Looking for a Distributor? Keep these things in mind.

While most have good intentions, small or Indi Distributors do have a greater chance of folding than a bigger company. If a small company files bankruptcy, they can simply reopen shop under a new name. Bigger businesses have a harder time due to having more at stake. (i.e.: contracts, credit history, namesake) Generally, the smaller a band is, the lower their priority on the totem pole. It's also a bit of a gamble to do business with a distro who may not be located locally to the band. Signing on with a distribution company that may be located hundreds of miles away or even oceans away, you risk the chance of never even knowing what is being done with your product. There is less of a need for a company to be concerned with you if you're more than a stones throw away. (Remember, if a small company goes bankrupt, you have more of a chance of never seeing a dime vs. that if a large business files bankruptcy) When looking for a distributor, it may help to look into their sales history. Find out who all they have accounts with and who they will be distributing your product to. If the distributor of your interest simply sends your product from their ONE location and have no other ties, then it's probably a good idea to look elsewhere, and even dig a bit further to see if they have ever had any lawsuits or even have pending suites. So, the better plan would be to sign with someone who is located close to you. Someone who does not mind you asking for updates or mind you dropping by.

NON -EXCLUSIVITY is a good thing to ask for in your contract. Essentially, this means that you have the right to open accounts with OTHER distributors. This is especially important regarding agreements with small "local" distributors that don't have the clout and or associates in various cities, which is necessary to get the maximum number of retailers to stock your CD's. Meaning, you have FULL right to have other companies distribute your product and no one can do anything about it.

NEVER contractually allow the distributor to KEEP your CD's that may end up sitting in their inventory should they go bankrupt. It should be written in the contract that, in the event that they go bankrupt, any residual CD inventory that they possess in their warehouse must be returned to you immediately . This might seem like something that is obvious or understood, but it isn't. INSIST that you retain ownership of your CD's in the event that the distributor files bankruptcy. This way, the remaining inventory will be IMMEDIATELY shipped back to you. It's non-negotiable. If you are already in a contract that doesn't allow you to own your inventory then contact them and amend this immediately. Contracts can be amended at any time.

( Keep in mind that your distributor's sub-distributors may go bankrupt. If your distributor's contract with a sub-distributor doesn't protect your inventory against retention of CD's after bankruptcy, then your distributor has NO control over getting those CD's returned. Depending on your global location, check with your council of laws to see about a possible contract override )

It is never a good idea to give up your personal website Internet sales to a distribution or record company. Should you have an account with Amazon.com, ccnow.com or someone alike, don't give those up either. You should be the ONLY one making profits from your website. Don't let any company or distributor try to convince you otherwise. Be cautious if a distribution company is actually going to sell your merchandise in a store or simply online. Talk is cheap so, it's good to know what you're getting into and what your options are. It is important that when entering into a contract with ANY distributor, that you make sure their "business name" appears the EXACT same way throughout the contract. (i.e.: if the companies name is L or endale, make sure it is spelled the same all the way through. If in some places it were to be spelled L aur endale, this would make a lawsuit harder to maintain due to ability to dispute)

Again, don't be afraid to check the financial stability of a company. You can check your areas business/ Governmental database free of charge to obtain information on certain companies.

So, after you do sign on with someone, make sure to have them fax/ email you a copy of any purchase/ order put in BEFORE it goes through. (Keep all of these on file) You want to make sure you know EXACTLY how much and what specifically is being sold. If you have no proof, then they could very well be handing your stuff out to any skank or asshole that trades a beer for it. More so, be careful of how much product you allow your distributor to have. If you send them say, 100 cd's to cover 6 months, and they only sell 20, you can probably expect to never see your merchandise again, let alone make a profit from it. Ship according to your expected sales vs. time schedule. If you under ship to your distributor, you can always send them the correct amount later. This should NEVER be an issue. And remember, it is always best to ship your merchandise in any form that gives you a tracking number . It costs a bit extra, but really, what would you rather pay? And extra five spot to ship your stuff, or an extra few hundred to have more merchandise should it get conveniently lost . If you do a good job keeping track of sales and how much everything is to sell for, then you have less of a chance on getting raped by your distributor. Check around and see what alike products are selling for and try and keep things close. Remember, especially to those of you just getting your name out there, if we have never heard of you, then paying out the ass is just not an appealing thought. No matter how technical and professional your product looks. So, make sure you have those payment schedules drawn up and a file ready to hold copies of  EVERYTHING . It's not a crime to be cautious. Bands have a hard enough time trying to survive, beware of the nasties waiting to bite you in the ass.