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I find labels are the best way to release music and have it heard on a large scale. It does seem pointless at times, to sign away your music for a mere 40 units sold. Most unknown artists that give tracks out for free, remain unknown. If you are a real go-getter, you might be able to bypass a label and do the promotions yourself. This would be the rare person though, who has the ability to network and hit the streets, clubs, ect.
Once you make a name for yourself through labels, then maybe you can give tracks out for free and the masses will download them. If a label or advertising company wants to liscense a track, you could get a music lawyer to deal with that.
I think we all want to be "label free", but we need labels, at least in the beginning. They are a great staring point.
Remember, a lot of the tracks you get signed will end up on the torrent sites. So if you sell 50, you can bet 100,000 will be downloaded from the torrents. It's a double edged sword, of course you don't want your tracks being pirated, but on the other hand you are getting free mass exposure. It's almost like you are giving them out for free. 
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