In this article, I am going to give comprehensive information on how record labels in Nigeria make money.
Just like every other business entity in Nigeria, record labels exist with the aim of investing money and making a lot of profit.
Some of them, for example, Taculia Records, are established mainly to manage and promote artiste; while others that have the funds to advance artists pay artists to record music they are going to sell and make so much profit.
Whatever focus a record label may seem to have, the general aim or goal is to make money; and so much of it.
And to achieve this, they invest huge sums of money to establish upcoming artists with whom they hope to have a return on their investment.
But before we see how record labels in Nigeria make money, let us, first of all, see what a record label really is.
What is a Record Label?
According to Wikipedia, a record label, also known as a Record Company, is a musical brand or Trademark that specializes in recording and marketing musical products.
Characteristics of a record label.
But before any record label can ever be successful, it must possess the following:
1. Business Plan
As a record label, a business plan will help you to map out strategies that will help you to become successful.
Your plan has to cover important information like market research findings and feasibility studies that will serve to determine your business’s nature and profitability.
You can never establish or run a record label in Nigeria if you do not have the money, known as capital, to invest.
In fact, you need a huge sum of money that will help you buy studio equipment, and do lots of promotions to attract potential fans and talented artists that are going to help you become successful.
You need to purchase modern and state-of-the-art equipment for setting up your recording studio.
Artists will shun or overlook you if you don’t have a studio that meets up the industry standard of production.
And fans will never patronize you if your products are not of high quality.
In order to become successful as a record label, you need to have so many connections.
One of the tricks is to affiliate with a well-known record label for a share of the percentage profit.
How Record Labels In Nigeria Make Money.
Establishing a record label in Nigeria requires one to have a huge sum of money and the tech know-how to get a return on that investment.
And for that reason; record labels take calculated steps to ensure their investment in an artiste will never be in vain.
Because the artiste is seen as the product or goods and services of a record label.
Below are some of the strategies record labels in Nigeria are using to make money.
- Record Sales.
- Concerts and Tours.
- Music Licensing And Online Streaming.
1. Record Sales.
Record labels in Nigeria make money from the record sales of their artiste music; which usually comes in several forms like audio, video, etc.
The more records a record label achieves in selling will determine the profit they are going to make.
2. Concerts and Tours.
Record labels ensure they spend millions of money in organizing concerts and tours for their artists and hope to make money from sponsors and ticket sales.
Several record labels in Nigeria have sold out tickets on their concerts and tours and made so much money off it.
3. Music Licensing And Online Streaming.
This is the recent and most current source of making so much money record labels.
And it involves distributing their artist’s songs to online platforms where people can use them for adverts, commercials, movie soundtracks, etc.
Record Labels in Nigeria also make money by merchandising their artists; through customized items such as T-Shirts, Face Caps, Bangles, etc.
Nonetheless, the money for Record Labels can come in various ways and sources; so long as they are able to make their artists become successful in their musical careers.
Right here on our own platform, we have our own upcoming Record Label known as Taculia Records.
Though we are presently concentrating on managing and promoting artists online; we hope to soon start signing artists into the label once we are able to gather the resources for their financing.
If you, however, want us to manage and promote you and in so doing increase your chances of blowing into the Nigerian music industry, you can contact us by filling out the form below.