Labels & demos · 6 min read
How to start a record label
Decide what the label stands for, then do the groundwork: a name nobody else uses, the business set up the way your country requires, a written agreement with each artist and a distributor that reaches the stores your genre sells in. Plan the first release back from its date and send it to DJs and radio four to six weeks before it comes out. NeedlePool does that sending under the artist’s name and shows you by name who listened.
How to start a record label in eight steps
- 1Decide what the label is forWrite one line on the music you will release and who it is for. A label is a filter, and that line decides which demos you sign and which DJs get your promos. It is also the reason an artist picks you over a bigger label.
- 2Choose a name and check itSearch it on streaming services, Beatport, Discogs and the social networks you will use, and in your country’s trademark register. A clash found after the first release means new artwork, new handles and a new name in every store.
- 3Set up the business sideIn many countries you can start as a sole trader under a trading name and form a company later. Tax and liability rules differ, so ask a local accountant which fits. Open a separate bank account for label money before the first release.
- 4Put every release in writingBefore anything goes out, sign an agreement with the artist: which tracks, for how long, in which territories, the split, which costs come off first and when the rights go back. Never charge an artist to release their music: a label that does is selling a service.
- 5Pick a distributorA distributor delivers your releases to stores and streaming services and collects the money. For electronic music, check that it reaches Beatport and the other DJ stores as well as streaming, and compare fees, payment terms and how it handles a label with several artists. Most can issue the ISRC codes and the release barcode for you.
- 6Get the first release readyFinal master, artwork, credits, and an extended mix if your genre is played in clubs. Deliver it to the distributor well before the date: many ask for several weeks, and some store features need more.
- 7Send promo before releaseDJs and radio hosts need the track four to six weeks ahead, while they can still be the first to play it. Send each one a private link of their own, put the genre, BPM and key in the first lines, and follow up once.
- 8Collect, report, payRead the distributor’s statements, send the artist theirs on the schedule the contract sets, and keep the DJ feedback. It is what you show the next artist you want to sign.
What the agreement with an artist should cover
Small labels usually license a release rather than buy the music outright. A license lets the label release and sell the tracks for a set time, after which the rights return to the artist; an assignment transfers them, often for as long as copyright lasts. Know which one you are offering and say so plainly.
Write down the tracks, the territory, the term, the royalty split and whether it is on gross or net income, which costs are recouped before the split, how often you report and pay, who approves remixes, and what happens if the label stops releasing. A 50/50 split of net income is common among small electronic labels, and it is a starting point to negotiate from.
This is general information, not legal advice. Contract law differs by country, and a lawyer who works with music contracts can check your template once.
Sending the first release from NeedlePool
Sign up as a label. Each campaign then has an Artist field on the release, and the promo email is signed with that artist’s name, with their links in the footer. Your label’s name goes in the release’s Label field. Plans below Pro cover one artist; Pro covers up to 3 artists from one account, and Agency up to 5 artists.
Every DJ and radio host gets a personal link, so the campaign shows by name who opened the email, pressed play, downloaded the track and what they wrote. On the free plan you send to your own contacts. The Promo pool opens with Starter, $14.99 a month. In the pool you choose curators by genre, then country, and NeedlePool sends for you without handing you a list of addresses.
The pool takes Audio Promo, the campaign that carries the track itself. Link Promo, the page with store and streaming links for a release that is already out, goes to your own lists.
Questions
How much does it cost to start a record label?
Less than it used to: a digital label has no pressing to pay for. The costs are setting up the business where your country requires it, the distributor’s fee or share, mastering and artwork for each release, a lawyer’s look at your contract template, and promo. Track them per release, so you can see what each one earned back.
Do I need a company to start a label?
Not always. In many countries you can release as a sole trader under a trading name and form a company once the income or the risk grows. The rules differ by country, so check with a local accountant before the first release.
Do I need a distributor?
In practice, yes. Stores and streaming services take releases from distributors rather than from individual labels, with few exceptions. Choose one that reaches the DJ stores your genre sells in, not only streaming.
What royalty split should a new label offer?
There is no standard. A 50/50 split of net income after agreed costs is common among small electronic labels; what matters more is that the contract says which costs come off first and how often you report and pay.
When should I send promo for the first release?
Four to six weeks before release day, to DJs and radio hosts who play the genre. That is early enough for them to play it first and close enough that they still remember it on the day.
What does NeedlePool cost?
Starting is free, with no card and no time limit: you send to your own contacts. Paid plans open our Promo pool in any genre and start at $14.99 a month (Starter).
Keep reading
- How to run a record labelThe routine release after release, and what to hand over to tools.
- How to attract artists to your labelDemo rules, fair terms, answers, and a demo page artists can use.
- Promo pool for record labelsDJs and radio by genre for every release, and which plan fits a roster.
- Electronic music release planWeek by week: label pitch, promo to DJs and radio, release week.
- How to send promo to DJsThe sending side: what to write, whom to pick, how to follow up.
- DJ promo email templateThree promo emails to copy: to a DJ, to a radio host, and the follow-up.
- NeedlePool for record labelsPromo for a whole roster from one account, and a report for every release.
- PricingWhat each plan includes.
Send your first release to DJs
Start free with your own contacts and see by name who listened. No card. The Promo pool opens with Starter, $14.99 a month.