Starting a record label may seem like an expensive venture, but the modern music landscape makes it possible to launch one with a zero-dollar budget. A contemporary digital-first label functions less like a traditional company and more as a passionate curator for artists. Technology has democratized the process, offering a suite of free tools for branding, distribution, and marketing that empower anyone with a good ear and a strong work ethic.
Establish Your Brand and Business Structure
The foundation of any label is its identity. This begins with choosing a unique name that resonates with your intended musical niche. A distinct name prevents confusion and is the first step in carving out your space in the music world. Once you have a name, you can create a visual identity using free graphic design tools like Canva to design a professional-looking logo, social media banners, and other brand assets.
With a brand identity taking shape, you must consider the business structure. When starting by yourself, you automatically operate as a sole proprietorship. This is the simplest and only truly free business structure, as it requires no formal action or filing fees. All income and losses are tied directly to you personally, which means you are personally responsible for any debts the label incurs.
This structure is sufficient for getting started without any initial cost. As your label grows and generates more revenue, you may want to consider forming a Limited Liability Company (LLC). An LLC provides protection by separating your personal assets from the business’s liabilities. However, forming an LLC involves state registration fees, so it is a step to plan for in the future.
Find Your Artists and Music
With a brand in place, the focus shifts to the music. This process, known as Artists and Repertoire (A&R), can be done effectively without any budget. The simplest way to begin is by releasing your own music or the music of talented friends. This internal starting point minimizes complexity, as agreements are based on pre-existing relationships, allowing you to learn the release process in a low-stakes environment.
To expand beyond your immediate circle, scout for unsigned talent on platforms where artists share their work. Websites like SoundCloud and Bandcamp are rich sources for discovery. On SoundCloud, you can find emerging artists by exploring the “likes” and reposts of users who enjoy similar music, while TikTok can uncover artists gaining viral traction through relevant hashtags.
Engaging with online music communities provides another avenue for finding talent. Subreddits on Reddit dedicated to specific genres or music production are filled with artists sharing their work. Participating in these communities or genre-specific Discord servers allows you to connect directly with creators. Building genuine relationships can lead to discovering an artist who aligns with your label’s sound.
Prepare Your Music for Release
Once you have a track to release, it must be properly prepared for digital storefronts. This involves ensuring the audio is polished and the artwork meets technical specifications. The final audio step before distribution is mastering, a process that balances a track’s tonal elements and optimizes its loudness. While professional mastering can be costly, services like MasteringBOX or MajorDecibel have free tiers that offer AI-powered mastering.
Your release needs professional cover art that meets the strict requirements of streaming platforms. Distributors require artwork to have the following specifications:
- A perfect square (1:1 aspect ratio)
- A high-resolution JPG or PNG file format
- An ideal size of 3000×3000 pixels, with a minimum of 1600×1600 pixels
- The RGB color mode
You can create this artwork for free using tools like Canva. The platform offers templates and design elements that make it simple to produce compelling, compliant cover art. Ensuring your artwork is high-resolution and correctly formatted prevents your release from looking unprofessional on streaming services, which is often a listener’s first impression.
Distribute Your Music to Streaming Platforms
With your mastered audio and finalized artwork ready, the next step is getting the music onto platforms like Spotify and Apple Music. This is handled by a digital music distributor, which acts as the bridge between your label and the digital stores. While this service once required significant upfront fees, several reputable distributors now offer free options, making global distribution accessible.
Companies such as Amuse, RouteNote, and United Masters provide free music distribution. Their business model is based on commission rather than upfront charges, meaning they take a small percentage of the royalties the music earns. For example, RouteNote’s free plan gives the artist and label 85% of the royalties, while United Masters’ free tier takes a 10% commission.
The process is straightforward. You create an account with your chosen free distributor and upload your release materials, including the WAV audio files, cover art, and metadata. Metadata is the essential information attached to the release, including artist name, song titles, and release date. The distributor will then deliver it to streaming platforms worldwide, typically within a few days to a couple of weeks.
Market Your Releases Without a Budget
Distributing your music is only part of the process; you also need to ensure people hear it. Marketing without a budget relies on creativity, effort, and building genuine connections.
A foundational tool for promotion is the Electronic Press Kit (EPK), which is a digital resume for your artist or release. An EPK contains an artist biography, promotional photos, links to music and social media, and any positive press quotes. This can be created for free using a shared Google Drive folder, a Google Doc, or a simple landing page from a free website builder.
Your primary marketing channels will be social media platforms like Instagram, TikTok, and X (formerly Twitter). Consistently posting engaging content about your artists and their music helps build a community around your label. Share behind-the-scenes content, announce upcoming releases, and interact directly with your audience to build a loyal fanbase.
A significant driver of streams is playlisting. You can directly pitch your music to independent playlist curators and music bloggers. Many curators accept submissions through forms or email addresses listed in their social media profiles. Platforms like Pitchplaylists or the free version of SubmitHub can help connect you with curators, but a personalized pitch is much more effective than a generic mass email.
Manage Royalties and Agreements
The digital distributor you chose will automatically collect all the royalties your music generates from streaming platforms. These earnings will be displayed in a dashboard on the distributor’s website. They will pay them out to you after taking their commission, simplifying what was once a highly complex process.
Even when working with friends, a formal agreement is a good practice. A simple profit-split agreement should be created for each release. This document outlines the percentage split of the royalties received from the distributor, clearly stating what share the artist receives and what the label retains. This clarity prevents future misunderstandings and professionalizes the relationship.
Please note, this guidance does not constitute formal legal advice, and consulting with a legal professional is recommended for binding contracts.
It is also important to understand the artist’s responsibilities. The collection of performance royalties—money earned when a song is played on the radio or in public venues—is handled by Performing Rights Organizations (PROs) like ASCAP or BMI. Registering musical compositions with a PRO is the songwriter’s responsibility, not the label’s. This is a separate process that each artist manages to ensure they receive all the royalties they are owed.