Life, Liberty, and anything else but Sleep (Ljova) (![[info]](http://p-stat.livejournal.com/img/userinfo.gif){kind=small} whatmepractice) wrote,@ 2006-08-24 08:52:00 |
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sellaband.com -- danger danger!
A friend sent me a link to an article about the new music service SellABand.com.
(from the blurb):
At first, I was intrigued, and then I thought - what do THEY (i.e. Sellaband) get out of this? As it turned out, a whole lot more than any band that signs up.
Here's a list of my fears about this site, most of them generated by looking at their FAQ page.
1) If a band raises less than $50,000 and wants an out, can they keep the money they raised? If yes (which is not at all clear now), how much of the money will Sellaband keep for "transaction costs"? I estimate that 90% of the bands which sign up won't be able to reach that goal, so I'm especially curious to see where the money goes.
2) It looks like you have to use the producers they recommend. Score one for creative freedom.
3) (from the
That's nice of them. I wonder how much studio time that buys, and at what rate. Basically what this says is that they're guaranteeing their friends at the recording/mastering facility to earn $30,000 (to the nearest penny?!), and to spend another $20,000 on (what is essentially) duplication. (A comparable duplicaton service from Discmakers will cost about $5,000). What if you need MORE studio time, or want to hire a more expensive producer? No dice.
Anotherwords, none of the $50,000 you and your fans raised goes to you. It goes to everyone but you and your band. However:
4) (more from Terms and Conditions):
Nice recovery... But what is a Downloadportal?! I thought you're going to give away my music for free, and now my only source of revenue is advertising and the Downloadportal?! .. Presumably from selling music by other artists?!
5) $50,000 -- who earns it? You or Sellaband? The company is based in Germany but deals in dollars. What are the specifics with regard to tax?
In short:
1) none of the money goes to you and the band -- until you raise $50,000, and maybe your album gets some airplay. (Did I mention that they take 30% of your publishing?!)
2) you get zero creative control
3) the top artist on Sellaband (a Dutch heavy-metal outfit called Nemesea has raised $4340 in the past 9 days, but has only 347 friends on MySpace.
4) Tell me - how is this different from being at a major label?!
Do the math, check it again, and think for yourself.
A friend sent me a link to an article about the new music service SellABand.com.
(from the blurb):
The concept encourages music fans to invest $10 shares in their favorite group, and then aggregates those contributions. Once a group reaches the $50,000 mark, the real action begins, and the band is sent to the studio to begin serious recording. SellaBand noted that it is "not a record company," but rather "a facilitator, bringing artists and fans together, and presenting a new economic model."
At first, I was intrigued, and then I thought - what do THEY (i.e. Sellaband) get out of this? As it turned out, a whole lot more than any band that signs up.
Here's a list of my fears about this site, most of them generated by looking at their FAQ page.
1) If a band raises less than $50,000 and wants an out, can they keep the money they raised? If yes (which is not at all clear now), how much of the money will Sellaband keep for "transaction costs"? I estimate that 90% of the bands which sign up won't be able to reach that goal, so I'm especially curious to see where the money goes.
2) It looks like you have to use the producers they recommend. Score one for creative freedom.
3) (from the
Terms and Conditions): "Once an Artist has officially reached the Goal of $50,000 he/she is obliged to fulfill the recording commitment with SellaBand. Of the $50,000, $30,000 will be used for recording the CD. SellaBand will assign an A&R- manager who will book the producer, studio and mastering facility. The rest of the budget will be used for manufacturing, packaging and posting the 5,000 CDs for your Believers."
That's nice of them. I wonder how much studio time that buys, and at what rate. Basically what this says is that they're guaranteeing their friends at the recording/mastering facility to earn $30,000 (to the nearest penny?!), and to spend another $20,000 on (what is essentially) duplication. (A comparable duplicaton service from Discmakers will cost about $5,000). What if you need MORE studio time, or want to hire a more expensive producer? No dice.
Anotherwords, none of the $50,000 you and your fans raised goes to you. It goes to everyone but you and your band. However:
4) (more from Terms and Conditions):
"As a SellaBand recording artist you are entitled to earn money via the Download Portal. All net advertising revenues generated on www.sellaband.com will be shared equally by Artists, Believers and SellaBand. The income per Artist and their Believers is based on the market share of the artist on the Downloadportal."
Nice recovery... But what is a Downloadportal?! I thought you're going to give away my music for free, and now my only source of revenue is advertising and the Downloadportal?! .. Presumably from selling music by other artists?!
5) $50,000 -- who earns it? You or Sellaband? The company is based in Germany but deals in dollars. What are the specifics with regard to tax?
In short:
1) none of the money goes to you and the band -- until you raise $50,000, and maybe your album gets some airplay. (Did I mention that they take 30% of your publishing?!)
2) you get zero creative control
3) the top artist on Sellaband (a Dutch heavy-metal outfit called Nemesea has raised $4340 in the past 9 days, but has only 347 friends on MySpace.
4) Tell me - how is this different from being at a major label?!
Do the math, check it again, and think for yourself.
