SellABand

Bands upload sample music to Sellaband.com, promote the heck out of their profile page and ask fans to chip in $10 per share of a recording that will be produced when the band raises $50,000. The fans can take their money back out at any time before the goal is met. Once recordings are made, 3 songs are offered for free, all other songs are then sold for .50 cents on the Sellaband site, where ad revenue will be split between the bands (1/3), Sellaband (1/3) and Believers (Music Fans)(1/3). Publishing revenue is split between the bands (60%), Sellaband (30%), and the Producers (10%). Fans each get a copy of the recorded CD and bands are free to offer them any other benefits, like concert tickets, that they wish. Sellaband retains rights on the music for 12 months. The company seems confident that bands will be able to find 5,000 supporters (called Believers) willing to put up $10 apiece.