Newsletter for Independent Musicians

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September 25, 2006

Need Music Contracts from Record Labels?

Do You Need Record Labels?

Do you need music contracts from record labels? The answer is yes and no. It is really up to you. It depends on what you are trying to accomplish. The answer is "yes" if you are looking for high visibility, widespread distribution, and a small (sometimes very small) percentage of sales. The answer is "no" if you can develop your own niche marketing, handle your own distribution, and want a major portion of the profits.

If you think the answer is "yes," it takes quite a bit of work. You need to deal with a record labels A&R person (short for artist and repertoire) and get them on your side to get music contracts. In order to make yourself signable to a music contract, you have to appear to be already signed. Your recordings have to be great, they have to be absolutely first rate. You're not going to do this with a bunch of songs recorded on a Radio Shack tape recorder with a lyric sheet printed in longhand. Your CDs and lyric sheets have to look totally professional, and your press and bio materials have to be on the same level the record labels department heads are used to seeing. You need to create your own press, get your own reviews, and have a loyal following. In fact, once an A&R person was asked by a group how to meet A&R people and the answer was: "Create a buzz, generate press, and acquire a following and we'll find you."

It's good to have help on the PR side of things. A professional print shop to help you put together photos and graphics helps too. If you have substandard material, you're going to have a tough time convincing anyone you're worth signing. A&R from record labels don't want to do a lot of your work for you. The less work they have to do, the easier it is to get them to sign you. And even if your stuff is first rate, be prepared to hear a lot of "no"s from record labels and deal with rejection as well as a small return for your efforts if your record doesn't hit the charts.

Now, if you don't think you need (or want to use) record labels, there are other ways to go. With the advent of the Internet, record labels are going through a dramatic change. CDs are starting to be replaced by mini-discs in some parts of the world, and an even more compact technology using credit card-sized receptacles that hold compressed MP3 files downloaded from the Internet. This really levels the playing field. Independent record labels have the same presence as the major record labels on the Net. Only problem is, people have to know about your songs, either through search engines or word-of-mouth. They need something to inspire them to want to hear and buy your songs. It is estimated that over 60 percent of record purchases are unplanned. That's why record stores have listening posts, point-of-purchase advertising, and spend megabucks on promotion.

Today you can buy CDs online, in record stores, in department stores, in gift shops, in airports, in restaurants, through mail-order, and just about anywhere there's customer traffic. This is where niche marketing has its place. If your group has a smaller, but devoted audience, you could do very well without major music contracts from records labels. You could start your own. If you've got a following, a mailing list, and some marketing smarts, you could do very well. You could specialize in Irish songs, Polkas, Jewish party music, or military marches and sell a lot of CDs. I have a friend who has a great Polka group and record stores won't give him a place for his CDs on their racks. He came up with his own record label and markets directly to his 200,000 name mailing list. (These are the people who came to hear him play over the past 15 years, or just people he came in contact with). He came out with a "best of" CD and did a two-piece mailing to his list and sold 35,000 CDs. He got the lion's share of the profits instead of a small percentage. Granted, he didn't get on Billboard's top 50 chart with a bullet, but he made a ton of money.

If you create original music and can define, target, and market to a specific audience, you may want to consider independent record labels. For an artist to accrue the same income on a major label would require millions of records to be sold. But you don't get the fame and visibility with your own record label and marketing efforts. That's why you have to decide for yourself which route you're going to go.

The best part of belonging to the AFM is that they have music contracts available to use, and a pension plan in place to make sure you are paid for your efforts and get what you deserve. Many musicians have found that the shooting star to record success turned out to be a Roman candle and came down in flames. So go carefully. Decide if music contracts from record labels are what you need and what you actually want to accomplish before searching one out.

Bob Popyk is a member of Local 78 in Syracuse, New York, and Local 47 in Los Angeles, California. He is also a nationally known columnist and speaker on sales and marketing strategies