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Home » Business » Entrepreneurialism » Get Jiggy With It - Be A Music Mogul!

Get Jiggy With It - Be A Music Mogul!

By: estevanresearch
Total views: 2
Word Count: 688
Date:Nov 12th 2007
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Are you producing great music but not earning the profits you dream of? Do you own a record label but barely making money despite having talented artistes?

Well, that's hardly surprising. Nowadays, the music market is dominated by the four biggest music labels -Universal Music Group, Sony BMG, EMI and Warner Music. These companies comprise many smaller labels and companies that serve under different regions and markets. You might think this would make any independent label obsolete in the music scene. Not so. What any struggling record label needs is the philosophy of business that the Big Four adopts.

The burgeoning music industry was valued at US$40 billion in 2004 and will continue to grow in the years to follow thanks to an increase in affluence and marketability of artistes. The Big Four companies made up 72% of worldwide record sales in 2005 but there has been an increase in the market capitalization of independent labels over the last few years. In fact 28% of all worldwide sales in 2005 were attributed to labels that are not part of the Big Four nucleus. With the right strategy, that leaves you with a promising market to tap into.

Owning and running your own record label can seem daunting but with the right help, you will be able to idealize your vision of music. Whether you are an aspiring music mogul or an artiste dreaming of becoming the next Green Day or Aimee Mann, you need to have access to a business plan. Unfortunately, top industry consultants will charge you exorbitant fees for their services, thereby ensuring that you go broke even before you start. Luckily, a few websites have emerged recently to provide these same services. They have good information that will help lead you to your way to stardom, at a fraction of the cost.

Jay-Z earned more than US$40 million in 2006 as CEO of Def Jam and Roc-A-Fella Records but he had his humble beginnings selling records out of a trunk in 1996. Jay-Z, Damon Dash and Kareem Burke started their own independent label as a response to snubs by major record labels that refused to produce Jay-Z's first record. Roc-A-Fella is now part of the world's largest label, Universal Music Group, and boasts Kanye West and Freeway as part of its stable of artists. Many other artists also started from producing their own labels or signing on to smaller labels. These include artists such as Beck, The Shins, Nirvana and hip-hop immortals Public Enemy.

Although many independent labels have gone on to be incorporated into the Big Four, several notable artistes and record labels have remained true to the DIY spirit of producing music.

Ann Difranco's label Righteous Babe Records is the epitome of an independent record producer. She has been producing her own records for many years without the backing of a major label and has achieved both critical and commercial success in the highly competitive music industry. Ian MacKaye's Dischord is often cited as a model of success in the DIY community, having survived for over twenty years with less than twelve employees at any one time.

If you are an artist or performer and want to keep your rights and recordings, then publishing and recording through your own label might be the best approach. Starting your own record label ensures you get to produce the music you are passionate about and own your publicity and image rights. But first and foremost, you must learn to design a solid and realistic Record Label Business Plan that will help you to start a serious profitable music business.

You too can be a successful music entrepreneur like the artistes mentioned. A record label business plan would be the ultimate tool to provide an understanding of how to coordinate the production, manufacture, distribution, promotion, and enforcement of copyright protection pertaining to sound recordings and music videos. With this support, you can be the next music mogul - even if you first start selling out of the trunk of your car.

About The Author-- A few years ago, Estevan was just another talented artiste struggling to break into the music scene. Then one day chanced upon Record Label Business Plan. Today,he owns a growing independent record label with more than 10 artistes under his wing.

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