Raponomics, part I
original article from: RapStation.com
by Wendy Day from Rap Coalition

Rap is feeding upon itself and runs the risk of being destroyed economically. If it is not profitable for major labels to put out rap records, they will move along to other genres of music to exploit. Although independent labels appear to be closer to the streets, and therefore closer to understanding why and how records sell, it's the money, connection, and power of the majors that help expand the rap music genre beyond its current marketplace. If the major labels move on to an area of music that they view as more profitable, such as Latin music or gospel, the reach of rap music will shrink as popular culture is blitzed less and less by rap music on the radio, in stores, and as part of everyday life.

To someone, like myself, who is a strong proponent of independence in rap (supporting the "do for self" mentality of artists putting out their own records and owning their own destiny and careers), who also does a fair share of negotiations with larger labels for artists in the rap marketplace, the "damned if you do, damned if you don't" aspect of this is apparent. If enough money isn't secured up front in a deal to make an album and support the artist financially for a year or two, and additional money to compensate (by hiring outside companies) for areas where the label is weak, the artist runs the risk of going broke prior to ever seeing an album in the marketplace. If this money is obtained up front, the artist goes further into debt (advances are paid back out of sales before an artist ever sees a royalty, if the artist ever sees a royalty. There are even labels famous for not paying any royalties, in which case deals have to be negotiated for huge up front funds knowing that there will be no back end royalties. Protecting the artist or not protecting the artist both become problematic here.

		Rap Coalition, a not-for-profit organization, keeps rap artists from being unfairly exploited. Since rap music has become profitable, many artists are being taken advantage of, portrayed unfairly, and abused by the media, the industry, management, and record labels. Rap Coalition protects rappers from this hostile environment, and provides artists with a place to turn when they need help or support. Wendy Day, who founded Rap Coalition, has been an avid rap fan since the late 70's and brings a strong business background to the organization along with strength, commitment, and determination. With experience in media, advertising, marketing, and public relations, she has an irreverent take-no-prisoners approach to her role as organizer. The main priority is to make this a strong and supportive organization with a unified goal-- to support and protect rap artists! Rap Coalition is not-for-profit, and funded through its membership, its founder, and through donations from outside of the music industry.

Major labels supply traditional distribution, and have done it for years. This makes them quite proficient at it since they've had years to work out the kinds. They also have staffs of thousand of employees who are assigned specific tasks in the record company pipeline. Due to the large number of artists the label has within any one genre of music, the financial aspects of support to radio, retail, and video outlets become more cost effective (it becomes cheaper to financially support a rap radio station in New York, for example, if there are fifteen artists who will receive radio play). It's no secret that a major label has the opportunity to build fame for an artist more readily than a small independent label. But because they are bigger with more employees (meaning certainly more bureaucracy), they are unable to respond immediately to the needs of the consumers or sudden shifts in trends- and they really suck at being able to spot new and up and coming trends.

They are often unable to adapt to a changing climate; for example, there are still many major labels who refuse to work street records and the streets, still dumping tons of money into radio play unsucessfully because that's all they know, not understanding the difference between the audience for a Master P and the audience for a Will Smith. Yet often, due to the size of a major label, and backing by major corporations with shareholders, they can afford to spend more money to build an artist's career. And although, money isn't everything, it helps build artists' careers through exposure which leads to sales, and increases the reach of the entire rap genre. It was with the backing of major labels that artists were able to secure television appearances, their own TV shows, soundtracks, film deals, etc, which strengthened the rap genre as a whole. The popularity of rap music in pop culture led to McDonalds and Coca Cola commercials featuring rap music. It led to Barney rapping in a Fruity Pebbles breakfast cereal commercial. It led to people's grandparents recognizing the name "Puffy" and hearing on the news that he has befriended Donald Trump. These are some of the things that make rap profitable and lead to rappers actually making money instead of going the route of the old R∓B artists and dying broke.