There are several questions you must ask yourself before you start a music licensing company.
1. Is starting a music licensing company right for me?
Music licensing takes a lot of patience. As you dive into it, you'll discover how vague it can be. If you're thinking you're going to make thousands of dollars right away, and that royalty checks will be handed out to you every day - you've thought wrong. Read this full article before you decide whether or not you'd like to start a music licensing company.
2. Do I have enough music to start a licensing company?
Look at the successful music licensing companies out there. Look at APM Music. They have thousands of top-notch songs in their library. You will need to be competitive. I'm not saying you need thousands of songs to start a licensing company, but you will need at LEAST 20-30 tracks to start, and need to have new content being made frequently. It's very difficult to pitch your band's CD to potential licensees and have a guaranteed success. Having a wide variety of music and a constantly updated library of music in your hands would be most effective.
3. Do I have the patience to start a music licensing company?
Music licensing takes patience. It takes a lot of time and investment to get started. It's not CRAZY expensive to start a licensing company, but you probably won't see some decent cash-flow for a good year or so - unless you get really lucky.
On top of not seeing an immediate steady income from music licensing, you're going to spend a lot of time making phone calls to producers and music supervisors, mailing CD's, copyrighting music, adding music titles to your Performing Rights Organization (PRO) account, and if you have multiple artists - distributing necessary royalties, creating and signing multiple contracts, etc. Be sure you're going to be willing to do some good office work the duration of your company's existence.
To top everything off, you MUST act professional. Often times, when a music supervisor finds a song in a library of music he/she likes - they'll come back. However, if you don't speak in a professional manner to your customers, or try to put them first, you may never get any customers, and you'll fail.
4. What type of licenses will I be doing?
Not all licensing companies license the same type licenses. Some only license synch and master licenses for TV, Game, and broadcast use. Some only offer mechanical licenses. You may decide to go through an agency like HFA for certain types of licenses, and do the rest on your own - or you may decide to do each type of license. It's your choice.
5. Who will I be selling my licenses to?
You will need to decide what type of music you will have in your library and who you need to pitch your music to. Finding a music supervisor is as easy as doing an IMDB search, or watching the credits of a TV show for the production company. Once you have at least the production company's info, request contact info from them. If you are polite, patient, and professional, most places will be happy to get any available contact information to you.
6. Do I have the funds necessary to start a music licensing company?
Starting a music licensing company isn't incredibly expensive, but not cheap for the average at-home musician. To simply start the business, expect to pay between $300-$500 to just start the business - more if you can't come up with cost effective solutions for your website, business location, etc.
7. Are you an agency for other publishers or a publisher for composers/artists, or both?
A music licensing agency simply licenses music on behalf of other publishers with libraries of music of their own - all performance and publishing royalties will go to your clients, you will only collect a percentage of the licensing fee you collect (about half.)
On the other hand, a music licensing company that acts as publisher for individual composers, artists, etc., has the right to publisher's share of royalties on top of a percentage of the licensing fee (about half.) Acting as BOTH, you will need to set up different agreements (contracts) for each type of client you represent. It takes a bit more work, but doing both will most likely profit you the most.
Now that you have gone through and answered/figured out every preliminary question listed above...
It's time to start.
Step 1: Get licensed to start a business in your town.
First, file a fictitious name statement. This will serve as your business name. This way, you can accept payments under "My Business Name" as apposed to your name. This not only looks more professional, but makes your business easy to remember. Your business name can be anything as long as it's not already taken. Make sure it's unique, but easy to remember.
Next, get a business license. Getting a business license is not difficult, it just costs a few bucks. Doing this varies from county to county, and sometimes, city to city. Check with your city to see what their fees are to file a fictitious name statement and obtain a business license.
Step 2: Join a Performing Rights Organization (PRO)
You will need to join a PRO as a publisher if you're going to publish music on behalf of -and represent the music of individual artists. There are three PRO's in the US available for you to join:
1. BMI: This is one of the most popular PRO's to join, specifically for composers/writers. It's free to join as a writer, but if you're a publisher, there is a preliminary $150 registration fee.
2. ASCAP: Joining ASCAP as either a writer, publisher, or both will cost you $35. If you apply for both at the same time, mailing in the forms together, you only need to pay the fee once. However, if you mail them separately, you will have to pay the fee twice.
3. SESAC: This is the smallest PRO. You have to apply to join with them, and they don't take just anyone. They are very selective. If you meet their preliminary requirements, it is free to join.
Each PRO works differently, visit their websites to get more info about how they distribute royalties, how they work, etc. and decide for yourself which PRO is best for you.
Step 3: Build a Website
If you can't build one yourself, contact a professional web designer who can build one for you. Having a website is only beneficial to your business. You can have all your music available for preview and purchase, and you can even license your songs through your website.
Because music supervisors are often in a time crunch, it's important to make it as easy as possible for them to license and obtain your music quickly.
Step 4: Make Your Music Publicly Available
The easiest way to do this is through your website. Make your FULL LENGTH songs available to stream online for free. I recommend doing this so that your customers will know the song they hear is right for them. Most of your customers probably won't even bother if they can't hear your songs in their entirety.
Step 5: Make CDs
This isn't a requirement, but it will help you pitch your music to potential customers. Send free "Demo CD's" that feature a selection of your best songs. Make sure the CD and its casing look as professional as possible. It's too easy to look at a home made CD and immediately judge it by its appearance.
Step 6: Write your license agreements
Generally, your music licenses will be generic, so type a generic template you can modify per customer. If you're licensing your music online, there is a service called LicenseQuote (www.licensequote.com) where you can license your music online. They have generic licenses that can be used, and have the option for custom licenses. This will take a bit of a load of your shoulders.
Be sure you understand the standard rates for each type of license. You can find this information at the Copyright Office's website.
Step 7: Pitch Your Music
Now that you have your website up, your CD's made, and your business ready, contact as many potential customers as possible and let them know what you have to offer. Give them reasons why they should license your music, and offer them a free CD or direct them to your website where they can listen to your music online for free. Don't be too pushy. Give them time, they are busy and have deadlines to meet. Give them a couple weeks before contacting them.
Don't rely on just one or two music supervisors. Contact as many as you can that you have music they can use. Get to know what they've worked on before you contact them; you can then compare your music with music they've used before - let them know your music is a good fit for them.
Be professional, patient, yet persistent, and offer top-notch quality music. If you do all this, you have a good chance at success.
Monday, September 5, 2011
Saturday, September 3, 2011
Downloading Software from Pirate Bay
The music industry has changed for the better thanks to digital recording. Many digital audio workstations (DAW's) have become so easy to use and install, ANYONE can make great quality music. While the cost of professional, analog studios may cost over $100k to start, and the pro digital studio may cost $20k to start, the $200-$600 cost to start a great home studio still seems to be too high for potential music producers.
If you're around my age or younger, and you're just starting out in audio production, you've probably thought about going to the PirateBay and downloading a copy of ProTools or FL Studio. Maybe you've done it already, but is that the right thing to do for YOUR sake? Does it really benefit you to download pirated software in the long run?
Top excuses why people download pirated software (in no particular order):
1. You get your software for free, saving hundreds of dollars
2. The company already makes a lot of money, so if I download it, it's no big deal
3. I use my friend's copy at his house, so if I use a pirated copy at my house, it's like the same thing
4. I'm poor, and I can't afford the $200-$600 cost of a good DAW
5. People download pirated stuff ALL THE TIME, one more person doesn't make a difference.
6. I have antivirus software, so it's safe to do it.
When it comes down to it, there are only a few REAL reasons people download pirated software:
1. Laziness
2. Lack of Respect
3. Selfishness
That's it, really. These are the REASONS behind the EXCUSES of downloading pirated software. Laziness, because they're not willing to work hard and save money for the software they want to buy, lack of respect for the manufacturers and software engineer who work night and day to create a great product, and selfishness because they don't care about how it effects the business and the people who use the software.
Most people who download pirated software don't take the time to look at the negative effects it has on the economy of the business - which effects EVERYONE, and don't take the time to look into cheap or FREE and legal alternatives.
What happens when too many people download pirated versions of a particular software:
1. The company loses money. They can't make the software cheaper, because nothing is cheaper than free, so they are FORCED to raise the prices.
2. Raised prices force people to stop using the software.
3. The company loses more money, and goes bankrupt
4. The company is either sold or discontinues business, and no one - not even people who download pirated software - get the new software.
5. Since the product is discontinued, support for previous versions of the software dies.
6. The entire industry is forced to raise the cost of all gear and software.
7. Affordability becomes scarce, and less potential producers have a chance to make music
You can see the domino effect pirated software can cause. A prime example would be Macromedia and Adobe. Macromedia was a popular company that created "Flash." They died and were bought out by Adobe. The changed caused prices to reduce a bit, but in the last 5 years, prices have increased. A defining factor of that increase is piracy. It effects the music industry more than most people understand.
If you're someone who believes DAW's are just too expensive, try making music 10-20 years ago. Music production has become more affordable than ever, but is slowly becoming LESS affordable due to piracy.
Some of the best DAWs only cost about $200, which you can earn in just a few weeks on a minimum wage job. There's no reason not to save your money and buying a legal copy of the software. Think of small ways to save your cash. When you drive through, don't supersize your meal. Maybe, create a new source of income. Try going door to door offering to mow a lawn, bake cookies and sell them. If you're unemployed, get a job! Generally speaking, you can always find a way to earn what you want. Plus, when you earn it, there's a new sense of value and appreciation for your purchase, because it's an investment into your future as a music producer.
If you're someone who still thinks it doesn't make a difference, you know it does. It's no difference than trying to walk into a guitar center and grabbing a guitar off the shelf and trying to sneak it out the door. The only difference is you're a lot more likely to get caught at guitar center.
I'm not in a position to find new work, save money, or spend any extra expenses on software. What am I supposed to do?!
If you're in a financial situation where saving money just isn't an option, there are MANY free alternatives to mainstream DAW's. Just Google it! Here's one website I found with a simple Google search that lists 25 audio editors - some of which emulate some of the most popular DAWs in the world: http://www.hongkiat.com/blog/25-free-digital-audio-editors/
In Summary:
Pirating music software is no good for the manufacturers or the consumers. Whether you agree or not, it negatively effects the entire music industry. Keep the industry going steadily in the right direction. Us indie artists NEED affordable software, and putting a STOP to pirated software can make a huge difference.
What do you think? Will you consider purchasing your DAW instead of downloading a pirated version? Will you consider using a free/open source alternative to a more expensive DAW? What is your favorite free recording software? Leave a comment and let me know your thoughts!
If you're around my age or younger, and you're just starting out in audio production, you've probably thought about going to the PirateBay and downloading a copy of ProTools or FL Studio. Maybe you've done it already, but is that the right thing to do for YOUR sake? Does it really benefit you to download pirated software in the long run?
Top excuses why people download pirated software (in no particular order):
1. You get your software for free, saving hundreds of dollars
2. The company already makes a lot of money, so if I download it, it's no big deal
3. I use my friend's copy at his house, so if I use a pirated copy at my house, it's like the same thing
4. I'm poor, and I can't afford the $200-$600 cost of a good DAW
5. People download pirated stuff ALL THE TIME, one more person doesn't make a difference.
6. I have antivirus software, so it's safe to do it.
When it comes down to it, there are only a few REAL reasons people download pirated software:
1. Laziness
2. Lack of Respect
3. Selfishness
That's it, really. These are the REASONS behind the EXCUSES of downloading pirated software. Laziness, because they're not willing to work hard and save money for the software they want to buy, lack of respect for the manufacturers and software engineer who work night and day to create a great product, and selfishness because they don't care about how it effects the business and the people who use the software.
Most people who download pirated software don't take the time to look at the negative effects it has on the economy of the business - which effects EVERYONE, and don't take the time to look into cheap or FREE and legal alternatives.
What happens when too many people download pirated versions of a particular software:
1. The company loses money. They can't make the software cheaper, because nothing is cheaper than free, so they are FORCED to raise the prices.
2. Raised prices force people to stop using the software.
3. The company loses more money, and goes bankrupt
4. The company is either sold or discontinues business, and no one - not even people who download pirated software - get the new software.
5. Since the product is discontinued, support for previous versions of the software dies.
6. The entire industry is forced to raise the cost of all gear and software.
7. Affordability becomes scarce, and less potential producers have a chance to make music
You can see the domino effect pirated software can cause. A prime example would be Macromedia and Adobe. Macromedia was a popular company that created "Flash." They died and were bought out by Adobe. The changed caused prices to reduce a bit, but in the last 5 years, prices have increased. A defining factor of that increase is piracy. It effects the music industry more than most people understand.
If you're someone who believes DAW's are just too expensive, try making music 10-20 years ago. Music production has become more affordable than ever, but is slowly becoming LESS affordable due to piracy.
Some of the best DAWs only cost about $200, which you can earn in just a few weeks on a minimum wage job. There's no reason not to save your money and buying a legal copy of the software. Think of small ways to save your cash. When you drive through, don't supersize your meal. Maybe, create a new source of income. Try going door to door offering to mow a lawn, bake cookies and sell them. If you're unemployed, get a job! Generally speaking, you can always find a way to earn what you want. Plus, when you earn it, there's a new sense of value and appreciation for your purchase, because it's an investment into your future as a music producer.
If you're someone who still thinks it doesn't make a difference, you know it does. It's no difference than trying to walk into a guitar center and grabbing a guitar off the shelf and trying to sneak it out the door. The only difference is you're a lot more likely to get caught at guitar center.
I'm not in a position to find new work, save money, or spend any extra expenses on software. What am I supposed to do?!
If you're in a financial situation where saving money just isn't an option, there are MANY free alternatives to mainstream DAW's. Just Google it! Here's one website I found with a simple Google search that lists 25 audio editors - some of which emulate some of the most popular DAWs in the world: http://www.hongkiat.com/blog/25-free-digital-audio-editors/
In Summary:
Pirating music software is no good for the manufacturers or the consumers. Whether you agree or not, it negatively effects the entire music industry. Keep the industry going steadily in the right direction. Us indie artists NEED affordable software, and putting a STOP to pirated software can make a huge difference.
What do you think? Will you consider purchasing your DAW instead of downloading a pirated version? Will you consider using a free/open source alternative to a more expensive DAW? What is your favorite free recording software? Leave a comment and let me know your thoughts!
Thursday, September 1, 2011
Start Your Own Record Label
Everyone wants to get signed. There's this idea floating around that says, "If you get signed, you'll be rich and famous." WRONG. If you get signed, you sign rights to your music away. Now, if you're reading this, chances are you're either someone who REALLY wants to start a label as a business, or you're not popular enough as a performer to get signed. Either way, starting a label is a fantastic way to generate income off your music, and off the music of other artists while simultaneously getting those artists paid. Believe me, even if you're ONLY doing this to make YOUR band famous, sign other artists - it is for your own benefit. Read on for details.
Let's go through the steps. BEFORE you complete these steps, you'll have to save up a couple hundred bucks. This shouldn't be too hard. Sell your TV or Xbox 360, or get a small, part time job and you'll have the cash in no time.
Firstly, you'll want to come up with a name for your label. Despite what other people may say, it doesn't have to be catchy. It can be your last name for all anyone else cares. Your label isn't about your name, it's about what you can do for the artist and for the audience. The only thing you DO have to worry about is if anyone else has that name. Do some research, or do a WHOIS domain name look up for that name. Just make sure it's not inappropriate or anything - you don't want to turn distributors and production companies away!
Once you have a name, get yourself a business license, a business bank account, and a fictitious name statement. Doing all these things will legally allow you to do business and collect money under your business name. Taking only personal checks can seem tacky, and it's illegal to conduct business within your town without a business license. Get caught and you could receive a nasty fine.
Get a website ready to showcase any upcoming artists you sign. You'll want to sell their music from it, promote their gigs, and license music from the site.
Now, figure out what you'll offer as a label. Will you offer distribution, publishing and licensing? Are you going to book and promote shows for your artists? If you said yes to all of these - GOOD! You'll probably take off locally in no time. But, you need to know how to do these things. That's where I come in and save the day by explaining simple solutions on how to be your bands' distributor, publisher, license manager, and booker:
1. Distribution: Unless you have enough bands with enough CD's made, you probably can't do too much on your own. Consider joining CDBaby or Tunecore to get your music on Amazon, iTunes, and opt in for physical distribution as well. You won't get your band's music in Walmart any time soon - but having the option to have local record stores order your music is always a plus. If you or one of your artists gets big in any given town, you can probably sell their music there. Once your music catalog is big enough (20 Albums at LEAST) you can start doing your own distribution. One thing you can try is apply to become an iTunes contributor. If you have a Mac and have enough albums in your label's catalog, you have a good shot in working directly with iTunes - no more extra fees being taken out by CDBaby or Tunecore!
2. Publishing and Licensing: Get yourself familiar with the music biz and music law. Join a PRO like ASCAP, BMI, or SESAC as well as SoundExchange. As publisher, you'll collect royalties for music to keep, and will be responsible for distributing royalties to your artists. Being a publisher is a great thing, because your artists will sign an exclusive agreement with you allowing you to license their music out in different ways. A way to generate money as a publisher is to license music to production companies and music supervisors. Be professional and make your music easy to license, and your artist could have a song in a hit movie or TV show. If that happens, you AND your artists get royalties as well as major publicity.
3. Booking and promoting: Booking gigs is a time consuming process that requires the utmost patience. When you first start out, chances are your bands won't make a dime off their gigs, and you may even need to pay to play sometimes. Make your shows pay by selling CDs to fans. Since you're the label exec, you'll probably have plenty of time to stand next to the merch booth and sell everything. If you made yourself a good contractual agreement with your bands (which I'll go over later) you can take a SMALL percentage for yourself and give the rest to your bands. This will help cover the cost of travel, food, etc. Don't expect it to cover everything, though, always have an emergency budget for each gig.
Promoting can be just as time consuming, but it's a bit easier when you think about it. Use Facebook, Myspace, and other social networks to let fans know about the shows. Create and print flyers and posters and put them in as many shop as possible, and into the hands of local pedestrians. Contact local radio stations, let them know of the gig and request an interview. You may get a big "No" if all your bands are nobodies, but it NEVER hurts to ask. You need ALL the promotion you can get!
When you book shows or promote your gig, always be professional. Be polite over the phone, through e-mail, and if you book your gig, be polite at the venue. Make sure your bands are polite, too. If your bands are rude, or if they trash the place, you're never going to do business with that venue again.
One thing I didn't mention - as far as the services you'll offer as a label - is paying for CD's and recording. If you're just starting out, or if you don't have a ton of cash to spend, you're going to be FORCED to leave this to your bands. Overtime, however, if you become more successful, pay for CD Duplication/replication. Many bands may record their music at home, but won't have the funds to get their discs printed - so, if you've got the cash, take on the printing!
NOW, once you've decided all the services you're going to offer, you need to create a contract for all your bands to sign. This way they are LEGALLY obligated to whatever terms is written on that piece of paper. When you create your contract, here are some things you should take into account:
1. What rights will your artists sign over exclusively, and what rights will your artists sign non-exclusively?
A label will most likely sign publishing, licensing, and distribution rights exclusively - this means YOU are the only one allowed to license, publish, and distribute their music, unless under certain terms otherwise noted in your contract. For instance, you may exclusively own the rights to distribution, but you'll want to make an exception for when a band performs somewhere on their own and want to sell their music at the venue. If you don't make that exception, they can't sell their merch! Unfair! Many major labels have exclusive live performance/booking rights as well - meaning the artist can't even book their own shows. So instead, sign a NON-exclusive agreement allowing you AND the artist to book their shows. The shows YOU book, you can go to and take percentages off merch and any other revenue generated at the gig, while the artist can book their own gigs as well.
2. How are YOU going to get paid, and how will your artists get paid?
NEVER EVER EVER charge your artists to be signed. If you conduct business properly, you can agree to take 10-45 percent from different sources of income. For instance, take agree to take 15 percent from all distribution sales and live venue sales, take 10-15 percent from ticket sales/live show revenue, and take about half the overall generate royalties you get for radio play and air time (typically, there is a publisher's share and a writer's share and a license fee. You split the license fee with your artist and keep the publisher's share, give the other half of the license fee and the writer's share of the royalties to your artists.) Be sure whatever revenue is generated by your artists is divided between you and the artist in a reasonable way. Look at it his way - if an artist generates money from their music being sold or from playing a gig, they deserve the majority because they put in the hard work to make the record and perform at the gig. If a song generates money from licensing it to a production company for a tv show, it never would have happened without you - so take a slightly larger portion. However, NEVER EVER EVER EVER collect MORE than the artist. You're riding solo, you're not a major label with several different publishers, publicists, etc. Keep it fair.
3. How long will the contract last?
Your agreement MUST come to an end at some point. You can't own your artists FOREVER. If you're just starting out, make it 6months to a year MAXIMUM. This means that they're stuck with you exclusively for that period of time. So, if you're just starting out and you have an incredibly limited budget, make the agreement's lifespan short. If it's too long and you end up sucking as a label, it's your own reputation on the line.
4. How will you promote yourself?
Use this agreement to grant yourself promotional spots on CD cases and at gigs. Post a small label on the back of a CD case, or put up a banner at a gig. Let people know this band belongs to you and you're services are helping them. This will attract other bands to you, and will attract the fans to come to your show - regardless of who's playing. This means NEW fans for ALL your bands and artists!
Now that you've got your terms ready - and hopefully you've made them reasonable enough and have written them out clearly and thoroughly - it's time to sign some bands and artists! Go to local gigs or browse the web for unsigned artists near you. Work locally first, then branch out. There's no way you can benefit a band in New York if your brand new label is based in Montana, it just won't work. Get local bands and artists involved with your label, explain to them the benefits of being signed with YOU.
Starting and running a label successfully is a FULL TIME JOB. Don't think you can sit on your butt and collect money while your bands do all the dirty work. You've got some heavy responsibilities on your shoulders, so don't take it lightly! Get to work. If you work hard, be fair, and be professional about EVERYTHING, it'll all pay off.
Let's go through the steps. BEFORE you complete these steps, you'll have to save up a couple hundred bucks. This shouldn't be too hard. Sell your TV or Xbox 360, or get a small, part time job and you'll have the cash in no time.
Firstly, you'll want to come up with a name for your label. Despite what other people may say, it doesn't have to be catchy. It can be your last name for all anyone else cares. Your label isn't about your name, it's about what you can do for the artist and for the audience. The only thing you DO have to worry about is if anyone else has that name. Do some research, or do a WHOIS domain name look up for that name. Just make sure it's not inappropriate or anything - you don't want to turn distributors and production companies away!
Once you have a name, get yourself a business license, a business bank account, and a fictitious name statement. Doing all these things will legally allow you to do business and collect money under your business name. Taking only personal checks can seem tacky, and it's illegal to conduct business within your town without a business license. Get caught and you could receive a nasty fine.
Get a website ready to showcase any upcoming artists you sign. You'll want to sell their music from it, promote their gigs, and license music from the site.
Now, figure out what you'll offer as a label. Will you offer distribution, publishing and licensing? Are you going to book and promote shows for your artists? If you said yes to all of these - GOOD! You'll probably take off locally in no time. But, you need to know how to do these things. That's where I come in and save the day by explaining simple solutions on how to be your bands' distributor, publisher, license manager, and booker:
1. Distribution: Unless you have enough bands with enough CD's made, you probably can't do too much on your own. Consider joining CDBaby or Tunecore to get your music on Amazon, iTunes, and opt in for physical distribution as well. You won't get your band's music in Walmart any time soon - but having the option to have local record stores order your music is always a plus. If you or one of your artists gets big in any given town, you can probably sell their music there. Once your music catalog is big enough (20 Albums at LEAST) you can start doing your own distribution. One thing you can try is apply to become an iTunes contributor. If you have a Mac and have enough albums in your label's catalog, you have a good shot in working directly with iTunes - no more extra fees being taken out by CDBaby or Tunecore!
2. Publishing and Licensing: Get yourself familiar with the music biz and music law. Join a PRO like ASCAP, BMI, or SESAC as well as SoundExchange. As publisher, you'll collect royalties for music to keep, and will be responsible for distributing royalties to your artists. Being a publisher is a great thing, because your artists will sign an exclusive agreement with you allowing you to license their music out in different ways. A way to generate money as a publisher is to license music to production companies and music supervisors. Be professional and make your music easy to license, and your artist could have a song in a hit movie or TV show. If that happens, you AND your artists get royalties as well as major publicity.
3. Booking and promoting: Booking gigs is a time consuming process that requires the utmost patience. When you first start out, chances are your bands won't make a dime off their gigs, and you may even need to pay to play sometimes. Make your shows pay by selling CDs to fans. Since you're the label exec, you'll probably have plenty of time to stand next to the merch booth and sell everything. If you made yourself a good contractual agreement with your bands (which I'll go over later) you can take a SMALL percentage for yourself and give the rest to your bands. This will help cover the cost of travel, food, etc. Don't expect it to cover everything, though, always have an emergency budget for each gig.
Promoting can be just as time consuming, but it's a bit easier when you think about it. Use Facebook, Myspace, and other social networks to let fans know about the shows. Create and print flyers and posters and put them in as many shop as possible, and into the hands of local pedestrians. Contact local radio stations, let them know of the gig and request an interview. You may get a big "No" if all your bands are nobodies, but it NEVER hurts to ask. You need ALL the promotion you can get!
When you book shows or promote your gig, always be professional. Be polite over the phone, through e-mail, and if you book your gig, be polite at the venue. Make sure your bands are polite, too. If your bands are rude, or if they trash the place, you're never going to do business with that venue again.
One thing I didn't mention - as far as the services you'll offer as a label - is paying for CD's and recording. If you're just starting out, or if you don't have a ton of cash to spend, you're going to be FORCED to leave this to your bands. Overtime, however, if you become more successful, pay for CD Duplication/replication. Many bands may record their music at home, but won't have the funds to get their discs printed - so, if you've got the cash, take on the printing!
NOW, once you've decided all the services you're going to offer, you need to create a contract for all your bands to sign. This way they are LEGALLY obligated to whatever terms is written on that piece of paper. When you create your contract, here are some things you should take into account:
1. What rights will your artists sign over exclusively, and what rights will your artists sign non-exclusively?
A label will most likely sign publishing, licensing, and distribution rights exclusively - this means YOU are the only one allowed to license, publish, and distribute their music, unless under certain terms otherwise noted in your contract. For instance, you may exclusively own the rights to distribution, but you'll want to make an exception for when a band performs somewhere on their own and want to sell their music at the venue. If you don't make that exception, they can't sell their merch! Unfair! Many major labels have exclusive live performance/booking rights as well - meaning the artist can't even book their own shows. So instead, sign a NON-exclusive agreement allowing you AND the artist to book their shows. The shows YOU book, you can go to and take percentages off merch and any other revenue generated at the gig, while the artist can book their own gigs as well.
2. How are YOU going to get paid, and how will your artists get paid?
NEVER EVER EVER charge your artists to be signed. If you conduct business properly, you can agree to take 10-45 percent from different sources of income. For instance, take agree to take 15 percent from all distribution sales and live venue sales, take 10-15 percent from ticket sales/live show revenue, and take about half the overall generate royalties you get for radio play and air time (typically, there is a publisher's share and a writer's share and a license fee. You split the license fee with your artist and keep the publisher's share, give the other half of the license fee and the writer's share of the royalties to your artists.) Be sure whatever revenue is generated by your artists is divided between you and the artist in a reasonable way. Look at it his way - if an artist generates money from their music being sold or from playing a gig, they deserve the majority because they put in the hard work to make the record and perform at the gig. If a song generates money from licensing it to a production company for a tv show, it never would have happened without you - so take a slightly larger portion. However, NEVER EVER EVER EVER collect MORE than the artist. You're riding solo, you're not a major label with several different publishers, publicists, etc. Keep it fair.
3. How long will the contract last?
Your agreement MUST come to an end at some point. You can't own your artists FOREVER. If you're just starting out, make it 6months to a year MAXIMUM. This means that they're stuck with you exclusively for that period of time. So, if you're just starting out and you have an incredibly limited budget, make the agreement's lifespan short. If it's too long and you end up sucking as a label, it's your own reputation on the line.
4. How will you promote yourself?
Use this agreement to grant yourself promotional spots on CD cases and at gigs. Post a small label on the back of a CD case, or put up a banner at a gig. Let people know this band belongs to you and you're services are helping them. This will attract other bands to you, and will attract the fans to come to your show - regardless of who's playing. This means NEW fans for ALL your bands and artists!
Now that you've got your terms ready - and hopefully you've made them reasonable enough and have written them out clearly and thoroughly - it's time to sign some bands and artists! Go to local gigs or browse the web for unsigned artists near you. Work locally first, then branch out. There's no way you can benefit a band in New York if your brand new label is based in Montana, it just won't work. Get local bands and artists involved with your label, explain to them the benefits of being signed with YOU.
Starting and running a label successfully is a FULL TIME JOB. Don't think you can sit on your butt and collect money while your bands do all the dirty work. You've got some heavy responsibilities on your shoulders, so don't take it lightly! Get to work. If you work hard, be fair, and be professional about EVERYTHING, it'll all pay off.
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