
How to Set Up Your Music Career as a Business & Attract Labels
Breaking into the music industry can feel like an uphill battle, filled with uncertainty and competition. But one thing's for sure—emerging artists who treat their music career as a business stand out and open doors to opportunities, especially with record labels.
Why? Because professionalism, strategy, and structure draw attention from labels and make it easier for them to see why investing in you makes sense. If you're ready to take your music to the next level, we're here to guide you through understanding record labels, their benefits, and, most importantly, how setting up your career as a business can help you land that coveted deal.
What is a Record Label, and Why Does It Matter?
A record label isn’t just a logo on the back of an album. It’s a business that manages the creation, promotion, distribution, and monetization of music. Essentially, labels act as a support system for artists by amplifying their reach, connecting them with resources (like producers, marketers, and tour managers), and ensuring their music reaches the right audiences.
However, partnering with a record label is not as simple as signing on the dotted line. There are trade-offs you need to understand first.
How Record Labels Work
When a label signs you as an artist, they often grant a financial advance to fund your music career, covering expenses like production, marketing, and touring. But here’s the catch—that advance is, in essence, a loan.
After your music hits the market, the label recoups what it invested from your earnings, such as streaming revenues, merchandise, and ticket sales. And in many cases, the rights to your music rest in their hands, depending on the terms of the contract.
Deciding Between Major and Independent Labels
One crucial factor to consider when engaging with labels is whether to work with a major record label or an independent (indie) label.
Major Record Labels
These are household names like Universal, Sony, and Warner Music Group. They have vast resources, global reach, and immense influence over the industry. A signing with a major label can mean massive opportunities—but with less personal attention.
Independent Labels
Indie labels, on the other hand, tend to have smaller rosters and focus more on emerging talent. That personalized approach allows new artists to receive more care, attention, and creative freedom. While they may not have the same financial muscle as major labels, indie labels are often a better cultural and artistic fit for musicians who prioritize authenticity over mass production.
The Business of Music
If your goal is to catch the eye of a record label, you must first establish yourself as a credible, self-sustaining artist. This means thinking like an entrepreneur, running your career like a small business, and building value that resonates with potential label partners.
Here’s how you can set up your music career as a business to attract labels.
1. Build Your Brand
Your image, sound, and story are the foundation of your brand. What makes you unique as an artist? Are you an edgy alternative punk voice or a soulful storyteller? Beyond your music, labels look for artists who stand out and know how to present themselves consistently across platforms.
Invest in professional photos, create a compelling artist bio, and develop a cohesive social media presence that reflects your personality and resonates with fans.
2. Master Your Craft and Build a Portfolio
Before labels take a chance on you, they’ll want to see that your music can stand on its own. Consistently release high-quality tracks that showcase your range, talent, and evolving artistry. Creating an Electronic Press Kit (EPK), including sample tracks, music videos, and achievements, can make it easier for labels to evaluate what you bring to the table.
3. Develop a Loyal Fanbase
A loyal audience translates into tangible value for any label. They look for artists with an active, engaged fanbase because it indicates your ability to generate revenue.
Focus on growing your following on streaming platforms, social media, and live shows. Interact with your fans, encourage them to share your music, and create moments that foster engagement, like behind-the-scenes content, giveaways, or exclusive access.
4. Present a Strong Business Case
Record labels are businesses, and they want to invest in artists who can bring returns. By setting up your career as a formal business, you make it clear that you're serious and professional.
Here are a few steps to get started:
Register Your Business: Create a legal entity (such as an LLC) for your music career to handle royalties, booking payments, and expenses.
Manage Your Finances: Keep detailed accounts of your revenue streams, investments, and expenses. Use software or hire professional services to stay organized.
Promote Your Work: Treat your projects like products. Invest in marketing tools, social media ads, collaborations, and PR initiatives to push your brand further.
5. Network Strategically
Whether you’re gunning for a deal with a major or indie label, making connections within the industry is vital. Build relationships with producers, managers, publicists, and other artists. Attend music conferences and events to meet the right people who can help you expand your influence.
Networking doesn’t just end in the room, though. Online strategies like collaborations, features, or reposting similar artists' content can introduce your work to new audiences and industry insiders alike.
6. Know What Labels Look For
To pitch successfully to a label, you need to align your music and branding with what they want. Do your research. Look into their current roster, style, and market position. Tailor your pitch to fit their goals, while highlighting what makes you an asset they shouldn’t overlook.
Labels Love Business-Minded Artists
Running your music career as a business demonstrates your determination, professionalism, and independence. It also positions you as an artist prepared to make the most of label support when the right opportunity arises. Success in music is a mix of talent, business acumen, and the right connections.
Whether staying independent or signing with a label, building a solid business foundation allows for long-term sustainability. The best part? It puts YOU in control of your career trajectory.
Don’t wait. Start treating your music like the business it is and take your first steps toward achieving industry success today.
Learn more at the Indie Artist Insider Learning Center