Related pages: Getting started with music DIY • What is DIY and indie?
These are the main steps in setting up a DIY artist label. Many of these steps are optional and depend on how you want to work. Most labels would need the Basic steps and some of the Extras.
You should also look at the Recommended books and read these guides.
AIM now charges for their guide (see AIM e-Books) unless you’re a member.
The government Business Link site has information about setting up a formal business from scratch.
| 1. Sorting out your names | |||
|---|---|---|---|
| Step | More info here | Web site | |
| Basics | Check your brand names are not already in use | Band, web site | |
| Check your ‘business’ names are not already in use | Label, publisher | ||
| Reserve your names on any key sites and forums | Social networks, etc. | ||
| Extras | If you decide you need a Company | Company name | Companies House |
| If you decide you need a Trademark | Trademark name | Patent Office | |
| 2. Joining professional bodies | |||
| Step | More info here | Web site | |
| Extras | If you want MU, legal advice or professional support | Professional bodies | MU, BASCA, AIM |
| If you publish work by other writers, or expect royalties | PRS membership | PRS | |
| If you perform your own material regularly at licensed venues | Gigs & Clubs Scheme | PRS | |
| If you record work by other writers, or expect royalties | MCPS membership | MCPS | |
| If your recording copyrights generate royalties | PPL (labels) | PPL | |
| If your recorded performances generate royalties Performer ID from the Performer Registration Centre | PPL (performers) | PPL | |
| 3. Do you need any legal stuff? | |||
| Step | More info here | Web site | |
| Basics | Proof and copyright statements for your material | Music copyright | Patent Office |
| Extras | If you keep personal details for your business | DPA registration | ICO |
| You might not need to start a formal company | Trading status | Business Link | |
| 4. Do you need any contracts? | |||
| Step | More info here | Web site | |
| Extras | If you’re in a band you must have partnership agreement | Band partnership | |
| If you have a manager you must have a contract | Management contract | ||
| If you have a publisher you must have a contract | Publisher contract | ||
| If you are signed to a record label you must have a contract | Record label contract | ||
| If you employ anyone you must have a contract | Employees | Business Link | |
| If you have other contributors you should consider contracts | Other contributors | ||
| 5. Keeping accounts | |||
| Step | More info here | Web site | |
| Basics | Keep a record of money in and money out | Simple account | |
| Extras | If you pay VAT, or form a Company or employ anyone | Get an accountant | |
| 6. Paying tax | |||
| Step | More info here | Web site | |
| Basics | Be aware of government income and tax rules | Trading status | Business Link |
| Extras | If you form a Company (Inland Revenue) | Company Tax | HMRC |
| If your turnover exceeds the VAT threshold | VAT | HMRC | |
| If you employ anyone (Inland Revenue) | National Insurance | HMRC | |
| 1. Setting up a web site | |||
|---|---|---|---|
| Step | More info here | Web site | |
| Basics | Consider social networks, blogs, media sharing, etc. | Internet options | |
| Buy a name (24 hours for registration) | Web site name | InterNIC | |
| Buy web hosting (72 hours to connect your site name) | Web host | ||
| Design, write, test and upload web pages | Make the site | ||
| Select a format (MP3), prepare and upload | Downloads | ||
| Submit to search engines, check results and tune | Submit and check | ||
| If you don’t want to set up your own site | Other web site and host options | ||
| Extras | If you use additional formats (Ogg, WMA, …) | Download options | |
| If you want site stats, virus checking, spam filter, … | Host services | ||
| If you want to stream audio files, … | Host options | ||
| If you want a database, guest book, forum, … | Host software | ||
| If you want guaranteed bandwidth, more space, … | Host upgrades | ||
| If you want to take credit card payments online | Online payment | ||
| If you want to use other online payment methods | Dedicated accounts | ||
| If you want to accept donations or tips | Donations | ||
| Additional promotion or advertising for the site | |||
| A web presence on a relevant blogging site | |||
| A web presence in relevant music communities | |||
| Uploads and feedback in relevant review forums | |||
| 2. Making and releasing a CD | |||
| Step | More info here | Web site | |
| Basics | Jewel case, Digipak, spider, booklet, inserts, etc. | Choose CD package | |
| Design art-work for CD, inserts and booklet printing | CD art-work | ||
| Notification of No Claims for your own recordings | MCPS clearance | MCPS | |
| Get a run of pressed CDs with cases and inserts | CD duplication | ||
| Extras | If you need bar-code (EAN) numbers for EU only | CD bar-codes UK | |
| If you need bar-code (UPC) numbers for USA + EU | CD bar-codes US | ||
| If you need ISWC song/work numbers (PRS) | Song identifiers | PRS | |
| If you need ISRC track numbers (PPL) | Track identifiers | PPL | |
| If you have outside songs to clear for duplication | MCPS clearance | MCPS | |
| If you use outside songs in full or part | PRS clearance | PRS | |
| If you have other outside songs to clear for use | Publisher clearance | PRS | |
| If you have outside samples to clear for use | Label and publishing clearance | MCPS, PPL | |
| If there are other performers on your tracks | Notify PPL (via CatCo) | PPL CatCo | |
| To register details of your recordings (CatCo) | Join PPL | PPL CatCo | |
| To register eligible releases for the music charts | Notify OCC (via CatCo) | OCC | |
| Clear graphics, text and any other content | |||
| Promos copies and other publicity for CDs | |||
| 3. Selling downloads through other sites | |||
| Step | More info here | Web site | |
| Basics | If you want to sell downloads through third party sites | Online music distro aggregators | |
| (You will need a barcode for online distribution.) | Barcode options | ||
| If you want to sell downloads through third party sites | Bigger indie sites | ||
| 4. Mail order | |||
| Step | More info here | Web site | |
| Basics | Choose and get CD mailers | CD mailers | |
| Check the package weight and get stamps | CD postage | Royal Mail | |
| Keep a record of orders, payments and shipments | Paperwork | ||
| Extras | A postal address for web registration and other mail | PO Box | Royal Mail |
| Compliment slip, mailing list card or other inserts | |||
| T-shirts, posters, or other merchandise | |||
| 5. Local and online record shops | |||
| Step | More info here | Web site | |
| Basics | If you use local record shops, online record shops, … | CD sales offline | |
DIY means do-it-yourself. An independent record label for one artist or a band is often called DIY—from bedroom hobbyists to bigger self-contained labels like Righteous Babe.
It doesn’t mean you have to do everything yourself, in person.
Until recently it was conventional to work with established businesses in almost every area of the music industry. A recording artist without a record deal or a big label sponsor was seen as unusual. DIY is simply about taking charge yourself.
There are many ways to be independent, and that’s the whole point. The Internet is an obvious vehicle but it’s not the only one—there’s no substitute for your own research. Take advice but make sure you get a first-hand understanding of what you need. Don’t think you have to do what everybody else does (the only real brick wall is the law). There isn’t a one-size-fits-all answer.
| Some different approaches to music business | |
|---|---|
| Records and gigs | Are you a gigging band or a recording band, or both? |
| Song-writing | Do you write your own material or does somebody else? |
| External samples | Do you make your own recordings or do you use samples, or both? |
| Recording formats | Do you make CDs or videos, or downloads, or not? |
| Retail options | Do you sell by mail order, distribution or one-off retail? |
| Payment options | Do you use a retail or financial card payment gateway? |
| Distribution options | Do you use general distribution or one-off retail outlet deals? |
| Fulfilment options | Do you use a fulfilment house for duplication, retail and delivery? |
| Territories | Do you sell in the UK, Europe or globally? |
| Virtual tip jar | Do you distribute your material free and accept donations? |
| Performance royalties | Do you get a significant amount of club, TV or radio play? |
| Rights assignment | Are you are a member of any foreign rights or other organisations? |
| Licensing recordings | Do you own your recordings and license them to a record company? |
| Licensing material | Do you license your material for games or ringtones? |
| Publishing admin | Do you retain copyright and make a publishing administration deal? |
| Income Tax | Do you break even or make a clear profit? |
| Value Added Tax (VAT) | Do you make enough money to cross the turnover threshold for VAT? |
| Partnerships | Do you have a writing or performing partnership agreement, or legal obligations? |
| Contract commitments | Do you have label, publishing, management or agency commitments? |
| Employing people | Do you employ anyone else? |
This isn’t a complete list. There’s a step by step guide to the main choices and what they mean in the DIY checklist.
Of course, you don’t need formalities for the sake of it, and your music isn’t a business unless you make it one. I don’t recommend expending any effort unless you really have to, or want to do it. Here are some things you might ignore and the possible consequences.
| One-man operation | ||
|---|---|---|
| Formality | If you ignore… | Possible consequences |
| Choosing names | Check for existing users | Existing users may force you to change names |
| Registering names | Band name registers | Unlikely to make any difference |
| Trademark | Unlikely to matter unless you are well-known already Take legal advice if there is a significant risk | |
| Copyright | Evidence | Loss of your rights to the material Unlikely unless it’s derivative and a big earner |
| Accounting | Records | Legal and tax penalties if you’re liable |
| Tax | Payment | Legal and tax penalties if you’re liable |
| Bar-codes | Identifying CDs | No distribution, high street retail or chart eligibility |
| ISRC codes | Identifying tracks | No royalties from radio etc. |
| Other codes | Identification | Loss of credits, royalties, etc. if they apply |
| Professional bodies | Membership, registration | Loss of royalty payments, advice and information |
| Working with other people | ||
| Formality | If you ignore… | Possible consequences |
| Data Protection Act | Registration, compliance | Legal penalties if you’re careless with data |
| Contracts | Partnership | Legal action over rights and shares |
| Management | Legal action over rights and payments | |
| Label | Legal action over rights and payments | |
| Other contracts | Legal action | |
| Clearance | Borrowed samples, tracks | Loss of 100% income from the material |
| Notification | Third party credits | Loss of royalties, liability for third party losses |
Some of this might look a bit worrying but there are working musicians who never formalise anything. For example The Bays never publish or record, and Negativland never copyright. Copyleft is increasingly popular for artists who eschew rights and royalties. Or with very little effort you can exploit your rights and collect royalties. It’s up to you. The only thing you can’t opt out of indefinitely is legal requirements like paying tax.
You can’t make choices unless you know the options. If you check out the pros and cons you’ll find that most decisions make themselves.
Related pages: Getting started with music DIY • What is DIY and indie?