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By Kym ReVille

An extraordinary amount of people pride themselves on only liking bands that are under the radar, claiming small victories in their esoteric music references and use of the phrase “selling out.” To outsiders, the typical sentiment among this sub-counter-culture seems to be quite simply this: independent music is good; signing to major labels is bad. Major labels are assumed to be the direct route to the big leagues, fame, and “selling out” while independent labels offer artistic sovereignty at the sacrifice of marketing and production costs. However, it’s becoming more and more apparent that artists no longer have to make the proverbial Sophie’s choice between creative freedom and budget. Independent labels are growing vastly and their artists are becoming as visible and mainstream as corporate, major label artists.

According to 2005 Neilsen SoundScan stats, 82 percent of domestic music sales are at the hands of major labels. Specifically, four enormous international umbrella labels (oft-referred to as the “Big Four”): Universal Music Group, Sony BMG Music Entertainment, EMI Group, and Warner Music Group. The remaining 18 percent of music sales belong to independent labels. The good news is that independent labels as a group are increasing their percentages of music distribution pie charts. But within their 18 percent there are as many indie labels as there are idealistic, dive-playing bands to sign. And for every indie label, there’s an individual approach to managing it. So what’s putting certain labels ahead of their innumerous indie label brethren? What factors are making some independent labels viable competition to the indomitable major labels?

Fueled By Ramen Records is at the forefront of increasingly powerful independent labels. This is the label that gave us indie-scene-friendly bands like Less Than Jake, The A.K.A.’s and Jimmy Eat World. They are also responsible for the TRL-friendly Gym Class Heroes, Panic! At the Disco, Paramore, and the delightfully ubiquitous Fall Out Boy. Clearly, “independent” no longer means “underground.” This label has gone international and mastered marketing in a way that would make entire major label publicity departments ashamed of themselves.

FBR’s origins are humble enough. The label started in 1996 by Less Than Jake drummer Vinnie Fiorello and then college student John Janick. The label was run out of Janick’s dorm room and Fiorello’s apartment - both in Gainesville, FL. Limited releases from bands like Less Than Jake, The Hippos, Bigwig, and The Impossibles had the label gaining a following and (gasp!) making money; by 1999, the label moved to an actual office in Tampa, FL. Fiorello left the label in 2005 - an amiable departure according to Janick - but the label’s exponential growth hasn’t faltered. They’ve since grown from their original two employees/founders to being staffed with over a dozen employees/devotees.

As an indie label, FBR understood marketing on a budget since its inception. But cooperation with major labels has most assuredly been a factor in putting them ahead in independent music. In August of 1996, they released a sampler cassette packaged like Chinese take-out, aptly dubbed “the take-out sampler.” Self-funded, effective little promotional ventures like these helped FBR increase their audience, but FBR stayed to the tried and true definition of “indie” until a storm rolled in from Chicago threatening some sort of crazy money-rain. Enter the vegan drummer, the Jewish guitarist, the singing nerd, and the…Pete Wentz.

Fall Out Boy signed to the label in 2003. This is perhaps where Fueled By Ramen’s story becomes atypical of most indie labels. When Fueled By Ramen signed Fall Out Boy, they were competing with numerous other labels, including the gargantuan Island Records. When FOB signed to FBR, Island offered $40,000 to fund the recording process of the boys’ official debut album Take This To Your Grave. The catch: Island had the right of first refusal to the follow-up album (which turned out to be the mainstream breakthrough From Under the Cork Tree).

With further growth, FBR has increased its number of major label resources available to artists. Since the 2003 deal with Island Records, FBR has since established an upstreaming agreement via Atlantic Records. This partnership with Atlantic enables FBR to utilize major label resources and give their artists room to grow - without relinquishing control.

“This [partnership] allows us to have a relatively small staff with a cohesive vision but make sure that doesn’t put any limits on the success of our artists,” claims Jason Russum, the director of new media for Fueled By Ramen. The indie label also finds itself occasionally distributed by Warner Music Group’s Alternative Distribution Alliance. But fear not, says Russum. “It doesn’t really change how we do things. It is just one of the things we do to make sure out artists are able to be heard by as many people as possible.”

Partnerships like these could raise questions and eyebrows from anti-corporate skeptics but these agreements are becoming more common. In fact, many music industry spectators seem to be observing a trend in amicable dealings between major and indie labels.

“There is definitely a shift there,” Russum agrees. “The music industry has changed a lot recently, and major labels know that they can learn a lot from the successful independent labels out there. The majors and indies have a lot to offer each other right now and everyone seems to know it.”

Even if Fueled By Ramen didn’t have major label resources at their disposal, they’d still have the Internet. This, along with constant touring, is perhaps the keystone in their ridiculously effective marketing strategy. FBR is certainly not the only indie label to successfully profit through the Internet but they seem to be pulling ahead of other labels by taking it a step further with “FBR+” an ambitious online endeavor undertaken with the help of online video firms Brightcove and Vtech. Russum was “heavily involved” with the FBR+ project, which was launched last March and includes high-quality music videos, audio and live performances, all free to the fans.

But, savvy online promotion can only get FBR so far; the strong personal relationships they build with their artists is perhaps their strongest asset, a source of strength for indie labels that is difficult for major labels to replicate.
“Major labels can’t offer the same sense of family that a label like FBR can,” Russum says. “Major labels have a lot of strengths, but their size really prevents them form being able to offer each artist the attention we do. From the marketing side of things, we almost immediately start figuring out how we are going to announce the signing, when their release should be coming out and what sort of special things we can do with them and their new album.”

The personal approach creates a sense of loyalty with their bands, so that when bands get increasingly visible in the media and work more with major labels, they maintain a close relationship with FBR. Case in point: when FOB golden boy Pete Wentz returned to the label to start his own imprint, Decaydance Records. The imprint was supposedly started when Wentz wanted to sign acts he liked. Acts like Panic! At the Disco, Cobra Starship, and Gym Class Heroes. Say what you will about these bands, but kids can’t stop throwing their allowances at them. Wentz’s allegiance to Fueled By Ramen - and the immense media visibility that comes with him - arguably served the label well in terms of industry recognition.

Fueled By Ramen’s growth is the result of a myriad of factors: creative marketing, progressive promotion, major label money, teenagers, and… love. In an age of do-it-yourselfers that can record a respectable demo on their Mac, independent music labels have to be growing. And they are. With the help of the Internet and creative budgeting, indie labels are growing at a rate that major labels don’t have time to counter. But as independent labels grow, you can bet major labels are going to take notice and act accordingly. Bad news, kids. Independent music may very well be on its way to becoming a slightly less snobby, less exclusive thing.

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