How Vinyl Album Sales Are Split at Indie Record Stores: A Complete Revenue Breakdown

How Vinyl Album Sales Are Split at Indie Record Stores: A Complete Revenue Breakdown

By Marcus Bennett

November 27, 2024 at 11:14 PM

When vinyl albums are sold at independent record stores, the revenue is split among several stakeholders. Here's a detailed breakdown using Colemine Records' Kelly Finnigan album "A Lover Was Born" as an example:

For a $24 vinyl album:

  • Record Store: $8.49 (35%) - Covers operational costs, credit card fees, shipping
  • Distributor (Secretly Distribution): $3.10 (13%) - Less credit card fees
  • Manufacturer (Gotta Groove Records): $6.03 (25%)
  • Label & Artist Split: $6.37 (27%) - Approximately $3.19 each

Person flips through vinyl records

Person flips through vinyl records

According to Colemine Records owner Terry Cole, purchasing a vinyl record supports:

  • Four independent small businesses
  • The artist directly
  • The broader music ecosystem

To match the profit from one vinyl sale through streaming, an artist would need approximately 4.5 days of continuous plays on platforms like Spotify.

While these numbers may vary based on:

  • Manufacturing order size
  • Store pricing
  • Distribution arrangements
  • Individual agreements between labels and artists

The physical format continues to demonstrate strong market presence, as evidenced by recent successful crowdfunding campaigns for vinyl-related products, including a vertical vinyl player that raised over $617,000 from more than 2,500 backers.

Wooden gavel on marble surface

Wooden gavel on marble surface

Orchid synthesizer by Tame Impala

Orchid synthesizer by Tame Impala

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