# Merge Records: Laura Ballance and Mac McCaughan

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2021-12-06
- Length: 1h 17m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan

## Summary

Laura Ballance and Mac McCaughan, founders of Merge Records and members of the band Superchunk, explain how they launched an indie label in 1989 as a casual artistic endeavor while managing their band's career. They detail the transition from handshake deals and DIY manufacturing to scaling the business after signing Arcade Fire, whose album Funeral became a massive commercial success. The episode covers their strategy of leveraging touring for talent scouting, the financial realities of the vinyl resurgence, and how their complementary personalities allowed their business partnership to survive their personal breakup.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=0) Introduction: Laura Ballance and Mac McCaughan
- [4:57](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=297) Early Music Scene and Meeting in Chapel Hill
- [25:01](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=1501) Starting Merge Records and Naming the Label
- [34:34](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=2074) Financing Early Releases and Signing with Matador
- [45:36](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=2736) Navigating Personal Breakup and Business Partnership
- [58:19](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=3499) Signing Neutral Milk Hotel and Arcade Fire
- [1:04:46](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=3886) Scaling for Arcade Fire's Success and Industry Changes
- [1:11:34](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-12-06-merge-records-laura-ballance-and-mac-mccaughan#t=4294) Longevity, Vinyl Resurgence, and Partnership Dynamics

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Crowdfunding & preorders](https://hardwarepodcasts.com/topic/crowdfunding)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)

## Most relevant to

founders before launch, companies scaling up

## Mentioned

- Merge Records (company)
- Superchunk (product)
- Arcade Fire (product)
- Neutral Milk Hotel (product)
- Matador (company)
- Touch and Go Records (company)
- Sub Pop (company)
- Fugazi (product)
- The Mountain Goats (product)
- Spoon (product)
- Kinko's (company)
- Pepper's Pizza (company)
- Cat's Cradle (company)
- Barefoot Press (company)
- Tanis Root (company)

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- [134: Kevin Kelly Remains Undefeated](https://hardwarepodcasts.com/podcast/thoroughly-considered/2026-06-24-134-kevin-kelly-remains-undefeated) (Thoroughly Considered)
- [#186 - Bootstrap Heroes: Bumpin Blends, Lentiful and Drink Wholesome](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2025-03-11-186-bootstrap-heroes-bumpin-blends-lentiful-and-drink-wholesome) (The Startup CPG Podcast)
- [Afterschool Podcast, Episode 9 - Rusty Meadows (10/21)](https://hardwarepodcasts.com/podcast/core77-podcast/2013-11-05-afterschool-podcast-episode-9-rusty-meadows-10-21) (Core77 Podcast)
- [59: I’ve Always Wanted to Do a Bleep](https://hardwarepodcasts.com/podcast/thoroughly-considered/2020-05-20-59-ive-always-wanted-to-do-a-bleep) (Thoroughly Considered)

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