Why Start a Record Label to Take Control of Your Music Career

Recently, we outlined the roles of a record label, ranging from artist & repertoire (A&R) to artist development, music publishing, and legal and financial management. As our list shows, established labels have to handle various tasks.

Although up-and-coming artists may find it more appealing to join an existing label to fully concentrate on their music, they should not underestimate the long-term benefits of launching their own label. Let’s explore why you should start a record label by looking at the many benefits of being self-signed!

Many artists dream of full-time music-making, but reality often looks quite different. In fact, most aspiring artists find themselves balancing their goals with working a day job. Considering the rising cost of living, many cannot afford to stay on part-time contracts, which further takes away the energy and time they can dedicate to their music careers.

Starting a label can bridge these gaps by aligning your day job with your music goals. Being a label owner can help you expand your network, build credibility beyond your art, and gather essential resources over time. Of course, launching a music business does not happen overnight. If possible, gaining experience first—at a music company or in a related field—will help you build skills and connections and save funds for your solo venture. Once ready, create a business plan that addresses your goals, brand, and resources.

Running a label alongside music will be highly demanding. However, it can set you up for a more sustainable future in the industry, as illustrated in the following point. That said, please do not quit your day job without total commitment, a solid plan, clear goals, and enough savings!

Owning a label allows you to "sign" yourself and maintain complete control over your music, copyrights, distribution, release schedules, and overall artistic direction. It also allows you to retain decision-making power over legal and financial matters, such as contracts or royalties.

In contrast, signing with a label typically means agreeing to a contract designed to benefit the label more than the artist, which can limit your decision-making power. At worst, the legal obligation to comply with an agreement can take away your control over your music and career direction.

Similar to the previous point, running your own label provides the creative freedom to experiment with your music and brand without external pressures or legal constraints. This way, you can stay closer to your artistic vision and build a unique brand identity that reflects your values and musical style. However, it is important to remember that labels are also businesses, so you might still need to align with certain broader market expectations for your label to remain relevant and marketable.

Many Artists who want to avoid bearing the responsibility of running their own company prefer to launch or join a collective. Although music collectives can be a good starting point, they frequently lack the formal structure of an official record label. This does not mean that music collectives are less valuable, but being recognized as a professional with an official company can significantly enhance your reputation in the industry.

Forming a label allows you to team up with professionals and other career-oriented artists, leveraging each person’s skills and networks. It also creates a legal framework for managing finances that informal collectives may not offer (e.g., business insurance).

As a formal business, you may qualify for grants or receive sponsorships from public programs and institutions. This can help you overcome financial barriers during the early stages of your business or during challenging times. In this context, you have to be capable of presenting a solid business plan that includes both financial goals and a tangible mission statement.

If your label gains traction, it may open new growth opportunities. Success can allow you to sign more artists, hire professionals, or even branch into related businesses, such as merchandise or event management. If things go well, you could give away your managerial tasks to another person. Owning a successful label would also allow you to give back to the music community by supporting less experienced artists and signing those in whom you see potential.