Music Distribution Do's and Don'ts: A Guide for Independent Artists
Navigating Music Distribution in 2024
Let’s talk about music distribution in 2024. Over the past 15 years, the game has changed big time. Gone are the days when physical distributors had all the power. Now, digital platforms are the kings and queens of the music world, opening up a whole new universe of opportunities for indie artists like you. But with great power comes great responsibility—or in this case, complexity. Distribution deals, fees, and royalties can be a bit of a maze. So, let’s break it down and help you make smart moves for your music career.
Do: Understand What a Distribution Deal Is
First things first, let’s get clear on what a distribution deal actually is. It’s an agreement between you and a distributor that gets your music onto various platforms—whether that’s digital (like Spotify, Apple Music, or Amazon) or physical (vinyl and CDs in stores).
Modern distribution deals can range from simple online agreements with digital distributors like DistroKid or CD Baby to more complex contracts with bigger organizations. These bigger deals might include advances and marketing services, acting almost like a major label. They offer access to key services, business relationships, and advanced analytics to help you grow your audience.
Do: Choose the Right Distributor
Not all distributors are created equal. Some are great for getting your music out quickly and cheaply, while others offer more comprehensive services. Do your homework. Look at what each distributor offers and decide what’s best for your needs. Are you looking for just basic distribution, or do you need marketing support and analytics too?
Check out this awesome article from The Label Machine “The Ultimate List of Music Distributors”.
Don’t: Ignore the Fine Print
Contracts can be boring, but ignoring the fine print can cost you big time. Make sure you understand the terms of your distribution deal. What percentage of your royalties will the distributor take? Are there any hidden fees? How long is the contract for? If something doesn’t make sense, ask questions or get legal advice.
Do: Keep Track of Your Royalties
Once your music is out there, you need to keep track of your royalties. Most distributors offer dashboards where you can see how much you’re earning and from where. Use these tools to monitor your income and make sure you’re getting paid what you’re owed.
Don’t: Put All Your Eggs in One Basket
While it’s tempting to stick with one distributor, diversifying can be a smart move. Different platforms have different strengths, and using multiple distributors can help you reach a wider audience. Just make sure you’re not violating any exclusivity clauses in your contracts.
Do: Promote Your Music
Distribution is just the first step. You need to promote your music to get it heard. Use social media, email newsletters, and live performances to build your audience. Collaborate with other artists and engage with your fans. The more you promote, the more you’ll grow.
Check our our blog post on How to Promote Your Music.
Don’t: Get Discouraged
Don't get discouraged! It takes time and you will experience set backs.
The music industry is tough, and success doesn’t happen overnight. Keep pushing, keep creating, and keep learning. Every setback is a lesson, and every small win is a step towards your dream.
Don’t: Ever Sign a Deal Without Understanding the Terminology
If you’re new to distribution deals, the jargon can feel like a foreign language. Here are some key terms you need to know before you sign anything, especially with physical distributors who love their intricate contracts:
Advance: This is an upfront payment from the distributor. Sounds great, right? But hold up—this money is recoupable. That means you need to earn it back through sales. Make sure you understand what happens if your music doesn’t generate enough revenue to cover the advance.
Royalty Rates: This is how the revenue is split between you and the distributor. For digital sales or streams, royalties are based on gross revenue. You want to negotiate rates that maximize your earnings from sales, streams, and sync opportunities.
Fees: Some distributors, like CD Baby, charge upfront fees for each track or album. Others, like DistroKid, use a subscription model, charging a monthly or yearly fee for unlimited releases. Understand the fee structure because it impacts your budget and release strategy. Subscription models might be more cost-effective if you’re planning frequent releases, while per-release fees could work better if you release music less often.
Do: Consider Different Types of Distribution Deals
There are several types of distribution deals, and the right one depends on your career goals:
Digital Distribution Deals: This is the go-to for most indie artists. The distributor sends your music to streaming platforms, making it accessible worldwide. Services like DistroKid, TuneCore, and CD Baby offer this for a fixed fee or a percentage of your earnings.
Physical Distribution Deals: While not as common as they used to be, some artists still love printing and distributing vinyl and CDs. These deals can vary in scope, from local to international.
Before you dive in, make a plan. If your goal is to dominate digitally, a digital deal is the way to go. It keeps your expenses in check. But if you have a niche fanbase that loves physical albums, prioritize a physical distribution deal when budgeting.
Don’t: Rush… Exclusive Long-Term Contracts Can Be a Trap
For newcomers, a distribution deal promising riches and glory might seem irresistible. But hold your horses. Long-term or exclusive contracts can be tricky.
Some distributors, especially the big ones, might offer exclusive deals that tie you down for years or multiple releases. While it might seem profitable at first, it can limit your flexibility and become a headache when better opportunities come along. Always ensure your contract has a clean exit clause so you can switch distributors if needed.
Do: Leverage Distribution for Career Growth
Distribution isn’t just about getting your music out there—it’s a key part of building your brand. Digital distributors are competing to offer the best deals, and many provide extra perks like marketing services and sync licensing opportunities. Some even offer advanced data analytics and maintain extensive geodatabases of listener interactions. With these tools, you can target the right listeners and set your new release up for global success.
For example, data analytics can help you understand where your music is being streamed the most. This info can guide your tour locations, region-specific promotions, and even influence your musical choices during production. Distributors like The Orchard and Create Music Group are pros at providing this kind of in-depth data, helping you make strategic, career-oriented decisions.
Don’t: Forget to Take a Closer Look at Your Royalty Model
Different distribution deals come with different fees and royalty splits, so you need to crunch the numbers to estimate your earnings.
For instance, some distributors might offer a deal to release your music for a low upfront cost but take a higher percentage of your royalties. Others might charge an annual subscription fee, allowing you to keep all your earnings.
Typically, modern distributors take around 15-20% of your revenue, but some deals can go as high as 50%. It’s crucial to review these numbers carefully and avoid signing deals that could cost you a significant chunk of your income.
Do: Consider Having a Word With an Entertainment Lawyer
Let’s face it, wearing all the hats in your music career can be overwhelming. The legal side of music distribution is one area where you don’t want to wing it. Hiring an entertainment lawyer can be a game-changer. These pros can help you avoid bad deals, spot potential red flags, and make sure you’re not getting cheated.
Sure, legal help can be pricey, but think of it as an investment in your future. It can save you from signing agreements with shady distributors. If hiring a lawyer isn’t in your budget, at least do some research on legal contracts. You can even use AI tools to draft a contract based on your preferences, but always double-check with a professional if you can.
Don’t: Be Unrealistic About Your Streaming Revenue Expectations
Streaming royalties can be a bit of a letdown. For example, Spotify pays around $0.00437 per stream. That means you’d need about 4,500 streams just to make $20. So, it’s crucial to keep your expectations in check when it comes to streaming revenue.
To avoid going broke while trying to crack the Spotify algorithm, explore other revenue streams like sync licensing, merchandising, and live performances. Some distributors offer sync licensing services, which can help you earn more by allowing third-party vendors to use your music. This could mean your tracks get featured on social platforms or even in TV commercials.
Setting up merch shops—whether online or at your gigs—along with ticket sales from live performances can also boost your income. Diversifying your revenue streams is key to maximizing your returns and keeping your music career sustainable.
Do: Compare Distribution Services Before Making a Choice
Alright, folks, let’s talk distribution. The music distribution game is packed with options, which is great news for you. It means you get to choose from a bunch of distributors, each with their own perks and pricing. But before you jump in, take a moment to really dig into your options. You want to pick the one that fits you like a glove.
Here’s what to consider:
Where do they distribute your music? Are they getting you on global platforms like Spotify and Apple Music, or are they more focused on niche regional sites?
How much do they charge? Are you paying a flat fee, or are they taking a cut of your royalties?
What extra services do they offer? Think marketing, sync licensing, and all those goodies.
Big names like TuneCore, DistroKid, and CD Baby are popular for a reason—they’re reliable and well-known. But don’t shy away from checking out smaller or niche distributors if they offer something that aligns better with your goals. Some other names to keep on your radar: Too Lost, Ditto, RouteNote, Symphonic, United Masters, and LANDR.
Don’t: Neglect Building Your Brand
Now, let’s get real about branding. You can have the best distribution in the world, but if you’re not building a brand that resonates with your sound and your fans, it’s all for nothing. Your brand is more than just your music—it’s your album artwork, your social media presence, your overall vibe. It’s how people remember you.
Think of your brand as the glue that holds everything together. It’s what makes your music stick in people’s minds. Some distributors offer marketing services to help you present your brand consistently and effectively, but at the end of the day, it’s up to you to create a narrative that resonates with your audience.
Plan Your Path to Success with Care
Alright, let’s wrap this up. Music distribution is a big deal in your release journey, and it’s crucial for your career. But navigating the maze of modern distribution deals isn’t a walk in the park. You need the right industry know-how, experience, and a good chunk of research.
Here’s the game plan:
Understand the deals: Know what’s out there and what works best for you.
Use the right tools: Leverage everything at your disposal for career growth.
Protect yourself legally: Don’t get caught in a bad deal.
Do your homework, crunch the numbers, and don’t rush into anything that might box you in. This list of do’s and don’ts is your roadmap. Use it to plan your next release with care, and you’ll be setting yourself up for long-term success.
Remember, your journey to becoming a pro musician is a marathon, not a sprint. Keep learning, keep growing, and most importantly, keep making music that you love. Your future fans are out there waiting for you. 🎸🎤