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.