Rap Entrepreneurship

“Over the last 30 years, the business models of rap labels, specifically the ones that tap into an indie ethic associated with music labels of the 1940s and ’50s, have at times been more interesting than the music produced. Decade by decade — starting with Sugar Hill in the 1970s and including Def Jam, Master P‘s No Limit and Cash Money — rap is the one place in music where entrepreneurship has been met with rewards far more consistent and lucrative than other elements of the music business.

Making money, though, has been an overbearing theme in rap for too long. And artists who are breaking away from the cliche are seeing the rewards. T.I.’s singles set back-to-back records as they made enormous leaps on the chart to No. 1; Lil Wayne has led the album sales field; and Kanye West continues to develop as one of pop music’s most intriguing players, his “808s & Heartbreak” one of the top three most anticipated albums of the year.

It’s Lil Wayne’s “Tha Carter III,” though, that has become the standard-bearer for rap in 2008, as it holds the title of being the biggest seller of 2008 at 2.5 million. “Tha Carter III” was released on the heels of Cash Money reupping their distribution deal with Universal Motown, an agreement that allows the label’s owners, brothers Ronald (Slim) and Bryan (Baby) Williams, to hold onto a significant chunk of royalties and publishing revenue as well as the master recordings. (That’s a different scenario from a number of labels: T.I., for example, owns the Grand Hustle brand while Atlantic Records owns the label; Roc-A-Fella, which Jay-Z founded and lists West among its artists, is wholly owned by Universal. )

Cash Money was started in New Orleans in 1991, with Slim taking the role of the businessman and Baby, a rapper and a member of the Big Tymers, to play talent scout. They sold 12-inch singles out of the trunk of their car, losing money until the single “6th and Barrone” by U.N.L.V. did about 20,000 in sales and became their first money maker.”

via VARIETY, HIPHOPUPDATE