A simple way to explain a Record Label.

There are many record labels in the world, most are independent and three are considered major record labels. A record label is considered the brand or trademark that the artist, manager, engineers and producers are under. To make this seem simple, take a pen, put a fancy looking symbol on it then take it to a lawyer and pay him or her to put it in some files so no one else can make the same fancy looking symbol on your pens. Then if someone does use your fancy looking symbol the law will be in your favor because you paid the lawyer. Now all your have to do is replace the pen with an artist and the fancy looking symbol with a label and you have a record label. All of the incentives that come with that label rely on sales and the ability of the artist to please his or her fan base.