Distribution is one of the most talked about topics amongst unsigned and indie artists. At its basic definition its the ability to get your cd to places the consumer can buy it. Record stores, online stores, walmart etc.
Since we first started recording everyone's been talking distribution distribution distribution. What first attracted us to our management firm, Melonte, was their ability to easily acquire distribution through Universal when the time was right. A typical distribution scenario is a distributor puts your record in stores and pays for the cost of pressing the record (negotiable), and then takes a percentage (20-30) off the cd sale price.
So for a typical indie artist, management takes 20%, distribution 25%, and the rest is split between band etc, perhaps a percentage for label. On a major scale management takes 20%, distribution 20%, the label 50-60%, leaving the artist with nothing essentially, but the hope is they sell enough records (500k+) so that those piddling percentages add up.
There was a band that was created (I use that phrase carefully) out here a few months back, they essentially spent a ton of money (200k+) on very irrelevant marketing and couldn't secure distribution after they spent it all, and it was a huge topic of conversation because they had a New Times cover and were discussing lack of distribution. They had a decent vision and a good team, but without foresight and a plan that distributors would want to latch onto they couldn't make things happen. Now that was a goal for them that wasn't reach, but it didn't mean end of career, they turned their momentum into a booking agency contract and they can now tour and make money until they figure out how to be relevant.
When we sat down with the new label to discuss distribution it was an easy debate: we didn't want it. No physical distribution whatsoever for cds. In our minds, the physical medium as we know it is done, with decreasing shelf space, closing record stores, and more and more artists it doesn't seem pertinent to spend our time or the label's chasing an irrelevant media. Our physical cds exist only for tour sales and website sales, and we're keepin 75% of that money, thank you very much. At the same time, itunes is more important than ever, especially now that they no longer except applications from truly indie artists. That's cool, the label can call Apple and make things happen. We're debating right now if we should set up our own online sales mechanism or rely on keeping up with all the new sale options there are for music as they come. I'd like to be able to link in our site with an itunes etc. so consumers can use an existing account and don't have to give us card information, but they can navigate a sales system that we design, similar to the "pass" system Depeche Mode used on itunes with their new release, as discussed in the Wall Street Journal earlier this week.
I'm more concerned about distribution for our clothing line and merchandise. Related story, Giulio can get blow up dolls wholesale for $5...
In my mind, I'd like to model our label after Dim Mak, with us being Steve Aoki (lol). Indie, online, solid clothing line, good blog, immensely well branded and sponsored lead artist, no traditional marketing whatsoever. www.dimmak.com
Everyone over there is eating, have no doubt. If we take their approach but with larger budgeting and our mainstream sound, I foresee the potential of monetary success.
