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Record Labels - Part 1:  "Record Labels Aren't Interested in You "

(The Sad Truth of the Music Industry; AKA – but my Grandma said I had talent!)

 Well, I hate to be the one to burst your bubble, but odds are you’re not going to get signed.  You’re probably a fine musician, a good (if not great) songwriter / singer / performer.  You’re probably even serious about your craft.  So why aren’t labels flocking to your door? 

 Let’s face it – most record labels are busy trying to make whatever was the last hit record.  As in, the most recent hit record that someone else made.  Conventional record labels generally follow a terrible business model.  To understand why this affects you, we need to explore this model. 

 Most labels sign new artists to development contracts that bind the artist to a certain number of albums, knowing full well that there is a high probability that the second and subsequent albums will never come to pass.  Why do they do this?  Because they’re gambling with your career!  Here’s the gamble:  if your album hits the big-time, then they gambled correctly and pocket their winnings.  If not, they’ve posted a relatively small loss (say, $100,000) that is held as a debt against you and your band until it is repaid (through sales of a record that the label will likely discontinue or drop).   You won’t see a free-and-clear dime until your recoupable expenses (such as living expenses that the label paid during recording, the recording studio charges, tape, advertising, duplication, food during the recording etc) are paid up according to the label’s accounting.

 Despite this rather depressing reality, labels are still constantly looking for the next big thing (really, the most recent big thing which they’ll copy).  Being compulsive gamblers with the potential for huge payoff, they gamble big each time.  And sometimes, they get it right – one multi-platinum Faith Hill record quickly erases the accrued expenses of a thousand No-Hit Joes (dropped after their first album, with $78,000 worth of recording, marketing and promotional recoupable expenses). 

 Knowing that the labels are looking for chart-topper artists with a high likelihood of sale, but also knowing that they’re just as willing to drop (like a hot potato) the acts that don’t take off from the get-go, one asks:  why are you worth a label’s time? 

 Or, better yet, why should a label spend ANY money on you?  Typical answers:

1.      I sound just like [famous artist].

2.      I sound just like [famous artist], but I’m a little [edgier, hipper, prettier].

3.      I’ve got a really unique sound.

4.      I’ve got a really great [voice, face, look]

 Of these, #1 and #2 are definitely out for a label.  If you sound just like someone else, then you’re redundant, plain and simple.  See, they want you to be different and then they’ll try making you the same.  If you sound just like someone else, with one key distinction (edgier etc), then you’re NOT just like someone else, and are therefore at risk of being either a bad gamble or too similar without being the same.  Weird, huh?

 Answer #3 has potential.  However, there are some really unique-sounding groups that signed, starry-eyed, with a label.  Then, only to find that a few years later, they finally got their lives back and were able to keep making their own music because the contract expired or the label let them out of their contract.  The label realized that they could never sell that particular kind of record. 

 And #4 – sadly, this is where the state of the popular music industry shows its true colors.  Labels are chasing packaging, mostly.  Huge superstar pop artists are simply voices for professional songwriters.  Most debut albums of the recent pop sensations consist of songs written by other people.  If all you’re doing is pitching yourself as a face with a voice, you might have a shot.

 So why aren’t labels interested in you?  Usually, it comes down to timing – either they’ve already filled their “new artist in development” slot for the week / month / year, or you’re too similar to someone who they’re currently excited about, or you’re too similar to someone who they’re currently not excited about, etc.  Thousands of possible reasons. 

 But take heart!  You don’t want a label deal anyways! 

Record Labels - Part 2: 
"Do You Really want a Record Deal?"

Record Labels - Part 3: 
"Do I Need a Record Label to Finance My Recording?"

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