Hi guys, Its Matt here from Ditto Music.

When we first set up a label it took us several months, cost us over £400 to get barcodes and was really complicated. So we set up Ditto so that we could offer this service to artists in the same position we were in, and make life a little easier for them.

I remember when I first looked into how to set up a label and the information on the net was sketchy at best, there are several people SELLING ebooks on the subject. Remember , all information is free. There is no magic formula to this, just a process that needs to be followed and if you ever need advice you can just ask.

Remember that with Ditto music, we can take away all of the hassle and set up a label for you for just £25, we can also make you chart eligible and collect your airplay royalties.

Ok, So firstly, think of a name for your label. Something professional that sums up the image and ethos of the music you wish to release. This could be with you for a long time so make sure its something that will still sound good a few years down the line.

Secondly, you will need to become a PPL Label Member. Here are the steps:

1. Email repertoire@ppluk.com for a PPL Repertoire Database login, with your record company, address and telephone number with a contact name.

2. Login online at www.ppluk.com and download the ‘Catco’ software.

3. Input the ISRCs along with your release details (barcode etc) into the software and upload the data to PPL.

4. Once you’ve done that PPL will email you an application pack within 10 days. This is a form that is around 20 pages long.

5. Print it out, fill it in and post it to PPL. It can take anywhere from 3 weeks to 3 months to get it sorted.

6. Once approved you will get your membership number and can start your life as an official record label.

7. Every time you release something you will need to fill out the information on to the Catco database. This is how the Official Charts Company know that your music has been released and is chart eligible.

Ok so now that’s done, you can start releasing music.

For your first releases it’s much wiser to do digital-only. These are chart-eligible, you can’t run out of stock and there are no manufacture costs. You will need some budget for PR unless you are able to do this professionally yourself. We will blog another time about choosing the right PR team. To raise finance firstly estimate (sensibly) the minimum amount you will need and can realistically get hold of. You may wish to seek government funding. Speak to organizations such as ‘Business Link’ about this. Future blogs will cover the clever ways to get financing.

Which societies should I join?

That’s completely up to you. The only one you actually NEED to join is PPL, mainly to get your ISRCs and chart registration via Catco. If you’re signing bands and releasing their stuff or selling/manufacturing larger amounts (1000+) you should speak to PRS for music (http://www.prsformusic.com). VPL are part of the PPL and collect royalties when your music video gets airplay. Sign up for that along with the PPL.

AIM (www.musicindie.com) is definitely worth joining if you intend on doing business outside the UK. You get generous discounts on trade shows, loads of support, great UK networking events AND it’s all with the Independent Music sector – the people you actually want to do business with.

Musicians Union (www.musiciansunion.org.uk) is good for advice and support but caters for the performer than label.

Do I need a lawyer, limited company, accountant etc?

No. You can join PPL as yourself with no need to be a legal entity at all. You will only need an accountant when your label gets big enough to need one. Most small (non-limited) labels do their own accounts. As for a lawyer, MU provide legal services, so do CAB. Or ask around for recommended Industry lawyers. DO NOT hire an unknown lawyer.

Jargon:

PPL – ‘Phonographic Performance Limited’ primarily collect royalties for airplay, public performance and ‘new media’. As a label, every time your record is played on the radio you are due some money. You can join as a record label or performer.

ISRC – International Standard Recording Code. A unique 12-character alpha-numberic code assigned by the Label Member to each song registered. This is used by PPL for tracking royalties and by retailers (iTunes etc) for tracking sales.

Catco – Also called ‘PPL Repertoire Database’. The Catco ‘App’ software is the means to transmit data about your releases to PPL. It also registers your for the UK Official Charts, goes to IFPI to stop piracy and to MCPS. Only PPL Label Members can upload valid data.

Barcode – Also called a ‘UPC’. A 13 digit number assigned to the collection of songs. For a cd this is represented by the black and white lined box. For digital releases the number itself. Valid UPCs can only be obtained from GS1 directly or a Solution Provider. Check www.gs1uk.org for details.

Any questions you can email me at matt@dittomusic.com , or just write them at the bottom and ill answer everything there.

Speak to you soon.

Matt