New Music Labels as Artist Collectives

In today’s music business, record labels are completely amorphous. No one knows what they are, what they should be, or where they are really going. I mean, we know what they are - but how is it that record labels can be the uber-conglomerate Universal Music Group on one end of the spectrum and Dude in his living room on the other? What makes both of them “labels” and what do today’s “labels” offer today’s musicians?

The majors used to be able to dangle the elusive record contract in front of musical hopefuls during their perennial quest to “get signed.” The major label appeal has obviously dissolved over the past few years. Getting signed isn’t the only path to building successful music careers these days. Currently, the major label machine sucks up and spews out more destroyed music careers than than do build successful ones.

We now know (and if you don’t, please allow us to convince you!) that you can’t just input huge amounts of resources (i.e. cash) into an undeveloped artist and expect them to succeed. It has to be more organic than that. You have to grow your career in a slow, deliberate, and legitimate way before you can expect the major label machine to work for you.

Most of you reading this already recognize these realities and might be more interested in signing with an indie. But again you need to really ask yourself what it is an indie can do for you. Most indies, if they aren’t already bankrupt, are strapped for cash. They don’t have the vast resources and strong arms that the majors have (or had?). With each passing day, musicians themselves are being increasingly empowered with the plethora of online services. We don’t necessarily need physical distribution anymore; the best kinds of marketing strategies are free. So once again, we are asking ourselves, “Why do I want to be signed?”

The only answer to this question that has remained valid throughout the years and, I believe, will continue to be the main advantage to being on a label’s roster is the advantage of community. The labels that embrace this concept as the foundation for which they exist and as the guiding principle moving into the future will…well…have a future.

I recently attended an interview with Greg Rodriguez, founder of Community Records. While still in its infancy, Community Records is (this won’t shock you) all about community. Greg offers little as far as financial resources or marketing reach for the artists on its roster. Instead, bands themselves take on an active role in supporting each other.

As Greg touts on the website, the focus of Community Records is:

1. People
2. Good Music
3. Connecting #1 and #2

This doesn’t seem ground-breaking at first glance, but what is unique here is that Community Records is NOT focused on selling records. It’s not that they don’t want to sell records, but they have recognized that selling is a short-sighted goal, and community is the label’s actual long-term purpose and, in effect, its largest asset.

He’s also fantastic about being transparent, which is increasingly important as people demand authenticity. Greg has no qualms showing you the Community Records headquarters (i.e. his apartment):

This makes you feel all warm inside and sounds just super swell, but how is Community Record’s community translating into sustainable music careers?

The bands cross-promote each other. A sticker/pamphlet/poster for one band also includes the others. They play shows together, basically filling a night’s lineup. They’ll trade off headlining and opening for each other on various nights. They plan tours together, effectively spreading out the cost and risk involved in DIY touring. They can collectively create more visibility for the tour than the lone-wolf type band ever could for themselves. Futher, Community Records has been releasing compilations instead of individual albums. They’ve built a roster around a specific focus and aesthetic, so if you like one of their bands you are probably going to like them all. Releasing compilations is another way to spread out the cost and reduce the risk bands take when releasing their songs. It also allows band to shorten release music more quickly (every two songs as opposed to a full album). It also makes their records more viral - fans are more likely to share it with their friends.

I’ve shared all of this with you to reinforce and drive home two points I’ve been thinking a lot about lately:

1. The record label as financial/distribution/marketing machine is obviously dead.
2. The record label as artist collective is here.

Consider this when figuring out how you plan to transition your music career into the new music business.

Of course, this is my opinion which you are entirely free to disagree with. What do you think? Are you still interested in getting a record contract these days? Can you instead combine your efforts with like-minded musicians to achieve better results? Can you collectively make a ‘label’ with your music community?