The music industry is crumbling at the top, leaving many wondering how to build infrastructure when there is no clear roadmap. The major label machine was built during the second and third industrial revolutions and was never designed for the digital revolution, which is the fourth. As an artist, you may feel the pressure of independence resting on your shoulders.
Should major labels even be in the conversation of music anymore, considering that most A&Rs don’t know what to sign or do to keep the star machine going? I’ve been watching this decline for many years, trying to educate artists on independence and growing on their own. Let’s dive deeper into this.
Profit Sharing Deal of Artist Portfolio
Ultimately, the General Manager will become the heads of these artist-run record companies. Between the artist and the manager, they will grow and scale the portfolio based on their relationships and business experience together. Many will fail because many new managers don’t know how to start and scale a volatile business like an attention-based business built on music. Record label execs don’t either because all they know how to do is their job.
What Type of Company Will Be Built?
The business that the artist will be building will be called a multimedia business, with different sectors for different types of business. These sectors include:
Records and publishing
Touring
Merchandise and paraphernalia
Endorsements
How Will Investors Get Paid?
Investors will get paid based on profits from the specific business they invested in or the entire portfolio.
Artists Last Longer Elevating Their Brand vs. The Music
The truth is, artists last much longer when they approach their careers from a 360-brand perspective rather than just a recording artist perspective. If there is no relatability to the public at a mass or semi-mass scale and no connectivity to the listener, customers, and consumers of your entertainment and products, then the artist will fail immediately.
Automotive Technology Made This Possible
All of these services below allowed artists to take control of their careers:
DIY distributors
DIY administration
Social media taking out mass media
Access to one-off services (think Fiverr, SoundBetter, Upwork)
Record Labels Will Have to Train New Staff
Record labels will have to train staff on how to grow entire businesses from the beginning. Otherwise, they will end up getting a small piece of the pie because most artists now will have already built out their 360 deals and will already be in the two-comma club before signing a deal that makes sense.
The Most Powerful Players
General Manager: Knows how to build and scale a business.
Social Media Manager: Always on the cutting edge of trends, technology, and content distribution.
PR Agent: Knows how to design short-term and long-term narratives and can spin a story on a dime.
Artist: Understands how to work together with their team and knows they are building a business.
I Was Looking Forward to Working with My Dream Record Label Since I Was a Child!
Sorry kid, the deals just don’t make sense anymore.
Can I Ever Sign to a Major Deal?
Only if you’re looking for a cash-out. But then again, why would you do that? Everything is going to be fully automated soon.
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.
The Brighter Side
Building your business and scaling it
Keeping the labels out
Maneuvering in the water much faster
Keeping excess hands out of your profits
Letting money flow faster
Giving you a business that you can cash out on later with the labels
The End of the Road
Record labels will slow you down if you sign.
You’ll more than likely get lost in the sauce on a bad deal if you sign.
You’ll feel like you wasted your time when you could have stayed independent.
Conclusion
This ultimately should give you more power and motivation to get your hands dirty in your business. By understanding the shifting dynamics of the music industry and embracing independence, you can build a sustainable and profitable career. The tools and resources are available; it’s up to you to leverage them effectively.
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