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 25
Things to Know About Distributors
by Christopher Knab ,
Copyright 2008
Back to The Academy
1)
Distributors will usually only work with labels that have been in business for
at least 3 years and/or have at least 3 previous releases that have sold several
thousand copies each. (Please remember that this information concerns traditional distribution channels only, NOT online distribution which is an entirely different type of distribution.
2)
Distributors get records into retail stores,
and record labels get customers into retail stores through promotion and
marketing tactics.
3)
Make sure there is a market for your style of
music. Prove it to distributors by showing them how many records you have sold
through live sales, internet sales, and any other alternative methods.
4)
Be prepared to sign a written contract with
your distributor because there are no ‘handshake deals’ anymore
5)
Distributors want ‘exclusive’ agreements with
the labels they choose to work with. They usually want to represent you
exclusively.
6)
You will sell your product to a label for
close to 50% of the retail list price.
7)
When searching for a distributor find out what
labels they represent, and talk to some of those labels to find out how well
the distributor did getting records into retailers.
8)
Investigate the distributor’s financial
status. Many label have closed down in recent years, and you cannot afford to
get attached to a distributor that may not be able to pay its invoices.
9)
Find out if the distributor has a sales staff
and how large it is. Then get to know the sales reps.
10)
What commitment will the distributor make to help get your
records into stores.
11)
Is the distributor truly a national distributor, or only a regional
distributor with ambitions to be an national distributor. Many large chain
stores will only work with national distributors.
12)
Expect the distributor to request that you remove any product you
have on consignment in stores so that they can be the one to service retailers.
13)
Make sure that your distributor has the ability to help you setup
various retail promotions such as: coop advertising (where you must be prepared
to pay the costs of media ads for select retailers), in-store artist
appearances, in-store listening station programs, and furnishing POP’s (point
of purchase posters and other graphics).
14)
Be aware that as a new label you will have to offer a distributor 100%
on returns of your product.
15)
You must bear all the costs of any distribution and retail
promotions.
16)
Be able to furnish the distributor with hundreds of ‘Distributor One
Sheets’ (Attractively designed summary sheets describing your promotion and
marketing commitments. Include barcodes, list price, picture of the album
cover, and catalog numbers of your product too).
17)
Distributors may ask for hundreds of free promotional copies of your
release to give to the buyers at the retail stores.
18)
Make sure all promotional copies have a hole punched in the barcode,
and that they are not shrink-wrapped. This will prevent any unnecessary returns
of your product.
19)
Don’t expect a distributor to pay your invoices in full or on time.
You will always be owed something by the distributor because of the delay
between orders sent, invoices received, time payment schedules (50-120 days per
invoice) and whether or not your product has sold through, or returns are
pending.
20)
Create a relationship that is a true partnership between your label
and the distributor.
21)
Keep the distributor updated on any and all promotion and marketing
plans and results, as they develop.
22)
Be well financed. Trying to work with distributors without a realistic
budget to participate in promotional opportunities would be a big mistake.
23)
Your distributor will only be as good as your marketing plans to sell
the
record. Don’t expect them to do your work for you, remember all they do is get records into the stores.
24)
Read the trades, especially Billboard for weekly news on the health
of the industry, and/or the status of your distributor.
25)
Work your product relentlessly on as many fronts as
possible…commercial and non commercial airplay, internet airplay and sales
campaigns, on and offline publicity ideas, and touring…eternally touring! .-----
Christopher Knab is an independent music business consultant based in Seattle, Washington. He
is available for private consultations on promoting and marketing independent music, and can be reached at 206-282-6116
or by email at: Chris@Knab.com
Chris Knab's book, 'Music Is Your Business'
is available from the Music Biz Academy bookstore.
Visit the FourFront Media and
Music website for more information on the business of music from
Christopher Knab.
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