our programs, resources, community and support, all focused on the art and business of songwriting. It acts as an epicentre, a heart of the international songwriting community and music markets, bridging the gaps, tapping songwriters into the pulse of the business and at the same time giving them and their music the support they deserve. Through Songsalive!, songs and songwriters can be accessed by the whole world and when the hunt is on, Songsalive! is a one-stop song shop! Songsalive.org

Indianapolis, IN (PRWEB) January 12, 2010 -- The Music44 Music for Teachers free sheet music gift supports music teachers and schools by providing sheet music, school music books, music software and music textbooks. The most popular book choices by recent Music44 winners include the Hal Leonard Essential Elements 2000 (http://www.music44.com/X/products/hal_leonard_essential_elements) series, the Alfred 21st Century Band Method series, and the Neil Kjos Standard of Excellence music books series.

Periodically, sponsor Music44.com randomly selects one lucky recipient from among the entries. No purchase is necessary to enter or win this free gift. Void where prohibited.

"Our Music for Teachers free music book giveaway is open to public and private institutions that offer a music curriculum. This includes schools, conservatories, colleges, and even private teaching studios," says Music44 program coordinator Michelle Oleck. "Schools have played a big role in making Music44 a successful online sheet music store, and this is our way to give something back."

Michelle explains, "The winner receives a coupon that works just like cash. So you aren't limited to specific sheet music or music book titles. And there is no requirement to spend over the coupon amount--so it is truly free sheet music and music books, without strings attached! (No pun intended.)"

Not surprisingly, the largest music print publisher Hal Leonard (http://www.music44.com/X/category/H) receives the largest number of free book requests through the Music for Teachers program. Hal Leonard offers the popular Essential Elements 2000 band and orchestra series, Discovery Choral (http://www.music44.com/X/products/discovery_choral), Concert Band (http://www.music44.com/X/products/hal_leonard_concert_band) and Marching Band sheet music scores and more. In fact, Hal Leonard offers over 80,000 sheet music and music book titles in print!

The runner up is Alfred Publishing, with the 21st Century Band Method, Music Expressions, Orff/Kodaly series for kids, and more. Neil Kjos Standard of Excellence is also a popular choice.

Music44 stocks thousands of popular music book titles by Hal Leonard Publishing, Alfred Publishing, Neil Kjos and others, so you can get your music books delivered promptly and hassle free. Also, the Music44 search tool offers a complete search functionality that cross references publisher with title keywords, instrument keywords, author or series. So to find all Hal Leonard Discovery Choral series, for example, just enter "Hal Leonard Discovery Choral" in the Music44 Search box and you will instantly see all 764 selections available. Add more keywords to narrow your Hal Leonard Choral search. For example, add "CD" (search: hal leonard discovery choral cd) and you will see 226 accompaniment CDs available. Add a specific arranger or author last name to narrow further, or add a title keyword to pull up specific pieces. Everything in music print is just that easy to find at Music44!

If you are a music teacher, you are invited to enter your school into the free Music for Teachers program. Simply email your name, email, school name, city and state to michelle(at)music44(dot)com in order to be entered into the next drawing.

For more information, please contact Troy Mulander or visit music44.com.

About Music44:

Music44 is a privately held corporation and online retailer of sheet music, music books and instruments. The company has been in business since 1999 and grown steadily to become one of the top retailers in its niche.

Contact:

Troy Mulander

Music44.com

(866) 419-6497

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