How to Start a Record Label

With the daily progress of society and the numerous creative, gifted, and popular musicians, owning a record label is becoming an increasingly popular business idea, and of course a very lucrative business. To be successful in your business idea as a beginner you need to be well organized and have the right people by your side.

The options in the field of music publishing are numerous because the competition is extremely strong. So if you want to establish a successful and popular publishing house, perhaps one of the best decisions you will make at the very beginning is to do a little research and find a way to conceive a strong and durable record label business plan that in a strategic and thoughtful way will lead your business to success.

Get involved in all aspects of the music business and learn about how to start and run a record label. Record labels have the power to market music and build careers. You do not need to invest in a recording studio or CD manufacturing facility. After all, even large record labels rely on third-party service providers to meet these needs.

Choosing a Name for a Record Label

This process does not have to be complex. The name of your record label will be less important than the idea behind it. When naming your brand, the most important thing is to find a name that sounds appealing and is available for use. Talk about your options with friends and family, but don’t waste time sending out surveys or trying out every possible option. 

Setting Objectives for Your Label

To make sure you are on the right path, you must first define your destination. It may be hard to tell if you’re succeeding at a goal if you haven’t set one. As you plan to start a record label, try to define your intentions as precisely as possible. To stay on track for achieving your goals, it may be helpful to periodically write them down on a piece of paper and keep an eye on your progress.

Identifying Your Label’s Target Market

When trying to reach your listeners, it might be helpful to think of them as targets and tailor your promotional efforts accordingly. It’s a waste of time and money to press expensive vinyl variants or pay for Facebook ads with no audience. Rather than starting your marketing campaign with a widespread, unspecific appeal to the masses, first, define your target audience, what they find valuable, and where they can be found.

Record Label Branding

As a record label, your brand is how people perceive you. Your mission statement is your core message, in a nutshell, a guiding principle helping fans find you. To build brand recognition with your audience, be sure to use the same colors and fonts for your logo and other design elements wherever you display them. You can express the spirit of your brand in many ways, including your music releases, label merchandise, and social media messaging.

Recruiting New Performers

One of the most important steps is to constantly recruit new performers. But in order to achieve that, first, you will have to establish an A&R department. A&R refers to Artist and Repertoire. So, your A&R reps will have the responsibility to find potential artists for your label.

Since you are just starting out, you might consider hiring music enthusiasts who will be willing to look for talented musicians in exchange for a part of the artist’s sales. 

Set the Royalties for Your Label

Keeping track of artist royalties is not always straightforward, but with some planning and a system in place, you can be confident of success. Fifty-fifty splits are the norm in the indie music community. It is more important for you to pay your artists in a reliable and transparent manner than to pay them often. However, most labels report royalties on a quarterly basis. 

Organizing an Album Promotion

You need to be organized when releasing an album if you want to create an effective campaign. To launch a successful album release campaign for an artist, begin by planning out strategies and creating opportunities for the artist to gain exposure and build a strong fan base. To ensure that your project is completed in a timely manner, establish a realistic timeline as early as possible in the recording process. 


In today’s global world, it’s easier than ever to learn from record labels of all sizes. Many record labels are willing to help new labels, guiding them with advice. From the record labels we admire, we can take positive lessons about how to make our own music. People in the music industry will often lend a helping hand to one another.