No way around it (Score 1)

I own an independant house music label in Chicago (www.oliverecords.com). We operate under the same business rules as the big labels, albeit with less money. Without radio play, record reviews, magazine interviews, and tons of store level promotions, its unlikely a record will sell enough to pay for itself. All of this is initially payed for by the label, to be eventually recouped from record sales. This means the Artist actually ends up paying for _all_ of it. Before an artist sees a dollar, all advances, marketing and production costs are deducted from sales. Often the artist ends up with nothing beyond the advance (which is an advance, so royalties don't start kickin in until the advance is recouped). What many people outside the industry dont realize is that there is no free marketing. Small labels have little chance of making a profit with all of the bigger competition about, and everyone has to pay for that essential PR.