Sales & Distribution FAQs:
What is distribution?
Distribution of a CD to over 4,000+ “brick and mortar” (e.g. Best Buy, Target, Walmart, FYE) stores nationwide consist of selling to the retail buyers, process coordination and delivery logistics to the retail stores up to 14 weeks prior to the street date. KLM digital distribution makes your release available on the top 25 digital retail sites like iTunes and Rhapsody plus over 100+ more digital retailers.
Why do I need distribution?
Bottom line is that music distribution accounts for one of the largest revenue streams for an artist and/ or label. Because distribution is the last and often most important step in making your product available to the consumer. Retailers like iTunes, Best Buy and Walmart only accept new products from distributors like KLM, and will only accept products that have gone through the proper distribution channels and setup.
How long does the distribution process take?
Physical releases take 14 weeks to process and set up properly due to the long list of steps that must be taken in order to make sure the product is serviced correctly and meets all required retail/ distribution standards. Digital releases are more simple, and can be turned around in as little as 5 weeks.
Why do you charge fees for distribution?
KLM’s fee covers the initial processing of the release, but mainly they exist because of the immense amount of setup work required by each release. From 5 weeks to 15 weeks, a great deal of time and KLM manpower is spent soliciting your product to retail buyers, double-checking and coding artwork and audio, sending release notifications and press releases throughout the retail community, and keeping you informed every step along the way.
Why do physical release fees increase the more releases I put out per year?
Additional release fees are necessary to account for the increasing amount of manpower that is dedicated to your distribution account with each additional release. As you submit more and more physical releases to KLM throughout the course of a year, the detail that is given to each and every step of the process requires more and more attention. In addition, each release has a 14-week setup period and account maintenance after the street date, meaning there is a very good chance multiple releases will be serviced simultaneously.
How many releases can I have once I sign up?
Unlimited! Digital distribution does not have a limit on the number of releases you submit. Physical releases are counted on a sliding scale and depend on how many releases you plan on completing every year.
What does “exclusive” mean?
An “exclusive” distribution deal (like KLM) means only one distributor can service your release to retailers digitally and/or physically for a period of time. The reason is that it is impossible for accountants to know which distributor each sale comes from and therefore account accordingly.
What is included in my distribution service package?
Digital Releases – You will get a full guidance through the release process, knowing what is happening with your product at all times. Also, you get all processing necessary for the release from ISRC encoding and artwork formatting to a free UPC/Barcode!
Physical Releases – During the 14-week release process, your album or single will get everything it needs. Marketing strategy meetings, complete step-by-step checklist and explanation of the entire release process, a dedicated KLM representative to service your account daily, in-store appearance setup, graphic design of your sales one-sheet, access to a monthly co-op (retail marketing) menu including signage, listening stations and more! KLM is committed to making you knowledgeable of the release process at every turn so we can plan together, create and execute strategies and give your release the chance to be successful!
Does KLM have a warehouse for my physical CDs?
Yes. Once your release is manufactured and packaged according to our distribution standards, KLM will store the physical product for you in one of 5 strategically located warehouses across the country.
Can I change my release date?
Yes and no. Changing a release date is possible in the early stages of the release schedule, provided your materials have not been processed and entered into the distribution system. There are different cut-off dates for physical and digital distribution, so please ask your KLM representative for details if you feel this could be an issue. Additional fee’s may apply if you pull your release after one of these “cut-off” dates.
How do I submit my release?
Once you have spoken with a KLM sales representative, signed your agreements and paid your release fee, you will receive a KLM Distribution Welcome Packet. This will contain reference material including a checklist of what materials are due to KLM and when they should be submitted. You can always ask your KLM sales representative for the information as well.
What is a UPC or Barcode?
A UPC (Universal Product Code) is a set of numbers that identifies your product to retailers (aka, the numbers below a barcode). A barcode is the graphic representation of a UPC that is readable by machines and detected by sales reporting software.
What is an ISRC code and how do I get one?
An ISRC (International Standard Recording Code) is an internationally accepted format for digitally “fingerprinting” your downloadable tracks. Each single or song on the album is encoded with an ISRC that identifies your digital track to retailers.
To find out how to get your own ISRC code and for more information on the ISRC format, please visit www.USISRC.org.
What file formats are accepted for all the release materials?
Audio and artwork is required to be in “redbook” standard format.
Master Audio: 16-bit, 44.1 khz WAV or AIFF files
Artwork: JPEG or PNG images at 300 DPI or higher.
Can I put anything on my album covers and artwork?
No. KLM Distribution follows the strict guidelines set forth and updated annually by the FCC. Any artwork that does not meet FCC standards will be rejected and will need to be redesigned. Remember, this can delay your street date and cause severe problems with your release schedule, so please feel free to contact a KLM representative with any questions.
Can I use my barcode more than once?
No. You can not use a barcode for more than one product release. If you intend to release a 2nd product, you must obtain another barcode and UPC. Please ask your KLM rep for more details.
I’ve paid my fees and submitted my release…..now what?
Now you can breathe a little easier. You will be given your street date and dedicated KLM representative will inform you of every step that is being completed as soon as it’s done. Every time you have an upcoming deadline for artwork, media or other materials, your rep will send a reminder well in advance so you have ample time to collect, refine materials and deliver them to your representative.
Why do you charge a 10% digital distribution fee?
As a true distributor with decades of experience, KLM is proud to offer, unlike other “distribution platform companies”, real customer service to each and every client. That means you get a real live distribution expert to talk with. The day you submit your first release, you have a dedicated distribution representative with you every step of the way instead of just computer-generated reports. Between lower initial costs, the KLM level of service and distribution fees lower than the industry standard, our clients are getting the full commitment of a tried-and-true distribution team.
Q. Is there any way to make the release process faster?
Unfortunately, no. Physical releases have an extensive release process with specific milestones and deadlines that must be adhered to. Between one-sheet artwork, copyrighting, licensing, initial solicitation, marketing plans, printing the sales book, sending the book and promos to the retail buyers, initial orders, manufacturing and shipping logistics/coordination and finally retail shipping, three months is still pretty quick!
How do I remove my release from your distribution system?
Removing a release is as simple as sending an email request to your KLM sales representative.
Do I get to keep the rights to my music?
Absolutely. Because KLM Distribution is a service provider/ distributor, not a record label, you maintain 100% control of the rights to your music and recordings forever.
How much and how often do I get paid?
KLM requires a distribution fee for the sale of your music. These fees amount to 30% of the wholesale price for physical sales and 10% of the wholesale price for digital sales that we receive from the various retailers and providers. KLM pays our clients 110 days after the end of the calendar month that sales are accumulated. The reason for this time period is because retailers make their payments 90 days after the end of the month of accumulated sales, and KLM accounting turns that back around within 20 days to you.
How do I find out how many albums I’ve sold?
KLM sends sales reports directly to you every week, beginning the moment sales of your music are detected by Soundscan.
Can my album have explicit lyrics?
Yes it can, however we do require you to notify us in the event that your release contains explicit material. This is done on your informational forms used to submit a new release.
Does KLM hold returns and reserves for physical releases?
KLM does not hold a reserve or return rate on your sales. You get paid for each sale according to your actual sales reports. If you want to scrap remaining inventory or have that inventory returned to you, then their are applicable shipping or handling fee’s. Please ask your KLM rep for details.
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