Do I Need A Record Label - Part I: Financing Your Record

Do I Need A Record Label - Part I: Financing Your Recording

The fact of the matter, these days, probably not, and in fact right now labels are shrinking. Gone are the days of the typical record deal. Most labels won’t even consider a new artist unless they have a proven track record of consistent performances, and record sales on their own. CD sales are dropping, and its replacement, the digital download, has not replaced the amount of revenue that CD’s brought the labels. Record companies cannot afford to operate in the current model: risk a lot of money on an artist, and if it doesn’t go, another artist’s profit will cover for the lack of sales. In the traditional model during the 1980’s and 1990’s, 5% of artists made money for the label, 95% lost money. Today, with CD sales continuing to drop, the record labels simply can’t survive.

The good news is you CAN do it on your own. But how?

The new model hinges on live concert shows, and it starts small. Book yourself at small venues, such as coffee shops, small bars, writer’s nights, churches to sing the church offertory, etc. Even if it is only to do a couple songs, just get in the door.

When your performance is successful, before you leave the venue speak with the person that does the booking and do your best to try to get on their calendar for a full concert. Over time, work your way into getting some type of honorarium for coming. This could be tips, love offering, a percentage from price of the door, a flat fee, etc. Your goal is to get to the point where you are getting $500.00 of revenue per show. You have to believe that what you are doing is worth being paid, and your performance has to prove it. Now take that $500.00/night and put it aside to do an album. It might only take 20-30 shows before you can do a full album with company like Advantage Music Production.

Of course there are other ways to get the money to do an album. You might be able to find a financial backer, or take out a loan. But be careful doing this. A safe formula to determine the amount of album sales you can expect from a show is: 10% of the audience purchases the album at the concert. A loan or a financial backer is certainly a viable option, but to do this so you don’t put yourself, or the backer into a tough financial position, make sure you take an honest look at how many people are attending your concerts over a year or two.

Next...Part II – Marketing without the help of a record label.

www.advantagemusicproduction.com

-Jared Ribble is VP-Operations for Reel Loud Records, Co-Owner of Advantage Music Production, and has professionally drummed for Grammy and Dove Award winning artists. Jared endorses Attack Drum Heads, Axis Percussion, Istanbul-Agop Cymbals, Ludwig Drums, and Pro-Mark Drum Sticks. Jared and his wife reside in Nashville, TN.