Who is the best distributor for your music business?

Does it need to be that way? Yes, it probably does—if you’re not thinking critically about your major partnerships your music business is probably suffering from under-management—but it doesn’t need to be stressful. With a few key things in mind, selecting your distribution partner can be an easy and rewarding process.

Find a good label manager.

Find good technology.

Nobody wants to get bogged down by bad technology while they are setting up their releases for distribution. Unfortunately, some distribution companies have user interfaces that seem to be stuck in 2010. Other distributors, likeIDOL, benefit from technological independence and excellence. WhileIDOL'sLabelcampplatform is perhaps the best distribution portal out there, they white label it to other distributors as well (Xelon Digital,Republic Of Music). At the end of the day, it is the same fantastic technology.

Negotiate a good rate.

There is a wide range of rates that distribution companies will charge you (between 5%-30%). As a rule, European distributors with high-touch customer service will generally charge more than American distributors aiming for automation and efficiency. To further complicate things, there is a new class of distributor—likeToo LostandRevelator Ltd.—that uses technology to push their rates to some of the lowest we’ve seen. This of course has tradeoffs of its own. We recommend shopping around, getting a few different rate proposals and then making a counteroffer to your preferred partner. Odds are they will be receptive to a counteroffer, especially from an established label.

Ignore all talk of editorial placements.

Every distributor out there will tell you about their abilities to help you land placements for your releases. Ignore this. They all have similar levels of access to the editorial tools and teams at the DSPs. The exception here are dance-oriented distributors who have spent decades cultivating relationships with Beatport, Traxsource, etc.Paradise Worldwideapproaches this problem by offering real marketing and development services instead of promising playlist placements. At the end of the day, it will be the strength of your music and your artist brands that will be the key factor in driving placements.

(Bonus Feature) Think outside the box.

Consider setting up direct deals viaMerlinand using a service likeAudioSaladto deliver your music to DSPs. While you might not get a dedicated label manager, you’ll save buckets when it comes to your overall margin. Yes, it’s more complicated, yes, it’s more work, but platforms like Habitat can ease many of your struggles and help you save time and money on a worthwhile endeavor.