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Record Label Must-knows: 3 Important Considerations For Independent Artist

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Record Label Must-knows: 3 Important Considerations For Independent Artist

Being a musician requires loads of passion, hard work, and dedication to honing this craft. The world of music offers multiple paths of success for an artist to follow and leave their footprints in the sands of time.

One of the decisions an artist has to make is which career path I should follow to be successful. Everyone keeps saying it’s easier if I get signed to a record label, yet my guts say I should stick it out with being an independent artist.

If you’re looking for information that will help make this decision, then you’re in the right place.  The guide will clarify these concepts and give you detailed information that will help you decide on which career path is best.

Independent Artists vs. Signed Artists

At some point in every musician’s career, they are faced with a critical decision: Should they remain independent or sign with a record label?

Well,  being an independent or signed artist has its merits and demerits. There are lots of big artists locally who started as an independent artist and made their own brands e.g. Olamide, Flavour, and Burna Boy to mention a few.

Independent Artists:

Independent artist is a term used to refer to a musician or creator who produces, releases, and distributes their music without the affiliation and support of a major record label or any external financial sponsorship.

Merits

  • The first advantage of being an independent artist is having total control of their music. Independent artist has the freedom to make decisions about their music’s release date, promotion, distribution, and licensing. They also retain full ownership of their work, master recordings, and publishing rights.
  • All profits made from music sales, streaming platforms, and merchandise go directly to the artist, as opposed to record label deals. Although they are responsible for the production, marketing, and distribution costs. The interesting part is independent artists keep 100% of the revenue sources.
  • Without the record label breathing heavily on their neck, it’s easier for independent artists to quickly adapt to changes in the market or change their music genre, and style to stay relevant. They also have the luxury of collaborating with other artists without requiring a label’s approval.

Demerits

  • The major disadvantage of being independent is limited resources and support. Producing, mastering, distribution, and promotion are expensive without record label support. Oftentimes, independent artists don’t have the financial strength a record label can provide.
  • Another disadvantage is the networking obstacles, independent artist starting their career do not have connections with industry professionals, collaborators, and influencers. Whereas record labels are more connected with promoters, booking agents, and media support.
  • Learning the games of the music business is difficult, independent artists are more vulnerable to music piracy and copyright infringement. Furthermore, they do not have the professional guidance on career decisions and strategic planning as signed do.

Signed Artists:

This is an artist who has entered an agreement with a record label, granting the label the right to produce, market, and distribute their music in exchange for financial support, industry expertise, and access to the label’s resources.

Merits

  • Every record label gives their signed artist access to their resources, financial support, and distribution networks. This support propels the artist into stardom, allowing them to grow their career rapidly and reach wider audiences with their craft.
  • Getting signed to a record label guarantees mainstream recognition of commercial success. Signed artists have access to guidance from experienced label professionals including A&R,  marketing, and management.

Demerits

  • In exchange for the benefits enjoyed, record labels usually take a huge chunk of their artist revenue. This includes a 70% percentage of album sales and royalties. Some even take a 50%  cut from live concerts and merchandise sales.
  • Although record labels provide crucial guidance and advice, they often limit the creative expression of their artist music. Labels may compel artists to go into genres of music that will align with current trends since they are more concerned about profit-making. This ultimately limits the creative freedom signed artists have.

How Do Record Labels Pay Artists?

The financial relationship between an artist and record labels can be quite tricky when signing a record deal.

This has raised questions like “How do record labels pay artists”. The payment structure of a record label depends on the contract signed and the bargaining power of the artist. Here are some helpful explanations to guide you:

Advances: Most record labels offer an advance, which is an initial sum paid to the artist upon signing.

This advance is a loan that is recouped from the percentage commission taken from music sales. Until this advance is paid, the signed artist cannot receive additional revenue from the label.

Royalties: After recouping the advance, artists also get paid through royalties from their music sales and streams. The royalty rate is usually within the range of 10% to 25% of the revenue generated by the artist’s music.

Performance Rights: Signed artist also get paid when their music is played in public spaces, like radio or concerts.

Merchandising: In some record deals, artists may earn from merchandise sales linked to their brand or music

 How to Find the Right Record Label for Your Music

Picking the right record label for your music is a big decision that can impact your music career negatively or positively. Here are a few tips to help you find the best match:

Do Your Homework: Start by looking into record labels that align with your music genre and style. It is better to focus on labels that have worked with young artists like you and have a solid reputation in the industry.

Get Connected: The importance of attending industry events, joining music communities, and networking with fellow artists can not be overemphasized. Build connections with people in the business that can open up opportunities to land a label deal.

Know the Deal: Before you sign anything, make sure you understand the contract inside and out. It’s smart to get an entertainment lawyer to look it over and ensure it’s a good deal for you.

Align Your Visions: Make sure the label’s goals match yours. A good label will back your artistic vision and help you grow as an artist, never forget that.

Wrap-Up

Choosing between staying independent or signing with a record label is a big decision for any artist. By understanding the pros and cons, how payments work, and what to look for in a label, you can easily make a choice that fits your career goals. Whether you’re going solo or signing up, staying true to your art and making smart business moves is what really matters.

 

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Do you have any advice for promoting music independently? Or any thoughts on these tips? Let us know in the comments below.

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