How to Choose the Right Distributor for Your Student-Run Record Label

One of the first and most important steps in creating and operating a record label is having a digital music distributor. A digital music distributor will allow you to upload your music to online stores and streaming platforms. There are countless different distributors who fundamentally achieve the same thing, but they all differ in ways that will result in some being better matches for your label than others.

Digital service providers (DSPs) such as Spotify, Apple Music, and Amazon Music all require people to use official distributors to upload their music. This allows the DSPs to have some quality control over the product that ends up on their platform. Many independent musicians use distributors such as DistroKid that are open for anyone to use, no matter what level you are. This can be a good option for individual artists, but as a record label, you probably want to work with a distributor that is more exclusive and willing to tailor their services to your needs. So, I've developed a checklist for you when shopping for the right distributor for your student-run record label:

Payment / Cost

• Commission / royalty split: Some distributors will take a percentage of recording revenue as a form of payment. This can vary between distributors and specific deals, but they generally take between 10 to 20 percent of recording income.

• Flat Fees: The distributor may simply charge a flat fee for their services. This can be advantageous if you plan to release a high volume of music. However, some distributors may ask for upfront payments that are out of your budget, in which case, a royalty split might suit you better.

• Subscription: Some distributors offer subscription models. Be aware of this payment structure because you might have to pay more to keep your music on their platform if you decide to leave. 

• Unlimited Distribution: Check if the distributor allows unlimited uploads. As a record label, you will likely want this feature. 

• Add-On Costs: Be aware of additional costs for services like ISRC code generation, which are necessary for tracking and royalties. Additionally, some distributors might charge extra for you to change cover art once it's been uploaded. 

Distribution Territories and Platforms

• Global Reach: Ensure the distributor covers all the territories you wish to target. Not all distributors have the same reach. 

• Platform Coverage: Confirm they distribute to all major streaming platforms and online stores, including niche platforms relevant to your genre.

• Social Media Integration: Distribution to social media platforms like Instagram, TikTok, and YouTube. This is crucial for promotion and engagement nowadays. 

Customer Support

• Customer Service: Check if there is a human you can contact with questions or concerns. This is one of the most important points because not being able to easily speak to someone can be tragic for your release if something goes wrong.

• Label Representative: Ideally, you would have a dedicated label manager to assist with your specific needs. Make sure to meet this person before you sign a distribution deal with them. 

• Post-Release Changes: Ensure the distributor allows you to make metadata changes post-release, as this is often necessary.

Analytics and Data

• Detail Level: Evaluate how detailed the distributor’s analytics are (audience demographics, stream sources, playlist adds). Detailed insights can help you make informed marketing and touring decisions. 

• Mobile App: Having access to analytics on the go can be a nice feature.

Marketing / Playlisting

• Playlist Pitching: Some distributors offer playlist pitching services, which can significantly boost your tracks visibility. As a student-run label, getting your songs on editorial playlists should be a main objective. 

• Promotion Tools: Look for additional marketing tools that the distributor might offer, such as pre-save campaigns or smart links.

Other Features

• Royalty Splitting: This would automate the process of dividing royalties among contributors, which can save you administrative time.

• Outside Royalty Collection: Check if the distributor helps with collecting royalties from other sources like neighbouring rights (the public performance of your sound recording), which can also save time and add to your revenue.

Reputation

• Industry Standing: Research the distributor’s reputation within the music industry and contact other artists and labels to ask for personal reviews and testimonials. Someone's personal experience using their service can help you avoid potentially bad situations or it can help you realize what kind of distribution services you want.

Choosing the right digital music distributor is crucial for your student-run record label's success. Meet with their sales representatives, interview them, ask questions and make sure you get the feeling that they will support your release. Factors such as cost structure, territory reach, platform coverage, customer support, analytics, marketing tools, and reputation should be evaluated. Tailoring your choice to the specific needs of your label will ensure your music reaches the widest audience while receiving the necessary support and resources.