In 2025, many artists still want to attract the attention of prominent record labels. Record labels can be valuable partners, and can provide opportunities, connections, and assets that would be out of reach without their assistance. However, the majority of labels want to sign artists who are already investing in their careers and developing a solid following. Here are four factors that labels evaluate when determining whether to sign an artist:
- Monthly listener count. Labels determine the size of an artist’s audience by reviewing the artist’s monthly listener count on Spotify, Apple Music, and other well-known streaming platforms. A higher monthly listener count indicates that an artist has a strong following and is serious about developing their music career. Generally, larger labels want to see artists surpass 10,000 monthly listeners on Spotify or Apple Music before they even consider making an offer. Note that paying third parties for streams and playlist spots violates Spotify’s terms of service, as well as most music distributors’ terms of service. This can get you kicked from your distributor, and get your music removed from streaming platforms.
- Social media presence and video streams. Like the monthly listener count, an artist’s social media presence and video streams on YouTube convey information about the strength of the artist’s brand and following. Higher video stream counts, higher follower and subscriber accounts, and high engagement levels on social media posts often indicate that an artist takes the visual aspects of their branding and marketing seriously. High-quality, professional-looking content establishes a serious image and a carefully-cultivated brand. Artists who have already established a strong brand identity are easier for labels to market, and this often indicates to labels that an artist is committed and seeking longevity in the music industry. Note that improperly-targeted advertisements on Meta or YouTube can inflate streaming numbers by garnering views from audiences who are unlikely to continue following you long-term. High video streams combined with relatively few subscribers, low merchandise sales, and weak show attendance can make you appear less legitimate to labels.
- Merchandise and physical media sales. Merchandise and physical media (CDs and vinyl records) sales are still very relevant to the music industry. Many fans still love to collect CDs and vinyl records, so these sales can be a strong revenue stream for artists while simultaneously showing labels that an artist has a loyal, dedicated fanbase. Consistent physical media sales are an especially strong proxy for an artist’s following because unlike streams and playlist spots, these sales are genuine and cannot be bought from third parties. Keep track of your merchandise and physical media sales so that you can show accurate records to labels who request these numbers.
- Show attendance and willingness to tour. Even if an artist has a high monthly listener count, thousands of video streams, and consistent merchandise and physical media sales, an inability to draw an audience at live shows can make an artist look less legitimate to labels. It can raise red flags as to whether the artist’s streams and monthly listeners are real or bought, or at the very least raise questions as to the success of the artist’s branding and marketing strategies, because loyal fans are likely to attend live shows. An unwillingness to tour is a dealbreaker for major labels in many live performance-focused genres, such as rock and metal. Labels hesitate to invest resources in artists who appear to have manufactured the illusion of a solid audience in certain regions (whether by paying for streams and playlist spots or by ineffective advertising), but who cannot actually draw fans to shows in those regions. Keep accurate records of your ticket sales to track your progress and your attendance at different venues.
Have you begun to receive record deal offers? Reach out to us at randy@randyojedalaw.com and we can help you navigate this process.