In most industries probably not. But music is different (like art and a few others where commitment and commerce are closely linked). SELLABAND has developed an interesting business model to exploit this combination of passion and partnership. Details HERE.
The idea is “believers” aka investors invest $10 in a share of a new band. When the band has raised $50,000 (5,000 investors) SellABand helps them produce and promote a CD – the investors get one copy of the CD for “free”. Money is split between the band, the investors and the company. Any time before the band raises 50K an investor can get their money back or switch it to another band.
Seems to me that $10 is a really cheap way to “own” part of a band for people who like to be early adopters of new music and a way for a band to raise money but more importantly get 5,000 folks promoting their music from the get go. For the investors, it’s like paying $10 to be a promoter of an idea virus. And you get a CD for the price.
UPDATE: Slice The Pie has a similar concept.
Takeaway:
- The real power of any technology is not to do the same old stuff quicker, better, or more accurately, but to allow you to do things that could not be done before. The web is no different in that it’s real power lies in the uncharted.
[tags] entrepreneur,record label, Music Business, business model [/tags]
