Business Idea

Become A Record Label Owner

About

Becoming a record label owner requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell record labelling services, or selling record labelling services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$24.8B
starting costs
$24.5K
gross margin
43%
time to build
9 months

About

Becoming a record label owner requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell record labelling services, or selling record labelling services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$24.8B
starting costs
$24.5K

 

gross margin
43%
time to build
9 months

Startup Costs

Min Startup Costs Max Startup Costs
Equipment & Supply Expenses $550 $6,500
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $9,636
Software Expenses $0 $425
Website Costs $17 $275
Other Expenses $0 $300
Total Startup Costs $2,242 $43,536

Successful Businesses

Business URL Rank
unknown ddns.us #69,865
Access State Records Online staterecords.org #79,304
UMG universalmusic.com #85,718
Treasurer-Tax Collector sdttc.com #150,947
Tower Records towerrecords.com #168,658
Maybach Music Group Official Website mmgselfmade.com #169,641
​​Mecklenburg County Government mecklenburgcountync.gov #181,882
Sub Pop Records subpop.com #196,303
ROC NATION rocnation.com #251,395
Kobalt Music kobaltmusic.com #279,838
RCA Records rcarecords.com #304,993

Pros & Cons

Pros Description
Rewarding work Starting a record label owner can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a record label owner. This could be the start of an incredible business opportunity!
Daily physical activity Record Label Owner's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the record label owner comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With becoming a record label owner, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of becoming a record label owner is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Cons Description
Crowded Space Competition is high when it comes to your record label owner, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your record label owner are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the record label owner, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a record label owner, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

    Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to record label owner.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜