A record label (company) is a company which is involved in the production ie recording, directing and distributing of artistic works. A record label's basic working principle can be said to be the signing on of artists for the purpose of producing such artists record which includes studio recording, mixing and distribution (sales) and based on the artist-record labels agreement obtaining a certain percentage of the total revenue generated from the record sale.
The record company is a large establishment which actually is wealthy enough to finance the musical professionals of young and emerging artists with the career financing well acknowledged by the recipient as a loan which would have repaid through the profits gotten from their record sale. Listed below are some benefits an artist derives from getting signed with a record label.
• The record company lends you a huge sum of money which may not be given directly to you but is used indirectly through huge marketing and recording budgets.
A reasonable amount is also spent on luxuries like rented cars and drivers, keeping expensive hairstyle and wares from expensive boutiques.
• They help you understand and develop your skills in writing, this may include, the right choice of words, adequate rhyming which offers to improve listening pleasure, etc.
• The record company also indulges in huge advertizing budgets. This is directed to making you (the artist) a well known figure which also helps in record sale.
• The record company takes on the responsibility of intimating you with the dos and don'ts of the music industry as well as familiarize you with what already made artists do to gain attention of the fans.
• An artist's manager is one of the advantages of signing on with a record label. The fees of a self hired manager are on the high side compared to that of a record label hired manager (although the fee is paid from the money lent to the artist).
• The record label serves as a medium through which fans get to communicate with an artist and vice versa. Other medium includes on stage performances and shows held outside of the studio.
• A couple of record company stands in for a signed on artist in cases of legal issues by getting the artist a lawyer who's fees is paid by the label.
• Solo artists have the disadvantage of delay in decision making which would not be the case with an artist signed on with a record company. Also since all the decisions are to be made by the artist, the tendency for wrong decisions are higher compared to that of an artist which has a record label to his aid.