Why are you trying to convince him to start his own label?
Seems odd. If he really wants to do it, really has a passion for it, then by all means, do what you love to do and the rest might follow. Otherwise, just because in theory you might be able to do something doesn't mean that you should.
It's pretty easy to sell almost anything on the Internet these days, not just music tracks. Doesn't mean you'll be successful.