Almost a year ago, Stefan Kolle of Futurelab (who syndicate many of my blog postings) suggested that I blog about Sellaband, a new model for financing the recordings of new artists that relies on lots of small investments from fans — or in the Web 2.0 jargon, raising funds through "crowdsourcing". In the end, Stefan himself wrote about Sellaband, but I held my fire. Now that Sellaband is approaching its first anniversary we have a better idea of how the model works in practice. Prompted by a discussion over coffee last week and this Sunday Times article [thanks, Babs_05], here are my thoughts.
First, for a brief introduction to Sellaband, you can read the full account of how it works on their website, but Digital Music News provided this summary:
The artist makes their own profile on Sellaband.com including pictures, a bio and a maximum of 3 demo-songs. There is no charge to the Artist. The profile is meant to appeal to potential "Believers" who are invited to give money in $10 increments ("Parts") to pay for the production of a complete album. Anyone who wants to support the project can buy one or more Parts for $10. Once $50,000 is raised Sellaband will provide an experienced A&R person to guide the recording process. Of the $50,000, $30,000 is used for recording the CD. The A&R manager will book the producer, studio and mastering facility. The rest of the budget will be used for manufacturing, packaging and sending up to 5,000 CDs for the Artist's Believers. [This division of funds is shown in the graphic above.] At any time before the Artist reaches the goal of $50,000, the Artist can leave the service and shut down his profile page, and the Believers' money will be returned to them.
One of the criticisms that's sometimes levelled at the recording industry is that they've hollowed out the people that really care about the music and all that's left is the accountancy skills and some questionable promotional tactics. Sellaband was created by ex-recording industry executives, but they are delegating their responsibility for part of the A&R process: if it's the fans/Believers that determine which artists get recording deals, then the A&R has less of his/her personal judgement on the line. You could argue that Sellaband is taking the criticisms of record labels at face value and behaving more like a bank.
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