The 4 Types

of Record Labels

Exploring the Personalities and Strategies of Successful Record Label Owners

Understanding your WHY will help you be better positioned to figuring out your HOW.

In this article, we explore the four types of record label owners: the passion project, the entrepreneur, the artist, and the philanthropist.

We examine the unique personalities and approaches of each type, and discuss the potential pros and cons of their respective styles.

Whether you're a music lover, aspiring label owner, or just curious about the business of music, this article offers insights into the different approaches to running a successful record label.

1. The Passion Project

Description:

The passion project is a record label that is founded on a deep love and appreciation for music. Owners of these labels often have a strong emotional attachment to particular genres, format, or style of music and seek to support artists who share their passion.

PROs:

The Passion Project label owners are often not guided by money, they can go into a crazy project with financial loss being the most likely outcome. And that’s okay, their reward or return comes in other forms.

CONs:

This type of label owner runs the risk of doing a disservice to their artists, who aren’t maybe as laissez faire with their career because they don’t have a backup plan or an alternative income source.

2. The Entrepreneur

Description:

The entrepreneur is a label owner who approaches their business like any other startup. They are driven by a desire to make money and build a successful business, and they are often skilled at identifying market opportunities and developing strategies to capitalize on them.

PROSs:

Strong business acumen can lead to effective marketing and promotion strategies, making it easier to make a profit… in a lot of cases there is some unique advantage or leg up that you’re leveraging when starting this type of record label. A distribution channel possibly or access to manufacturing…

CONs:

Artist will be drawn to you because of your business acumen and the dream of making money in music — so this is a really dangerous business model when it comes to managing artists expectations — I think labels are coaches, protectors and advocators for artists… whereas entrepreneurs are all those things, but for the business itself.

3. The Artist

Description:

The artist label owner is an artist themselves who has started their own label to promote their own music and that of their peers. Artist-owned labels tend to be more focused on creative freedom and artistic expression than commercial success.

PROs:

This type of label is great for artists as they’re creating a record label that is bespoke to their specific art form or processes. You automatically think outside the “mainstream’s” box because you’re thinking within your own unique box.

CONs:

This type of label runs the risk of nothing thinking enough about the business side of things. Being too timid to invest or take chances. And they often lack the ability or confidence to advocate on behalf of themselves!

4. The Philanthropist

Description:

The philanthropist label owner is motivated by a desire to give back to the community and support artists who may not otherwise have access to resources and opportunities. They may be less focused on making a profit and more interested in using their resources to promote social and cultural change.

Philanthropic labels may prioritize supporting artists from marginalized communities or promoting music that raises awareness of social issues.

PROs:

The best thing I’ve seen with these labels is how they create a platform and a space for often marginalized groups. Where representation is more important than mainstream appeal. These labels also establish an incredibly meaningful connection with their fans/donors!

CONs:

Every business, even charities, need to TRADE something for money. Ideally donors are content with just the great music you provide… However, some supporters will want to feel like they’re making an impact, or may not care about the music at all.

Make sure you can identify what it is that your audience values – even if it’s not something they can touch!