How to Release Your CD on a Modest Budget

Sep 26, 2006 1:20 PM

           
 

You've recorded and mixed your songs to perfection. As the saying goes, they are “in the can” and are ready for public consumption. With a little ambition and a crafty do-it-yourself attitude, you can release a disc on a modest budget. Releasing your music yourself allows you to maximize profits by eliminating the overhead that a major label brings to a project. The competition to get signed is fierce, which makes it less likely that your music will ever get released or see a large audience. Using today's technology, you can make a product that rivals major-label releases for a fraction of the cost with a much lower break-even point, allowing you to start enjoying profits sooner. But before you consider releasing your album yourself, you need to have a clear picture of how much money it takes to get your CD into the hands of buyers.

SETTING UP SHOP

If you haven't set yourself up as a legitimate and legal business already, it is a good idea to do it in preparation of a release. You'll need to look into getting a business license and a reseller's license. The following fees are based on my home of Portland, Maine; your city and state fees may vary. A Business License from the City of Portland costs $20. The State of Maine issues Reseller's Permits for free. Reseller permits allow you to sell to record stores and distributors within your state and not charge them sales tax. Finally, you'll need a tax ID number, which the IRS will issue for free. Also, you may need to file a Fictitious Business Name Statement or dba (doing business as), which will cost you whatever your local newspaper charges for classified ads. State and county laws and fees do vary considerably, so check with your local agencies. BusinessNameUSA is an online resource for purchasing business and reseller licenses as well as filing for your tax ID number and dba (www.businessnameusa.com). To read up on the legalities and details of setting up your own business, check out “Working Musician: Going Legit” in the February 2002 issue of EM.

Acquiring a business checking account allows you to easily keep track of your expenses. Get an account that has a debit card, which makes purchasing goods and services easy and swift. Make sure that you save all of your receipts and print out records for online expenses. Many credit unions and banks have free checking accounts, even for businesses, so take the time to shop around. (For more on bookkeeping, see “Working Musician: Hit the Books” in the January 2004 issue of EM.)

When it comes to organizing your project, a simple file box and folders, available at most office supply stores for $10 to $30, should suffice. Good accounting software is worth its weight in gold. Intuit Quicken and Microsoft Money are two examples of financial software that should serve you well. Prices for accounting software generally run from $30 for a basic model to $90 for deluxe small-business versions. Take advantage of these accounting tools. The task of documenting finances will be much easier for you and your accountant. Saving your accountant time could also save you money when it's time to do your taxes. Regarding taxes, many of the expenses involved in releasing your CD may be tax deductible, which is another reason to stay organized and keep good records (see “Working Musician: Tax Tips for Musicians” in the March 2003 issue of EM).

PREPARING YOUR SONGS

It is important for your songs to have a coherent sound (technically, not stylistically) from one song to the next. If you complete a group of songs over time, then they may have subtle differences in sound quality that become more obvious when you listen to them back to back.

If you have a great ear and the proper tools, you can create a more uniform and professional-sounding release by tweaking the songs yourself at little or no cost. If you feel that mastering is best left to a professional, which is what the pros and smart indie artists do, you should hire one. Most good studios employ engineers who have an ear for mastering. At about $50 per hour and one hour per song, a full-length professionally mastered disc should cost only $500 to $600.