How to Start a Record Label in South Africa
What is a record label?
Record labels are companies, either small or large, that are engaged in the production, distribution, and promotion the recordings of affiliated musicians.
How to start a record label in South Africa?
1) Make a business plan and implement it.
2) Pick up a label name
3) Register the company either as a sole trader or personal liability company or a proprietary limited company (PTY) ltd as Companies and Intellectual Property Commission (CIPC) no longer registers closed corporations. You must obtain either a business visa or an independent financial permit if you are not a citizen of South Africa.
4) Find innovative ways to raise capital. Passion and positioning will help you raise capital, so take your passion to investors, and show that you can produce results.
5) Devise a memorandum of understanding between yourself and the musician.
6) Register with the relevant statutory entities including SARS, SAMRO and other relevant institutions.
7) Establish sample contracts like the period of rights ownership, splits, production commitment, sync and merchandising rights, sub-licensing rights, exclusivity rights, etc.
8) Get the right artists on board, based on the genre you have chosen for your record label
9) Set up distribution channels
10) Keep an eye on potential sync opportunities.
11) Set up a release cycle and promote artist on your label.
Can I start a record label with no money?
You can launch a label with no money by choosing a brand name and creating a social media presence.
How does record label work?
An artist signs with a label and get money called an ‘advance,’ to make a record. When the record is released, the label keeps all the money until they have regained their expenses that includes the advance, recording costs, promotion, and legal fees.
What is the owner of a record label called?
The owner of the label can be called the label’s president or chief executive officer.
How much do I need to start a record label in South Africa?
The startup cost of a record label is averagely between R200 – R50,000
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How do record labels make money in South Africa?
Independent record labels generate revenue from the music they release. Most of them split their earnings with the artists they promote. They may also receive public performance royalties, digital royalties, etc.
How much do record labels pay artists in South Africa?
A newly signed artiste is paid averagely between R150,000 to R1,000,000 as signing fee by the record label in South Africa.
How much does it cost to record a song in South Africa?
The cost involved ranges from R7525.54 to R 301021.71
What is required to start a record label?
Get a digital distributor deliver your artist’s records delivered to all the major online stores/streaming sites.
What makes a record label successful?
The finest record labels are national icons that reflect the age we live in as well as any social study.
Do I need to copyright my record label?
Record labels need copyright protection to sell and earn revenue as well as avoid the production of pirated copies of their recordings.
