FREE How To Start And Run Your Own Record Label ADVICE #2

One-Stop Distributors carry a wide selection of major label and select independent label product, and sell to Chain Stores, Independent Stores, and misc. other retail outlets that sell recorded music product.
Rack jobbers are companies that rent or lease space in large department type stores, and other mass marketing retail outlets. They usually carry only the best selling commercial product available, concentrating on major label product, and some independent label product with a strong regional presence.
Independent Distributors are distributors of Independent Label product either on a regional basis, or more likely, as national distributors. The 1990's has seen as "alliance" of many regional distributors (I.N.D.I. & A.D.A.) bonding together to form larger conglomerates, representing many Independent Labels, and offering retailers a wider variety of product.
Distributor Roles
The primary job of a Distributor is to get CD's, Records, and Tapes into retail outlets. They do this by working closely with the record labels to promote and market their CD's, Records, and Tapes. Most distributors regularly publish catalogs listing the labels they carry, and the titles available. They accept product on a negotiable billing schedule of between 60 to 120 days per invoice. They expect to receive a negotiated number of "free goods" to be used as incentives for retailers to carry the product, and also need "promotional copies" to be used in-house, as well as to give away to contacts in the media, and at retail. they can also arrange for "co-op" advertising, wherein the costs of media ads are split between the record label and a retailer.

FREE How To Start And Run Your Own Record Label ADVICE #1

Releasing your own music on CD means that, for all intents and purposes, you've become your own record label, even if you didn't go about the administrative tasks of setting up a separate company. A record label is in the business of releasing records; since you've done that or plan to do it very shortly, you are already performing the job of a record label. It makes sense to take a few simple, additional steps to formalize what you are doing under the business title of Record Label. The advantages of doing this are:
Giving your activities a separate name helps you establish an identity or a brand name, and gives it a professional look (plus, it just sounds better). When your recordings sell, you can accept checks made out to the label, instead of Joe Blow, Musician. This establishes your income as coming from recording activities. If you ever decide to record or release music by other musicians, their music can be produced under your label. As a separate business you can lease equipment (computers, recording equipment), establish a commercial bank account, and accept credit cards as payment for your records. Many labels were started by artists with the sole purpose of putting out their own music. The classic story, often repeated, is A&M Records, which Herb Alpert allegedly started with $500 and a dream. You can begin small and just put out your own music on your own label. At some point you may decide it will be time to release other musician's work on your label. There are some benefits to doing this; a multi-artist label has an easier time getting distribution deals and when your records are not selling well, income from other artists on your label may sustain you and keep the dream alive. Just ask Madonna. Don't think it costs a lot of money to set up a record label; the costs associated with manufacturing your cassettes or CDs will far overshadow any money spent on giving your activities an official title. For now, let's just get a record label established to release your own music.