What does it mean to "make it" as a musician? One of the most common, enduring benchmarks for success—of course—has been that of the hallowed record deal.
If we are being honest with ourselves, even the most jaded and cynical amongst us probably have distant memories of starry eyed youthful ambitions; delusions of being "discovered" by an influential talent scout who would invite us into the sacred halls lined with gold records, ultimately propelling us into the kind of global recognition that we so obviously deserve. Announcing such a thing also seems to be the only possible response that would satisfy the inevitable question from family members over holiday dinner: "...So how’s your wee band doing then?"
Somehow, telling them that you got a gig in the local pub never quite cuts the mustard.
The Reality of Major Label Deals
Of course, things are never quite as idyllic as they appear in the romanticized plots of Hollywood films, and in the late Steve Albini’s famous 1993 essay "The Problem with Music," he scathingly eviscerates the realities of what it means to be amongst some of the lucky few to score a major label contract. At risk of mangling his erudite observations, the gist is that bands are often blinded by the prospect of large cash advances, and don’t realise that—while all of the expenditures on recording, publishing, and promotion are initially fronted by the label—those costs are ultimately the responsibility of the artist. That means that they are recouped from any income the artist may bring in—meaning that it can be incredibly difficult for them to actually ever make any money. The larger the initial outlay, the longer it will take, and the more sales required to pay it off.
There are a variety of different ways in which income can be generated from music, including (but not limited to), the total number of streams, licensing deals, and "physical" or so-called "mechanical" sales. The way in which royalties are distributed and who is owed what quickly gets complicated, depending on both the particulars of a situation, and also the jurisdiction in which we are talking about (the UK has a different system from the US, for example). There are many parties involved who will expect to get their share of the pie, including producers, session musicians, managers, booking agents, etc. Some of these folks might work for a flat fee, but they also may negotiate "points," relative to a particular percentage of the income. Even if an artist gets to the stage where they have paid back their initial advance, the reality is that they will likely only see 10–20% of the total royalties as a result.
In a similar vein, labels will often lock artists into agreements with particular terms governing what the artist needs to do creatively in order for their music to ever get released. This might mean writing a particular type of song, or working with a particular producer. If the label doesn’t like what you’ve recorded, they often aren’t under any obligation to actually release it, which of course then means that you can’t make any money to pay off the advance, and have no realistic way to be released from the agreement as a result. This isn’t an uncommon situation for bands to find themselves in—effectively ending their careers before they’ve even really begun.
Due to the nature of contractual agreements, the specifics of each deal will vary, and be dependent on negotiation. Often, labels will retain ownership over the master recordings for example, but that isn’t always the case—especially with more established artists. Those that are new in their career will be in a far weaker position than those who can afford to shop around—and naturally, the labels will look to retain as much control as they can early on.
It’s important to note that a record deal is not (necessarily) the same thing as one for publishing. It is fairly standard practice in fact for an artist to have separate contractual agreements with different entities for the rights to the songs themselves, versus the recordings of those songs. This can lead to some rather interesting scenarios, where artists re-record their earlier material in order to claw back some level of control. Taylor Swift provides us with one of the most well-known examples of this phenomenon, re-recording the first six albums that she initially released under Big Machine for this very reason.
Does It Have To Be a Major?
Even if you have accepted that a major deal and global commercial success is not in the cards, labels still have a lot to offer. Whilst financial backing is probably the first thing people think of, often the most valuable resource labels can provide is their connections. For that reason, an independent or boutique label can prove just as useful—even (and perhaps especially) if they don’t offer a huge advance.
The range of potential benefits here are about as wide and varied as you can imagine. Some labels can help with negotiating discounted rates for time at premium studios. There are DJs who will give you airplay on their influential radio shows, simply because of the relationship that they have with the label owner or PR person. They might have the ear of curators of trendy stages at boutique festivals who can hook you up with slots that you wouldn’t otherwise be eligible for. Labels will often have a network of DIY promoters at cool venues in different cities, or help with distribution in independent shops—hell, even just knowing the phone number of that one old woman in that particular town that will let your full band sleep on her floor and cook you breakfast while you are on tour. Everything about the music industry is about who you know, and those at the heart of the grassroots will often provide more credibility than a major label in the circles that matter—at least in the formative years, anyway.
The other major consideration, of course, is that smaller labels often provide more favorable contractual terms, under which artists retain far more control over their music—both creatively and in terms of licensing. That means that if you do find yourselves in a position to move onward and upward, or you just want to part ways, that won’t be a struggle. In fact, smaller labels often accept that part of their role in the wider music ecosphere is to provide the foundation for acts to move on to bigger things—and they often see these successes as a badge of honour and pride.
Sometimes, simply having the name of a label behind you can lend an air of respectability that will open doors which would otherwise remain closed—even if they don’t actually do anything specific for you other than that. There are bands who literally make up label names for this purpose. However, be aware that this ploy can also backfire. Sometimes, I’ve had the best luck booking gigs and getting deals by being brutally honest about how DIY my own situation is. It’s all about figuring out what works for your particular situation, and what you want to realistically achieve.
Do You REALLY Need a Label?
Record labels are intimately entangled in the modern history of the music industry, and for good reason. For the longest time, it was prohibitively expensive to make recordings—never mind releasing them—and it’s easy to forget that the accessibility of DIY production that we enjoy now has only really become possible over the past decade or so. Consumer computers are far more powerful than ever before, and provide the means to record high-quality tracks in your bedroom, for a relatively modest initial outlay. Getting the chance to spend time in beautiful studios is obviously still the dream for many, but having to stump up significant amounts of cash to do so is no longer a necessity in order to have something good enough to release.
Distribution was always one of the major benefits to having a record label. They had the networks to get your music out there into the shops—something that was obviously important, as that was often the only way that people could actually buy it. However, the evolution of the Internet has of course done away with all of that. Whilst mass market success might rely on the availability of your tunes in every high street store, that is no longer required to build a sustainable income, particularly in an age where "luxury" commerce is increasingly carried out online, rather than in person. Artists can upload and sell their music independently via a service like Bandcamp—both digital and physical—as well as merch. These services are often free, only taking a certain percentage cut from any sales. Alternatively, you can make use of digital only distribution networks like DistroKid or CDBaby to get your material on streaming services such as Spotify—though obviously, the royalties from such endeavors are infamously limited.
Potential earnings aside, the possibilities for discoverability with these services are on a scale that was otherwise previously unimaginable. There are plenty of examples of artists that have been completely ignored by their local scene, only to find themselves discovered and practically worshipped by groups of fans in countries that are thousands of miles away from home. Whole genres have emerged based on this model, born out of communities that have coalesced around particular platforms or communities like Soundcloud.
Many artists have also found alternative ways to promote their music or generate income thanks to the Internet. If you can ignore the scoffing from the peanut galleries, sharing your process or workflows on YouTube has proven to be a relatively successful way for musicians to find and build up an audience. I’ve never had as much interest in my own music as I have found since starting down that path, and it’s definitely proven to be helpful—but then again, maybe I’m not a "real musician."
NetLabels
If you are more interested in just getting your tunes out there into the world than getting funding studio time or putting your physical albums in shops, but still want a bit of a hand, a netlabel may be something to consider. There isn’t necessarily a strict definition of what constitutes a netlabel, but in general the primary idea is that they offer is to release your music digitally under their umbrella.
This might not seem like much, since anybody can whack things up on Bandcamp for themselves, but it is primarily just a promotional tool. A good netlabel will carefully curate the artists that it represents—often with a specific genre focus—and can build up a dedicated fanbase that will listen to anything that they put out. The more niche your particular musical style is, the more this can be to your benefit. Having a highly concentrated, highly engaged community of people that are actively interested in the type of material that you are creating can be far more valuable than getting your song played on a national radio station.
Even if you don’t go down the route of a netlabel, having an understanding and focus on similar artists, connected labels, relevant forums, Facebook groups, and supportive venues will pay dividends. Find your scene, or create it.
Outro
Relatively early on in the proliferation of file sharing, major industry players warned that the internet was going to somehow be the death of music, because nobody would be able to afford to record or support artists in the same way. Of course, while the economics and consumer expectations have undoubtedly shifted, that has not been the case. In fact, more people than ever seem to now be making, recording, and sharing their creations online—and I dare say that we are all the richer for it.
In this brave new world, the definition of "success" is far more varied than ever before, and just as disparate as the routes that artists can take to get there. For those desperate for international pop stardom, that will obviously involve a far more considered, meticulous approach, that mirrors the more traditional path with a major label. However, for the vast majority of us, I suspect things are more nuanced than that.
If you are writing and producing your own music, then the most important thing to consider is what you realistically hope to achieve, and then focus your pursuits accordingly. For some, the process itself is all that matters. For others, they might just want to be able to book the odd show, whilst others dream the big dream of international stardom. There are now varying degrees of possibility across the board—rather than just one definition of "success," which is actually pretty exciting.