The advantages of doing so are many, but so are the caveats. If you create your own label, you will, effectively, have two careers to manage: your own and that of your new business – the label. And that’s not counting the day job.

If you do create your own label, however, you will find that certain things may become easier on the business front. Not only will potential release partners – and other artists – look upon you more seriously, but because you’ll dedicate your resources to seriously develop the business side of your artistic career, you’ll wind up with that much more knowledge and experience which will come in very handy as your artistic career takes off.

So on the assumption that you’re considering starting a label (or another type of music company) of your own, here’s a handful of beginners’ tips to get you started.

Before you even start, think of a good name. Make it something that attracts attention, provokes comments, is memorable. But also make sure it’s a name you’ll be proud to be associated with – and not just today, but also some time in the future. A name other artists would also like to be associated with. Once you hit on the right idea, search the web for similar names. Are there any other music labels already using it? If not, go to the next step.

Now that you have a good company name, file a Fictitious Business Name statement with you local registrar, in the state where your label will be based. They will search their database and make absolutely certain that no one else owns the rights to this name. In case they discover someone else, it’s a good idea to come prepared with a few alternative/backup names!

Next, you need to decide how you’ll incorporate your label for tax purposes. It might be sole proprietorship, a partnership or a corporation. Each has advantages and disadvantages, but sole proprietorship might be a good idea to get started. Finally, get a business license from the city or county business license office. You can even request one by mail. There will be a small fee to pay, but it shouldn’t break the bank and once you have a license – you can operate legally.

To finish off the first step on your music company formation, you’ll need to create a logo. Additionally, you’ll also want a logo for your artist(s) – yourself, if that’s the case – and take every precaution to ensure that it’s done professionally.

Not all logos are created equal and you don’t always get value for money – even from experienced designers. You should NOT attempt to design one yourself, unless you’re a professional designer with years of experience. You should not source a standard clipart logo either. You may save a few hundred dollars, but you’ll also get your company to a mediocre start.

Your logo will, with time, became a vital part of your corporate and artistic identities, so you really don’t want to penny-pinch or, for that matter, rush this process. So, as a rule, do yourself a favor and don’t go for bargain-basement graphic designers. You may spend$50, $100 up to maybe $300 and get something that’s full of compromises and that you’ll probably get tired of in a few weeks or months. A world-class designer, on the other hand, may be twice or even three times more expensive but, in our experience, unquestionably worth it.

There are a few things in your business – and artistic – life you really won’t want to cut corners on, and your logo is one of them. All your associations from this point on – starting with your logo – must be with the best people you can find. There is NO better advice in the music business, and possibly in business in general.

The quality of the company you keep will determine the outcome of your endeavours.

With all this in mind, go for consummate pros who will give you something of true and lasting value. We can recommend one such company with whom we’ve worked in the past and whose work is simply as good as it gets. They’re called Studio 54.

If you decide not to use them (but speak to them FIRST in any case), then DO use them as a benchmark when looking for other designers. Studio 54 offers full consultation and a thorough study of your requirements and delivers the kind of classy artwork that you’ll always be proud of. A great logo is one excellent way to give your artistic career an auspicious start.

And now sit down and write a business plan…!

As an independent musician, how do you start your music business?

If you want to look at music performance from a business perspective, it is simply a way to advertise and market yourself to the right target market. This means that before you go out to perform, have everything in place first. Have an area, either locally or on the internet where people can contact you and find your music. This also means you will need to invest in putting together an album and have it available in both hard copy (CD) and digital version (MP3) for those interested in downloading it. The general business rule is that an independent musician should not start playing live until they have a promo package and CD in place to make profit off of.

Even though this seems like a large investment and a lot of time, it is becoming simpler and cheaper with the growth of technology. You can easily put together a home recording studio with a microphone, mixer and music  software. You can also make sure that your gigs are lined up for you to make incomes. Over time, and as your specific musical expertise grows, you will be much more likely to make a profit off both the gigs and the CD/mp3 sales.

Independent musician? But you can still afford the basics!

What are the investments that you have to make? Thanks again to technology, not a lot. Of course, you will need an instrument to play or software to substitute for the instruments that you don’t have. A mixing board will usually cost around $250 and the software, with the basics can come to around $150. Of course, if you want more recording equipment for better quality sound, it will cost more. After this, the only investments you will need will be based around advertising and marketing. However, for those on a shoestring budget, there are plenty of places to advertise for free.

Of course, your options don’t have to stop at performances and CDs. As most people know, it is best to keep all options open. For example, you can become a musician for hire for other bands and can also become a studio musician for other engineers in your area. There’s no shortage of options for the independent musician! As most already know, teaching other musicians (private lessons) can help to significantly increase your incomes  as well. You can also offer things such as classes to non-musicians who are interested. Writing lyrics and songs for others can also bring in profit. The main concept to keep in mind is that the more skills you have as a musician, the more you can market yourself in your locality and to different groups of people.

There’s hope for the independent musician!

From here, you can expect to make a comfortable profit, depending on how you continue to advertise your skills. For example, music teachers that only teach privately with a full studio can be expected to make an average of $5,000 every month.

Even as an independent musician, it helps to think like a businessman! This means keeping doors open to possibilities in your local area, as well as through various types of portals. Making sure that you have tools in your musician’s bag and are prepared for any type of gig that may come your way. This will give you the ability to play music all the time and make money off of it. And all of a sudden being an independent musician may not be so bad after all!

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Your first (or tenth) licensing deal probably won’t be the next Hollywood blockbuster, but that’s ok. There are a zillion independent films that need and want your music. No, you won’t be immediately rich and famous from having a song in an indie film, but you will probably get paid, and you’ll get some good exposure. Remember, a good lasting music career is not built on one big hit. It’s built on a series of small projects and successes building to bigger ones, and, of course, multiple streams of income.

With that in mind, independent films are a great place to start. So where do you begin? Well, listing sites like Versus Media, Film Music Network, and Taxi are a good place to start, but it’s hard to rely on a steady income from people you’ve never met. Also, something I’ve learned from music supervisors, is that follow-up on your package is not required, nor particularly appreciated. So you really are relying on your package and your music being picked out of the pile. However, the listing services will give you access to projects you may not have known about otherwise. They are, therefore, a good investment.

An even better way to hook into independent films is to go out and meet film people. As musicians we tend to get stuck in our own little world. Hanging out with musicians, going to music workshops and events, etc. You must take your product to the people who need it instead of waiting for them to come to you.

A great place to start is Indie Club. This is a worldwide organization of independent filmmakers, actors, crew, and everyone else. Find your local chapter through the IndieClub.com website. It’s free to join. Join their discussion list and introduce yourself as a music artist. Go to their meetings and get-togethers. When I went to my first Indie Club meeting, I was one of two music artists in the room. The cries of “We need you!” were not just the voices in my head (this time). That room full of independent filmmakers was looking for good music that they could license and still stay within their budget.

I scored my first licensing deal within an hour. Two songs in the same film, one I’d already written, the other to be written specifically for the movie. My tactic was simple. Ask them about their latest project. They’ll be happy to tell you about it, I assure you. They’ll ask what you do. Tell them, but don’t exaggerate. I explained that I had not yet written for films, but just came to see where I fit in. This particular filmmaker then explained to me that he couldn’t find a particular song for this one scene he was working on. I told him I’d be happy to custom write it for him. And there it was. I was being paid up front to write a song. How much? I received $100 for the new song, $50 for the previously written and recorded one. Like I said, you won’t get rich off of these. But hey, $50 to let him use a song that I’d paid for long ago is free money to me.

For the new song, the director arranged for recording time at the local recording arts school where his sound editor was studying. This was fortuitous, and not necessarily normal. Most other projects I have to record myself. Because I kept the copyright for the song (which you should always try to do), I was able to release the new song on one of my future CDs, which put more money in my pocket. There’s that multiple streams of income again. And, as a topper, I was able to perform at the premiere and sell more CDs there as well. I got all that just for showing up to a meeting and talking to people. I made a few other deals at that meeting too.

So the moral of the story is to just go where filmmakers are and talk to them. Besides Indie Club, I’m sure there are other film clubs and organizations in your area. Find them and make yourself a part of them. Get to know everyone, and you have your tunes in the movies in no time!

Over the next few paragraphs, we will look at and define some of the most common jargon used in music recording contracts.

The first term – “the deal” – is obviously the agreement you are making with the label. It will essentially define what royalties you will be paid from the profits of your music. Some recording contracts may include a monetary advance. This allows the artists to get the ball rolling. They can get new equipment, new wardrobe, voice lessons, a car, a home, whatever they desire to get them going. Keep in mind, this money has to be paid back with future earnings, it is a loan not a gift (this is known as “recoupment” in musical parlance).

Cross-recoupment or “cross-collateralization” is the recovery of advances, costs or losses from other projects – watch out here! You may be paying for your first album’s losses from your second and third’s incomes…!

“Exclusivity” is a word you will run across quite a few times in music business contracts. This includes all of the things that are exclusively owned by the record company. They may want to own your present work, past work and future work. They most likely will own your logo, website, all merchandise, images and names.  All of those things will be exclusive to their company! Be prepared to negotiate hard.

The “territory” of your music contracts is important and needs to be defined. Laws and rules are different in every country and you need to make sure you music and rights are protected world-wide, ideally. Different countries have different laws about copyrights and things to that effect. Just be sure the music business contract defines this.

How long is your contract for? This is referred to as the “term” of the contract. Is it two years, seven years, two albums, eight albums? It is crucial to define the longevity of recording contracts as soon as possible.

A recording contract can contain a great deal of jargon. You may have to read over it several times or ask for the help of someone who know what they are doing. A lawyer, ideally! Make sure you understand copyrights, publishing deals, recording agreements, promotion terms, and all the other ins and outs of your music contracts before you sign.

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Our last article included some starter concepts to include in your contracts. Here are a few more to consider before getting anyone’s John Hancock.

1. Will you have the right to sell the artist’s merchandise on their premises? For the artist, this is usually their decision and at smaller venues, this should be a no-brainer. But, if you happen to be scheduling a performance at a larger venue, there may need to be some prior agreements made. Some larger sites have specific rules for selling on their premises. For instance, they may want a percentage or they may have their own people sell these items.
2. OK, on to some more basics. In your music contracts you may have to include terms for meals, transportation and/or accommodations. This will often vary from performance to performance but it is something that must be defined. Will it be a corporate gig, a college show, a public venue or a private venue? Is the gig located out of town? Things such as guest lists, number of guest passes and even dressing rooms have to be defined. Keep your artists informed and comfortable by defining this in their music contracts.
3. Who will produce the show and provide sound? You don’t want to sound test and/or quality to be ruined by improper planning. Will the performer provide the sound and production aspect, will you or will the venue?
4. Good music business contracts cover the areas of permits, taxes and licenses that are involved in the performance and the venue. Remember, different places require a variety of these above mentioned items. Be informed and know what is required where.
5. Will you include a clause known as Acts of God? What are the terms if there is uncontrollable weather or if the artist gets sick? Sometimes one doesn’t consider these common things but protect you and the party involved be defining these items in music contracts.
6. Royalties and licensing are huge in recording contracts. Make sure all your I’s are dotted and your T’s are crossed in this area. Suing is huge in the music industry so make sure all of the parties have the proper licensing and permission for all music performed and recorded.
7. Lastly, do you have any strict requirements for the artist or band? Remember, all gigs and venues are different. These requirements can vary from dress, to announcements to language or to eating. Either way, you need to clearly define what is expected from each artist in each venue.

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Although it is suitable (and believe it or not legal) to use a handshake or verbal agreement, it is extremely difficult to enforce in court. Trust is a huge factor in this type of agreement so unless you have a stellar reputation or you have true confidence in the people you are working, music contracts should not be agreed upon this way.

Money is usually one of the chief factors involved in recording contracts and music business contracts in general.

If you are an indie label boss or an artist manager and are looking for a brief overview of what is involved in your standard recording contracts or music business contracts then here are some important concepts to consider.

1. Sometimes all you need is a date, agreed upon time and a simple signature from you and the other party involved.
2. Next, you may want to define what is involved with their overall performance. Basically, what is expected of the artist? Is there a minimum length of time they need to perform? How many breaks will be allowed? What is the environment of the performance?
3. It is crucial that the you and the artist have in writing agreed upon location of performance, the correct date and the time the band or artist needs to show up in music contracts.
4. Money, money, money! Isn’t that what it all boils down to in the music industry? Will you have a set amount you will pay? What about a percentage of how many people pay at the door? Who will receive the payment? When will they receive the payment? How will they receive the payment? Will it be cash, check or paid in something such as free drinks or studio time?
5. When it comes to recording contracts, the artist must grant explicit permission. Involved in this may be recording, reproduction, transmission and photography of the artist. Is it ok for you to record the performance? Can you print promotional materials with their names included? These things are crucial to consider.

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The one thing that nobody seems to have enough of these days is time. This is especially true when you are building a career. For aspiring musicians, singers and songwriters, learning how to establish, promote and sustain a career is a full time job in and of itself and would leave little time for working on music.  That’s why The Indie Bible is considered one of the most thorough and valuable resources for anyone in the music business but especially newcomers.

Written by David Wimple, The Indie Bible is currently in its 11th printing, which reflects the rapidly changing nature of the music business. What makes The Indie Bible so valuable is the depth of the research to give musicians and songwriters the most up-to-date information possible. It would literally take someone months of intensive research to gather all of the contacts and resources detailed in the book. Even music industry veterans have endorsed The Indie Bible as an invaluable tool.

The resources listed include 3600 radio station and radio show contacts; the names of 4200 publications and periodicals that review music; the names of 500 CD vendors and music promoters; 500 web site where you can post your music for downloading and promotion; 500 miscellaneous resources – all together more than 10,000 contacts are contained within The Indie Bible.

The Indie Bible is written to address a wide range of situations, from seeking representation to selling your songs online, across all genres, from Hip Hoop to country. The book is organized into seven sections to make it as user-friendly as possible.

Sections one and two offer tips on how to get your CD reviewed in print publications.

Section three discusses who to contact about doing radio promotion. Radio stations are a particularly accessible area because they have a lot of air time to fill. It’s especially smart to approach home town radio stations; they are usually very open to promoting local talent.

Section four focuses on marketing oriented services.

Section five covers the growing importance of Internet based distribution and cuts through the clutter to list the top sites proven to be most valuable to performers.

Section six is a compilation of miscellaneous resources.

Section seven reprints over 50 articles on various aspects of the business to give a complete and informative overview of the business.

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Being a music professional is an on-going learning experience. Aspiring musicians need to learn the basics on how the industry works, from how to find an agent and get a record deal to understanding how royalties are calculated and the best way to use the Internet and Social networking groups to promote music.

Once the record deal is secured and the CD recorded an entirely new learning curve is needed – how to promote your CD? The Self-Promoting Musician-Strategies For Independent Music Success (2nd Edition) (Berklee Guide) by Peter Spellman is a detailed marketing guide written specifically for songwriters and singers. The book is an easy to read to-the-point guide that is a unique tool is perfect an important tool provides readers with the tools to start marketing a CD immediately.

Written conversationally, Spellman explains the strategies for marketing a CD in an easy to understand style with step by step instructions including how to get sponsored; avoiding marketing mistakes; staying within a budget; creating a marketing and promotional plan. Spellman also stresses the importance of having fun with your promotions because enthusiasm is contagious.

The guide details the ways in which singers and songwriters can generate income through licensing and other opportunities. Spellman includes sample templates to track the campaign’s progress such as a spreadsheet to plot out a marketing budget.

This is more than a how-to manual. It gives personal insights from four professional singer-songwriters who recount what their experiences have been and what it takes to be a full-time indie musician that successfully manages your career and life.

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Stay tuned for part 3, coming real soon!

Being a professional means being informed. That is as true for musicians and singers as it is for lawyers and doctors. Reading industry trade publications is one way to keep abreast of trends and news. But to study the music business in depth there is not better resource than books. In the first of a three part series, here are reviews of three books about the music business that are must-reads. Each author explores the music business from their unique perspectives, offering readers an honest view of the industry they strive to be part of.

Donald S. Passman’s All You Need to Know About the Music Business: Seventh Edition is a detailed, frequently humorous look at the business of making music. The book is considered a bible for anyone wanting to know the ins and outs of the music business. Passman is a Los Angeles-based music attorney with twenty-five years experience and his clients include everyone from record label executives, singers and songwriters to film companies and publishers. He is widely recognized as one of the most influential people in the entertainment industry.

His book offers many useful tips such as how to hire agents and managers, strategies for marketing one’s music and the steps needed to legally protect intellectual property. Passman also guides readers through complex contractual issues such as recoupment, royalties, advances, and distribution deals. Being an attorney, Passman stresses the need to protect oneself against copyright infringement, bad record deals, and unscrupulous business managers and agents.

The most recent edition has up to the minute information on how the Internet is impacting the music business and the performers’ bottom lines. The information is just as important for industry veterans as it is newcomers. Passman explains how video streaming services work and how royalties are computed for digital distribution services. He also covers podcasting, music downloads, streaming and webcasting.

More than just nuts and bolts of how the business works, Passman gives readers an insider’s guide that shows how to navigate potential pitfalls and how to establish successful relationship with other music industry professionals.

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Don’t miss part 2, coming real soon!

The simple guide below will help you rapidly create a music business plan that you can revisit and revise as you develop in the music industry

1. Summary – this is an overview description of your music business and what you are trying to achieve. You might include details of the marketing methods you are going to use and the gap your are going to fill.

2. Goals – any business plan should have a clear set of goals that are achievable yet challenging. These will change over time as you reach further and further but will always keep you on track.

3. Targets – now that you have a clear set of goals for your music business plan you need to set deadlines and targets to make sure that you are always moving forward.

“A goal without a plan is just a wish” Super cheesy I know

4. Market – before you ever start promoting your music, you need to know what fans you are going after and why they are going to be interested. Even if you are totally original you need to find a set of fans that have a high probability of liking what you do

4. Marketing plan – a set of steps to reach your perfect fan.

5. Release dates – your music business plan should include a number of music releases even if they are just digital. This will give your marketing a focus.

6. Contacts – list of key people who will help you achieve your goals.

7. Process maps -  these are basically the habits you need to create everyday if you are going to achieve your goals. For instance if you want to get a music agent you might have to research and contact five people every day.

Final thoughts.

Now that you have created a workable music marketing plan you are ahead of 99% of other musicians trying to make it, and you should have a much better chance of success.

Good luck!

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