Should you start your own label in 2022?
Starting your own label can be challenging, especially in 2022. But let’s discuss why you should start your own label or not in 2022.
The first thing you need to consider is time and the music genres that you are focusing to work with.
You will need to spend plenty of time every day if you are looking to run a proper label. As a label, you always have something to do. For example, on your free time, you will need to look for DJs, Blogs, Radios, Networks, Partners etc. to submit your promos, build your connections and get your music catalog heard.
When busy, you will need to set up each release, prepare your plans, contracts, files and artworks. You may act as a manager, graphic designer, marketer, lawyer, accountant and social media manager very frequently.
Many may wonder why I include the “accountant” job: Once you establish your label, you will need to work also with your track sales and streams, by preparing statements and notifying your artists about their sales.
Don’t expect to make any money from the first (or even more) year(s) of running.
-Yes, many producers think that they can make a fortune by starting their own label. Unfortunately, 90% of start-up labels are not making any profit for a very long period and in most cases, they are not continuing to sign new songs.
Each music genre needs its own marketing formula and you have to spend most of your time testing marketing strategies. Once you get enough experience, you will be able to choose the most effective ones.
If you have 3-5 startup artists with some nice music ready to sign and you have also some good marketing experience then it can be a good idea start a label.
The biggest benefit these days for labels and artists is the “power of streaming”. Streams increased massively in the last two years. It can be easier to make money from the internet these days than organizing events or public shows. With few words, you can be just a digital label and you don’t need to be also an “agency”.