RELEASING AN INDEPENDENT CD

Artists and Bands (from now referred to as “Bands”) are realising early on the benefits of having a quality CD, not just to have a hit single or to make money, but for valuable marketing and promotional purposes. A great quality recording can help a Band develop its fan base as well as attract key industry players such as Record Companies, Publishers and Booking Agents. As more Bands are choosing the indy route, this article covers some of the basics to consider and when choosing to record and release an independent CD.

Like with most things, the planning stage is the most integral part of recording a CD. Bands need to research recording studios, sound engineers, CD manufacturers, graphic designers and printers. Before walking in the studio door, you need to be organised - after all, studio time is money! Bands should know exactly which songs they are going to record and have a feel of how they want the tracks to sound. Studio time should never be used for songwriting sessions, rehearsals or working out new guitar parts.

So once you have a great Master Recording, the question is what next? For a truly independent CD, you need to think about mastering, artwork, packaging and pressing however before doing so, think a step ahead to your proposed method of distribution.

1. Self Distribution: This is the true DIY model. Once you finish recording the CD, simply have it mastered, complete your artwork and organise the pressing of CD’s ready for sale. A Band’s typical “first pressing” is about 500 – 1000 CD’s. The most common method for a Band to sell its self released CD is at gigs and via a Band’s website or MySpace. While it would be theoretically possible to approach retailers directly (you would need to make sure you have put a bar-code on the CD), it is unlikely they would agree to stock them.

Of course there is the digital road too and there are loads of on-line aggregators and “wholesalers” that are easy to source such as Musicadium, TuneCore etc that can assist in making your music available on-line via the major on-line retailers.

2. Distribution Deal: A Distribution Deal with one of the bigger Distributors such as MGM or Inertia is one of the most common methods used by Bands to distribute their CD’s. A Distribution Deal is usually an exclusive agreement between you and the Distributor for the distribution of a particular album or EP. It will cover usually cover both physical and digital / on-line sales and is for a fixed term of (usually) 3 - 5 years. Often, the territory will be limited to Australia and New Zealand leaving you free to pursue other overseas licensing opportunities.

A straight Distribution Deal involves the Band literally dropping off a box of CD’s at the Distributor’s warehouse. Bands will need to check any packaging requirements such as the Distributor’s logo and bar-code requirements before pressing their CDs.

The Distributor then notifies its retailers via its usual methods that your CD is now available for sale and will take orders and distribute accordingly. The Distributor’s fee is usually around 25 – 30% of the wholesale price which will be set by you and the Distributor working together.

It is important to note that the extent of the Distributor’s role is adding your CD to its release sheet, making the CD available on-line, physically shipping the CD’s to stores and doing the accounting. There is no requirement in a standard Distribution Deal for any promotion or marketing to be undertaken by the Distributor.

The main disadvantage of this type of arrangement is that it is all funded by you and even if the Distributor sells your first batch of CDs, you will have to finance another pressing as it may be some time until you actually get paid. The main advantage is that you retain full control and ownership of your Master Recording. Distribution Deals are also easier to secure than traditional “Record Deals” given that the Distributor has little financial risk.

3. License Deal: A License Deal requires you to license your Master recording to a 3rd party be it a Distributor or more traditional Record Company for pressing and distribution. Depending on your ability to get the best possible deal, a License Deal may involve the licensee paying for mastering, artwork, pressing and even for the marketing of the CD. It would be an exclusive arrangement and unlike a straight Distribution Deal, may give the Licensee an option over your next recordings. The fee payable to a Licensee for this type of arrangement would be closer to 60 - 75% of net receipts. The advantage is that although you have paid for the initial recording, the Licensee typically pays for the rest. So while not strictly a “self release”, you are still required to make the big investment of recording the Master. Of course some Licensees will expect the Band to also complete mastering and artwork and have a marketing plan / budget in place so all that they do is the pressing and distribution.

The above DIY distribution easily account for how most music product is made and distributed today. The type of deal right for you will depend on each individual circumstance. Traditional Recording Agreements are certainly on the decline leaving open many opportunities for Bands to try out new and creative methods to have their music heard.