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Choose Your Business Structure and Label Name. Find Your Music. Indie Label Contracts: Framework and Artist Deals. Figuring Out Distribution. Figuring Out Promotion. Prepare Your First Release. First Release Redux: Ride the Learning Curve. Additional Tips.
Starting a small scale but standard record label company that can only carry out basic recording services/studio works in the United States of America will cost about twenty thousand dollars to fifty thousand dollars ($20,000 to $50,000).
STEP 1: Plan your Business. STEP 2: Form a legal entity. STEP 3: Register for taxes. STEP 4: Open a business bank account & credit card. STEP 5: Set up business accounting. STEP 6: Obtain necessary permits and licenses. STEP 7: Get Business Insurance. STEP 8: Define your brand.
Large labels pay about $0.50 to $0.55 per CD on orders of 100,000 or more. Labels that buy less than 10,000 CDs per year pay approximately $1.20 per CD. Record labels pay two royalties: one to artists, and another to composers & publishers. Artists can receive 10% 15% of suggested album retail minus packaging costs.
There are websites that offer you the ability to create your own record label without any startup costs or investments. These sites operate by taking a percentage off of any money that you earn from going through them to sell your artists' music.
A standard record contract usually has the label paying for recording, mastering, publishing and promotions for an album. The band gets 9% of record profits. For really small bands, it's up to them to pay for touring but they get 100% of the profits.
Where Do You Want to Work? Record labels are comprised of many different departments, most of which do not directly involve music. Internships and Temporary Work. An internship is a great way to get your foot in the door with a record label. College Courses. Other Industry Experience.
Record companies make money by marketing and investing heavily in their products in this case, the product is the artist & their music. For smaller labels, recording costs average $15K per album. For large labels, the average cost can be from $100K to $500K and up.
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