The label size you choose should be based on your design and product. Here are some recommendations on how to choose the best label size for your custom label:
1. Measure the product that the label will be applied to.
2. Measure the maximum area (both length and width) you want the label to cover.
3. Measure the minimum area (both length and width) you want the label to cover.
4. Take into account the contour of your packaging or bottle. If your bottle begins to taper near the edge of the label, it will cause the label to crinkle on the edges. Also, if your packaging has a conical shape to it, even if it is slight, you'll need a label that takes this into account.
5. Draw your label on a piece of paper, with the measurements from step 1.
6. Cut out the sketch and place it on the product.
7. Modify the label size if needed and repeat steps 5 & 6.
8. When creating artwork, allow for a .125" bleed (e.g. a 2" x 3" label should have artwork sized to 2.125" x 3.125"). This ensures the artwork covers the label correctly, leaving no white space around the edges.
Once you have decided on the right size for the label, decide if you want any special cuts, curves or shapes to be incorporated into your label design. These can cause an increase in cost of production, but may be worth it if they're central to your design.
Now you're ready to create your design and have your custom labels printed.