United States: Looking For Sales in All the Right Places

As the Kris Kristopherson "Bobby McGee" song goes: Freedom’s just another word for nothing left to lose…" but in the case of the Independent band, such freedom can cause great loss if you don’t know the "how to’s" of taking your product to market. So, let’s assume for a minute that you’ve jumped that initial hurdle - the one that’s often so hard to get over - recording and completing your product. Now it’s time to hit the marketplace with your CD: But how to go about that wisely, and profitably? Well, there are several choices. Naturally, all of them deal with some type of distribution.

The most popular choice is to utilize the expertise and the services of a known Distributor. One that has a track record and is successful. But finding the right one for you can be tricky for there are several types. For instance, you can sign with a regional distributor, one that handles just a specific area, like let’s say San Diego. Then there’s the distributor that pushes product in several regions, like the entire Southwest, perhaps. Next, there is the national distributor who has outlet capability across the country - that covers all regions - and some of the latter also have distribution worldwide.

Many Indie bands would rather stay local - test their product with the immediate community initially—so they opt for the regional distributor. Often they don’t have to give up much. They may negotiate a small percentage of the sale, or even a flat fee in exchange for the distributor moving X-amount of units.

Other bands may have loftier goals and decide to sign away a bigger piece of their action in order to penetrate a broader market - get a wider reach. Often, those bands that wish to remain independent, but who also want wide distribution, will make a deal with a major label that helps them by pressing the CD, manufacturing and packaging it and then moving it. They generally sign a deal that allows them to take a percentage of each unit. For example, they may sell each Indie CD for $16 and give the band $7. This allows the band to keep its anonymity (so they’re not tied up in some long-term contract), yet they get the benefits of all a large distributor offers including advertising and publicity. But it the sacrifice is that it may cut down on the band’s profit margin.

I work with many Indie bands and I always tell them: Whatever distributor or distribution deal you choose, make sure you answer the questions: How much am I willing to give a distributor in exchange for what I’ll get, and how much "freedom" am I willing to relinquish.

I also suggest Indies enter into deals that leave them a tremendous amount of flexibility. For instance, some distributors will agree to fully finance a project but only pay a royalty as the product sells through their distribution system. In many of these deals it often becomes questionable then as to who really owns the product: the distributor or the band. Some distributors can hang a band up for years with these types of deals. And, there is often regret as well because the band ended up with very little profit.

When you arrive at your answers, it will be easy for you to decide if it’s a regional, multi-regional or national distributor that best fits your distribution needs.

Sounds good but how do you find a distributor in any of the above categories? You can start by picking up a music source book. Most of them list all the viable distributors, the scope of their distribution capability, and their contact information. Or, you can opt to do some checking around in your community by asking music associates for distributors who handle your specific category of music. Visiting a record store in your town is yet another great way to hook up with the distributor that is right for you.

But, you may ask, is there another way to distribute your Indie product? Yes! You can do it yourself. That’s exactly what many Indies decide to do after scrutinizing all their options. How? You can offer to play promo dates in local clubs, get a local theater or club to host your CD release party, visit local radio stations and clubs that play recorded music, and also agree to do free giveaways at local music stores. Many record stores will make a consignment deal with an Indie band, selling the product at the competitive price of $16 and giving the band as much as $12 per unit. You can also sell your product over the Internet through outlets like Amazon.com. And if you get really ambitious you can sell your product on your Web site.

What’s most important is that you keep an eye on flexibility for flexibility gives you power and power gives you freedom. Having the liberty to move from one distributor to the next - if you’re not completely satisfied with your first choice—means you have options. Promoting yourself for a time means you always have the option of signing with a major distributor sometime down the road.

Being an Indie band may mean you have something to lose but if you choose your distribution wisely you may also have much more to gain then just your freedom.