I just stumbled upon SellaBand, an inventive new business model for the music industry. They created a smart mix of communities, revenue sharing, viral marketing and outsource talent scouting and financing to their users. Powerful.

How SellaBand works: fans, dubbed Believers, find an artist they like on SellaBand.com. For USD 10, they can buy a share, or ‘Part’. Once the band has sold 5,000 parts, SellaBand arranges a professional recording, [..] managers and producers. Believers receive a limited edition cd of the recording.

[..] songs are then made available as free downloads. Income comes from advertising revenues, which are split three ways: artist, believer and SellaBand. The company will also sell cds through regular channels, sharing profits with artists and believers.

Since both believers and artists benefit from getting 5,000 parts sold, both are likely to actively promote the band (and SellaBand)

More info on springwise.com.

This entry was posted on Saturday, August 26th, 2006 at 6:53 pm and is filed under business, english. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.