How to Become a Music Distributor: A Step-by-Step Guide

Kristian Gorenc Z

Apr 15, 2024

The music industry is a dynamic and ever-evolving field, full of exciting opportunities, especially in the realm of music distribution. If you're considering stepping into this lucrative sector, understanding the nuances of how to become a music distributor is crucial. This comprehensive guide will walk you through the process, highlighting the key steps and considerations for establishing a successful music distribution company.

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Understanding Music Distribution

Music distribution, simply put, is the process of getting music from the artist to the store, thereby making it accessible for public purchase. In the digital age, this concept has expanded beyond traditional agreements with record labels and stores. It now encompasses online distribution, where artists can directly distribute their music while retaining 100% of the royalties.

The Rise of Digital Distribution

The music industry has witnessed a significant shift with the advent of digitalization. Album sales began to decline in the early 90s, leading to an increase in the number of independent label distributors. The advancement in network bandwidth has further propelled online distribution, allowing content to be streamed or downloaded, including music.

Starting Your Music Distribution Business

Lay the Groundwork: Start by identifying local artists with unique sounds. Avoid imitating current market trends. Instead, focus on discovering and nurturing fresh talent through commission-based agreements.

Go Digital: Eliminate printing and packaging costs by opting for digital distribution. This not only reduces overheads but also allows for instant distribution of artists' and record labels' work.

Research and Model: Study existing online digital music distribution models for insights on operations and best practices.

E-commerce Integration: Ensure your platform has a shopping cart feature and consider setting up a free PayPal business account for smooth transactions.

Diversify Your Offerings: Expand beyond music sales. Engage in the sale of usage rights for various media and sign artists up for royalty collection agencies like BMI.

The Role of a Music Publisher

As a music distributor, you can also take on the role of a music publisher. This involves reaching out to production companies, offering your library of songs for their projects. Remember, only copyright owners can sell rights to a song.

Networking: The Foundation of Success

Building strong relationships with streaming platforms, manufacturers, and artists is vital. Engage actively on social media, offer insightful content like album reviews, and collaborate with nightclubs aligned with your music genre.

Legal Considerations

When launching your music distribution business, it's crucial to operate as a legal entity. This not only showcases your professionalism but also increases your chances of securing contracts.

Importance of Insurance Policies and Intellectual Property Protection

Having the right insurance is imperative in the music industry. Additionally, protecting your intellectual property and that of your artists is essential to prevent piracy and safeguard your brand.

Financing Your Venture

Starting a music distribution business requires capital. A well-crafted business plan is your key to securing initial funding. Remember, a promising business idea will attract investors more easily.

Technical Requirements and Trust Building

Trust is paramount in music distribution. Maintain meticulous bookkeeping records and establish secure payment methods with music stores. Building trust with record labels and independent artists is essential for a smooth-running operation.

Setting Up Your Business

You can start your music distribution business from home, indicating the minimal manpower required. Most of your employees can work on a contract basis, allowing for flexibility and scalability.

Conclusion

Establishing a music distribution company requires a blend of passion, knowledge, and strategic planning. By focusing on digital distribution, building strong relationships, and ensuring legal and financial preparedness, you can carve a successful path in this dynamic industry. Remember, in the world of music distribution, innovation, and adaptability are your best allies.