How to Start a Record Label: A Step-by-Step Guide

Miha Prebil

Dec 1, 2024

Learning how to start a record label is an exciting and challenging venture that can bring immense satisfaction, creativity, and even financial rewards if done correctly. Here, we’ll cover the foundational steps to help you successfully launch and grow a record label, focusing on core principles and processes to guide you through the journey.

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Picking a Record Label Name

One of the first tasks is choosing a name for your record label. However, don’t overthink this step. While the name is part of your identity, it’s not the most crucial aspect. Focus on finding a name that resonates with your aesthetic, sounds good, and looks visually appealing. Ensure that the social media handles are available and that a suitable URL can be secured. It’s a good idea to test how the name looks on sample logos, merchandise like t-shirts, or even as a tag on a vinyl cover to see its real-world appeal.

Remember, the objective is to create a memorable and sustainable brand. Don’t get too caught up in workshopping endless name ideas with friends and family. Choose something that feels meaningful or straightforward and move forward confidently.

Defining Your Label’s Goals

To ensure your label’s long-term success, establish clear goals from the start. Setting goals gives you a roadmap and helps you measure progress. Begin by outlining what you want to achieve with your label—this can be anything from revenue targets to the number of artists you aim to sign or the types of audiences you wish to reach.

In addition to measurable goals, consider your label’s values. Do you aim to make a cultural impact, contribute to your local community, or champion specific music genres? Writing down these goals, whether on paper or in a shared document, can keep you aligned with your vision and provide a point of reference to track your progress over time.

Defining Your Label’s Audience

Understanding your target audience is essential for building a successful record label. A well-defined audience helps you avoid wasting time and resources on untargeted marketing efforts. Consider factors like the audience’s preferred music formats, how they typically discover new music, and other cultural interests they might have.

By knowing your audience, you’ll be better positioned to make strategic decisions, whether that’s producing limited vinyl releases or running targeted ads. Properly identifying your audience can significantly reduce wasted resources and improve your marketing efforts' effectiveness.

Create a Record Label Brand

Your brand is the visual and emotional representation of your record label. It communicates who you are and what you stand for. Consistency in branding—across your logo, colors, fonts, and overall style—is key to establishing recognition with potential fans. Use your brand elements consistently across social media, merchandise, and online marketing materials.

Think about a tagline or motto that captures the essence of your label’s identity. This can serve as a hook for like-minded music fans, helping them feel an immediate connection with your label.

Signing New Artists

Artist recruitment, or A&R (Artist and Repertoire), is one of the most rewarding aspects of running a record label. Historically, A&R was about pairing artists with the right songs, but today, it focuses more on building relationships and nurturing artists’ careers. When starting, it may be helpful to test the waters with a friend or a band that understands this is your first attempt at managing a record label.

To streamline the artist discovery and onboarding process, Viberate offers powerful, user-friendly A&R tools. With Viberate, you can discover new talent, track artist performance, and make data-driven decisions to grow your roster effectively. Learn more about Viberate’s A&R tools at .

Manage Your Label’s Royalties

Keeping track of royalties can be daunting, but having a transparent, organized system is essential for building trust with your artists. The standard royalty split in the indie music scene is 50/50, though the exact structure will depend on your agreement. It’s not the frequency of payment that matters as much as ensuring that payments are reliable and transparent. Most labels opt for quarterly royalty payments, though monthly reports may be beneficial if an artist is exceptionally popular.

By establishing a consistent royalty management system, you’ll create a professional atmosphere that supports long-term artist relationships.

Picking a Digital Distributor

In the digital age, distributing your label’s music has become much simpler, with numerous digital aggregators allowing for easy uploads to platforms like Spotify, Apple Music, Tidal, and Bandcamp. These services often take a fee or a percentage of sales in exchange for handling the complex ingestion process, ensuring that your music is correctly tagged and available across all major digital streaming platforms.

When choosing a distributor, consider factors like pricing, reporting quality, and how well the service aligns with your goals. Selecting the right distributor can greatly simplify your label’s operations and expand your music’s reach.

Conclusion

Starting a record label requires dedication, clear goals, a well-defined brand, and a deep understanding of your target audience. With careful planning, the right tools, and an adaptable mindset, you can build a record label that not only succeeds commercially but also contributes meaningfully to the music industry. By leveraging tools like Viberate’s A&R services and selecting reliable distribution partners, your label will be well-equipped to navigate the complexities of the music world and thrive.