Fans: The New Source of Music Cash Flow

As I said in a recent YouTube video clip, the music business these days is like the Wild West. No one knows exactly how things will shake loose. No one can truly predict the future. Therefore, the best way to proceed into this new frontier is to do what everyone else is doing: Making things up as they go along.

So have some fun with your marketing and career development!

One cool concept is the fan-funded model. Kristin Hersh and Scott Andrew, among others, have effectively asked their fans to help them fund their recording projects. But now there are entire web sites set up to help indie artists collect money from their fans.
Sellaband.com and Slicethepie.com are two such sites. This Wired.com article by Eliot Van Buskirk spells out more details, but here are some interesting numbers:

Anyone can become an investor in a SellaBand artist by buying an advance copy of an album and a single share in the recording for $10. The site has raised more than $1.5 million from more than 25,000 investors. They've deposited an average of $50, but investments have run as high as $25,000.

Out of 6,500 bands, 14 have reached the $50,000 mark, which is when SellaBand helps find a studio and a big-name producer to record the album. (SellaBand artist Cubworld got paired with Gwen Stefani's producers.)

Slicethepie lets fans pay $10 for a share in the album and a free digital copy ... The site has raised $400,000 so far, while attracting 7,800 artists. Bands only get funded if Slicethepie's blind-listening reviewers -- who generate 10,000 reviews a day -- rate them in the top 2 percent of new artists. Reviewers are paid 2.5 cents per review, with bonus pay if they pick bands that prove popular.

I've been preaching the Focus on Fans sermon for years now. They are -- and have always been -- your greatest asset. Why not tap into your fans for financial support beyond buying CDs, concert tickets, and merchandise. Whether you use one of the sites above or not, allow your fans to play an even bigger part of your success story.

Welcome to the Wild and Wacky World of Music Business Change. Are you mixing it up and experimenting with different ways to get exposure and generate revenue? If not, you should be.

Whatever you do, don't make the mistake of simply watching from the sidelines. Get busy ... and have some fun!

-Bob


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