Are Independent Labels And Artists Getting Robbed By Distribution Companies?

By Joe Langham

Dispelling five myths about distribution deals that could save an independent precious time and money

With the increase of technology and home-based studios, it has become easier for artists to produce their own CD. This influx has also caused an increase in the need for distribution. Unfortunately, independent labels make costly mistakes out of desperation in order to get their music into stores across the country. In the end, most independents lose thousands of dollars and have a list of horror stories depicting the entire ordeal.

“In today's music industry the larger distribution companies are either merging or making cuts. Major distribution companies have become more selective concerning which labels they sign, and a lot of independent labels are left without a distribution home. This transition results in labels making a desperate dash to sign with whomever they find first,” says Joe Langham, president of Comin’ Atcha Distribution (CAD).

The Boston-based company distributes a myriad of independent artists and record labels in the mainstream market via SONY/RED and Central South for the Christian market. CAD was formed after Langham had a bad experience with a distributor and continued to meet dozens of labels that were burned by distributors that made empty promises. Langham debunks five myths about the relationship between an indie and a distributor with the hopes that he can equip independent labels and artists to have a successful partnership.

MYTH # 1: Signing a distribution deal will take most of my revenue.

Langham says, “There are some distribution companies that take advantage of the independent labels by taking higher percentages and placing them at greater financial risks. The result of distributors taking these kinds of percentages is that the labels are unable to survive day to day operations. Indies need to maintain their cash-flow in order to function in the industry.”

“Comin Atcha Distribution intends to place the independent label in the best possible position to be successful. We offer a great deal with fair percentages and no reserves withheld. Our goalis to get our label's product onto theshelves in the major chain stores across the country as well as the ‘mom and pop’ stores. CAD also provides its labels with digital download setups and internet retailing in order to increase revenue,” he states.