I read an article in the NY Times a few months back about how artists, both new and established, were finding alternative backing, be it financial or other, for their projects. It really struck a cord with me because I work in the music & entertainment industries, and inspired me to write a piece about the internal battle all artists face when it comes to making the decision to sign on the dotted line or not.

I’m going to just let the cat out of the bag and that’s only if you haven’t already started to smell the kitty litter. The major labels — Sony Music, Warner Music, EMI and Universal Music — have been and will continue to lose control over the creation, distribution and promotion of music if they do not wake up and smell the coffee—360 deals, in which the label manages and profits from every part of the artist’s business, are not the answer, my precious little label executives! The days of million dollar advances, big budget videos and multi-platinum album sales are not necessarily gone, but are definitely on a very, VERY long extended vacation.

In the stone ages (pre-internet), the goal of every artist was to of course sign a traditional recording contract with a major recording label. That was just the way things were done. However, with the rise of the Internet as a means of promoting and distributing music, the old model has been almost erased. Physical album sales fell 20%, to 362.6 million last year, according to Nielsen, while sales of individual digital tracks rose 27%, to 1.07 billion. So, with the structure of the music industry crumbling in front of our eyes, what is a new artist do?

While the industry has become over saturated with tons of indie labels and companies offering outsourced services, such as marketing, public relations, and promotions for artists who want to do it all by themselves, the one issue remaining is funding. For new artists not looking to sign with a major label, where the heck are they supposed to get the money to fund their projects? Even if you are an artist looking to sign with a major, the artist rosters at a lot of the major labels are shrinking as labels do what any other company does when strapped for cash—zero-in on core business. Meaning, only focusing production, marketing, and promotional dollars on artists that are guaranteed to sell a large amount of units.

So is this all bad, horrible news? Not at all. We are on the brink of an evolution, people! No one knows the exact answer to the question of where this industry is going, and, right now, new artists, independent artists, as well as established artists, have the opportunity to, not only be heard, but to be in control of their careers and own their music. Even labels are realizing that not every artist wants or necessarily needs a traditional recording contract. In late November, for example, EMI took the unusual step of creating a music services division to provide services like touring and merchandise support to musicians who were not signed to the label. Artists who have produced their own music and contracted with EMI to run parts of their business include the R&B singer Bobby Valentino and Raekwon, a member of the Wu Tang Clan. But if you aren’t an artist who is already established, then you should really weigh the options of 100% DIY versus working with a label in some capacity.

100% DIY may sound wonderful, but it is a lot of freakin’ work and takes superior organizational and multitasking skills, in conjunction with having a good—no great—team behind you, and then, top all of that off with passion, determination, and CASH. This is why labels, still to this day, look appealing because, well, for the most part, new artists are lazy and broke. Yea, I said it. But you have all the right to believe an artist’s main focus should be on being a great artist and perfecting their craft, which is why it’s so important to have good people and funding behind you. However, how much time, money, blood, sweat, and tears you are willing to put into making the dream a reality will ultimately determine what you are willing to sacrifice for that dream.

If you are considering working with a label, expect a decrease in two things: creative control of your music and your revenue stream. That’s really the trade off you make when deciding to let a label “help” you. 100% DIY means 100% creative control and 100% profit into your pocket, but, FYI, you will be sacrificing your life, i.e you might be homeless for a while, and might forget what food tastes like.

At the end of the day, making it as an artist in the industry today is hard work. And if your music isn’t backed by passion, love, and determination, then the decision of whether or not to sign a recording contract is the least of your problems.

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