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how to start a record label??
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misSLeD
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0
Posted : May 12, 2008 02:19:56
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i have been wondering for long on how does one start a record label, if anybody here could tell me the process and costs involved it would be of great help |
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Amaris Records
Amaris Records
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4
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121
Posted : May 12, 2008 07:55
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Well firstly you will need to get a name for the label and secondly get the name registered through the resgistrar of companies, you will need an accountant to do this for you and it doesn't cost too much to do this in your own country, of course if you want to register it worldwide its a bit more expensive and takes more time.
After which you will need to budget how much you want to spend on the artsists & songs, usually around 2500 - 3000 euros, remember its always in euros and not in dollars, depending of course on the artists and the kind of style you want to release.
Next would be the cover design which usually is about 300 - 400 euro and mastering another 400-500 and finally promotions depending on how much you want to spend on it, lets say around 600 euros , and finally the CD printing costs which is usually decided by the distributors and is deducted from your final CD sales. So all in all keep around 4000 - 5000 euro per release. The secret here is to keep fighting, you may not get back as much return as expected with the first few releases but as I said before the trick is to keep on going at it.
I hope this helps you in some way and all the best for the label.
Keep the faith 
Bom
 **********************************
VA LUNIK > 2007
VA PSYENTOLOGY - Coming Soon!!
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Amaris Records--
www.myspace.com/amarisrecords |
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Anak
Anakoluth
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108
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Posted : May 12, 2008 10:26
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Elad
Tsabeat/Sattel Battle
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158
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5306
Posted : May 12, 2008 12:42
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psycho-italiano
IsraTrance Junior Member
Started Topics :
17
Posts :
191
Posted : May 12, 2008 19:17
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On 2008-05-12 12:42, Elad wrote:
make music not labels
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this man asked how to make a label.
maybe he doesn't know how to make music but feels that he should be inside somehow so label is the thing for him. if he lose money then its his own choice.
So please make me a favor and others too, STOP Preaching and “theory teaching”.
And for you misSLeD:
First of all, you need to have a "good" budget.
And "good" is an dependant thing. Coz its related to the music style you would release in your label and some other things.
lets say around 1000e -> 5000e.
Notice, that dark tracks are the most cheap and some suomi/finland too, but for sure there some exceptional dark artists that ask for a lot of money (mostly the known of them).
Full on is the most expensive, and the more you select known artists, the more there tracks prices raises too.(some tracks costs up to 900euro).
Price list:
Dark tracks:
Starts of free tracks --->>> till 600euro. But mainly 300euro. (but an advise for you, never take free tracks from new artists, coz first of all they worked and they deserve money, even if you think the tracks sux, second, later they may post about you bad things and rumors, that you didn't pay them).
*** so very important that you work with contracts always!!!!! Never agree to work without contracts coz some artists may screw you in the future!!!!!!!
Suomi/finland
Same as dark.
Full on tracks:
Starts of 300e ->>> 900e (there are some exceptional high prices as very low prices). you look for hits and quality, avoid foolish tracks.
Progg tracks:
Same as full on.
So now we make the easy steps for you:
1.  choose the trance style you like.
2. contact the artists that do this style, here in isratrance by msg (notice that: not all of them agree to work with new unknown labels)
3. after you have talked to all artists, don't buy yet anything neither sign any contract! Go to the promotional releases section here in isratrance, and look in each release for the distribution name that distribute the cd and send those distributions an email telling them about your new label/plans, the new release that you are going to have, the artists that you are going to feature in your release and ask them about the price of minimum cd's for printing. (do the minimum quantity for beginning and never take risk by printing over 1000 cd's. and even better to print only 500cd's if the distribution allow that).
4. once the distribution gives you the prices and the "ok" for signing a contract with him, then go back to step 2 above, and close the deal with the artists then sign with the distribution (80% is done).
the artits should sign the contract first, then you send them the money, then they send you the wav file 24Bit (i mean the track as wav format). If you don't have an contract for the artists then ask any lawyer to prepare one for you, or use any label's ready contract if you can get such a one ((contact labels here)) then you should edit the contract -> replace the country name in the contract by your country name (this is for law issues). And you can edit the other sections that you think are not ok for you, but consult always with lawyer or experienced people in order to avoid problems in the future.
*** very very very important, there are some "snake" artists that will Re-edit the contract and send you it back signed! so always check that they didn't remove any word or change, in it. if they did then don't agree and cancel the deal till they re-sign the original one without any change!
they MUST sign by hand. (and always keep the emails you did with them as referrence too, coz they may claim someday that someone else signed (and amny do this to fu$# you in the future if you be bad with them somehow  - coz bad also is dependant thing in life (depends on the situation -> whom pays - whom gets.
5. once all tracks with you, send them to mastering engineer, to make for them mastering process, then he will send you back all wavs. And you send them to your distribution for printing process.
6. in the same time you buy the tracks finally then ask any professional designer to make a cover for the cd, and this you will send too to your distributer. ! very important! Invest a lot on the cover! Don't put cheap one, coz many people buy cd's many times due to nice cover . Be creative by choosing something match the concept and the music.
7. start making a lot of promotion about your new cd, and each future cds later, in magazines, sites, radio, tv, porno movies ;o) , any media, and don't be miser here! Coz promotion is the name of the game in any field in life...life is acting.
8. if you choose to release 10 tracks, at least put 3 ¡V 5 very known names in the scene (if they agree to work with you, but when there is money, everyone respect you ;o) )
9. be aware that this business is like casino on the start: you may not really get back all the money you invest, but in the second hand, you make step by step name for your label. And better that you be a DJ, and put your name on the compilation as the compiler, coz later on you may be a lucky and get some gigs that will bring you the real money back => this is mostly the purpose of some labels today¡K.
10. good luck
peace
the alien farm
Break The Matrix! |
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mk47
Inactive User
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118
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4444
Posted : May 12, 2008 19:43
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6 - 10k euro or so eh ? .. why not take a nice vacation instead : ) , or buy some stuff .. a really nice stereo maybe ? u will enjoy MYCEL and PSYCZ stuff more on a good system 
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Vess
Started Topics :
6
Posts :
367
Posted : May 12, 2008 20:00
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On 2008-05-12 19:43, mk47 wrote:
6 - 10k euro or so eh ? .. why not take a nice vacation instead : ) , or buy some stuff .. a really nice stereo maybe ? u will enjoy MYCEL and PSYCZ stuff more on a good system
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wise words!!
but if you have rich parents all is just fine and even
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http://vessart.deviantart.com/
www.triplag.com
www.myspace.com/vess_ |
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psycho-italiano
IsraTrance Junior Member
Started Topics :
17
Posts :
191
Posted : May 13, 2008 12:14
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a message i got to inbox by misSLeD below:
((guys please send msgs here so we all can share usefull info)) thx alot
the msg:
Quote:
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On 2008-05-13 10:40:00, misSLeD wrote:
hey
thanks for the info, could u tell me wht would be the distribution channels for psy cds??
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hey,
you're welcome buddy...
but i will post your msg with the answer in the post in order to others also share this info with us
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usually for each cd sold you get 50% of the money, and DL gets 50%, somtimes 50% - 60%
but ,mainly that's the range.
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Remmeber: the distributer is always the winner: he never lose money!
coz you pay, the mastering!
you pay the cover!
you pay the tracks!
you pay the cd's!
authoriztion for tracks!
prinitng cd's...
promotion...
etc....
and when it comes to getting money:
50% - 50% with your distributer is not actually pure 50% - 50% balance money sharing.
in retrospect: you get maybe 30%
coz for example:
if you sell today 1000 cd's (that is dream today for new labels, and some old also), 1000 * 10$ (each cd for example), then the total ammount is: 10,000$, then you get from your DL only 5000$
but you already have invest almost this money for artists and cd's!
(free tracks => leads for bad sales => then instead of covering expenses......
you may find your self own your distributer money!!!
so be aware of that. (you may own him money if he paid somthing for you instead of you)).
work with your own money only! so you avoid legal problem later.
good luck buddy
Break The Matrix! |
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CRX(HSS Records)
IsraTrance Full Member
Started Topics :
97
Posts :
2707
Posted : May 15, 2008 19:52
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Good things start with a vision
A statement
then u build uppon your vision
but believe me from experience dude
about music-what u pay is what you get!
u have to have at least 2000 euro before even thinking about starting.
And because when u invest $$,the whole thing turn to something more serious act like a proffecional
that means do a little marketing research before make your move
make a free to download va to show to the ppl your potentials in terms of music,production and artwork
show the ppl that you respect the scene and that you like this music-that you are not a fake
make an underground cd and make your network(that would cost you but its the step) and then look forthe deal that fits you
maybe within this deal u can save some money such as production or mastering costs but the flyers the banners the promotion costs some and if u pay with euro wow ....
the most impoortant thing is to respect the artists and always do what you promise to them(their fee on time,cds posted as told,etc)because they are the label,the label manager is the coordinator not the main man!
Have an excellent psychedelic journey my friend and stay true
Helicon Sounds Music
www.hssr.gr |
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Shaqattack
IsraTrance Full Member
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1381
Posted : May 16, 2008 04:36
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just out of curiosity......
do new labels manage to atleast break even? i can prolly understand older and more established labels bringin in money either through perfromances etc....but if i just start a label and onl buy tracks to sell cds....is it really worth the effort....sorry if i sound pesimistic...i wish someone would correct me....
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traveller
IsraTrance Senior Member
Started Topics :
234
Posts :
3803
Posted : May 31, 2008 16:51
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Quote:
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On 2008-05-16 04:36, Shaqattack wrote:
just out of curiosity......
do new labels manage to atleast break even? i can prolly understand older and more established labels bringin in money either through perfromances etc....but if i just start a label and onl buy tracks to sell cds....is it really worth the effort....sorry if i sound pesimistic...i wish someone would correct me....
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I've heard that the first few years are usually difficult and the net profit margins are about 4-5% of your sales. Now from what I've heard (this of course varies between labels) it usually takes a 3-4 years for sales figures to climb over that magical 1 million € mark, but after that it's supposed to be a walk in the park.
Most label managers make their first million within 7 years of business.
By the time you're celebrating your label's 10 year anniversary you'll have hookers, coke, a private jet and a mansion in Beverly Hills.
"The dinosaurs became extinct because they didn't have a space program."
- Larry Niven |
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Psytracked
Inactive User
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5
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424
Posted : May 31, 2008 17:01
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Is this an old thread????
Music industry model has been changed.......record labels are not needed anymore........distributors .....not needed anymore..........
"lets do the time warp game." -=sings=- well tries and remembers why he writes electronic music
http://www.whatacunt.co.uk/ |
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djparanormal
IsraTrance Junior Member
Started Topics :
16
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489
Posted : Jun 5, 2008 17:23
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Quote:
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On 2008-05-31 17:01, Psytracked wrote:
Is this an old thread????
Music industry model has been changed.......record labels are not needed anymore........distributors .....not needed anymore..........
"lets do the time warp game." -=sings=- well tries and remembers why he writes electronic music
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wht exactly u talking abt my friend??? kindly enlighten us...
.............................................
INFINITE((((<{ -_-}>))))EXPANSIONS
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Psytracked
Inactive User
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424
Posted : Jun 6, 2008 10:58
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Nectarios
Martian Arts
Started Topics :
187
Posts :
5292
Posted : Jun 6, 2008 14:55
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Quote:
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On 2008-05-31 17:01, Psytracked wrote:
Is this an old thread????
Music industry model has been changed.......record labels are not needed anymore........distributors .....not needed anymore..........
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What he said, although the mass market is not exactly on that level yet, but it will be soon enough.
Who is going to be the Trent Reznor of the psy-scene? Will shall soon find out.
http://soundcloud.com/martianarts |
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