How to Start Your Own Record Label

I have owned my own record label for over a year, now, and it was very easy to get started. All it takes is a little money, a little determination, and a little research. If you're an independent musician who is tired of searching for a record deal, or if you're business minded individual who is looking to make money in the music industry, this is the perfect guide for you to read.

Now, before you run off and decide to start your own label, ask yourself why you want to start a record company. As I said, it is very easy to start a record label, but it is still a lot of work after you've got it up and running and you have bands working for you. If you just think it would be cool to say you own a record label, you are wasting your time. If you're actually interested in owning a company that is involved in producing, marketing, and selling records, then you should continue reading this.

The first few things you will need to think about before we get into the legal stuff, is what kind of label you will want to start. Are you only interested in operating a small independent label that only focuses on one type of music? Do you only want to start a label to distribute your own music? Do you want to compete with the big labels by signing lots of artists from many different genres? How much money do you have to invest in a label? It's a lot to think about, so I would suggest spending a few weeks contemplating these things before you jump right in.

After you've worked out what kind of label you're looking to start, pick up a couple of books on music business and entertainment law. Familiarize yourself with basic principles, like copyright laws and how percentages work. Make sure you understand common terminology, like "mechanical royalties" and "master rights." After you've brushed up on your lingo and some basic facts, we'll move on to the legal stuff...