How to Start Your Own Record Label in Just 7 Steps!
Do you dream of running a successful record label, releasing music to thousands of adoring fans? Want a step-by-step blueprint that allows you to get started quickly, without overthinking the process? And would you like to do it all in just 7 steps?
You’re in the right place! This article will show you exactly what needs to be done to launch your record label in just 7 steps, plus give you access to all the tools necessary to succeed. In about 15 minutes, you’ll have a clear roadmap and actionable plan.
What You’ll Learn:
- How to choose a record label name.
- How to get a logo designed for $20 in one hour or less.
- The most important step you need to take today to start your record label—costing less than $10.
- How to release and promote a record successfully.
Running a record label is like running any other business—it requires careful planning, operational strategies, and processes. Using principles from Michael E. Gerber’s classic book The E-Myth, this guide will break down the key elements you need to set your label up for long-term success.
If you're organized and have a clear system in place, you’ll be well on your way to releasing music, building your brand, and achieving the success you envision.
So, let’s get started!
Record Label Basics
A record label can be broken down into three core areas:
Music and Branding: This includes everything around the music itself, such as album artwork, music videos, and marketing.
Music Distribution: Ensuring the music gets on platforms like Spotify, Apple Music, and other streaming services so that fans can easily access and buy it.
Business Administration: Handling the paperwork, contracts, and artist royalties.
When starting a record label, you'll first focus on setting up the Business Administration and Distribution sides. Once that’s established, you can plug in the music and branding elements to complete your label's structure.
Now, let’s dive into the 7 steps to make your record label a reality.
Step One: How to Write a Business Plan
Benjamin Franklin said it best: “If you fail to plan, you are planning to fail.”
The first thing you need is a business plan. Why? It answers critical questions:
- What kind of music will you release?
- What will your record label’s name be?
- When will your first release be?
- Who will help you?
- How much will it cost to get started?
- Why are you starting this label?
A well-thought-out business plan will serve as a roadmap, guiding you on your first release, selecting artists, planning timelines, and managing finances. It will also give you confidence and focus to push forward.
7 Sections of a Record Label Business Plan:
Title Page and Summary: Summarize each section in a single sentence and use it to create a short overview of your business plan.
Strengths, Opportunities, and Core Values: Identify what’s important to you. Are you promoting underground music or working with more mainstream artists?
Business Strategy: Set tangible goals. How many releases do you plan to put out? How often will you sign new artists? When do you plan to break even?
Distribution Channels and Label Products: Who will distribute your music? Will you host events or sell merchandise?
Label Management and Operations: Who are the key team members, and what experience do they bring? Identify your partners, like merchandise companies or distributors.
Marketing: Outline your marketing goals, target audience, and promotional activities.
Financial Budgets and Forecasts: Include startup costs, cash flow forecasts, expenses, and any potential revenue streams.
Step Two: Organize Your Business File System
A well-organized file system is essential for running a successful record label. Create a structure on your computer or cloud storage with 12 folders to manage everything related to your label—contracts, artwork, artist details, releases, etc.
Consider hosting this system on Dropbox or Google Cloud to ensure everything is backed up and easily accessible for your team.
Step Three: The Number One Thing You Need to Do to Start Your Label Today (for Under $10)
Decide on your record label’s name. Everything begins with this. You’ll need it to register your business, secure a website domain, set up a bank account, and design a logo.
Steps for Choosing Your Name:
Brainstorm: Use a thesaurus or Google Translate to find interesting words that match your vision. Consider how the name sounds when spoken aloud, and make sure it's easy to pronounce and spell.
Check Availability: Use Discogs to ensure the name isn’t already in use by another label, and if it is, consider adding suffixes like “Records” or “Music.” Then, use Namechk to see if social media handles are available.
Secure Your Domain: Once you’ve chosen the name, register your domain through GoDaddy or 123-Reg. Stick to a .com domain whenever possible to give your brand an international feel.
Step Four: Build Your Website and Set Up Social Media Accounts
Your record label needs an online presence, and there are several ways to build your website:
Website in a Box: Services like Squarespace, Wix, and Weebly are easy to use, requiring no technical skills.
WordPress: A more flexible option with thousands of plugins and themes to customize your site. Hosting starts at around $25/year.
Store Websites: If you plan to sell physical music and merchandise, consider Shopify.
Social Media Handles:
Once you have your name, secure your handles on the major social media platforms—Facebook, Instagram, Twitter, YouTube, and SoundCloud. Even if you don’t plan to post on all platforms immediately, it’s better to secure them for future use.
Step Five: Get a Logo Designed for $20 in Under an Hour
Your logo is a vital part of your label’s branding. You have several options for designing one:
Hire a Designer: For a professional touch, work with a designer, though costs can range from $500-$1000.
Freelance Websites: Use platforms like Fiverr, Freelancer, or 99designs to hire a designer for a more affordable rate ($100-$200).
Online Logo Makers: For a quick, cost-effective option, use tools like Looka or Free Logo Design to create a simple logo for around $20.
Step Six: Register Your Label as a Business
Registering your label as a business has several advantages:
Protection: Your personal assets are shielded from any business-related liabilities.
Legitimacy: You’ll appear more professional when dealing with industry contacts.
Motivation: Once registered, you’ll be more committed to making your label a success.
Use services like LegalZoom (for the U.S.), Companies Made Simple (for the U.K.), or Stripe Atlas (for other countries) to help walk you through the process.
Step Seven: Choose Your Distribution Model
There are three main distribution models for record labels:
Aggregators: These distributors work with major labels or companies with large catalogs (e.g., The Orchard). This isn’t ideal for new labels but good to be aware of.
Self-Distribution: Services like DistroKid, CD Baby, and TuneCore allow you to distribute your music for a flat fee.
Serviced Distribution: These distributors work more closely with you, offering playlist consideration, promotional tools, and more. Examples include Believe Digital, AWAL, and Symphonic.
Use a tool like the Distro Picker to help you decide which distribution service is best for you.
You’re Ready to Launch!
By following these 7 steps, you’ll have all the tools you need to start your record label. From securing your name and logo to setting up your website and distribution channels, you’ll be ready to release your first track in no time.
Now it’s time to bring your label to life and start releasing music!
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