Many people email me and ask me how to start a record label. Well, needless to say, it is very difficult. In fact, we should also ask a question of whether a new music label is something that artists need. Maybe the correct thing to ask is what should a new music label be like, and how should it be different from the existing big-4 music labels.
Your biggest job as a record label is to make sure that the musicians you work with are able to get exposure. That makes a record label almost a marketing agency. What that means for you is that you have to be able to quickly establish large social media followings for the artists you represent.
There are plenty of young musicians who are able to establish a large following on social media. One such musician I met recently is Sarantos. He has nearly a million Twitter followers and hundreds of thousands of views on his YouTube channel.
That means that if as a record label you approach a young musician like that, you will have to offer him much more than just the basic social media marketing. You will have to be able to get them in front of millions of people.
Additionally, as a record label you will have to provide financial support as well. If you are a new record label and you do not have much funding or a large online marketing presence, you might want to consider specializing in being able to promote musicians in your local area by getting them gigs at various venues, and then promoting those shows to make sure that a sellout crowd attends the show.
Article by Alex Genadinik