A Guide To Get Signed To A Record Label
- K.Pharaoh
- Dec 8, 2024
- 13 min read
Record labels are likely the primary focus for millions of aspiring artists each year, often with the misconception that signing a deal will propel them to stardom.
The reality is that signing with a record label, whether large or small, can significantly impact your career, for better or worse. This is particularly true if you are unaware of their functions, which types of labels align with your career goals, or how to effectively collaborate with them.
The desire of emerging artists to sign with major record labels is likely influenced by instances like October 2018, when Universal Music Publishing Group, a leading label, occupied the entire top 6 album positions on the Billboard 200.
This is no small accomplishment. In fact, very few record labels, if any, have managed to dominate such a prestigious playlist. Independent record labels have also shown impressive results recently.
Consider the example of Ben Haggerty, better known as Macklemore, who launched his debut single via his independent label, leading to a net worth of up to $18 million by 2017.
These stories offer hope to emerging artists, motivating them to work harder on their music and remain optimistic. However, do they truly understand how record labels operate? What about the advantages of being signed by a record label?
This guide looks at these and more about how to get signed up by a record label.
Why record labels?
There are so many reasons why an upcoming artist may want to get signed up by a record label. Here are some of the main reasons why record labels still exist.
Record labels possess financial resources that you, as an artist, may not have. Producing music is costly, not to mention the expense of filming a video. If you're just beginning your music career, insufficient funds for producing and distributing your music might be one of the reasons you're still struggling to make a breakthrough.
As a budding artist, record labels possess connections that you can only imagine. These include links to radio and TV stations, music blogs, playlist curators, streaming services, bands, producers, and more. Such connections are essential for upcoming artists aiming for superstar status.
Certainly, record labels can enhance the quality of your music due to their extensive infrastructure and expertise. Creating quality music beats is now more accessible than it was before, thanks to tools like Digital Audio Workstations (DAWs). Nevertheless, your music must provide the appropriate content to your audience, and record labels excel at aligning content with consumer demands better than an individual can.
Record labels can provide you with the credibility that would be difficult to achieve independently. While anyone with a laptop and internet can release music publicly, being signed to a major record label can enhance your credibility, as you will be associated with the label's established reputation.
Record labels can assist in refining or enhancing your public relations. It's well-known that some top artists, such as Kanye West, have experienced significant rants that could have jeopardized their careers, yet they managed to endure. The key lies in the efforts of the record labels supporting these artists, who work to protect them. Record labels have PR teams that have mastered the craft and can rescue an artist from scandals that might otherwise have ended their careers.
Are Record Labels for everyone?
Well, yes and no.
No if:
You are still building your career or just started
Have a small to non-existent fanbase
You don’t make money from your music (or very little if any)
Why no? Because most of the deals you'll get are crappy deals that won't take you anywhere that you wouldn't reach or surpass on your own.
And yes if:
You possess genuine potential and are ready for the world. Although subjective, this combination, along with everything record labels provide, can be a formidable force for signed artists.
Record labels vary in form. They can be indie or major labels. Major record labels are essentially large companies managed by a corporate umbrella, which could be a music group or similar entity, and they have their own publishing and distribution companies.
These companies are well-funded and have sufficient budgets for marketing, production, and more for their musicians. They also have the connections artists need to advance their music and careers.
Major record labels include Sony Music Entertainment, Universal Music Group, and Warner Music Group.
Indie record labels, also known as individual or boutique labels, are smaller companies that operate independently from major labels and do not receive their funding. They have their own networks and smaller companies to publish and distribute music for their artists.
As an emerging artist, it's crucial to understand how record labels function so you can choose between going indie or major.
How Do Record Labels Work?
Despite the ongoing debate on whether having a record label in 2019 is necessary, the reality is that record labels remain relevant. They don't sign artists merely because they are new or famous.
If it doesn't make business sense for them, they won't offer you a contract. They need to see genuine potential in you, evidenced by the traction your music has gained, the size of your social media following, and the promise your brand holds.
So, what do they provide in return? How does the arrangement function?
It's straightforward. You first initiate a conversation, reach an agreement, and sign the contract. Once that's completed, everyone starts working. The record label will utilize their resources to produce, distribute, and collect revenues for your music, sharing the percentage as agreed in the contract.
Most times, record labels will offer their artists:
A&R support and funding - Regardless of your success as an independent artist, you can't match the financial resources of record labels. They can provide access to top producers, sound engineers, studios, and directors for your music and video production, which are typically beyond the reach of independent artists.
Marketing and promotion - Record labels not only produce your music in optimal settings but also offer extensive international exposure. They have access to top publicists, influential media connections, and exclusive advertising and PR opportunities. They can even secure spots for your music on leading playlists.
Specialist support - Record labels possess the necessary expertise to guide you through the intricate administration and legal aspects of partnerships and rights-based music. Their teams assist with tasks such as tracking, collecting, and distributing royalties.
Distribution - While music distribution is no longer exclusive to record labels, they can still assist significantly with managing the complex and large-scale distribution for both physical retailers and digital platforms.
Many artists think they can handle most of these tasks thanks to the technological advancements of this century, but record labels can elevate every service mentioned. They have the resources and connections to enhance your career and introduce you to audiences you never thought possible to reach.
In the past, record labels could profit simply by getting an artist's music on TV or radio, which were not easily accessible to artists. Today, that is no longer the main focus.
Types of Record Label Deals
Label deals are legally binding contracts between the record label and the artist. These agreements permit the record label to cover the costs of producing, distributing, and marketing the artist's music. Additionally, they allow the record label to collect revenue, sharing only a specified percentage with the artist as outlined in the contract terms.
Record deals come in 3 different types. These are:
Licensing agreements. These are exclusive to the artist and ensure they receive payment whenever their music is played on any platform. This payment is referred to as royalties. When a record label licenses your music, they manage the logistics of your album from manufacturing to promotion and distribution. Since they have licensed your album, they will pay you a predetermined fee and serve as your album's label in all the regions where they have obtained the license.
Distribution deals. Often referred to as a manufacturing and distribution (M&D) deal, this agreement involves a music distributor and a record label. In these arrangements, the distributor covers the costs of producing an album, from the initial pressing stage to label printing. Once sales occur, the distributor recovers their expenses and receives a pre-agreed percentage of the profit. A challenge with this type of deal is that digital music distribution is increasingly replacing physical album distribution.
The 360 Deal. This is considered the latest trend and is seen as the future of music recording agreements, offering a holistic approach for artists and record labels. This type of deal encompasses all aspects of the artist's management, development, touring, and brand growth. The artist gives up a significant portion of the revenue not only from music sales but from all sales channels. Many artists choose this deal because it ensures the record label fully supports them, utilizing all their resources, including contacts and finances, to advance their career.
These type of deal is anticipated to set the trend for the future, featuring a pseudo-managerial relationship that encompasses the artist's entire career, unlike others that focus solely on music sales.
Nevertheless, like any agreement an artist enters with a record label, not everyone views it as ideal. Some believe it is financially exploitative, yet it undeniably remains a prevalent trend that will shape the future of record label agreements.
Naturally, record labels will continue to promote themselves to ensure maximum exposure for your album. In a way, they are justified, considering the resources and connections they have developed over the years.
The major recording labels that are still predominantly ruling the music scene are explained below.
A Brief History of The Famous Record Labels
The major record labels that most artists target are:
Sony Music as it's commonly known is an American music recording company headquartered in New York that was founded with its original name as ‘American Record Corporation in 1929. The company has changed names twice, the first time in 1938 calling itself as Columbia Recording Corporation and as Sony Music Entertainment in 1991.
In 1995, Sony Music formed a joint venture with one of the greatest musicians- Michael Jackson, who owned ATV Music and named it Sony/ATV Music Publishing.
Some of the current artists under Sony Music from across the glove include Adele, Avicii, Avril Lavigne, DJ Khaled, etc.
Often abbreviated as UMPG, Universal Music Publishing Group is undoubtedly the second-largest music publishing company and has some of the top superstars of this century. UMPG has also produced some of the record-breaking hits like "Gangnam Style" by Psy, "That Don't Impress Me Much" by Shania Twain, "Born to Be Wild" by Mars Bonfire, and "The Way You Look Tonight" by Kern/Fields.
UMPG boasts of some of the most exceptional artists like Ariana Grande, Justin Bieber, Halsey, J Balvin, Post Malone, Nicki Minaj, Justin Timberlake, Florence + The Machine, Imagine Dragons, Adele, Elton John, Billy Joel, Coldplay, etc.
UMPG was started in 1972 and specialized in Classical, Christian/Gospel, and Production Music.
Another top music group headquartered in New York. Warner Music Group is a conglomerate for entertainment and has given birth to several other flagship labels like Warner Bros Records, Rhino, Sire and Atlantic Records.
A lot has happened to this recording group including the latest scandaL involving YouTube and price-fixing for CDs, but it still boasts some of the greatest artists of our time including Ed Sheeran, Coldplay, Jason Derulo, Madonna, Linkin Park, David Guetta, Wiz Khalifa, and Rita Ora.
The Warner Music Group was founded in 1958 by the Warner Bros- Harry Warner, Albert Warner, Sam Warner and Jack L. Warner, and has about 11 divisions.
Of course, these three are the leading music recording labels, but they have also given birth to reputable contenders like:
Island Records
BMG Rights Management
ABC-Paramount Records
Virgin Records
Red Hill Records
Atlantic Records
Def Jam Recordings
With all these labels marketing themselves all around you, how do you make sure you get signed to the right record label and how will you know you’ve signed the right deal?
Being an up-and-coming artist is tricky not only because of the dynamics involved in jumping out the newbie box but also because of the analysis you have to do when faced with the decision to choose a record label.
How To Choose A Good Record Label And Get A Good Deal
If you are one of the lucky chaps around who is ready for a record label, it's high time you sat down and had a critical look at the process of choosing the right record label for you. Five of the essential considerations to weigh are explained below.
1. Think of the Genres the record label covers
You just don't want to get signed because you are a music artist. You have a style and genre of music you've perfected your career on and would want a record label working in that genre (if not specializing in it). If they release music that resonates with your line, then consider them.
Also, insist on record labels that specialize in working with artists in your genre. The success of your music and career has a lot to do with a record label having experience in handling music in your field.
2. Does the record label believe in you?
Belief is crucial not only for the record label but also for yourself. A record label should demonstrate belief in you from the very beginning, and they should at least create some excitement about signing you.
Make sure to discuss year-long plans with them before signing any contracts. This is also your chance to ask questions about your concerns regarding the record label, their strategies, and approach. Find out which agencies they use for outsourced services like PR.
You should also ask about the annual figures they achieve and their future projections based on various feedback data.
3. Start with a local record label
Signing with a local record label is a wise choice. Music is deeply connected to its place of origin, so it makes sense to partner with experts who understand your community. Motown, for example, signed local talent and required others to come to Detroit to collaborate.
4. What’s the size of the record label?
Larger record labels possess greater connections and resources to fully implement the contract and ensure mutual success. These major labels have strategic plans for the future based on their available resources, which can significantly enhance your career.
5. Reputation is everything!
Just like they wouldn't consider you if you had a terrible reputation, subject them to reputation tests. Have they done something to an artist or Dj that you admire? If so, then it's time you started linking up with them.
What do the other signed musicians feel and testify about the record label? Because you are just starting and may have been just hearing from afar about a specific record label, this is your perfect opportunity to verify everything they have claimed or others claimed about them.
If you successfully manage to identify and settle on a record label, it's time for the next crucial stage. The signing of the deal. It's actually the most critical stage of your career. Is the deal lifelong or running for several years? Avoid the first time that wants to cover more than a year with variable terms.
How To Sign A Contract With A label
If you have come this far and ready to sign the papers, hold your horses, and have a look at the papers to verify the following:
1. Initial contracts lasting longer than one year.
Most first time contracts run for one year after which the options start trickling in, and the right to extend contracts lies with the record label.
To save yourself from uncomfortable situations, do not allow the first contract to run for more than a year with options in it. Otherwise, you are likely to be tying your life to the record label for far too long, yet it's possible they may mess up your life.
2. Insist on having a release commitment
Otherwise, you'll not have any guarantees that the record label with commit to producing, packaging and distributing your album to the right people for sale.
3. Negotiate a reasonable royalty
Royalties are your take-homes from sales. They are awarded based on many considerations, and you must make sure you accept only reasonable royalties based on how you've analyzed your books of accounts.
4. Make sure there are no hidden royalty deductions.
Record labels can sometimes be quite sly and may insert concealed royalty deductions in the contract, assuming you won't catch them. Conduct thorough research with your team to ensure there are no surprising, substantial deductions from your royalties.
5. Ensure you have the ability to audit the record label for your royalties (every aspect of it)
There are numerous complaints about record labels being dishonest with royalty payments. It's crucial to ensure you have the freedom to employ a third-party audit firm to check the records and confirm that the artist is receiving the correct compensation.
After addressing this, it's equally important to recognize the potential pitfalls that could ensnare you as an artist prepared to sign the contract.
Mistakes to avoid while signing up with a record label
Mistakes are bound to happen, but let it not happen due to avoidable circumstances. Below are some of the mistakes you must stay clear of.
Don't fail to do your research correctly.
This is a major mistake. There's absolutely no reason to sign with a record label you know nothing about, especially when you had the opportunity to research it.
Identify the key individuals who will influence your success within the label. Seek out artists with whom you share a similar story and see how they fared after signing with the label.
Never submit your music in the wrong format.
Before attempting to get signed by a record label, determine the required formats for the resources they need. Different individuals will require various formats and will specify them on the portals where music is submitted.
Failing to put your best foot forward
Outstanding tracks might not suffice, as record labels seek artists whose music can grow and achieve significant sales in the future. Even if your music is exceptional now, you must demonstrate potential for improvement. It's essential to convince them that you're a valuable business asset.
You can start by making sure that they first hear your best music tune.
Don’t be generic
Avoid being generic like everyone else. When you pitch your music to a record label, ensure your pitch addresses all the questions the label's experts might have about you or your band/brand.
Keep it concise, and avoid sounding spammy. If you're sending an email, tailor it to the recipient's preferences. Sending a generic email with 80 other recording labels CC'd is a mistake you should avoid at this stage.
If you're writing a cover letter to go with your pitch, keep it brief and appealing. Include impressive quotes about your work, especially from artists signed by the record label.
In your pitch emails: If you're crafting a cover letter to accompany your Electronic Press Kit pitch, make it concise and engaging. EPKs are digital versions of physical press kits that include: A PDF or digital document, A download link, An online video, and An interactive website. An Electronic Press Kit is a digital portfolio that music artists use to promote their work. It's a crucial tool that music artists use to get booked for shows, receive press coverage, or sign with an agent. 94.2 Blazin Marketing and Promotional Support team provide unsigned, independent, and emerging music artists affordable Promo Services
that include creating EPKs.
Conclusion
Securing a deal with a record label can be a pivotal moment in your music career, and it's essential to do everything possible to seize that opportunity.
Utilize the tips provided and be aware of common mistakes to avoid missing your golden chance. Furthermore, enhance your skills so that record labels seek you out even before you approach them.
Refine your music and style, and build a following that will propel your music onto popular playlists. Wishing you the best of luck.
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