I am think about investing in a music band…

Posted on March 18, 2007
Filed Under Business pleasure, Investments |

Yesterday evening I was having supper when I suddenly came across a website called Sellaband… what struck me is that you can co-finance the release of some albums… and make profits if it is succesfull… this is how it works:

“For the first time fans and Artists can be in business together. Therefore each Artist issues 5,000 so called Parts. Parts cost $10 (plus transaction costs) each. Together Believers have to raise $50,000 to get their Artist of choice in the studio. At any point before your Artist has reached the Goal of $50,000, you can withdraw your Parts and pick a different Artist. You can even get your money back. It’s your music. It’s your choice.”

Step 2 is about is about funding:

” Help your Artists of choice to raise $50,000. You can do this via communities such as MySpace or simply by enthusing your friends. Once an Artist has reached the Goal and has raised $50,000, it is no longer possible to buy Parts from this Artist. Only these 5,000 Partholders will be in business with their chosen Artist”.

Afterwards: “Once your Artist has raised $50,000 SellaBand will assign an experienced A&R-person to this project. Together with a top Producer, your Artist will record a CD in a state-of-the-art Studio. During the process you will get an exclusive sneak preview of this exciting process”.

And finally the money… that’s the best part for most of us

“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. A regular version of the CD will be sold through our online partners and at gigs by your Artist. Your Artist will receive 50% of the net profits of these sales. The rest will be equally divided between you and the other Believers”.

By the way my favorite is Lily Vasquez…