Web Site Turns Music Fans Into Investors
There’s no telling what a $10 investment in U2 in 1985 would be worth today, but a start-up Web site called Sellaband is offering music fans the chance to put their money behind artists they think can climb the charts.
The Amsterdam-based company allows fans — or what Sellaband calls “believers” — to invest in unsigned acts in $10 increments. Once an act reaches $50,000, it is given access to a recording studio and professional production, song-writing and marketing expertise.
Investors will get a free copy of the CD, a cut of any CD sales and a share in the advertising revenue generated for the site. Sellaband keeps 40 percent of any music publishing revenue, but none of the recording proceeds.
About 600 singers and bands listed on Sellaband have raised $150,000 from 3,000 investors since the site launched on August 15. Fans are allowed to withdraw their investment or move it to another artist any time before a group reaches the $50,000 mark.
Photo by Sellaband.
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