Major Label Distribution Deal

music retail companies

Many up and coming artist contact us inquiring about music distribution deals. They want to know how to get one and if it is worth signing one with a record label or a music distribution company. In order to land a deal with either or entity you will first have to have a proven model of sales, and we will get into this later on in the article.

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What Is Music Distribution

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Music Distribution is essentially distributing music to retail outlets so people can buy. The form of retail outlets are online and digitally, with digital being the most prevalent form of music consumption no-a-days. There are two Traditional ways distribution is handled. The first way is a distribution company sign a deal with record labels which give them the right to sell that label’s music and merchandise.

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What happens is that the company distributing the music takes a percentage from each unit sold, and then pays the label the remaining balance. This is only if the product is finished and ready to market to the world. If not then then the distributor offers “M&D” deals. Which is second way to distribute music.

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A M&D deal stands for manufacturing and distribution. With this set up, the distributor pays the manufacturing costs of an album up front and keeps all the income from album sales until that initial investment is paid off.

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How To Sign A Music Distribution Deal

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This answer is easier said than done. Only because to sign a distribution deal through a record label you have to have a proven record of sales. The reason for this is because in order for a record label to invest in you they want to know that they will be getting their investment back relatively fast.

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they want a quick return on investment, and to have some sort of gauge if that is possible is to analyze the stats of the artist in question. The record label looks at social media followers, music streams, music sales, music downloads, and concert ticket sales in order to determine if the artist is right to sign a distribution deal with them.

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Can an artist sign a distribution deal directly with a distribution company? Yes, but it would be increasingly more difficult if the artist didn’t have a record label backing him. Record labels have a team and staff behind them that are experienced in handling the deals, so it would be best to sign the distribution deal through a record label.

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independent rap labelsHow Do Independent Record Labels Distribute Music

How indie record labels distribute music is either through setting up their own distribution facility, sort of what rapper Tech N9ne did, or by working with a distribution and manufacturing company that specializes in the distribution of music. More times than not it is the latter.

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The reason for this is because it is way cheaper and less hassle for a record label to work out a deal for a distribution company to distribute the music, rather than setting up their own shop and handling all the work themselves. Self distribution is a lot of work and can get pricey.

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Music Distribution Companies List

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There are several music distribution companies that your label can hire to handle the distribution of their projects. Remember that the most music that is being distributed today is through online retail outlets. Below I have listed a few reputable outlets.

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Itunes

Rhapsody

ADEDistribution

Tunecore

Reverbnation

CdBaby

Songcast

AWAL

Believe Digital

The Orchard

Distrokid

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These are the most trusted and reputable names in online distribution and retail for music. Most people are going to ask which one is the best one. And I will tell you what I tell everyone who poses the question. You have to do your own research on the companies listed in order to see which one suites your needs as an artist or record label.

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Written By Jerome Kyng

@JeromeKyngMP

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