Signing A Successful Artist to an Independent Hip Hop Record Label

In this article I will discuss options, plans, and actual negotiating strategies when signing an artist to an independent record label. My hope is for you to be able to make better, informed, decisions that will ultimately help your return on investment (ROI), and then translate that into a higher profit margin for your end-of-year statement.

So you think you are ready to sign your first artist on your new independent hip hop record label? Or maybe you are ready to sign that 2nd or 3rd artist and don't want to fall into the same situation you have been in before: signing a deadbeat artist that is more trouble than they are worth.

Options When Signing an Artist to and Independent Hip Hop Record Label:

You have many options when you first strike out to find and sign that perfect artist that you can take to multi-platinum status on your independent hip hop record label. You can go to local clubs, venues, and events searching for that diamond in the ruff. You could network with attorneys, managers, and producers for what they think is the next big thing. You can even just sign who and what you like - trusting that you have an ear for music, and if you like it, the world will follow.

Each of these options when signing an artist to an independent hip hop record label have their strengths and weaknesses. If you go to clubs and venues, you might see a great artist on a very off night, missing what might have a great artist otherwise. Or maybe you see a group on the best night of their life. A night where all their fans are saying..."Man, you guys have never been so good." We have all been there, seen artists we love one night and can't believe we actually liked the crap the next time we saw them. If you got the route of networking with "industry types" - the attorneys, managers, agents, etc. - when signing an artist to an independent hip hop record label are you really getting the goods? Music industry people are used to hype. They are used to selling an artist at the highest level. I mean come on, if a manager gets an artist a deal... don't most get a cut? YUP!!! So, can you really believe the hype just because a well known manager tells you the group is good? What about your magic ear? You like music. You THINK you know what might sell. But will it really move more than a couple units? Do you trust yourself that much?

It is very common practice that folks start a label because they are tired of radio, MTV, and commercial endeavors that serve up music. It's an old saying..."If I did it my way it would be so much better and so much more money could be made." Really? You think so? Do you have the money to put it where your mouth is? Too many people loose so much money signing acts they like to thier independent hip hop record label, rather than an act that has a high ROI (return on investment). Chris Blackwell, founder of Island Records, had an interview in which he said he didn't like U2 at all. (For those who live under the Hip Hop rock, and don't listen to anything other than Hip Hop; U2 is one of the most successful rock bands of all time.) So, the CEO of Island Records, said to be the #1 independent record label in the world, didn't sign U2 because he liked them. In fact he didn't like them at all. But instead, he signed them because they were fresh and he said they had an unstoppable drive. The interview went on to say that U2 knew how to help their own career. They were already getting their own name out there and already had a following. This is why he signed them. They were most likely going to have a huge ROI.

Plan to succeed when signing an artist to an independent hip hop record label:

Signing a new artist to your independent hip hop record label takes planning and carefully following the plan in detail. No matter how you find an artist, it's imperative that you have a well thought out plan to ensure this is the artist for your label. I suggest using all of the referred to options to find the perfect artist. If you create a plan of attack you will be able to weed out managers just trying to make a buck, artists that are just having a good night, and you will find out if your ear really does have what it takes to sign the "Golden Ticket."

Networking is the best way to find out about new talent in the market. This networking does not only have to take place with music industry people. I suggest you talk to friends, people at music venues, and music industry types. You will find that all of these people will start talking about the same artists. Maybe not all, but it is a good chance that if your friends already know about an artist, someone in the music industry has heard about them as well. So your first step is to talk to anyone you can and ask about what new music they are into.

Once you have found an artist that you would like to know more about go to a live show. In fact, plan to go to three live shows before you even talk with this artist. If an artist thinks he/she is being watched they will act 100% different than they normally would. You want to know this artist for themselves - not for who they think you want them to be. So do not let them know you are there considering signing them to your independent hip hop record label. Be sure to take notes at each show. If you can get a video camera in the door, video tape the show. And at very least take a micro recorder and get the shows audio recorded. This will give you the option to listen back in the comfort of your own office on your own time. It will also give you the option of bringing in your team to see or hear who you are thinking about signing.

Here is where your opinion comes in. Did you like all three shows? Did the artist have great stage appeal? Did the audience seem to relate and connect with the artist on stage? If you answered no to any of these questions - move on and do not consider signing this artist to your independent hip hop record label. An artist has got to connect with its fans. An artist has got to have a stage presence that gives them that "IT" factor. If you answered yes to all of the questions - great!!!! Go to the next step in the plan. Once you find who you think will be a perfect fit for your independent hip hop record label rooster, you are far from done with the plan. Now, you have to do what is called due diligence. It means you have to research the artist.

Step two of your "plan" for signing a new artist to youe hip hop record label would be to contact the artist directly. If they have a manager try to get around them. You can get a private moment at a club they will be performing at or ask the club DJ or promoter of the show for contact information. (Better yet, try doing a myspace.com search. This will also get you some valuable insight to the artist personality and music marketing ability.) Managers and attorneys get in the way of what could be a great first meet and greet. This first meeting is not about negotiations. Actually, I warn against talking any numbers, promises, or deals. This meeting is just so you can actually meet this person or people face to face. This is your chance to see if they have a great personality, good interviewing skills, the ability to control themselves, etc, etc. etc. (First impressions are very important when considering signing an artist to your indpendent hip hop record label. First impressions will be made over and over to press, DJs, promoters, and more as you are marketing this artist to the world.)

Basically, this first meeting is for you to see if you can actually get along with this artist. However, there is some business that needs to be handled. This is the time for you to be taking notes. Ask them about music websites, publicity, CDs they have self produced, music marketing, and anything else that will show you they are worthy of getting signed to your label. Remember, it is your money you are putting on the line. If they are not up to listening to you, providing you with information, or make it difficult to obtain any additional information.... it's once again time to move on. This first meeting is a great place to find out what they are made of. Don't be an ass. But be pushy in a nice way. lol.

Remember, if this artist is really worth your time they will have questions for you. If they are up on the hip hop industry at all, they will know what to look for as well. So I caution you about going in too cocky and getting your lunch served right back at you. But this is good. You want some back and forth. You want the artist to have questions and to be concerned with their career and signing to your independent hip hop record label. This will let you know they have the ability to learn and the drive to actually take the steps to learn. This is part of that illusive "IT" factor. So, be prepared to talk about your record label, your funding, your distribution, and your music marketing plans. Of course, don’t let too much out of the bag yet. But you do have to let a little out. I highly suggest you take a personal recorder with you when going on this meet and greet. YOU HAVE TO LET THE ARTIST KNOW THEY ARE BEING RECORDED. Please, make sure you get it on tape that you have their permission to tape the conversation. If they refuse....you know the deal - move on. Just let them know this is so you can let your staff meet them as well. It will also give you the opportunity to review what was said. In addition, you will reference this to go to their music website, and any other places they might mention during the interview.

Ok, so you have meet with a new Artist. You seem to like them ok. They have a good reputation according to them and their fans. Now what? Well, you need to see if your staff is behind you. Play the interview for them, show them websites, and give them a wonderfully painted picture of what your vision for this artist would be. If your staff is behind the project -GREAT!!!! Now it's time to do some digging.

The first thing you have to do is get that artist to agree to a background check. I strongly advise this. You do not want to sign someone who is about to go to jail for 10 years on a murder rap. Sure, it might give them great street cred, but they can't record from jail!!! So you will need to have your attorney create an authorization contract allowing you to do a criminal and credit background check. Give that artist a call and let them know you are interested in signing them. This will get tricky. Artists are trained not to sign anything. So, make sure you advise them to take it to an attorney for review. DO NOT MAKE THIS DOCUMENT ANYTHING OTHER THAN AN AUTHORIZATION FOR BACKGROUND CHECKS!!!!! Once you have a signed contract authorizing you to do a background check its time to get to work. The internet is a wonderful resource. There are so many companies that will do a criminal and credit history check for under $30. Most of these companies will want you to fax the release authorizing the search so make sure you have this handy. Once you submit it, it will take anywhere from 24 - 48 hours to get your results. When you have your results, now it's up to you to make an informed decision wheather or not this artist should be signed to your independent hip hop record label. What is on their credit history? Do they pay their bills? Ignore any medical bills...most mortgage companies do as well. What you are looking for here is really how long they stay in one place. Do they move around a lot? Do they pay their last electric bill when they move out of a house? Do they have super high credit card bills? All of this needs to be considered. Think about this.... If your new artist has $35,000 in credit card debt can they really afford to go out on the road for 3 - 4 - 5 months at a time? Most likely not. If they are moving around all the time doesn't this mean they are pretty unstable. You need to find an artist that has at least a bit of stability. You do not want to invest your money into an artist that might move in a month or two.

The criminal background info is straight forward. Do they have any current wants or warrants? When/if were they in jail last and for what?  What does their criminal record show? Are they pretty straight forward? Did they not tell you something? Are they a gang member? Etc. Etc. Etc. Basically, you want to see who this person is and who they have been for the last ten years. You don't want to pour money into an artist that will revert back to being a thug when they are off tour and in their hometown. Yes, again, I understand street cred. However, there is a very big difference between street cred. and criminal. You have to use your judgement.

Negotiations:

Ok - now you have an artist that you are very interested in signing to your hip hop record label. Don't let them know this yet. Let them convince you why you should sign them. Let them do the talking. Let them tell you what they are looking for in a deal. Let them do ALL the talking at first. You are the CEO of an independent hip hop record label. You want to sign this artist. You have all the cards. You can bluff or you can show your hand. I highly suggest you bluff. Negotiations are built upon a series of bluffs and revels. Make sure you let them revel first. The more you can get them excited about you and your record label the better deal you can broker with them. And lets face it, once the attorney gets involved, it's completely out of you and the artist's hands. The attorneys will hash it out and come to some sort of agreement... if one can be had. This is where negotiating with an artist and selling your label will come into play. When the artist's attorney tells them that the deal is no good, you want the artist to fight with their attorney for getting a better deal and making it happen. An artist that believes in your label will fight his/her own people to get a deal done. Now you have an artist that is fighting your battles. What an Industry!!!! Warning: KARMA is no joke. Do not try to sign an artist to your indepndent hip hop record label under a bad deal. Share the wealth and you will have a much more stable record label and GOOD KARMA will shine upon you!

OK, to all you artists out there screaming by now - this article was written for independent hip hop record labels. I have another article for you. It will describe how to get the labels to fight for you. Remember, this is business, not personal.

That's it, folks. Leave your options open, work your plan, and be a great negotiator!!!! Good luck in all you do and remember, I am only an email away. Please send any questions and comments to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

---

Add this page to your favorite Social Bookmarking websites