Importance of a Record Deal

Submitted by Shauno

February 25, 2007

The title would better be stated "The Lack of Importance".  I talk to and hear so many MC's whose lives revolve around the prospect of obtaining a record deal.  From the door, this is not to say that obtaining a record deal is a bad thing totally.  My problem is that many artists do not educate themselves of the business end, outside of "I wanna get paid!"

As the dynamics of the industry change, there are things artists can do independently that will ensure they are more attractive for the right deal IF they choose to go that route.  For instance, in the past, record companies were key to getting that high quality studio sound, without spending mega dollars to complete an album, duplicate, market, distribute, etc.  This is before technology demand forced prices down and of course the internet.

Once you realize record companies are simply businesses making investments, you get a better idea of your worth to them.  A company that invests is primarily focused on ROI - Return on Investment.  Artist development is almost a thing of the past, so as record sales decrease, an artist coming to a major with no audience is viewed as a liability.  Diverse music is being signed less in an effort to put everyone into convenient categories with cookie cutter formulas of music production, marketing, etc.

On the other end of the spectrum we've got technology for cheap lately and can produce our own music with quality sound.  You don't even need a booth these days and many artists still don't realize the power they posses with technology and the internet.  We must change our perspective of being successful from having that deal to having ownership and 100% Return on Investment.  1000 CD's can get you $10,000, etc. and the price of duplicating 1000 of your own CD's is a lot less lately.  

Record companies can't stand the internet because they cannot control it, only grab market shares of it.  Sites like Youtube, Myspace and CD BABY have revolutionized media, using different takes on how a business model should work.  I'm pushing to tap into that.  Our motto is to continue to make noise and investors will come to you (notice I didn't say deals).

Just think, when you are independently pushing you own product, have a website, performances,  and or an audience, they've gotta talk to you different.  Always be aware of your own worth and how you can increase it.  Spend time perfecting your craft and focusing on putting yourself on. If this what you really want to do, look for opportunities that are going to give you more longevity (like having more ownership of your material).  The deal can get you notoriety and quick loot but you have to recoup.  Everybody wants a go at that quick buck but when those right moves aren't behind it, cash don't last long. You go onto that Monopoly board already in debt.

One,

Shauno