Friday, August 25, 2006

Sellaband: Music Marketing or Music Market?

The Digital Music Weblog posted about an interesting website called Sellaband, which connects music groups with potential fans, not just for marketing, but for investing. According to TechCrunch,

The way it works is this: bands upload sample music to, promote the heck out of their profile page and ask fans to chip in $10 per share of a recording that will be produced when the band raises $50,000. The fans can take their money back out at any time before the goal is met.
From Sellaband,
The music on the CD will be given away as free downloads on our download portal. All advertising revenues generated on SellaBand will be shared equally between you, the other Believers, the Artist and SellaBand. The amount of money you and the band will get paid depends on the advertising revenues and the market-share your band gains on our download portal.

This seems really interesting, but not for its goal of viral advertising/marketing for indie artists, which companies have been trying to do since MySpace launched several bands' careers. What's great about this is that it forces content-driven communities to put their money where their mouth is. Who knows if the business model would work or not, but it could be the last step of democratizing the music industry, with easier tools for bands to find financial investors.

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