Album Release Costs

Thinkingofreleasingyourownrecordorstartingarecordlabel?Therearelotsofthingsto
concernyourselfwithpromotion,distribution,pressingandsoonbuttheonethingitall
comesbacktoismoney.Sojusthowmuchisthisendeavorgoingtosetyouback?
Well,thatdepends.Albumreleasebudgetsrunthegamutfrombargainbasementtotopofthe
line.Itallcomesdowntothechoicesyoumake.
Sufficeittosaythatyoushouldhavearealisticideaabouthowmuchyoucanaffordtospend
inadvance,andyoushouldtakeadvantageofeverycostcuttingmeasureyoucanfindalong
theway.Regardlessofthechoicesyoumake,herearethecostsyou'llhavetofindawayto
cover:
1. RecordingCosts:Ifyou'reamusicianputtingoutyourownrecord,obviously
therecordingcostsaregoingtofallonyou.Ifyou'rearecordlabel,especiallyasmall
indielabel,sometimesthemusicianswillcometoyouwithafinishedproduct.Ifthey
don't,youmayhavetospringforsomestudiotime.(Asanindielabel,thisisagood
timetobehonestwithyoursigningsaboutyourresources.Forinstance,itdoesn't
serveanyoneifyouemptythebankaccountonrecordingandthendon'thave
anythinglefttospendonpromotion.Youmightconsiderstructuringadealsothatthe
musicianssharerecordingcostswithyou.Dothesedealsreallyhappen?Yes,they
do.)
Recordingcostscangetoutofcontrolinahurry.Ifyoucancallinsomefavorsand
keepyourcostsdown,doit.Ifmoneyistight,savethesixweeksessioninanoutof
townstudioforyoursophomorerelease.Keepthecashincheckbyturningupwell
rehearsedandreadytogo.Keepthedistractions(anddistractingpeople)outsideof
thestudio,andhaveallofyourargumentsaboutnewpartsandwhathaveyoubefore
youshowuptolaydownthetracks.(Oh,comeon,youknowit'sgoingtohappen.)
1. Pressing:Manufacturingmaybeoneofyourbiggestexpenses.Thereareafew
differentwaysthiscangodown:

Ifyouhaveadistributiondeal,yourdistributormaypayformanufacturingup
frontandthenrecoupthecostsfromsales.Thiskindofdealisgettingharder
andhardertofind,though,anddon'tforgetthatthissetupmeansitmaybea
longtimebeforeyouseeanymoneyfromrecordsales.Theupsideofthiskind
ofdeal,apartfromeasingyourcashflowconcernsupfront,isthatthe
distributorwillgetabetterpricefromthemanufacturerthanyoucouldon
yourown,becausetheyarelikelytohaveastandingrelationshipwiththem.

Yousimplyarrangeformanufacturingyourself.Usuallyamanufacturerwill
notextendcredittoanewcustomer,soyou'relikelytohavetopayforthe
wholeorderupfront.

Youskipmanufacturingcompletelyandgoforacompletelydigitalrelease.

Obviously,goingalldigitalisthecheapestwaytogosinceitcutsoutthiscost.Ifyou
dodecidetopressphysicalcopies,trytokeepyourspendingincheck.Inotherwords,
specialpackaging,coloredvinylandthingslikethatmaybefun,buttheyalsojackup
yourcosts.Acommonmistakeistoassumethatifyoushelloutextraforthesekinds
ofbellsandwhistlesthatyouralbumwillsellmore.Probablynot."Oooh...cool"
doesn'tpaythebills,andniftypackagingisn'twhatisstandingbetweenyouand
stardom.
Anotherthingtokeepinmindintermsofpressingcostsisbeingsmartabouthow
manycopiesyoumanufacture.Sure,you'llgetabetterperunitpriceforlargerorders,
butit'sagoodideatopresswhatyouthinkyourealisticallyhaveachanceofselling.
Pressing500,000copiestosave30centsperunitisafalseeconomyif499,500endup
sittinginyourmom'sgarage.Wanttobereallydepressed?Openyourcreditcardbill
whilelookingata250boxesofunsoldCDs.
1. Promotion:Promotionisyourmostimportantcost.Ifmanufacturingandrecording
are"save"expenses,promotionisyourareatosplurge.Promotioncostsare
campaignstoearnradio/presscoverageofyourreleaseandadvertisingcosts.Youcan
savemoneybydoingyourpressandradiopromotionyourself,oryoucanhireaPR
company.Asageneralruleofthumb,itismoredifficulttobreakintocommercial
radiowithoutthehelpofanestablishedradiopromoterthanitishandleprint/web
promotionyourselfsomethingtokeepinmindifyouonlyhavemoneyforonesuch
"pro"campaign.
Ontheotherhand,don'texpectPRcompaniestoworkmiracles.Isradioagoodfitfor
yourrelease?Isyouraudiencelisteningtotheradio?Thekeytospendingwiselyon
promotionistoknowyouraudienceandmakesureyou'retargetingthem.
So,bottomline,howmuchisitgoingtocosttoreleaseyouralbum?Inmanyways,the
answerisuptoyou.Theexpenseslistedabovewillallneedtobemet,butthereisalotof
wiggleroomwithineachcategory.
Thekeyistotakealongtermviewandspendenoughtogivethisprojectthepushitdeserves
whilemakingsureyoudon'tsetyourselfsofarbackfinanciallythatyoudon'thaveanycash
leftoverforafollowup.