The Closed Loop - Distribution

     Another factor with people having access to your music is distribution. Now one misconception about distribution is that, ok I have my tracks recorded if I get distribution it will get in stores and sell.  While getting them into the store is vitally important, the job of a distribution company is usually (with VERY few exceptions) only to get your product to the stores not to advertise it.  That falls to the record label or you if you are your own label. And similar to radio, you could have the best song in the world but if no one knows it exists no one is gonna buy it.  This being said, distribution is necessary to deliver your music to the masses.  There are several options for this now.  

     Two Options that stick out are CD Baby and Tunecore.  Each can get your music onto iTunes.  CD Baby also has hard Disc Distribution as well as a plethora of other options for selling your songs as well as music licensing.  Tune core lets you pick and choose which digital download locations you use and you collect 100% of the money except you have to pay a yearly fee and if your songs are not doing well it can cost you.  I prefer CD Baby cause it is what I have started with and I have loved the service.  They take small fees out and there is a signup fee but it isn't bad and it is only a one time fee vs yearly.

      These are great for digital distribution but if you want to get your music into stores as brick and motor then you are gonna face some new challenges.  There are independent distribution companies and fulfillment centers but have to be very careful and read exactly what they are doing for you.  Another problem with these companies is they usually, not all but usually, require you to have substantial capital and a full marketing team behind your product.  They usually take a percentage of the disc price which is fine because they are getting your product to stores and they deserve to be paid for their work.  But you have to watch out on how they handle returns, breakage, up front fees, monthly fees, etc.

     Some major labels offer distribution to full indie or indie-major labels but again you have to show them that you have done substantial marketing work or have had smaller regional distribution.  If you have enough buzz behind you, then this can be easier.  For example look at William Hung from American Idol with "She Bangs."  That album actually went Gold if I remember correctly.  Scary as that is!

     The reason distribution is so important is because of supply and demand.  initially you might not need full on distribution but trying to handle it all yourself becomes nearly impossible if you get a bite from a song and it becomes a hit.  Distribution handles all the logistics of getting your product out, while you can concentrate on the music.

     The closed loop occurs the same as full on record deals, if you have a name, this is usually not a problem.  But if you are just starting out and or have only a smaller crowd, you are less likely to even get in the door initially.  Again with everything there are always exceptions to this but I want you to be prepared.  As the saying goes, "You are nobody, until you are somebody."   With that where you will have no one even acknowledging your mere existence, and then boom as soon as you do finally make it, everyone wants a piece of you.  This is how it has always been and will always be but you can work this to your advantage if you set up everything yourself so when things do explode you are set in a position to maximize your results and sales.

     I have had experiences with fulfillment houses where each month they would send out product only to have the same amount returned where we would have to pay out the return costs and restocking fees only to have the same amount go right back out to the same store and the cycle continued.  This cost thousands as the store was merely recycling the product without having to pay for it and simply getting a new batch resent out and would send back any unsold and then reorder again.  Do you see a pattern here??  And the fulfillment house charged me against that every time so the only people making ANY money was the fulfillment house.  This is just some of what you have to look out for.

     I read this once in a book, if you are using fulfillment or distribution and you are your own label.  Be prepared to be in a lawsuit at some point in your business ventures.  Again I never like to sound negative but this is common practice in this industry and why services like CD Baby who do hard product are wonderful because they at least are fair and honest.

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