Author: joe538.com
Published: November 21, 2005
Tool: [ email ]
Dispelling five myths about distribution deals that could save an independent precious time and money
With the increase of technology and home-based studios, it has become easier for artists to produce their own CD. This influx has also caused an increase in the need for distribution. Unfortunately, independent labels make costly mistakes out of desperation to get their music into stores across the country. In the end, most independents lose thousands of dollars and have a list of horror stories depicting the entire ordeal.
“In today's music industry the larger distribution companies are either merging or making cuts. Major distribution companies have become more selective concerning which labels they sign, and a lot of independent labels are left without a distribution home. This transition results in labels making a desperate dash to sign with whomever they find first,” says Joe Langham, President of Comin’ Atcha Distribution.
The Boston-based company distributes a myriad of independent artists and record labels in the mainstream market via SONY/RED and Central South for the Christian market. CAD was formed after Langham had a bad experience with a distributor and continued to meet dozens of labels that were burned by distributors that made empty promises. Langham debunks five myths about the relationship between an indie and a distributor with the hopes that he can equip independent labels and artists to have a successful partnership.
MYTH # 1: Signing a distribution deal will take most of my revenue.
Langham says, “There are some distribution companies that are taking advantage of the independent labels by taking higher percentages and placing them at greater financial risks. The result of distributors taking these kinds of percentages is that the labels are unable to survive day to day operations. Indies need to maintain their cash-flow in order to function in the industry.”
“Comin Atcha Distribution intends to place the independent label in the best possible position to be successful. We offer a great deal with fair percentages and no reserves withheld. Our goal is to get our label's product onto the shelves in the major chain stores across the country as well as the ‘mom and pop’ stores. CAD also provides its labels with digital download setups and internet retailing in order to increase revenue,” he states.
Myth #2: I will have to pay a fee of thousands of dollars up front. I won’t even know, or have control as to where the money is going.
Langham urges indies to stay clear of any distributor that asks for thousands of dollars up front without allowing you to research where your money is being allocated.
The distributor should offer labels various opportunities to participate in co-op programs and other retail promotion campaigns. The label can have the CD placed in listening stations or end cap displays, posters and ads run in retail catalogs. Langham encourages the labels to ask questions about the different opportunities available in order to make a wise decision on allocating part of your marketing budget to retail promotions.
He also suggests that you find out if the distributor works with independent radio, publicity and/or retail promoters. It’s a good sign when they do; this raises the chances that your record will be seriously and effectively promoted. CAD does not require that his labels utilize specific marketing representatives, but they do provide each client with a choice of reputable promoters that have a track record of adding to the overall teamwork to make an artist successful.
His advice when researching the marketing team is, “Get references if they offer a staff. How are they doing with the marketing? That’s the only way you can check to see if they are doing what they are saying they can do.” And when you talk to the label, be sure to ask the right questions to make sure they are doing their part to be a team player with the distributor. This important factor sheds light on our next myth.
Myth #3: The distributor is responsible for the success of my product.
Too often, a label relies solely on the distribution company to make the product sell. Langham educates his labels and shows them that everyone must work as a team to effectively market a project to consumers. “The relationship between the Indie label and distributor is like a lock and key. One without the other is useless. The labels are responsible for adequately marketing and promoting their product and their artists. Labels need to do proper set up for new releases and make sure the product is getting radio airplay,” says Langham. “Set up also includes a marketing plan, sales sheets that are sent to the retailers, professional artwork for the CD and marketing tools, and a professionally mixed and mastered CD.”
Langham adds, “In other words, your distributor will only be as good as your marketing plans to sell the record. Labels are trying to turn distribution companies into record companies. Don’t expect them to do your work for you. Remember, their primary responsibility, as the distributor, is to get your records into the stores. ”
CAD’s website, www.cominatchadistribution.com is designed to assist with marketing its clients, but Langham urges his labels to have a website that contains the necessary tools to market their artist. The basic tools should be: high resolution JPEGs of the artist, a biography and discography, snippets of the CD, press releases, the artist’s tour schedule, a staff list of phone numbers and email addresses and a link to the distributor’s web site so consumer inquiries can be addressed.
Myth #4: After I secure a deal with a distribution company, the album I’ve worked hard to produce is guaranteed to sell hundreds of thousands of CDs.
With a diverse roster of clients such as Ablife Entertainment (Dr. Ed Montgomery’s label), The Cab Calloway Orchestra, a partnership with Gospel legend and producer, Michael Brooks, and the highly anticipated release from The Harlem Boys & Girls Choir (brought to Sony/RED directly by Langham), CAD understands that each client needs a unique marketing plan to fit their target audience in order to maximize sales.
Langham says, “A distributor is not making any money unless the record label is making money. So it’s in the distributor’s best interest to make sure that they cover the basic scheme of things and get their client’s product into the right stores.” He comes from a corporate marketing background, which has helped in the positioning of his clients’ product within the retail system. He stresses the importance of signing with a distributor that understands sales trends, the target demographic of each artist, and knowing how to identify the appropriate retail stores to sell the music. For example, a traditional Gospel quartet group will most likely have a different type of consumer than a contemporary urban artist, thus requiring a different retail strategy and positioning of product in order to meet the demand for sales.
Reggae artist, Papa San, has spent the last few years enjoying a successful career in Christian music. He has expanded his horizons to form Beloved Records and has now taken on the role of a record executive. It was important for him to sign with a distributor that understood his audience in order to maximize every opportunity to reach his potential consumers. Papa San says about Langham, “Having the right distribution deal has set a platform for my label to see more doors opening for young artists who are on fire for God. Joe is a man of integrity, a man of his word and I feel a peace and comfort to be a business partner with him.”
Myth #5: My team has experience in the business world in terms of marketing and sales.I don’t need to learn a lot about the music business because it’s basically about sales and marketing.
Langham states, “The best thing that can happen for me is to work with people who have taken the initiative to educate themselves about the music business. People who haven’t read books, or talked to experienced music industry personnel are usually the people who end up frustrated with returns and low sales. Most of their frustration comes in from their lack of knowledge of the distribution process. They don’t understand how the process works, and they blame the distributor for the lack of sales. That’s why with my company, I try to educate my clients before they sign and it’s also a process of trying to educate the client during the process. I am continuously learning all that I can about distribution with the increase of knowledge in legal policy and technology so I can hand the information down to my clients.”
Langham also stresses the importance on attending industry conferences not solely for the purpose of networking, but to acquire valuable knowledge from the pros in the industry. He notes, “Max Seigel’s About My Father’s Business Conference is a must attend event. Yes, it might cost you some money to get there, but the knowledge you get can carry you throughout your career in the music industry.”
Jeff Brody, President of the Brody Distribution Group, has more than 30 years of music industry experience and has served as Sr. VP of Sales, Sales Manager and Regional Manager at labels such as PolyGram, Polydor, ACB/Dunhill and Mercury Records. He has worked with every major retail store in the United States such as Target, Handleman, and Sam Goody, etc….
Brody has enjoyed his partnership with Langham and trusts CAD’s ability to bring quality music to the SONY/RED system. He declares, “Ever since I had my first conversation with Joe Langham regarding his artist, Parkes Stewart, I knew that I wanted to be in business with Joe. I knew that I was not only dealing with someone who knows the musical side of the business but someone who is a true professional. He knows what it takes to set up a gospel artist in the secular retail world. He knows how to run a company both from a financial and creative standpoint and most importantly, he knows what it takes to succeed in the music business today. The future of small independent labels will not only survive but flourish with strategic relationships like the one forged between the Brody Distribution Group, Comin’ Atcha Distribution and SONY/RED.”
JOE LANGHAM’S BOOK RECOMMENDATION LIST:
- All You Need to Know About the Music Business—Donald Passman
- The Business of Music for the Christian and Gospel Industry---Alvin B. Williams and Jay King
- The Musician’s Business and Legal Guide Vol. 1 and 2---Mark Halloran
