Setting Up a Record Label
About
These include learnings from our ‘industry collective’ project which supported a new group of young people to launch a record label. This project was funded by Youth Music and Creative Scotland.
These resources have been made from talks and Q&A’s with labels Gravity Pleasure, Lost Map, Rhythm Section, Warp Records, Somewhere Press, Index/Co:Clear and No Soap. This page is a live wip, our team is working hard to edit and refine resources so that they are easily accessible.
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Basics
1. Purpose
Across label talks there was a shared pattern in that established labels know exactly who they’re serving and why before they worry about scale or profit.
Practical steps:
Define a focus: e.g. FLINTA / queer artists, experimental/ambient, a specific city/scene.
Write a short mission paragraph that explains:
the community or context you care about,
what you want to change or support,
the kind of releases and activities that make sense for that.
This mission can be a solid foundation for your label to work within. If a project doesn’t fit within this then you probably shouldn’t release it.
2. Release Formats
Early decisions about format strongly affect stress and money.
Patterns that work for small labels:
Cassettes + digital are a gentle starting point:
Very low minimums, relatively cheap to ship.
Good for building a visual identity and testing demand.
Small vinyl runs can work if:
You keep quantities modest (e.g. 100–300),
You have at least some confidence in sales (mailing list, events, existing audience),
You’re honest with artists about costs and risk.
Digital‑only is administratively easy but easy to overlook unless you already have attention; combining it with a physical object or events tends to have more impact.
A sensible progression many of the labels follow:
Tapes + Bandcamp,
Tapes + selected vinyl projects,
Vinyl becomes more central once there’s clear demand and systems or with startup funding.
3. Timelines
Gravity Pleasure, Lost Map, Rhythm Section and Warp all described timelines that are longer than people expect.
Common patterns:
First releases often take many months from idea to launch.
The last month or so before release is extremely intense: artwork, metadata, production, assets, press, social, shipping.
A decent EP/album campaign needs at least:
Several weeks for digital distribution and playlist pitching,
A staged plan for singles and a focus track,
Time to send promos and follow up.
Practical tip: for your first project, pick a tentative release date and then work backwards 3–6 months, blocking time for:
Artwork and mastering,
Manufacturing or duplication,
Promo build‑up (singles, press, radio, socials),
Logistics (shipping, launch events).
4. Using simple tools (spreadsheets) to stay organised
Gravity Pleasure, Rhythm Section, Lost Map and Warp all discussed how they lean heavily on simple shared tools, especially spreadsheets.
At minimum, keep three sheets:
Finance
Expenditure per release: mastering, artwork, production, shipping, PR, event costs.
Income: Bandcamp digital, Bandcamp physical, wholesale, events, memberships, funding.
Who gets what: recoup line, split % with artists.
Release tracker
Each release with status fields (masters, artwork, credits, vinyl/tapes, distribution uploaded, press pack, etc.).
Contacts / promo
Press, radio, DJs, shops, playlist curators, plus when you last contacted them and their response.
Even very small labels in the talks use this level of structure to avoid losing track of money, credits or relationships.
5. Deals and transparency
Simple, fair structures work better than complicated “industry” contracts.
Patterns that recur:
Small labels often don’t pay big advances; instead they:
Recoup agreed production/marketing costs from income,
Then split profit (often 50/50) with artists.
For physical releases:
They sometimes split stock instead of or alongside money (e.g. artist gets a portion of the run of records/cassettes at cost).
For rights:
Many deals are licence‑based for a defined period rather than permanent master ownership.
Practical tips:
Write a short, plain‑language agreement that covers:
Term (how long),
Territory (where),
What formats you’re doing,
Who owns the master,
How recoupment and profit split work,
How you’ll account and how often.
Be upfront about the fact that you’re small and what you can realistically offer (money, time, contacts).
6. Prioritising community and events, not just releases
Gravity Pleasure, Index/co:clear, Lost Map and Warp all treat events and community spaces as central to their labels.
They use:
Regular nights, listening sessions, and mini‑festivals to:
Build a recognisable community around the label,
Road‑test music and artists,
Generate some income and visibility.
Collaborations with venues, local radio, and other organisers to embed themselves in a scene.
For you, this could mean:
A recurring event (monthly/quarterly) in one room,
Occasional listening parties tied to a release,
Co‑presenting nights with other crews you trust.
Think of these as part of the label, not side projects.
7. Artist Selection
Warp, Index and Lost Map all implied that choosing the right artists is a basic skill, not an advanced one.
Key ideas:
Start from music and fit: does this person sit naturally inside your mission and scene?
Ask whether you can actually help: time, budget, contacts, emotional bandwidth.
Look for some signs of existing or potential community:
Local support, DIY shows, or online presence you can amplify.
It’s better to say no than to take on something you can’t support properly.
A simple mental checklist for each artist:
Do we love this music and does it fit our ethos?
Do we have enough capacity to do right by them this year?
Is there at least one route to audience for this (local scene, online niche, events)?
8. Release Campaigns
The promo‑focused talks all framed campaigns as stories unfolding over time, not one‑off posts.
Useful habits:
For each release, define:
The core story (who is this, why this record, why now?),
1–3 key assets (press shots, cover art, visual theme),
2–3 moments: first single, main announcement, release day, maybe one event.
Build a small but focused list of people you really want to reach (press, DJs, shops, radio shows) rather than blasting everyone.
Combine online and offline:
Digital distribution, playlists, socials,
Plus at least one IRL or community‑oriented component (show, listening party, in‑store, radio takeover).
Distribution
1. Core decision: direct vs distributor
Across the talks, labels described two main routes for getting releases out into the world:
Direct-to-fan (no external distributor)
Selling mainly via Bandcamp, your own webshop and at events.
You keep a larger share per unit, have full control of pricing and stock, and can move at your own pace.
Best for early‑stage labels, very niche music, or when you’re still learning what sells and where.
Working with a distributor
Distributor handles getting records into shops (and sometimes digital platforms),
and may offer a “P&D” (pressing & distribution) arrangement.
Good for when you know there is demand, you want presence in stores, and you’re ready for more formal systems (reporting, schedules, minimum pressing runs).Most small labels in the talks start direct‑to‑fan, then bring in distribution per project when it clearly makes sense.
2. Physical distribution basics (tapes & vinyl)
Tapes
Typically sold directly via Bandcamp, at shows and through a few friendly shops that order small quantities.
Because minimum orders and shipping costs are low, many labels manage tape “distribution” themselves (post orders, do occasional consignment with local shops).
Vinyl
From Lost Map, Index and the promo sessions, a few consistent patterns emerge:
Small runs first
Many DIY labels press in the 100–300 range initially, test demand, then repress if it works.
Combining direct sales + a handful of key shops can already move a small run.
Splitting stock
For some deals, a batch is pressed and stock is divided between label and artist; both then sell via their own channels.
With a distributor
The distributor takes a share of wholesale and handles selling into shops, returns, and some reporting.
Often requires more formal timelines and minimum pressing quantities to make freight and logistics viable.
Practical early‑stage approach:
Handle tapes and part of a vinyl run direct (Bandcamp + shows).Offer a portion of vinyl stock to one trusted distributor or a small number of shops, rather than trying to be everywhere at once.
3. Digital distribution & metadata
Rhythm Section’s mechanics session and the Warp talks emphasise that digital distribution is mostly admin and planning.
Key steps:
1. Choose a digital distributor/aggregator (or use the one your label already has): they deliver your releases to Spotify, Apple Music, etc.
2. Prepare correct metadata and credits:
Artist names, track titles, writer/composer info, producers, mastering engineer,
ISRCs, catalogue numbers, release dates, artwork.
This prevents income being misrouted or releases going live incorrectly.
3. Upload well in advance: Leave weeks (ideally a month or more) between upload and release so you can:
Pitch tracks to editorial playlists,
Align singles, pre‑saves, and press activity.
Claim and maintain artist profiles:
Make sure bios, photos and links on DSPs match the story you’re telling elsewhere.
Even if your heart is in physical formats, clean digital distribution ensures that when someone looks for the music, it’s there, correctly credited, and linked to the right artist.
4. Hybrid strategies that actually show up in the talks
Most labels in your folder don’t pick a single distribution route and stick to it forever; instead they mix:
Direct + membership/club
Lost Map combine their webshop, Bandcamp and a subscription club; this spreads risk and gives a predictable base income while they experiment with small runs and sync deals.
Local shows + online shops
Gravity Pleasure, Index/Co:Clear and others lean on local events and scenes to sell physical copies and then use Bandcamp / digital distro as the long‑tail home for those releases.
Campaign‑driven distribution
Warp plan distribution (physical and digital) as part of a wider campaign: reissues, shows, listening parties, press and social all coordinated so shops, DSPs and fans are hit at the right times.
Takeaway: treat distribution as one piece of a bigger system (community, events, promo), not just a technical upload step.
5. How to choose what’s right for a new label
Based on the patterns across Label Talks, a rough starting path for a small or new label could be:
1. Release 1–2 projects via:
Tapes + Bandcamp + local shows,
Basic digital distribution through a simple aggregator.
2. Evaluate:
Did you sell out tapes?
Did anyone outside your immediate circle buy or write about it?
Which cities / scenes responded?
3. For a release that clearly connects:
Consider a small vinyl run and introduce a distributor or a few targeted shops.Tighten your digital set‑up (better metadata, profiles, playlist pitching).
4. Only after that:
Explore more complex deals (P&D, bigger pressing runs, structured international campaigns).
The thread running through the talks is: start small, distribute in ways you can actually manage, and scale only where you see real traction.
Contracts
You don’t need a huge legal document, but you do need something written for each release so everyone knows what’s happening.
1. Why?
Avoids confusion about money, ownership and timelines.
Gives artists a clear basis if other labels/publishers approach them later.
Helps you keep track once you have more than one release.
2. What to include
For each release, your agreement should clearly state:
Who
Label name + contact, artist name + contact.
What recordings
Exactly which tracks/EP/album are covered.
Ownership & rights
Does the artist keep the master and licence it to you for a period (most DIY‑friendly), or something else?
Where (territory) and for how long (term) you can exploit the release.
Money
Which costs you’ll recoup (e.g. mastering, pressing, agreed promo).
How net income is split after recoup (e.g. 50/50 or another clear percentage).
How physical stock is handled (who pays, who gets how many units).
Accounting
How often you’ll send statements/payments (e.g. once or twice a year).
Responsibilities
What the label commits to do (release, keep it available, basic promo).
What the artist commits to (deliver masters on time, not double‑licence the same recordings during the term).
Exit / behaviour
Simple rules for ending the deal and what happens to remaining stock or digital availability.
Optionally, a basic clause letting you walk away in case of serious misconduct that clashes with your ethos.
3. How to keep it DIY‑friendly
Aim for 2–3 pages in plain language.
Be specific about numbers (percentages, recoupable costs, dates) – no vague phrases.
Use the same template for all releases and just change the details.
Be honest about what you can really offer (money, time, promo), and don’t promise more than that.
Resources provided by our partnering labels:
Community
1. Think of the label as infrastructure, not just releases
Your label is a structure that connects artists, audiences and spaces around shared values, not just a pipeline for tracks.
2. Build local and global links
Local: regular nights, listening sessions, and venue relationships in one city or area.
Global: slowly grow connections with like‑minded artists, DJs, radio shows, and labels elsewhere.
3. Use events as a core tool
Small, consistent events (club nights, fundraisers, listening parties, in‑stores) help you:
Gather your community offline,
Sell physical releases,
Give the label a real-world presence.
4. Communicate like a person, not a brand
Maintain a mailing list and socials where you talk honestly, answer people, and keep artists/fans updated between releases.
5. Support artists beyond one record
Stay in touch, share opportunities, and involve artists in mixes, compilations, events or membership projects so they feel part of an ongoing community, not a one‑off transaction.
Resources
Below are some downloadable resources provided by our partner labels and made by us (more to come).
Rhythm Section Example Contract (PDF)