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crufty · 22nd November 2009

@Entrainer,

sobering. and since profit = sales - cost of sales...doesn't sound like beatport alone drives a label into hot blonde and ferrari territory

If I was a small label I would make sure I had a good accountant. In the us, a business that suffers a loss for 3 out of 5 years may not be a business at all. Running a business vs running a hobby can have huge tax implications. After five years, one would hate to have the IRS decide your label was a hobby and then hit you up with taxes on all the deductions you lost.

If I was a beatport only label, the only way I could figure it penciling out and doing it right (proper mastering of each track etc) was if one had some kind of in house mastering capability. If a label did, a group of artists and a few djs at a well known club could form a label as a co-op of sorts for a given locality; the whole point would be for artists to drive dj compilation sales to local fans/regional clubs at the end of the night, and if they put money back into the studio, at least make music for relatively free while keeping their day job. Is that reality?

22nd November 2009	#4
crufty Lives for gear Join Date: Jan 2007 Location: Home Enthusiasm Posts: 3,681 5 Reviews written	@Entrainer, sobering. and since profit = sales - cost of sales...doesn't sound like beatport alone drives a label into hot blonde and ferrari territory If I was a small label I would make sure I had a good accountant. In the us, a business that suffers a loss for 3 out of 5 years may not be a business at all. Running a business vs running a hobby can have huge tax implications. After five years, one would hate to have the IRS decide your label was a hobby and then hit you up with taxes on all the deductions you lost. If I was a beatport only label, the only way I could figure it penciling out and doing it right (proper mastering of each track etc) was if one had some kind of in house mastering capability. If a label did, a group of artists and a few djs at a well known club could form a label as a co-op of sorts for a given locality; the whole point would be for artists to drive dj compilation sales to local fans/regional clubs at the end of the night, and if they put money back into the studio, at least make music for relatively free while keeping their day job. Is that reality?