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Busting the Myth: Why Starting a Record Label with No Money Isn't as Easy as You Think!

Everybody wants a successful run at this music business when they are inspired to start. Yet money stands in the way.

Even though money is a problem, experience is another. You’re not going to tell me this, but I know you don't feel confident in your ability to have a successful outcome. So now you’re at the crossroads of do I pursue this no-money label or bow out before I start.

I’ve done the no-money label and maxed out credit cards. I’m almost done paying them off. I know exactly what you’re up against, so let's get started.

If You’re Building a Record Label for Yourself, Great!

This blog isn’t for you, but I encourage you to read on. What you will find out is your vision of your future self will be cut down very fast if you don’t find some start-up capital or a way to fund your operation as it grows.

Why Would an Artist Sign to a Record Label with No Money?

This artist would either have to be naive or someone who doesn't really care about anything and just wants to try something. This artist would have to be somebody close to you and just have faith in both of you that you will make something out of nothing. This type of artist has no hope for their future and is not worth the bet simply because they don’t have a desire for success.

If You Have No Money, You Have No Experience or Connections

With no experience or connections, you lose the most valuable asset to both you and the artist: time. Wherever a deal is signed, time is the most valuable asset on the paper before the copyright asserts. Nobody gets younger and fanbases get older. You’re in a time crunch to make it happen. The worst thing that can happen is nothing comes about from the deal and you’ve just wasted 3-5 years of the artist’s life on your watch.

A Distributor Is Not a Label

You may say this is easy; I’ll just get a DistroKid account! No, my friend, what you have is an online music distributor account. THIS IS NOT A RECORD LABEL!!! If you were talking money, this will cost you $30 minimum to set up.

What About the Liability and Personal Asset Protection?

If you’re starting a record label with no money, this means you have no money to set up an LLC to create a wall between you and the company. It also means you have no money to build the entity that’s going to make you money in the first place. This will cost on average $300 to set up!

You Don’t Really Need All of That Stuff. You Can Just Put the Music Out.

That’s how everybody gets screwed! I’m assuming you’re going to do the paperwork later, right? Everybody is going to be friendly when the money starts rolling, right? That’s your homie or your girl, right?

Well, I’ve Seen Plenty of People Do It!

No, you haven't. You haven't seen people do anything. You’ve only heard they started with nothing. Everyone's definition of nothing is different and even if nothing was nothing, there was time between nothing and the formation of the record label.

If You’re So Smart, What Would You Do?

I’d get started with the 60 Day Record Label.

Check This Out!

If you're a music creative or executive looking to build your label or publishing company in 60 days or less, grab the 60-Day Record Label Course and get it done today! You’ll gain the ability to get real funding, avoid contractual pitfalls, and keep the middleman out of your pockets. Click the link below to get started now! If you’re skeptical, grab the free guide, "10 Ways to Increase Your Record Label Profits," which comes with a free split sheet download.

What Level 1 Success Looks Like

  • Figure out your label’s strategy for the type of artist you’ll sign.

  • Properly structure your business.

  • Figure out what assets (i.e., copyrights) you want to own.

  • Develop the contracts for the label.

  • Fund it with a job, savings, or some seed money.

  • Find an artist who wants to win.

What Level 1 Failure Looks Like

  • Your label idea will never get off the ground.

  • You become frustrated because you were trying to make something out of nothing last longer than it should.

  • You’ll ultimately stop trying.


Hopefully, you learned that it does take money and if you follow the 60 Day Record Label course, things will get moving a lot faster for you than they are now!

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