By 1918, the Heineman company was a major supplier of high-quality phonograph motors, reproducers, needles, and parts, although Heineman himself expressed no interest in building complete phonographs. In early 1918, Heineman began production of vertically cut Okeh records, supposedly taking the name from an Indian word that, coincidentally, displayed his initials very nicely as originally designed. The label was slightly modified soon after its introduction to remove the bars that ran across its center, and some pressings are known that bear the older and newer versions on opposite sides. There was little in Okeh's early catalogs to set the label apart from its many competitors. Trade journals praised the new label, a judgement that might have been influenced more by Okeh's massive advertising campaign than by the records themselves.
Sales seem to have been weak, if present-day rarity is any indication.
The blue labels were soon replaced by a slightly redesigned version gold on red that retained the Indian trademark. By 1920, when the Indian finally gave way to Okeh's distinctive script trademark, sales and technical quality were improving steadily, but it was an accidental hit that brought Okeh national attention. Its release in November 1920 revealed a vast, untapped market for recordings by black performers. Departing boldly from the stodginess that characterized much of the American recording establishment at the time, Okeh began to scour the nation for performers and material often far removed from the mainstream. In the process, it would reshape the American recording industry.