Roburt

I'm not too sure it was exactly the same case with US 45's, but this was sure what went on with albums ...
Big record companies would sign artists by the dozen. They'd put a lot of effort into the initial releases from each artist (ads to support an album release, financing promo live shows / short tour, etc + releasing a 45 to help publicise the album, etc. If an act's record didn't take off then the label's interest would cool. But, many times they'd signed the artist to a 2 year / 3 album deal ... so they had (by contract law) to put out another 2 LP's. They'd have the act back in the studio & lay down the tracks for an album quickly & cheaply. They'd then press up say 1000 copies of the new album but spend not a single $ on promoting it (apart from sending a few copies out to radio stns). OF COURSE, a radio DJ might like a track or 2 on it & spin it on his show. The album could then get some traction & the label would make a bit of an effort to increase it's sales. BUT, lots of the time, the album would escape almost un-noticed. The label would then ( 2 / 3 months later) add the pressed copies to it's CUT-OUTS pile. These would be sold off in bulk to ONE-STOPS , record warehouses, shipping companies that needed heavy ballast for an Atlantic passage by a freighter.
.. ...  .. the 2nd & 3rd albums would therefore gain release but next to no money would be spent on them. Copies would say cost 50c to manufacture but could be sold off in bulk for say 25c each. The label would declare a loss on the product that they could claim tax relief on. So these artists releases hadn't 'caught on' but it had cost the record company next to nothing in real terms to honour the contract they'd entered into.  
WITH REGARD TO 45's ... a similar process would be followed ... many new 45 releases would be pressed up in PROMO COPY format (say 5000 copies) and these would be sent out to radio station jocks (& later in the 70's to disco DJ's). If the 45 in question gained little or no radio / club plays then a minimal number of 'issue copies' would be all that was pressed up. IF THE 45 did get some radio action, then the single in question would get a proper run of issue copies being manufactured in the label's pressing plant. These would then be made available for sale to ONE-STOPS, record stores, etc. and it would have the chance to sell in bulk and maybe make the charts. But for every 45 that got to enjoy a decent pressing run, there were many others that didn't.

Some info on the Kama label & Chadwicks Recording studio on GARAGEHANGOVER.
Kama was based out of Utica (which is in the middle of nowhere in New York state -- to the east of Syracuse). Chadwicks studio was located just south of Utica, in a place strangely called Chadwicks. So I'd guess the group (white ?) were from that area. They cut other sides for Kama, each in conjunction with other singers (Danny Bowens & The Avengers "Lavender Blue" being the best of those other cuts). Kama Records was operated by a Stanley Markowski, who had a pressing plant in Utica. Seems his pressing plant was sometimes not working to full capacity, so he hooked up with mob members & pressed up bootleg 45's for them in the early 60's. The mob ran numbers rackets across the US and were always looking for 'legitimate businesses' through which they could launder their money -- maybe they financed the building of this pressing plant. Stanley Markowski, died in 2005 at the age of 82. He had lived in Erieville most of his life (just over 30 miles south west of Utica), working mainly as an auto mechanic and machinery mechanic. Being a machinery mechanic would have been handy if you ran a pressing plant. He'd have been in his late 30's when the pressing plant was in operation.
The Mr. Genius label is out of Philly & that 45 track was almost certainly cut in Philly.
There were quite a few groups who took the name of THE AVENGERS -- I guess these two were different groups.  

Published in the new edition of SOUL UP NORTH; out this coming Thursday / Friday ... 
CODY MILLER; MUSIC MAN: . . . . . . If you went crate digging in rural Louisiana, you could expect (if you were lucky) to find 45's on labels such as Tamm, Jin, La Louisianne, One Way, Master-Trak, Maison De Soul, Bounty, etc. If you unearthed copies of the right singles on these labels, you'd consider yourself to be blessed. However, the guys involved in laying down those tracks (generally) had no idea that the results of their recording studio efforts of 50 years ago have become real collector's items.  ETC. ETC. ....

When "Dance To The Music" came out here it was massive in UK soul clubs, right from the off on Columbia in March 68. 

I'll see your first blue & raise you one ...
This record company was based in north Ft Lauderdale about 5 miles sth east of our Florida house. I seem to recall a local radio stn was also based in this area back in the 60's / 70's (long gone now). It looks like a simple small office & lock-up garage affair. No doubt just had a desk + a telephone & the stock was kept in the garage area.