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Online Business Model for a Band?

Backes asks: "I've seen a lot of submissions about P2P, iTMS, DRM, piracy, and the RIAA, lately. Apparently everyone has an opinion on this and most seem think that the recording industry are a bunch of greedy people that stick it to the consumer as well as their own artists. After hearing some of the stories, I'm not even sure that getting signed to a label would be the best course of action for an aspiring musician or band. So what is a better option? What would you, the Slashdot community, do to make it big on your own using the Internet?" "What kinds of features would a site need? Would you pay for downloads of MP3s from a band's site or not? At what price? Would donations work, or would everyone just freeload? How often would you need updates or new songs to keep you coming back? If downloads were free, would you then buy a full length album from the site just to get the CD? What special features should the CD include? How would you get your name out? What do you think is the best course of action for a band that wants to completely circumvent the whole music industry process and do it themselves?"

18 of 420 comments (clear)

  1. Get your priorities right by Timesprout · · Score: 4, Funny

    Groupie model first, then business

    --
    Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
    What truth?
    There is no dupe
    1. Re:Get your priorities right by ZephyrXero · · Score: 4, Interesting

      There are quite a few successful online-only artists these days. First off, sell your CD's through CDbaby.com. They take a very small cut of your profits and will put your stuff on iTunes for you (you also get a larger cut than the standard artist there as well via cdbaby). Next, put free downloads on your site. The only way people will know if they like your music or not is if they can hear it, right? Now...I would suggest putting them in a slightly over-compressed format. Meaning, it's a high enough quality to hear your music properly, but not quite high enough for them to be satisfied with just that file. I'd suggest either a 96kbit MP3 or Q0(~64k) Ogg Vorbis file... Now they can proceed to buy your CD or download a high quality file from something like Mindawn.com. The next step, and it's the hardest one...is to get advertising of some sort. You can have the best music and the best site, but if no one knows about it, no one will ever see/hear it. This is the music industry's trump card currently, but it is possible. My current favorite band, Celldweller, does all their stuff themselves, sells primarily online, and are doing pretty well (they had a song featured in the Spiderman 2 trailers last year). They even have a small distribution deal to get their stuff in mainstream stores like Best Buy and whatnot. Good luck!

      --
      "A truly wise man realizes he knows nothing."
    2. Re:Get your priorities right by ndtechnologies · · Score: 4, Informative

      Well, the web hasn't been totally utilized as an asset for bands, in fact many underestimate the power of it. For years i had my bands music up on sites like Angelfire back in the mid 90's. Now in the world of broadband, I decided to start my own online Music Store http://ind-music.com/ because I wanted a way in which I could sell my music online, and still be able to make some money. At this point, we have over 20+ bands that have signed up, and we also work to get them gigs here in Nashville as well as feature them in commercials for our site on local radio stations. The artist doesn't get charged for it. The site takes a commission on the song sold, but the numbers work out so that the artist makes more per song sold, than they do on other competing sites. They set the price for their songs and the bands also earn more money as they sell more downloads. Best of all the accounts are free, and when someone purchases a song, it stays in their account for two years. None of this 90 day expiring DRM stuff. Also, the band doesn't have to give away their creative freedom. They can make the music that they want, without fear of being dropped. The bands choose when they want to close their accounts. We really try to do as much for the artist as possible. I am as frustrated with the Recording Industry as the next person. That is why I created my own.

      --
      I have nothing clever to put here...
  2. Magnatune by kernel_dan · · Score: 5, Informative

    Check out Magnatune. Motto: We're a record label. But we're not evil.

    --

    Illegal? Samir, This is America.
  3. To make it big on the internet... by Peterus7 · · Score: 4, Insightful

    Get one of your fat friends to do something really stupid, videotape it, and put it up on newgrounds with a music track. Then sell t-shirts.

  4. I'm so glad you asked.. by peculiarmethod · · Score: 5, Informative


    Well, I am not famous, yet.. but I am working on exactly what you speak of, and here is a simplified version of what I am doing:

    I have a living room studio where I record all of our practices and jam sessions to firewire harddrives. I use 24 channels to mix down about 6 different sized diaphram condensers and a few 57s here and there. There's all the gear we need (amps, bass, guitar, two keys, and a trap set), effects, a PA, and we have and now own the only copies of all our material. We all learn and teach each other to engineer.. play.. compose.. we all treat it democraticaly when decisions are to be made about lyrics, composition, song selection, mastering, mechandise, etc. With all this in our own hands, we all sell CDs and merch at our gigs and in our spare time (running to local record stores and getting things on consinement), and reinvest certain monies from band oriented sales into necessary things like legal docs or advice.. expensive promotional materials such as ads, cds, etc. Repeat.. profit. we've removed the need for a label at the expense of not having everything all at once. But with a bit of work, the band can work like a sucessful startup company, and we're having one hell of a time while we're at it!

    pego the jerk

    --
    ** "It's not my job to stand between the people talking to me, and the ones listening to me." -- Pego the Jerk
  5. Model by seaniqua · · Score: 4, Insightful

    Unfortunately, I don't see a band making more than a moderate regional success without the aid of a lebel. The industry is just too closed to outsiders. You won't get your album shelved in Sam Goody, Wal Mart, and the like without the aid of a high-powered record company. The only other option is to join a smallish, "indie" label. While you still won't make MTV (most likely), a good indie label will be able to get you some exposure in independant record stores, radio stations, and the like. Some idie labels even band together in loose organizations, and can manage to get more clout that way. With this setup, you might be able to get a regional distribution in major outlets, but you still won't make the billboard charts. Sad to say, but if you want to be a rock star, you still have to play the label's games. At least until I get my plan to revolutionize the record industry underway...

    --
    That's right, I read at +2 and post at +1. Not even I care what I have to say.
  6. Re:take the contract by File_Breaker · · Score: 4, Insightful

    Yeah, but then 99% of the time you lose all rights to your own music. I was in many bands and even when we got an offer that was pretty good deal we said no because we wanted to own our music and not have the record lable own it. You have to watch out.

  7. its pretty simple really by deathcloset · · Score: 5, Insightful

    play shows.

    That's all.

    The "recording artist" is becomming something of an anacronism - or will become so IMO.

    We are returning to a time when musicians get payed to actually perform their music, not just record it.

    Ask a signed band, and the record company always, always gets the biggest cut of the money from record sales.

    the band just counts on the sales driving concert attendance...but it's not really SALES driving the attendence, it's the people hearing the music.

    and that hearing can now be achieved without the expenses of distribution from a decade ago.

    that's truely why the Recording Industry is going to the toilet. The fleets of trucks driving to the stores and the warehouses of duplicatation equipment are already outdated - and that was really all that we needed those guys for. They didn't MAKE artists, the found and held them - like a zoo animal.

    Give your music away, if you love it set it free. They will come to see you play if you rock :)

    and I hope you do :D

    link to your bands website?

    1. Re:its pretty simple really by wtmcgee · · Score: 4, Insightful

      I disagree. I enjoy the live show as much as the next guy, but saying the studio album is simply an ad is a bit naive. I'm way too busy (and live way too far away from any decent venues) to see every band I enjoy playing live.

      The album format may be dying (slowly, but yes, it's dying), but for someone who spends way too much time in a car or at work, live music (and ESPECIALLY merch - I don't want a t-shirt of my favorite band ... i just don't care about such things) is not a viable way for me to support artists.

      --
      *** For a better tommorow, change your life today ***
  8. Give It Away Now by Doc+Ruby · · Score: 5, Insightful

    Give the music away for free, with URLs embedded in the MP3 ID3 tags etc. Sell the things you can control access to, like concert admissions, copies of CDs for people who want that (many still will), t-shirts and other merchandise. Try to license your songs to people selling other things, if you think that's cool. If you sell the songs, there's a cost to sales, and you'll wind up spending lots of other money on other promotion and marketing. With the Internet offering so much free distribution, the music itself is the most effective, cheapest promotion available. And the primary idea is to get as many people listening as possible. So help the music get to the people who want it, and your audience will be more interested in paying for the rest of the package.

    --

    --
    make install -not war

  9. Re:take the contract by Jah-Wren+Ryel · · Score: 5, Interesting

    Don't be stupid. If a label offers you a contract take it. If your career goes anywhere, you can renegotiate a better contract after the terms of the first have been completed.

    I agree, don't be stupid. But that's all I agree with.

    90% of signed bands never release a second album, because their label dumps them first. Meanwhile, just about all bands make negative money from their first contract. This is important, if you sign with a label, you will end up in debt, you will also end up not owning your own work made while on contract. Standard label contracts are really that abusive. They get away with it, because prior to the internet, they were the only game in town.

    You know why Prince changed his name for a few years to that weird multisexual symbol? Because his label owned his name. We got to hear all those jokes about it, when it was really a creative way to escape a hideously abusive recording contract.

    Don't be stupid, don't sign with a major label. You never win the lottery, you ain't going to win the label lottery either.

    If you are good, you don't need the labels anymore (and chances are they don't want you because "good" does not usually equal "easily packaged up as sex symbols for young teenagers").

    Make your own way.

    Release your current work to the net with a Creative Commons license. Promote your live performances, sell doodads.

    If you are good, you'll gain a following after a while (years probably - so don't quit those day jobs just yet). With a substantial fanbase you can start working on commission. Here's how in a nutshell:

    1) Set up an escrow account that people can deposit money in via paypal, credit cards and electronic checks.

    2) Name your asking price for the release of a new recording - a whole album or just a track or somewhere in between.

    3) Make sure your fanbase knows about your offer, publicisize it every which way you can.

    4) When enough people have pre-ordered your new music (via the escrow account) to reach your asking price, release the new performance with a Creative Commons license, and take your money.

    If you continue to make good music, each time you release a new track to the public, it becomes advertising for your next commission. If you get popular enough, say just 1 million fans (out of the possible 1 billion or so people on the net), you can really start raking in the bucks on the commissions - ask for a cool $1M to release your next album and all it takes is just 10% of your fans to pay $10 and you are now a very well paid artist. Your fans are happy because unlike with RIAA music, they really will own the music they buy from you, no guilt, shame or jail time for sharing copies with all of their friends and strangers too.

    Everybody wins, except the RIAA and their old guard distributors, and nobody will shed a tear for them.

    --
    When information is power, privacy is freedom.
  10. Re:I would like to know by redivider · · Score: 5, Informative

    Register with the US copyright office. It's not expensive. Its $30 to register a whole album worth of music and lyrics.

    http://www.copyright.gov/register/sound.html

    There you will find Form SR (Sound Recording) and instructions on how to register.

    --
    Sinch
  11. Re:I would like to know by ZephyrXero · · Score: 5, Informative

    Copyrights are fine when used properly. It's when giant corporations own them and the artists ignorantly sign their rights away b/c they feel it's their only option that it becomes a problem. But yes... make sure you decide what kind of copy rights you would like to retain and then have it posted on your site along with your music downloads. It's just as valid as any other printed media. I'd suggest looking through your options at the creative commons first too.

    --
    "A truly wise man realizes he knows nothing."
  12. Re:I would like to know by bcrowell · · Score: 4, Informative
    Just to amplify on the parent post, you automatically own copyright on anything you create once it's fixed in a tangible medium (recorded, written down,...) but yes, it is wise to send in the registration form and the $30 anyway. There are a couple of reasons for this:
    1. If you have to sue somebody for infringement, you have more remedies available if you did the registration.
    2. It proves that you really were the author, and that you wrote it first.
    BTW, point #1 can be important for OSS. If you don't do the registration, and someone violates the GPL, you can only sue them for actual damages. But your actual damages are likely to be zero, since it's open source.

    On a different topic, I have some exeprience with bypassing the traditional book publishing industry with some of my own free-as-in-speech books. Here's some advice:

    • Keep your expectations reasonable, and make sure that if you never see a dime of revenue, you'll still have had a good time doing it, and won't have lost any money you couldn't afford to lose.
    • Don't underestimate how much work it is to set up all the functions of a publisher (or in your case, record label). Taking credit card orders is a pain to set up, and entails continuing hassles. Are you going to have https on your site? -- another hassle, and another expense. What's going to happen with orders if you go on vacation? If you're cursed with success, how much bandwidth are you going to need, and what kind of webhosting costs will that bring with it? How are you going to advertise? Advertising is expensive, and it can be hard to tell if you've reached the right audience, or what the return was on a particular amount of money you spent on advertising.
  13. Watch your audience, too by adoll · · Score: 5, Informative
    I run sites for bands: 1 2. The single most important thing for them is getting signed to do live performances. This means the site is promoter friendly, as well as fan friendly. Tell them when you are playing and where. Fans and festival promoters like to know when you are in their area.

    Have your promo pack on the site. Only one of my Clients does, but that gives them an advantage over the competition. Make sure the promoters know who you are, what you play, and what you need on stage for plugs and boards.

    And photos! Fans love em. Promoters need em. Find yourself a good PHP type package like yappa-ng and smile for the birdie!

    My $0.05 about music online: consider it your radio play. Release a few "singles" to your website (and wherever else you can) and don't skimp on the quality. The promoters are listing to a dozen MP3s a day and if yours doesn't stand out, then you won't be on stage.

    -AD
    Shameless link to my own template

  14. Re:I would like to know by belial · · Score: 4, Informative

    I've taken copyright law classes specifically for the music business. The 'poor man's copyright' was brought up several times, and although it can be used as partial proof, it really doesn't stand up. In fact, it can hurt you.

    If you sue someone for infringement, you can use your dated envelope for evidence (although not proof) that your story is what you say it is, but damages can only be collected from the date your work is filed at the library of congress.

    If you were to file properly instead of going through the 'poor man' routine, you'll make out a lot better in an infringement case.

    Also remember, Copyrights are given for 'original' works. They don't have to be 'unique'.

    It is very possible that two people can come up with the exact same song. lyrics, chord progression, etc.

    At that point, the owner of the older work (who is claiming infringement) must show that the infringer had access to the original work.

  15. Don't try to do it all yourself by iabervon · · Score: 4, Insightful

    Unless you're actually interested in running a business, you should avoid having a business model. Running a successful business, regardless of the model, will take several people working full-time on overhead, and this is likely to eat up your band.

    The right path is really to find someone else (such as Magnatune) who has a business model which leaves you ownership of your music, gives you a return that you feel is fair, and involves business practices you think are ethical. There's nothing inherently bad about signing with a label, just like there's nothing inherently bad about getting a loan; it's just that the well-known labels are scams.