Who said it costs money to start a record label? Who says you have to spend money to make money? The truth is, actually starting your record label can be done immediately, you can also start making money immediately- for free. Visit Soundclick.com
, one of the Internets largest music communities where thousands of unheard of, unsigned artists record and upload their own music. Register a free account which includes many advanced features for uploading and selling your tunes.
Advertise in the forums, explain that you're starting a record label from scratch and you're looking for artists. Of course, be a bit more creative but always be honest. You'll probably get replies from young artists with home recording equipment. The quality might not be fantastic but you don't need to concern yourself with this at first- look for talent above all else!
When you have your artists, all you have to do now is get them to make music which you can upload to the labels profile page. It would be a good idea to organize some kind of free downloadable album which can be made available from your site and used to officially 'launch' your label. Once you have some material, your job now is to promote it while your artist's job is to keep it coming.
Promoting your label is essentially what will turn it into a profitable business but it's more to do with the methods used rather than the results from using them. Promoting your music won't make people buy it, especially if the artists are using below proffessional music equipment. Promoting your music will however, introduce your music to new fans who at the very least will appreciate the talent in your camp. Using as many free resources as possible to increase your exposure will be the foundation of your label at this point:
Post In Forums, Write Blogs, Make Youtube Videos, Write Press Releases & Articles. If you can execute these strategies in the correct manner, your record label will be exposed to hundreds if not thousands of new listeners every day, as long as you keep everything updated regularly.
You should first look to generate money for your label and not it. The same strategies used to promote the label should be used in areas away from the label at the same time. All of the free resources previously stated can be used to generate free money through mediums such as Affiliate Marketing If you have the ability to drive hundreds of visitors to your label every day, you also have the ability to promote other peoples products for commission. Affiliate Marketers make a lot of money through free resources such as Blog sites, Myspace and Youtube.
The idea is to use marketing skills to promote both your record label and affiliate products. You can then use earnings from the affiliates to upgrade your label- buy web domains, pay for proffessional recording sessions etc. This will increase your label's earning potential and in turn make your business profitable.
When you are generating money for your label, you should consider subscribing to the Music Business Toolbox- a complete blueprint for your label including legal contracts and documents, label organisation guides, business plans and more.
I'm a music producer involved in urban genres and an independent label owner, based in Newcastle, North England.