A Business Plan for Independent Labels

In “The Age of Free”, how can a company make any money? Especially without the resources of a corporate giant? Record sales in the major, and independent sectors have seen dramatic decreases in sales in the past several years. This decline is in part due to file sharing on the Internet, and also due to the convenience of individual song purchasing on iTunes. At a time when the masses feel entitled to free music, labels can either adapt or perish. No in between. I will try to use social media strategies, to create a new business approach for the independent record community. First, record labels will have to keep in mind the power of free entertainment. Free concerts via live streaming are one way to provide free goods. Companies must also take advantage of the convenience of Twitter and Facebook. Fans look forward to constant updates and insight into what is going on with bands or record labels, and these two mediums make it easier to do so. Current blog posts concerning tours and other matters will keep fans interested in the music community.
These Social Media techniques will be used to invite fans to become part of the independent record community, regardless of genre. The audience is shrinking, and mostly made up of people who are more than casual music fans. With independent music fans, it is not too much of an assumption that people will want to be involved; it just has to be made available. The goal is to make the music business about music, not business.

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