Difference between major and independent record labels

Major record labels-
There are many differences between the major record labels and the independent labels. The financial aspect is one of them. Major record labels sign who they consider to be the most popular and the popular people in todays music, This means the major record label obtains hundreds of millions of dollars which means they can use the money to promote the artists they sign in a variety of different media aspects. Most major record labels artists earn 10-15% royalty on their music. Money made from the music will first go the label until debts of the artist are covered. Major label artists reach a larger audience through the high promotion the label uses, but if the artist is not bringing the money into the label they can be dropped. Major record companies are a business and they make sure that they get profit as much as possible from the music and the artist is not able to keep control over their music because of the contract signed.

Independent record labels-
Independent music labels do not have the huge funds for promotion unlike the major record labels. The independent artists must contribute to helping promote their music, although this is not something they all want to do it means that being involved in the promotion means they are able to form a personal and unique bond with their fan base. Independent artists are able to keep the rights to their music, once the song is recorded the artist can do what they like with it. Independent record labels offer a higher royalty rate because production cost is much lower, it lets the artist make much more of their brand than a major record label.