Every artist or music exec wants to build a profitable label for themselves. But do you have a plan for expanding and exploiting intellectual property? The problem is you’re only thinking about music. This narrow focus is why you don’t understand how to expand. Let’s dive into how to build a label with a focus on intellectual property.
I’d Sign a Socially Native Versatile Female Singer to a Record & Co-Publishing Contract
"Socially native" means an artist who is comfortable being vulnerable in front of the camera and expressing themselves via social media. This artist will already understand that social media will be key to our progress and we wouldn’t be able to survive well without it. I’d prefer a female singer due to my personal preference for a yin and yang dynamic. I’d sign a spunky singer with an alto voice who sings with passion in the genres of Soul, Funk, and R&B, with a splash of Rock.
I’d Develop a Story for the Artist to Present on Social Media
Developing a storyline with the artist from the beginning is crucial because the cameras will be rolling from day one. As we unfold our narrative via social media, we must revisit each story loop and plan to keep fans and viewers engaged. All footage will belong to the record label for future licensing.
Licensing Would Be My Weapon of Choice
Licensing is where the record company makes money. If the songs aren't suitable for sync, we’ll have a hard time breaking into public consciousness. Sync would be one of my main priorities beyond social media. Playlisting is a given, and while radio is less of a focus, retail playlisting is essential for our next step.
Create as Many Tasteful Alternate Versions of Songs as Possible
The goal is to generate as many masters and compositions from a project as possible. I’d create a remix project and an acoustic project. These different versions can be used in various establishments and venues worldwide. Additionally, I’d get some of my favorite underground YouTube singers to cover my artist’s records and own the covers. This strategy is for publishing purposes. A 10-song LP could easily be flipped into 40 masters and compositions.
I’d Make Sure Every Right Was Exploited for Maximum Payment
With so many masters, we’d need to ensure they are exploited properly for maximum revenue. Not every master will rise to the top, but each will have its moment in the sun, collectively generating substantial revenue.
When the Artist is Ready, I’d Finance Tours with the Rights to Filming
I’d act as the finance agency (tour support) for the artist when they are ready for touring, but I’d only finance the most profitable touring markets. I’d film the entire tour and gain rights to the touring documentary.
I’d Own All the Rights to Merch Designs and Imaging Under the Terms of the Contract
Every merch design, poster, and right to use the logo to sell unreleased designs or merchandise would belong to the label, with the artist’s approval. This would allow me to massively increase the amount of intellectual property the label owns.
Exiting
If I only signed the artist for two albums, the label would own almost 100 masters and compositions, two touring documentaries, creation footage for two albums, merch designs for two albums, and tour designs for two albums. If we did our job correctly and the artist amassed over 1 million followers, we could sell the rights and contracts for 5 to 6 times the value.
What About the Artist?
As a record label, we pay for the creation of everything, so we issue the artist royalties.
Would They Get a Piece of the Sale?
More than likely not, unless the contract time has allowed for recoupment.
Don’t You Think This is Wrong?
It may seem one-sided, but the entity holding the debt has significant leverage.
Check This Out!
If you're a music creative or executive looking to build your label or publishing company in 60 days or less, grab the 60-Day Record Label Course and get it done today! You’ll gain the ability to get real funding, avoid contractual pitfalls, and keep the middleman out of your pockets. Click the link below to get started now! If you’re skeptical, grab the free guide, "10 Ways to Increase Your Record Label Profits," which comes with a free split sheet download.
If You Make it This Far…
If you’re an artist-run record label, accomplishing this means you had a great run!
If you are a company, then you’ve got a great model to optimize.
Not Doing it This Way
Doesn’t mean the end of the world.
But the intellectual property industry (aka media industry) is hard, and not everyone will make millions from it.
Conclusion
If you were struggling with how to build your new record label, hopefully, this blog has given you some valuable insights. You now have a clearer path to creating a profitable and sustainable record label by focusing on intellectual property and strategic planning.
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