DIY musician series (part 2): the traditional music industry route

At this point, I must note that it would be remiss if I were simply to offer the advice that young upcoming bands should only use new technology, launch themselves and ignore the record label establishment. The fact of the matter is that, although it is possible to make it very far these days without an outside record label, most artists can still only get so far and no further without the input of a good record label.

Taking the YouTube, Facebook or SoundCloud route, for example, can still not be enough in general to break an artist in the real sense.

This might change in the future, but for now, although technology is speeding up, it still does not provide an artist with the infrastructure he will need when he becomes 'big'. At that point he will either have to go to an outside label or set up his own label and employ staff, but only if he knows and understands the business.

A good label can set up distribution around the world, whether the product is physical or not; it can deal with pressing, digitisation, advertising, marketing and accounts. Above all it has the infrastructure to handle the complexities of the business.

The 'getting signed to a label' (or traditional music industry) route used to be the only path for an artist to take if he wanted to be a become a star with any meaningful success. Now with the internet, and all the opportunities it brings, some artists have managed to thrive on this alternative marketing and distribution system. In truth, it has been the exception rather than the rule for successful artists to have no involvement whatsoever with a label, even if just in terms of licensing or distribution.

There is no doubt that developing a good online presence can place an artist in a better position to negotiate a record deal, but that deal must eventually comes. With literally millions of unsigned acts on Facebook, Soundcloud, MySpace and the rest, let's face facts: getting noticed is not easy, and even if it is achieved, the time will come (particularly if the artist has independent online success) when the artist will need a record label's infrastructure to keep growing his career.

The internet is a very busy place and trying to break through this is like 'screaming in space' (in the IFPI's words). Record labels (or at least those that will flourish), offer expertise, such as choosing the right song to release as a single, contracts, infrastructure and above all investment. However, the extent of that investment (and whether the company actually incurs the cost or recoups it from the artist) will depend on the recording contract. A good understanding of recording contracts has therefore become more important than ever.

Taking the record label or traditional music industry route means involving a number of people or entities, and although they are there to help the artist succeed, they will come at a financial cost. It sounds attractive for the artist to have a team, and there are certainly advantages; suddenly it is not just the artist but a host of other people who want him to be successful, famous and rich: the record company will make sure the artist's recordings are strongly marketed on the internet, in retail stores and elsewhere, hopefully with a perfectly recorded master made with the help of a professional producer and a wonderful cover design; the publisher will make sure the artist's compositions are protected and exploited to the maximum and aired as often as possible; and the agent will take care of live performances.

The above are the advantages of using a label and all these other people.