Seek a strong track record in terms of the artists and labels whose product you plan on carry. Your feel for musical genres is only one factor. In a traditional business model, distributors prefer labels that have existed for at least three years, and have released three albums per year. Sales should be several thousand copies.
Tread carefully in dealing with independent artists. Ask how much money the artist will commit to promoting her record. Doing a credible campaign below $3,000 is difficult, especially if no airplay is forthcoming, according to pundits like Emerald Records' president, Rich Pulham. If that scenario arises, think again.
Seek exclusive agreements from the artists and labels you plan to represent. There are no handshake deals, particularly in the music business. This happens through a contract with the label, or a licensing agreement for artists who own their material. Fifty percent of the retail price is the industry norm for any records that you buy.
Call or email key online and traditional stores to determine which artists stand the best chance of having their album stocked. With roughly 35,000 titles filling up any store, and 700 new releases coming out per week, your chances of adding another one to the pile hinge on an artist's airplay and track record.
Plan on working new releases four to six months ahead of time, the minimum timeline that labels use to develop promotional campaigns. Have promotional copies ready, because you'll be mailing hundreds of them to radio stations and key stores that offer listening posts to their customers.
Ask ahead for "one-sheets," which is the industry term for a one-page description of relevant ordering and shipping information. Generally, this includes a new release's bar code, catalog number, list price, and cover art images. Enclose the one-sheets with every promotional copy, and keep a stack on hand to answer questions from stores.
Leave budget room for Point-of-Purchase posters and other promotional items that accompany releases to stores. You may also shoulder the burden of cooperative advertising, an arrangement that evenly splits the cost of key promotional gambits--such as in-store advertising--with an artist, or a label.
Follow with stores to determine how records are selling. Since many stores will likely be involved, a normal payment cycle runs 50 to 120 days per invoice, depending on whether a particular album sells out its allotment, and any returns are forthcoming.