How to set up a record company?

[Eleventh Hour Sound]

Hi,
It's looking more and more like the way to go would be for me to start my own record company. Anyone have any suggestions on a site with instructions?

Thanks,
Vincent

[paradeatw]

Don't do it.

Jus kidding.

Advice I can give from personal experience, to do it right you will need a 1/4 million or more.

To do it low-budget Indie, maybe you can get it off the ground with 100k...

To do it casually, you can begin with less then 10k.


I would investigate new trends in the business vs old ones ie production of records va CDs and now the production of CDs vs MP3s

and things like

Can the label be funded from onlines sales alone or do I need retail to back me, if so - do I have a track record of sales to show a distributor that can get me into retail?

or, you can just fill out some paperwork, get an LLC, write all your expenses off associated with trying to become a rock star and release your material strictly online until you run into some cash to press up some CDs and just get them out how ever you can for sake f saying "i produced a product to sell."

the later is what I decided works best for me

good luck

[BLISS]

That's true, I started an LLC and do tracks for: Advertising companies (jingles), tracks for numerous artist, I build up my portfolio.

Also are my CD's, until you make that mucha loocha --- grinding and hard work is it.

Or if it falls in you bank account mysteriously-----then......

[mesasand]

Hi,
It's looking more and more like the way to go would be for me to start my own record company. Anyone have any suggestions on a site with instructions?

Thanks,
Vincent

I can speak on this, Vincent. I've actually done this - label, publishing company, studio, the whole thing. We learned from our mistakes, so if I were to do things differently today, here's what I'd do.

1) Get a label name. It can be anything, but it needs to be unique. You'll want to do some homework to be sure no one else is using the name - nothing like a Cease and Desist order to put a cramp in your plans!

a) You can pay a trademark search company to do a search for you (range: $75 - 500). Then, you can pay an attorney to file a Federally-registered trademark with the Patent and Trademark Office (cost: about $1,000). OR

b) You can knock around the net and look for anyone using the name in relation to making records (a similar name selling plumbing supplies doesn't count). Create a logo, and get ready to put it on your first CD. But you're not protected until you...

2) Get a UPC code series. If you're REALLY serious about your label (i.e., getting a label co-op deal or major distribution one day), getting your codes from Discmakers won't cut it. You need your own series from the Universal Code Council (www.uc-council.org) - I think it's called GS1 now. Cost: $750.00

3) Create a product and sell it. You only need to sell one, for now. Burn it yourself and sell it on Amazon to a friend in the next state. Once your logo is on a CD, and a copy of the CD is sold across state lines, you have a common-law proof of use of trademark. Cost: almost nothing. Will it hold up in court? Maybe. As we all know, lawsuits are not about the truth, but what you can PROVE. Keep impeccable records of your first interstate commerce sale with the new label, and you have a much better chance of it being upheld in court.

4) Start your own publishing company. This is so you can handle the licensing and publishing for your own songs and masters. And if your gets really popular, this can become your greatest source of income. Sign up with either ASCAP (free) or BMI (one-time $150 for sole proprietor; $250 for partnership or corporation). But along with this, you'll need to have a way to keep track of the songs in your publishing catalog, generate licenses and maintain and track royalties. So. . .

a) You'll need a solid database solution to keep track of publish dates, lyrics, royalties in and out, etc. These are usually custom-built, which can run you into the thousands. OR

b) If you already have some level of success, you may be able to negotiate an administration deal with another publisher. That means they take care of the paperwork, while you still retain ownership of the copyrights. They'll take about 15 percent, but if you don't have the means, it's well worth it.

5) Get a good lawyer - no, a GREAT lawyer. Get one with specific experience in music business matters - your uncle's neighbor who does wills and probate won't cut it. You don't need to have him on retainer (until you become very successful), just have him on hand to draw up and review contracts. Most attorneys who specialize in this field will already have boilerplate contracts to start from. They won't be cheap (about $200 an hour), but well worth it when you need them.

6) Get a manufacturer. Find a company that will work within your budget. If you've working with decent budgets for your CD projects (at least $5000, production and marketing), take advantage of the extra perks companies like Discmakers or Oasis offer, such as radio promotion, cheap posters, etc. If you're dealing with low- or no-budget projects (like many of ours), look into less expensive ways to make and distribute your CDs. In extreme cases, we've gone so far as to individually burn and label CDs, and hand-make CD booklets. You can also have CDs made in bulk, and assemble the product yourself as you need them.

7) Get a distributor. For most, a place like CD Baby works great. Lots of extra perks like digital distribution, and credit card swipers for on-site sales. And if you need brick-and-mortar distribution, CD Baby now has it available.

For ultra-cheap projects, I'm researching a company called SellMusicDirect.com. They are literally a one-stop shop - CD mastering and duplication, online CD and download sales and podsafe music distribution. They'll even manufacture your CDs one-by-one, eliminating the need for a minimum run of 500 or 1,000 units.

So you can see, there are a lot of ways to go depending on your financial resources and previous level of success. If you have any more questions, feel free to email me. I hope this gets you started in the right direction!

[David Polich]

I cannot think of a more creativity-draining endeavor than starting your own label. If you think booking your own band is a drag, try multiplying that headache by a factor of at least 10.

Here's a web-based service that I think fills the bill for any artist:

http://www.tunecore.com

Unless you are just really into running a label (and some people live for it) I'd say you're way better off finding other ways to get your music out there.

[AlteredMoods]

Don't start a record label unless you have:

- Cash

- Passion

- A vision

- Good Music

- Connections

- Luck

Knowing what I know now, if I had the chance to do it over, I would. But only because I had the passion to do it in the first place.

[FMiguelez]

.

Last year SOS published in their mag a good article about this. You might want to find it. It was around last half of last year.