For generations, artists needed to sign to a label to pursue their music careers but in today’s world, making and releasing music independently has never been easier. Thanks to distributors like Distrokid, artists can release music across multiple platforms. Due to the rise in social media, artists can successfully handle their Music Marketing and Promotion without a budget! And yet, labels still exist and their success remains prominent. Is it worth signing to a label in today’s music world? And if so, when is the right time? In this article, we explore the three main artist paths: signing to a big label, signing to an independent label, and remaining an independent artist.
*Note from our CEO, Liv Byrne: What is a record deal? Well, when an artist signs to a label, the label is saying, I will give you X amount of money to fund your music career and in return, I will get X. What a label asks for in return varies based on the contract but most popularly, they will ask for a percentage (typically a large one) of your royalties and exclusive rights to your brand (meaning they are the only one who can approve releases, performances, and more).
Big Labels: The Heavyweights of the Music Industry
Big labels are the giants of the music world. These are the well-known, powerhouse companies with massive influence and resources. Think Universal, Sony, and Warner. Signing with a big label can catapult an artist into stardom, but it also comes with its own set of challenges. Some of the pros are that big labels have significant financial backing, enabling them to fund top-notch recording sessions, professional music videos, and extensive marketing campaigns.
Pros:
- Industry Connections: They have established relationships with influential industry players, from producers and songwriters to media outlets and tour promoters.
- Global Reach: With a big label, your music can reach a worldwide audience more effectively through established distribution channels.
- Advanced Marketing Strategies: They employ seasoned marketing professionals who know how to craft and execute campaigns that maximize your visibility and impact.
Cons:
- Creative Control: Big labels often have the final say in your music’s production, which can stifle your creative vision.
- Long Contracts: Contracts with big labels can be lengthy and restrictive, sometimes binding you for multiple albums over many years.
- Revenue Split: A significant portion of your earnings goes to the label, leaving you with a smaller piece of the pie.
- Pressure to Perform: There’s often immense pressure to produce hits, which can be stressful and potentially impact your artistic integrity.
*Note from our CEO, Liv Byrne: Another large and sad reality of big labels is they have a tendency to ‘buy out the competition.’ This means if they have an artist in a certain niche and then a competitor pops up on the scene, they’ll sign a deal with the competitor and then shelve them so their original artist can succeed. ‘Shelving’ an artist typically means not approving releases, shows, etc. No new music, sometimes no more sessions paid for by the label, and your brand is no longer a focus for their team. My suggestion is to research a label’s roster and see if any of their artists could be considered a competitor to you. When you’re in a meeting with the label – ask them which of their artists do they think you are most similar to. Think about their response. Is there someone you’d be competing with or are they mentioning similar artists they represent to showcase their skills and past work? It can be a tricky situation – don’t hesitate to reach out and shoot us an email if you want a second opinion.
Indie Labels: The Middle Ground
Indie labels are smaller, independent companies that offer a more personalized approach. They typically work with fewer artists and provide more creative freedom. While they might not have the same resources as big labels, they offer a supportive and flexible environment.
Pros:
- Creative Freedom: Indie labels typically allow more artistic freedom, letting you stay true to your vision.
- Personal Attention: You’re more likely to get personalized attention and support from an indie label, as they tend to work with fewer artists.
- Community Feel: Indie labels often foster a sense of community and collaboration among their artists.
- Fairer Deals: Revenue splits can be more favorable compared to big labels, and contracts are usually more flexible.
Cons:
- Limited Resources: Indie labels may not have the same level of funding for high-quality recordings or marketing campaigns.
- Smaller Reach: Their distribution channels are more limited, which can affect how widely your music is heard.
- Variable Success: Indie labels can be hit or miss; some are well- established and professional, while others might be less organized or experienced.
- Growth Limitations: There might be a ceiling to how much you can grow with an indie label, necessitating a future switch to a bigger label.
*Note from our CEO, Liv Byrne: Indie labels are great because the teams are usually small and care a lot about their artists. They also outsource to marketing companies like us to help give their artists an even greater advantage. Their only struggle is superstardom reach. I recommend indie labels to artists trying to take their career international but don’t have a desire to be on Billboard’s Top 100.
Going Independent: The DIY Route
Going independent means handling everything yourself. From recording and marketing to distribution and touring, you’re in charge. This route offers the most control but requires a lot of effort and resources.
Pros:
- Total Control: You have complete creative control over your music, image, your team, and career decisions.
- Full Earnings: You keep all the revenue from your music sales, streaming, and merchandise.
- Direct Fan Connection: Engaging directly with your fans can create a loyal and supportive fan base.
- Flexibility: You can adapt quickly to trends and changes in the music industry without waiting for label approval.
Cons:
- Financial Burden: You’re responsible for funding everything, from recording and marketing to touring and distribution.
- Time-Consuming: Managing all aspects of your career can be incredibly time-consuming, leaving less room for making music.
- Limited Network: Without a label’s connections, it can be harder to access high-profile opportunities and industry professionals.
- Management Pressure: You are responsible for building and managing a team that produces the results you want.
- Marketing Challenges: Promoting your music independently requires significant effort and know-how, and reaching a large audience can be difficult.
*Note from our CEO, Liv Byrne: In my opinion, everyone should start here. There’s something so beautiful about being a DIY artist and figuring out your voice and brand with no one else’s opinion in your ear. It’s freeing creatively. DIY artists typically utilize fractional marketing agencies like ours to help with release rollouts, social media management, or just for guidance on how to get off their feet. Ultimately, the biggest struggle of this path is the financial aspect. Making consistent, high-quality content, and building a team on your own can be expensive. You have to treat your music career as a startup. But with that being said, sometimes investing in yourself rather than having others invest in you can be the better way to go. If you take out a $200k loan to pursue your music career independently, that’s the same as labels giving you a $200k loan – the only differences are the personal risk factor, and the details of the contract/repayment method.
So, are labels worth it? It depends on your goals, resources, and what you value most in your music career. If you’re looking for massive exposure and can handle some loss of control, a big label might be your ticket. If you want a balance of support and creative freedom, an indie label could be the perfect fit. And if you’re a DIY enthusiast who cherishes full control and is ready to hustle, going independent could be the way to go. Whichever path you choose, remember that success in the music industry is a journey, not a destination. Keep making great music, stay true to your vision, and the rest will follow. If you ever need advice/guidance related to Music Branding or Marketing, email us at [email protected].