If you wish to make lots of money in the Nigerian entertainment industry with your talent, or via the music of other artists, but you do not have the platform to get this done, you can always start your own independent record label. This is also a brilliant solution for upcoming artists who are finding it extremely hard to get themselves signed with a major label in their country.
As you already know, owning an indie record label in Nigeria will not be an easy job, and it takes a lot of commitment and cash to make it happen. It is absolutely vital to head into this business with a clear mind, so you must be very ready. Not to worry though, if your aim of wanting to own a label is to release music or sign other talented stars, see How To Set Up Your Record Label In Nigeria (2021):
How Can I Set Up My Record Label In Nigeria (2021)?
1. Choose A Business Structure And Label Name:
Future owners of a record label must plan ahead on how the label will operate. You must sort out things like who will be responsible for which tasks, and how everyone will get paid. Also, do online research to be certain that your name isn’t already taken. You should also set-up your record label as a legal business entity from the initial stage by registering with the Corporate Affairs Commission. Be aware that registration will cost you about N100,000 to N200,000 in Nigeria.
2. Figure Out Distribution:
Nowadays, music is moving from physical purchases to digital downloads and streaming, so you must have that covered as well. Luckily for you, Nigeria’s market for online music has been impressive, therefore any Investment will not go to waste. Just go for a decent distribution company that will put your music on major platforms like iTunes, Apple Music, Spotify, Amazon, Google Play, Tidal, YouTube, Deezer, Spinlet, Vevo, Boomplay, and you’ll be good.
3. Figure Out Promotion:
As you already know, radio, posters, print ads, internet ads, TV ads, and even PR are all needed to get your music to your consumers as soon as possible. Proper investment in this actually determines how far your record, especially when the song has potential.
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4. Show Seriousness:
If you want to set up a record label in this country, you need to prove that you have what it takes. If you are not aware, distributors always want to know that you have songs ready before they commit to your project. Even the artists you’ll be signing will want to be sure that you have distribution plans ready before they put pen on your contract. Do not chase trends, concentrate on nurturing plans to make your label respected, and be good to your talents. Even if you don’t get things right on your first release, it is not the end of the world. Just evaluate the entire process and note what went wrong and how your label can improve.
5. Record Contracts:
The truth is that the record deal you’ll sign with your artistes can either make or break you. Make sure you are totally honest with your talent and let them know what you can and cannot do. If a problem comes up after they sign their contracts, let them know about it. Avoid keeping anything away from them because that could lead to a bad reputation in the music industry.
6. Money Making:
1. Sales & Streaming:
Once music fans start streaming your music online, you are already earning money.
2. Publishing & Licencing:
Music publishing and licensing is also a brilliant revenue stream for independent labels and artists that labels can take advantage of.
3. Performance Royalties:
You’ll get performance royalties when your song is played on the radio or live at a show.
4. Merchandising &Ticket Sales:
At live events and online, you can also sell tickets and music merch like T-shirts, Hoodies, Posters, CDs, to your fans.
Of course, once you are known, getting paid to perform at shows across the world is standard.
That is that.