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A Musical Stock Exchange

by | Sep 5, 2006 | Money, Music Business | 0 comments

I’ve struggled and struggled with what to say to begin this post, so I’m offering the following choices. Please pick one for yourself:

– If you had any doubt that the age of the big music company was over, read on.
– Tired of being a starving musician who can’t seem to get enough money together to record your music? Your solution has arrived!
– Think mankind has thought of everything that can be thought of? WRONG!
– If you needed any further proof that you are pursuing your dream at the absolute best time in the last 40 years, read on.
– As I told you here, I believe there will be many, many business models developed to fill the giant void left by traditional music companies that have completely blown the opportunities of the last 10 years. Want proof?

Sellaband is a new venture designed to connect musicians and fans in a way that is both unique and so unbelievably stupid-simple that it will make you grin from ear-to-ear. Taking a page out of economics 101 and the study of stock exchanges, SellaBand helps music lovers and loveable music connect at the wallet to the mutual benefit and satisfaction of all involved. Here’s how it works:;

  1. An artist (solo or band) connects with 5,000 fans or 5,000 fans connect with the artist.
  2. The fans, called Believers, pay SellaBand $10.00 each
  3. SellaBand helps record a project with the $50,000 (5,000 x $10.00)
  4. The Believers get a copy of the CD (isn’t that what they wanted anyway? And isn’t $10.00 a great price too?)
  5. The music is available online for free on the SellaBand site – generating ADVERTISING REVENUE
  6. (You guessed it) The revenue is shared between the band and the Believers.
  7. CD’s are sold too – Online, at shows, online partners, etc. AND, you guessed it again, this money is split too!
  8. Need I say more?

There’s a great synopsis here, or go directly to the SellaBand site and read what they say. You’ll find that they don’t use many more words that I did and that’s why this idea is so stinkin’ awesome! It’s ridiculously simply and powerful at the same time.

In fact, it’s SO SIMPLE, you might be thinking “why doesn’t some artist just do the same thing without using a middleman like SellaBand?” Somebody will, how ’bout you?