How to Start a Record Label: Build the Brand, Own the Sound

Starting a record label isn’t just about dropping music — it’s about owning the sound, building legacy, and creating income that moves with you. Whether you're an artist-turned-boss or an entrepreneur with a vision, launching a label gives you creative control, business leverage, and the chance to shape culture.

This guide lays out everything you need: legal setup, capital, the team, making money, how to launch from home — and how to do it without going broke.

🧱 What Is a Record Label?

A record label is a business that finds, funds, and distributes music. You sign talent, oversee production, market the brand, distribute the work, and profit off the results. You don’t need to be famous — you need to know how to build, scale, and control the rights.

🔍 Choosing the Right Genre & Artists to Invest In

Before anything else, know what lane you want to be in.

🎧 Picking Your Genre:

Ask yourself:

- What type of music do you understand deeply?

- What audience can you connect with?

- What market is underserved but growing?

Some of the most profitable and scalable genres today:

- Hip-hop / Trap – Cultural influence + high stream potential

- Afrobeats / Dancehall – Explosive global growth

- R&B / Soul – Loyal niche audience with high replay value

- Pop / Indie Pop – Sync licensing goldmine

- Electronic / EDM – Great for festivals, brand collabs

- Latin / Regional – Huge fanbases + international opportunities

Start with one core sound, and build a brand around it.

🔎 How to Find the Right Artists to Sign:

Look for talent, but also look for work ethic.

🔥 What to watch for:

- Originality: No carbon copies. Do they have their own voice?

- Consistency: Are they releasing often?

- Visual Identity: Do they already have a look and style?

- Fan Engagement: Are people reacting to their content?

- Stage Presence: Can they perform or move a crowd?

You can find artists on:

- TikTok, IG Reels, SoundCloud, Audiomack, YouTube

- Local open mics / showcases

- Discord music servers

- Referrals from producers or A&Rs

Once you find an artist with potential, test the waters with a single or EP before fully investing.

💸 How Much It Costs to Start

You can start a lean operation for under $3,500, or build a full team and studio for much more.

🟢 Basic Startup Costs:

- LLC setup: $100–$500

- Home studio gear: $800–$2,500

- Branding + logo: $200–$400

- Website & domain: $100–$200

- Contracts/legal templates: $100–$500

- Music distribution: $20–$60/year

✅ Estimated: $1,200–$3,500

🟠 Advanced Label Setup:

- Office or studio space

- Paid producers, engineers, and legal team

- Artist budgets, tour support

- Marketing/PR ✅ $10K and up

💳 How to Build Business Credit to Fund Your Label

Starting a label with your own money is cool — but building business credit is how you go from hustling small to making real moves.

With solid credit under your business name, you can:

- Finance studio equipment

- Lease space

- Pay artists, producers, and engineers

- Get business lines of credit

- Qualify for funding, loans, and vendor accounts

- Attract serious investors and co-founders

Here’s how to start from scratch:

🧱 Step 1: Set Your Label Up as a Real Business

- Register your LLC or corporation

- Get your EIN (free at IRS.gov)

- Open a business bank account

- Get a business address (virtual address like iPostal1 or Anytime Mailbox works)

Set up a business phone number and get it listed with 411.

🏗️ Step 2: Establish Trade Lines (Vendor Credit)

Apply for Net-30 accounts with companies that report to business credit bureaus (Dun & Bradstreet, Equifax Business, Experian Business).

Start with:

- Uline (shipping supplies)

- Quill (office supplies)

- Grainger (tools/equipment)

- Summa Office Supplies

- Crown Office Supplies

- Buy small items, pay early, and build payment history

- Once you have 3–5 trade lines reporting:

- Apply for business credit cards with companies like:

- Capital One Spark

- Chase Ink

- American Express Blue Business

- Divvy (corporate card that grows with you)

Use them only for business purchases and pay them off monthly to build trust and limits.

🔍 Step 3: Monitor Your Business Credit Scores

Check your scores with:

- Nav.com (free tools + business credit builder plans)

- Dun & Bradstreet (DUNS Number is key)

- Experian Business

- Equifax Business

Keep your utilization low, pay on time, and your score will grow.

💼 Step 4: Use Credit Strategically to Scale

- Once your credit is strong, you can:

- Finance gear (laptops, mics, monitors)

- Cover artist advances or marketing campaigns

- Hire freelancers upfront while waiting on royalties

- Invest in merch or tour support

- Leverage for grants, investors, and co-founder buy-ins

This is how major labels move — they don’t pay for everything out-of-pocket. You shouldn’t either.

Important: Business credit is tied to your EIN, not your SSN — but some creditors may ask for a personal guarantee at first. As your business grows, you’ll rely less on personal credit and more on your company’s reputation.

🎛️ Home Studio Setup (Run It from the Crib)

You don’t need a million-dollar studio to build a catalog. Here’s a smart setup for home recording:

Gear to Get Started:

- Laptop (Mac or PC with 16GB+ RAM)

- DAW (Logic Pro, FL Studio, Ableton, Pro Tools)

- Audio Interface (Focusrite Scarlett 2i2 or Apollo Solo)

- Mic (Shure SM7B, Rode NT1, AT2020)

- Pop filter + mic stand

- Studio Monitors (KRK Rokit 5, Yamaha HS5)

- Headphones (Audio-Technica M50x or Beyerdynamic DT 770 Pro)

- Acoustic foam for room treatment

- External hard drive to back up files

Bonus: MIDI keyboard, plugins (Waves, FabFilter), and sample packs from Splice or Loopmasters.

⚖️ Legal Setup & Protection

Make sure it’s official:

- Register your LLC

- Get an EIN for taxes

- Open a business bank account

- Register with a Performance Rights Organization (ASCAP, BMI, SESAC)

- Register with SoundExchange

- Copyright all music

- Trademark your label name and logo — and if you’re manufacturing music or merch overseas, register your trademark in that country too

- Use written contracts for every deal (artists, producers, collaborators)

👥 Build Your Team (Even if They're Remote)

Start solo, but these are key roles to fill:

- CEO/Founder – the visionary

- A&R – finds and develops talent

- Producer(s) – helps create the sound

- Engineer – mixes and masters

- Entertainment Lawyer – handles deals

- Creative Director – covers visuals and rollout content

- PR/Marketing Lead – gets attention

- Bookkeeper or Accountant – tracks income and expenses

- Distribution Partner / Manager

Most of these can be freelanced or contracted remotely through Upwork, Fiverr, or social media networking.

🧠 Starting with Little or No Money

Yes, it’s possible. Here’s how:

- Start from home — use your bedroom studio

- Drop music on DistroKid, TuneCore, or UnitedMasters

- Use free graphics tools like Canva + AI image tools for visuals

- Partner with new artists who want to build

- Promote using TikTok, YouTube Shorts, and IG Reels

- Handle merch through Printful or Printify

- Use a virtual address for business registration and mail

- Create split deals instead of cash advances

💵 Ways to Make Money as a Label

- Streaming royalties (Spotify, Apple, etc.)

- Publishing & mechanical royalties

- Live shows / tour income

- Merchandise sales

- Sync licensing (TV, film, ads)

- YouTube monetization

- Brand partnerships

- Vinyl/CD drops

- Catalog acquisition offers down the road

If you own the masters and publishing, the money never stops.

🔌 How to Get a Distribution Deal

Landing a distribution deal means getting your music in front of the right ears — and possibly tapping into bigger marketing and sync budgets.

🚀 What is a Distribution Deal?

It’s an agreement where a distributor handles placing your music on streaming platforms (Spotify, Apple Music, etc.), and may offer marketing, playlist pitching, or even advances — in exchange for a percentage of your royalties.

📈 How to Get One:

1. Build a Buzz – No one’s checking for silence. Start with:

- Consistent releases

- Solid visuals

- Social proof (engagement, not just numbers)

2. Have a Catalog – At least a few solid tracks/projects

3. Be Professional – EPK (Electronic Press Kit), label website, contracts, and a brand

4. Pitch to the Right Distributors – Some major ones:

- EMPIRE

- The Orchard (Sony)

- Stem

- Ingrooves (Universal)

- ONErpm

- Vydia

- Symphonic

- Create Music Group

5. Leverage Your Data – Show monthly listeners, growth rates, regions of interest

6. Get a Referral or Co-Sign – Connections can fast-track the process

🧠 Tip: If you’re not ready for a major deal yet, start with a digital distro like DistroKid, TuneCore, or UnitedMasters to build leverage.

🌍 How to Book Shows (Local & Overseas)

Booking shows is one of the fastest ways for your artist (and your label) to build brand, fan loyalty, and income. But it takes more than just uploading music and hoping for the best.

Whether you’re aiming for local venues, college circuits, tours, or international stages, here’s how to actually get booked — and paid.

🎤 Step 1: Build Local First

- Start where you are and prove you can draw a crowd.

- Perform at local open mics, showcases, and festivals.

- Partner with local brands for pop-up performances

- Network with DJs, event promoters, and small venue owners

- Shoot high-quality performance clips to post on IG, TikTok & YouTube

Pro Tip: Get listed on Sonicbids, ReverbNation, and Indie on the Move — platforms where venues and promoters look for acts to book.

🗓️ Step 2: Create an EPK (Electronic Press Kit)

Your EPK is your artist's résumé. It should include:

- Artist bio

- Promo photos

- Music links (Spotify, Apple, etc.)

- Live performance videos

- Social media + website links

- Press mentions or blogs (if any)

- Booking contact email

- Stage plot + tech rider (if required)

Keep it clean, clickable, and professional. Use Canva or a designer to polish it.

💼 Step 3: Pitch to Venues + Promoters

Use your EPK to pitch yourself directly to:

- Local and regional venues

- Bar/lounge/event spaces

- College events and student activities boards

- Independent concert promoters

- Talent buyers for festivals

Use email or DM — but be direct and professional. Include links, past show footage, and be ready to negotiate.

✈️ Step 4: Book Overseas Shows

Yes, you can go global — even as an indie. But it takes strategy.

How to get booked overseas:

- Research international music festivals (Afro Nation, SXSW, Boiler Room, etc.)

- Submit through booking platforms or direct submissions

- Partner with a booking agent who has global reach

- Network with DJs, promoters, and blogs in target countries

- Look into U.S. military base tours overseas

- Collaborate with artists abroad and tap into their scene

Platforms like Gigmit, Bandsintown for Artists, and Music Gateway also help book international gigs.

📑 Step 5: Handle the Paperwork (for Overseas)

If you're booking overseas:

- Make sure your passport is valid

- Apply for a work visa or performance visa if required by the country

- Have your contracts reviewed by an entertainment lawyer

- Understand taxes and currency exchanges in the country

Get travel insurance and protect your gear

💸 How to Get Paid for Shows

You can charge flat rates, door splits, or percentage deals.

Example deals:

- Flat fee: $500–$5,000+ depending on draw

- Door split: 70/30 or 60/40 (artist gets more)

- Merch sales: 100% yours (unless venue takes a cut)

- Travel/hotel: either covered or reimbursed by promoter

Always get a contract in writing. Never show up to perform without it.

🤝 Hire a Booking Agent (Eventually)

Once you’ve built momentum, consider hiring a booking agent to:

- Pitch on your behalf

- Handle logistics and scheduling

- Negotiate pay + rider details

- Connect you with bigger shows and festivals

They usually take 10–15% of your performance fee — but only when they bring the show in.

🗂️ Tools & Platforms to Use

- Distribution: DistroKid, TuneCore, EMPIRE, Stem, UnitedMasters

- Contracts: IndieLabelContracts.com, RocketLawyer

- Merch: Printful, Printify

- Graphic Design: Canva, Adobe Express

- Royalty Admin: Songtrust, SoundExchange

- Studio time: Studiotime.io

- Analytics: Spotify for Artists, Chartmetric, Soundcharts

- Talent: Upwork, Fiverr, or IG networking

🧾 Disclaimer: This guide is for educational purposes only. Consult with legal and business professionals before signing deals or making financial decisions. Always do your own research.

📌 ThinkWithAD PULSE is where the blueprint lives. Tap in for more unfiltered knowledge, playbook breakdowns, and entrepreneur game built for real-world results — not fluff. From music to e-commerce and beyond, it’s all about ownership.