Small digital-first record label

Listeners pay indirectly through streams and downloads. You also earn from licensing, such as music for video, adverts or playlists, and from artists who pay for label services.

You keep an agreed share of income from each release after costs. Some small labels also sell label services like mastering or promotion for a fee. Income builds slowly as the catalogue grows.

• Good ear for new music
• Organised and good with contracts and paperwork
• Social media and playlist promotion
• Building trust with artists

• Most releases earn little, so only spend money you can afford to lose
• Get written agreements covering ownership of recordings, splits and how long the deal lasts
• Check sample clearances and cover versions, as unlicensed use can lead to takedowns or claims
• Check how PPL and PRS registration and ISRC codes work for your releases
• Check whether you need to register for VAT as income grows

Startup costs are typically around £500 to £3,000, depending on how much you put towards recording, artwork and distribution. These are estimates, and most releases earn little, so only spend what you can afford to lose.

Monthly revenue is typically around £100 to £500, depending on your releases, streams and any licensing income. These are estimates, not guarantees, and income from a small label can be modest.

Check written agreements covering ownership of recordings, splits and deal length. Also check sample and cover version clearances, how PPL and PRS registration and ISRC codes work for your releases, and whether you need to register for VAT as income grows.