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Why Starting Your Own Small Indie Record Label Can Be More Profitable Than Signing With One of Their Big Brothers?
Article Description:
====================
Many years ago people believed that the only way you could make
money in the music business was to sign up with a big record
label. The major label treated many of their artists like slaves
and barely gave them enough of the money to survive. They really
didn't have a lot of choice if they wanted to get their music
recorded.
Additional Article Information:
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650 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-06-06 10:00:00
Written By: Ty Cohen
Copyright: 2006
Contact Email: mailto:Ty@PlatinumMillennium.com
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Why Starting Your Own Small Indie Record Label Can Be More Profitable Than Signing With One of Their Big Brothers?
Copyright � 2006 Ty Cohen
The Ultimate Record Label
http://www.theultimaterecordlabel.com/landing_page.htm
Many years ago people believed that the only way you could make
money in the music business was to sign up with a big record
label. The major label treated many of their artists like slaves
and barely gave them enough of the money to survive. They really
didn't have a lot of choice if they wanted to get their music
recorded.
The second alternative back then was to find someone with a lot
of money that was willing to back them. Many artists found out
the hard way that sometimes it would have been cheaper to have
sold their soul to the record company.
The reason this happened was because the equipment needed to
record music with professional sounding quality was outrageously
expensive. Also, it took a large organization to promote and
distribute the record and take care of all of the legal and tax
issues involved. However, some of the large record companies
charged up to 90% of the profits to perform all of those
services.
Legendary entertainers like the Beatles had to work for several
years before they started seeing any real money. To make matters
even worse, the record companies usually demanded a certain
amount of creative control. Sometimes that made the recording
better but sometimes it ruined the artist's originality.
Thank God... Times Have Changed
A decent home recording studio can be had for under $10,000 and
it will produce the quality that would have cost a half a million
dollars 20 years ago. This trend has allowed the artist to decide
what parts of the recording business they want to handle
themselves and what parts they want to hire out to others.
The result is that many artists are electing to start their own
independent record label. These indie labels can frequently be
more profitable than a larger label. One of the reasons for this
is the overhead the large record labels have. Most have huge
business complexes, very expensive sound studios, high priced
sound and equipment engineers, artists, writers, marketers, etc.,
etc.
For example, Fred Eaglesmith owner of Sweetwater Records
constantly tours the country to promote his records and his wife
handles all of the internet orders. Ricky Scaggs started his own
record label and found out he could sell as little as 25% on his
own of what he had to sell with the big record label to make the
same amount of money. He later started another label and signed
the Del McCoury band. Now all the band members are flush in a
fraction of the time it would have taken with a big label.
Smaller business are by their very nature more efficient that
larger companies. This is primarily because small businesses have
significantly less overhead.
Another new development is re-releasing older records when the
big labels decide it isn't profitable enough for them to do it
so they let the copyright revert to the artist. For example,
Emmylou Harris' manager owns the Eminent record label. He
re-released two of her earlier "Never before released on CD"
recordings last year. Except for the cost of burning the discs
and the marketing, this is total profit for them.
The Future
If the big labels don't get their act together, they could
easily cease to exist. There are also several small media
companies that have found their niche marketing these independent
labels and they are doing an excellent job.
The artists themselves now have websites where you can listen to
samples of their music and then order the CD online if you like
it. You are buying either from the artist or the small indie
label that produces the CD. Either way, the system works and is
raking in money.
This revolution happened quietly and the result is a greater
variety of good music than ever before. The trend will continue
and, personally, I think everyone except the big record labels
has benefited.
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Ty Cohen is the acclaimed author of over a dozen
best-selling music industry "How to" books and courses.
Grab a copy of Ty Cohen's latest book title by visiting
http://www.MusicBooksByTy.com and to learn more about
starting or turning your existing record label into
a world wide, profit pulling record label visit:
http://www.TheUltimateRecordLabel.com/landing_page.htm
Start A Record Label Today!
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