Sound Advice: Tips for running a label in 2009

With each passing day, the march towards a level playing field becomes more of a reality. The proliferation of cheap music production software and digital distribution channels has carved open the electronic music scene and allowed pretty much anyone with a desire to produce or play label boss to dip their toe in.

One of the thorniest and most vehemently argued issues in modern electronic music centers around the impact this has had on the scene: On the one hand, the old, and often elitist situation in which only those with a well stocked studio, brimming with hardware gear and the contacts to get a record in the hands of Mr. Big are long behind us; on the other, the ease at which people with even a passing interest in EDM are able to knock-up a record and get it a release, has led to a market awash with decidedly average music and badly run labels.

On whichever side of the argument you place your views, the need for a basic grasp in understanding the principles behind running a record label or indeed producing a record could not be more apparent.

In it to win it?

So before throwing your life savings into cutting 1000 vinyl for your first release, or taking out a second mortgage to fund the label’s art direction, it would be wise to consider your reasons for wanting to start a label in the first place. As Stuart Knight, head of Toolroom one of the planet’s most successful dance labels explains, the reason could be as simple as trying to do it better yourself:

“To be honest we were initially looking at Mark (Knight) signing his music to other labels and the deals had been really poor. We thought at the time we could do it better ourselves so we did. Toolroom Records started as a studio in my dad’s tool shed.”

Would a brand new imprint, ran by you, for your music be the way to go then? If you’ve been looking for a home for your releases with no success, a little bit of soul searching might be in order reckons Matthias Tanzmann of Moon Harbour Recordings:

“If you’ve been producing music for a while and you don’t find a label to release to release your tracks, before thinking ‘OK, I will release it myself’, think about why nobody wants to release it. Maybe the quality is not as good as you think or your friends tell you. My suggestion is to release tracks on other labels to get an impression of the whole thing and the industry.”

One man who did take the plunge was UK funky pioneer Roska. His Roska Kick & Snares imprint was founded without any prior label management experience or indeed a personal discography; two points which appear to have had no adverse effects on his success.

“To be honest I didn’t put too much thought into the label as such, it was mainly just an outlet that was set up just to release my own stuff,” he enthused.

“In this day and age it’s best to not think about record deals and just promote yourself and do it off your own back and this way you can learn a bit more about the business side and everything behind the scenes and gain experience that way.”

The business of planning

If you’ve reached the decision that starting a label is the way forward, and you feel you’re in it for the right reasons, the next logical step will be to get a business plan in place. The inescapable theme that ran through the majority of responses when putting together this feature was the need for careful forward planning and having at least some semblance of a proper business plan in place. Stuart Knight feels that one of the driving factors behind Toolroom’s success was the ‘tight ship’ approach they adopted from day one:

“The thing with Toolroom is, we could be selling washing machines, and what I mean by that is we run the label on a business model – very much to budgets. To me it’s not a hobby. I have no aspirations to go and be DJ or a producer I just run a record label,” he explains.

“In the current climate if you haven’t got a business strategy then you won’t make any money.”

One man who has undoubtedly seen his fair share of labels come and go is Dylan Hermelijn, aka 2000 And One, who has been involved in the label management process since as early as 1992. He is currently involved in running the 100% Pure, Remote Area Records, Area Remote and Intacto labels and feels despite the considerably reduced profit margins, the ‘business’ aspect of the scene is far more focused then back when he started:

“In the early days it was kind of less professional,” he confides.

“The house/techno music business was relatively small and young and we didn’t really plan ahead, it just came day by day. Nowadays the business is more mature and it comes closer to a ‘real’ business.”

Know the market

The need to cut through the noise has never been more apparent then in 2009. A key factor in the inception of any new business must of course be market placement. “If you start a new label now you should have a certain idea of where you want to go,” suggests Tanzmann.

“There are so many labels and if you want to stand out, or be special or unique, you have to create a certain identity for the label. You need to be special in some way as there are so many labels now.”

Dylan Hermelijn is quick to back-up this theory from a musical perspective: “I think there has to be a certain path you follow. Whether it is a broad spectrum of dance music, one must constantly focus on the changes of the market (club scene) and find a musical balance in the direction.”

As anyone from the globetrotting tier A DJ, through to the humble home-listening enthusiast will tell you, we exist in a crowded market place. Beatport - which, contrary to popular belief, is an online record store and not a distributor – is currently home to somewhere in the region of 8,000 labels. Although this figure initially appears somewhat eye-popping, when you factor in the estimated 5,000 label applications the store receives each year – around 25% of which are successful – it will begin to give you some indication of the scale of the hopefuls.

Dan Cole, the Beatport content manager who handles a large proportion of the myriad applications received each year, says a formulated set of goals for a label will always hold them in good stead:

“When sifting through label applications we look for labels that already have the infrastructure in place to market their goods and develop their brand. A strong, consistent release schedule is also of great importance; someone that delivers great releases once every one to two months. In today’s highly competitive market place, it’s important for a label to be able to carry itself without relying too heavily on features slots provided by Beatport.”

“Like any business venture, there should be a driving force and a passion behind why you want to start a record label,” adds Beatport’s Mike Chapman, who alongside Dan handles the vast majority of label applications. “With so many digital labels, there has to be more to it than simply putting out music because it’s easier to do these days.”

One man brand

The concept of branding a record label extends far beyond a logo and some eye- catching cover art. When effectively executed, branding is an indelible identity that takes what is essentially a couple of middle-aged men sitting in an office, and projects, in the finest instances, the sense of miniature world that orbits around a label’s theme and its music.

Imagine for a second, picking up a release on the now defunct Skull Disco and not being treated to Zeke Clough’s mystical ink or indeed the other-worldly sounds contained within? Or how about purchasing a Cadenza 12” without the microscopic detail in both sound and vision? A well branded label will not only grab your undivided attention through an aesthetically pleasing presentation, but also stand out as a beacon of quality, and ultimately trust.

“We hope people who have been buying our style of music for a couple of years would listen to Moon Harbour more closely,” says Tanzmann.

“I think it’s really important to set up a label identity; music-wise and design-wise you need to build up your profile and make yourself special.”

“Branding is important,” adds Hermelijn. “Like a good wine sells itself, but if that wine is properly branded it sells even more.”

Let’s get physical?

One of the key decisions any new label must face is choosing which format to deliver their product. The argument over digital vs. physical goes far beyond the remit of this feature but, as with any business, considering the needs of your customer base would be a sound rule of thumb.

“I think it’s tough to put out vinyl unless you’ve got established artists to kick a label off with,” says Stuart Knight. “If you are a new artist and a new label saying, ‘Right, we’re going to press up some vinyl,’ I would be very careful.”

However, in a time with an infinite number of net labels vying for attention via promotional download links and internet marketing techniques, it could be argued that to deal in the physical product could be seen as an indicator of a business’ serious intent; being ready to compete in all areas of the market and therefore adding value to the product.

“I would say that I take music more seriously if it’s released on vinyl,” agrees Tanzmann. “If I’m getting sent promo links from people I’ve never heard of and labels I’ve never heard of, I just won’t even listen to them - I just don’t have the time. But if I get sent a vinyl copy I’m always checking the release. I think it’s a measure of quality, almost.”

Hermelijn on the other hand is more skeptical:

“To be taken seriously I do not think you need to put out vinyl. I started out by putting tracks on vinyl to play them out for the ‘crowd’. If that track is played via a laptop, CD or other carrier, the music stays the same and that is what counts. The music comes first and then the carrier.”

Is it worth it?

With so many things to consider (and we haven’t even touched on the economy) you may find yourself asking, “Is it worth it?”

If the relatively slim number of points covered in this feature have sounded like nothing more than a great deal of hard work, we suggest sticking to that IT course. Like any new business venture, things you couldn’t even possibly imagine will throw up obstacles, and if you’re planning to make any substantial money from the label, you need to think again:

“The whole model for financing your music career has now changed,” says Tanzmann.

“Now you basically don’t make money from your releases compared to a couple of years ago, but you make your money as a DJ or live act. So you have to know that maybe releasing music is a way to advertise yourself.”

Roska for one is capitalising on such a theory, enjoying a recent upsurge in his DJ bookings. However, the need to supplement the cash generated from the label and DJ gigs finds him in a less than favourable situation:

“I’m working nights at the moment. It’s turned now [running a label] from a hobby more into a job, so it’s like I’m doing two jobs.”

And knowing what he does now - a year after launching the imprint - would he advise others considering such a move to jump in at the deep end?

“I would, definitely. But when you are just starting out, make sure you do your homework. Make sure you have a strategy and know where you are going to take your music and your label. I’ve learnt that it’s really quite difficult and you need to do a lot of networking and make sure you talk to the right people and make sure you think things through.”

Stuart Knight feels that like many things in life, a burning desire coupled with an underlying passion for what you do, will ultimately be the deciding factor in your level of success:

“Know your music and just submerse yourself in it because if you don’t, you really won’t pull it off. Music is a passionate thing and unless you give 100% to the music you wont get 100% back out of it. Just work hard at it. The kids coming through have more opportunities now than before because of the way technology works. If the music is right then people will find it. You have to do something to stick out from the crowd, but it is possible.”

17-year veteran Hermelijn offers an encouraging, yet pragmatic summary:

“First of all, ask yourself why to start a label,” he concludes.

“State a clear mission. Do it for the fun and love of music. Also realise that it might be a long road to success, so never give up!”