Why Music Producers Need to Think Like Record Labels

In the era of streaming and mass online consumption, music industry roles are shifting dramatically. Major labels have consolidated their power, but more and more revenue is going to independents.

Emerging artists now need guidance more than ever to navigate this complex environment and build sustainable careers. Forward-thinking producers are uniquely positioned to fill this void.

Let's dive deep into a revolutionary idea that could reshape the entire music industry. Imagine a world where you, as a music producer, step into a role beyond the studio – where you become not just a creator but a visionary, not just a technician but a tastemaker.

It's time to think of yourself not just as a producer, but as mini-record label. In this extended exploration, we'll uncover the why, the how, and the immense potential this paradigm shift holds for you.

Embrace the Investment Model:

It’s important to see each artist project as a long-term investment, not a one-off deal. Instead of trying to make as much money as possible through work-for-hire projects, modern producers can own equity in recording artists’ careers. This is called working ‘on spec’, or speculative value.

Speculative work trades up-front fees for back-end shares of master recordings, and often compositions if the producer writes with the artist. In this model, the producer takes on more risk, because there is zero guarantee of payoff. But one big song can pay back all other other losses following the model of record labels and venture capitalists.

Instead of working for the highest bidder, with no ownership in the product, you are “betting” on talent you believe in. Your role transforms into guiding full careers versus single productions.

So what does it look like to make bets on artists? Here’s a quote from a 2014 article on Berklee’s website. It’s a bit outdated, but still accurate:

This model makes you the VCs of music – maximizing chances of success by spreading risk across your "portfolio of artists". With the wealth created from a single superstar, you make more money and increase your status more than you ever could making a bunch of mediocre records.

The Unique Power Producers Hold:

You, as a music producer, are not just the wizard behind the soundboard; you can become the architect of an artist's destiny. The music you produce isn't just a collection of tracks; it's the foundational product upon which artists build their careers. You give life to their creative vision, and often it becomes an expression of your creative vision too. So, it makes sense that you would have some ownership in the final product.

The Budget Conundrum:

Now, consider this paradox – many of the most exceptional artists often have the tightest budgets. The modern music industry demands relentless output, with artists expected to churn out hit after hit while drowning in a deluge of content creation for marketing. But here's the rub: most emerging artists, no matter how good their music is, can't keep up with this pace, both creatively and financially.

This is your a-ha moment: You, music producers, are uniquely poised to solve this problem. You have the potential to become the primary enablers of consistent product creation for artists. In essence, you hold the key to their startup’s success.

Scout Like an A&R Executive:

Taking on A&R responsibilities like continuously scouting for new artists not only grants you exclusive access to the freshest talent before they have the chance to be signed elsewhere, but it also unleashes a world of opportunities for you to shape and mold their careers from the very inception.

With your seasoned insights and expertise, you possess the extraordinary power to play a truly pivotal role in nurturing these budding artists, guiding them towards success and propelling them to reach their full potential.

This mentorship does more than just benefit the artist; it serves as a testament to your status as a tastemaker in the industry, cementing your reputation as an individual with an impeccable eye for talent and an unwavering commitment to developing the next generation of musical superstars.

Be a Bridge Between Artists and Labels:

With your ability to recognize and nurture artistic potential, you have the power to serve as a crucial link between gifted artists and influential music companies. By connecting the dots, you can facilitate partnerships that result in significant financial gains from the records you make.

And don’t forget, you own a significant portion of those records. The incentives for you and the artist are aligned. When they make money, you make money.

In an industry where labels are constantly on the lookout for promising acts, you can position yourself as a respected and trusted industry connector. By going above and beyond to help artists flourish, you establish yourself as a key player in the music business, solidifying your influential position.

It is not uncommon for producers to end up in A&R roles at labels, and also for labels to send them signed artists with bigger production budgets. So building this bridge and looking to partner with labels offers you a massive strategic advantage.

The White-Glove Distributor:

But why stop at being a mini-label?

Elevate your role, expand your influence, and grow your revenue streams by assuming the much-needed position of a white-glove distributor. This opportunity is not just about exceptional music; it entails the vital task of effectively distributing it, managing splits and payouts, while ensuring meticulous attention to all legal aspects.

For emerging artists, navigating the confusing and intricate maze of copyrights and music distribution can be an overwhelming process.

What they truly need is a dependable source of expertise and quality control, precisely what labels were established to provide. Now labels are more focused on providing investment to developed artists, while leveraging their team and marketing connections to help the artist grow.

Distribution platforms are mostly just undifferentiated software platforms that don’t give artists any real attention.

So there is a big opportunity to find a sweet spot as a white glove distributor. When you have ownership in master recordings, it is in your best interest to ensure that the songs are distributed properly. Embrace this responsibility and become a hands-on distributor offering quality control, reliable systems and strategic connections.

Manage Milestones and Build Momentum:

If you are going to invest in artists, it is imperative to provide support in the release of their singles. This is the key to boosting fan engagement and maintaining momentum throughout the release cycles.

The most effective approach is to stick to a well-defined release timeline, putting out a fresh single every 6-10 weeks. This strategy allows for a promotional period of 3-5 weeks leading up to the release, followed by an additional 3-5 weeks dedicated to post-release promotion.

Rinse and repeat.

By implementing a structured release cycle, you can ensure that the music you worked so hard on is given the absolute best opportunity to cultivate a substantial fanbase and continually growing audience.

Expand Income Streams With Sync:

The potential for sync placements in ads, films, and TV extends earnings far beyond streaming alone. You, music producers, are well-positioned to pursue these syncs. You have an innate understanding of what kind of music elicits certain emotions and works in different contexts, making you invaluable in securing these lucrative opportunities. By venturing into this territory, you can significantly boost your income while simultaneously benefiting the artists you work with.

When you and the artist are 50/50 co-owners in the copyrights, sync becomes a powerful partnership that can make you both a lot of money.

Proactively pursue sync placements to grow your opportunities beyond streaming. Monitor trends to see what is in high demand in ads, TV, and films, while steering artists to create music that is consistently needed. Your investment in this area will compound over time as your catalog grows and you work with new artists.

Be a Guide and Mentor:

If you step into the artist development role, and you find that you like coaching artists, this too, can be a way to grow your reputation in the music industry and to increase the chances of artists succeeding long term.

Great producers come in many forms, and the wise mentor is certainly a valid way to show up for your artists. If you feel like you have good advice to offer the artist, then ask for their permission to mentor or coach them. If they get value from it, your guidance becomes another reason for them to keep working with you and investing in you as they grow.

Harness Partnerships and Network Effects:

If you discover that you possess a talent for effectively managing the operations of your own mini-label, you will uncover a huge opportunity to join forces with other producers and help them manage their operations, thereby establishing a vast network of interconnected mini-labels.

By doing so, you will have the ability to assist them in expanding their production output, fostering collaboration across peer networks, and combining strengths, rosters, resources, and shared support. Together, you will be able to fulfill the functions typically associated with larger independent labels, and to position yourself as the chief executive of the operation. As the team grows, you will be able to leverage each other's expertise and strengths, creating a highly beneficial network effect.

Envision this scenario: You, as music producers, collaborating on numerous projects, generating a powerful synergy that exponentially increases your likelihood of achieving success together as a team. As a result, you establish a network of mini-labels, each with its own distinct approach and artist roster. This collaborative ecosystem ensures that risks are distributed, and that rewards flow more consistently through the network.

Compounding and Data Driven Growth:

As the network continues to expand and evolve, the possibilities to harness the achievements of fellow creators within the network become even more abundant. By facilitating collaborations between artists in the network, you have the power to propel emerging talents to new heights by exposing them to the established audiences of more seasoned artists.

By diligently monitoring and analyzing the data, you can gain invaluable knowledge from the burgeoning fanbases of artists across the network. Utilize analytics to gain insightful perspectives, optimize social strategies, share audiences, and delve deeper into genuine engagement rather than merely focusing on superficial numbers. Armed with data-driven insights from the entire network, you can consistently make informed decisions that propel all creators involved to unprecedented levels of success.

Shape the Future:

Producers have the opportunity to emerge as powerful forces, assuming larger roles in the artist development process. This is a new era in the music industry, and producers are leading the way. They are not just making music, but also shaping careers and redefining the industry.

Artists need champions who can act as real partners to help them succeed.

You have a golden opportunity to lead the charge and become the architect of artists' careers. You can bridge the gap between artists and labels and find new ways to make money together through sync placements.

This is a trend that is rewriting the rules of the music industry. It's a future where creators are in control, talent thrives, and the music actually makes money.

So, music producers, are you ready to step into this brave new world?

The stage is set, the spotlight is yours, and the future sounds incredible.