Fan Funded Forum

Last year I worked for SellaBand  - Firstly as Tour Director for the cancelled Arena Fest. Then I worked on the strategy for the new model – this was an extremely frustrating period – I could see a very clear direction that SellaBand should follow. Unfortunately SellaBand had very little vision and last years re-launch was a compromise that did not support any artists. I left SellaBand shortly afterwardss.

SellaBand had a great idea that was badly executed. They should have been helping artists that had proved that they can help themsleves. Artists that had toured, made music and importantly built up fans. It should not be supporting bedroom dreamers whos only ambition was to be an instant star!

HERE ARE A FEW FACTS WHICH CONTRIBUTED TO SELLABAND’S DEMISE:

• UNDERSTANDING – They had no understanding of how artists actually operate – I was the only SellaBand employee that had ever worked directly with independent artists. You have to experience what it is like as an unsigned band who is doing 200 gigs per year to understand what is really required.
• COSTS – They were unable or unwilling to cut costs. In mid 2009 they were burning 100k per month. They got this down to 50k towards the end of the year but it was too little too late. If they had have slashed outgoings to 20k then they could have kept going for another 12 months.
• BLIND FAITH – They blindly put all their faith in Public Enemy bringing in lots of new artists without ensuring that Public Enemy would succeed. I was in Johans office when PE management told him that they had no intention of promoting the SellaBand project to PE fans. This was weeks after it launched. This was news to Johan who had failed to find out what their plans were before launching the funding project.
• NOT LEARNING FROM MISTAKES – They continued to sign up artists with unrealistic campaigns, and no plans to promote it.

The list could have been a lot longer! There are many other facts that you would not believe!

SELLABAND v1 Failed – but this does not mean Fan Funding has failed…

I wish all the best to SellaBand v2… However having met the people at PledgeMusic.com, I can tell you that they have much more of an idea what is required… I would suggest that if you are a serious band with a plan that includes some form of Fan Funding then you chat to them now.

PUBLIC ENEMY – have signed up to fund their next album through the new flexible Fan Funding model launched by SellaBand.com
http://www.sellaband.com/projects/publicenemy

SellaBand have been pioneers Fan Funding since launching the first open Fan Funding platform in 2006…
Teaming up with such a well known artist should have been a very interesting project
However it appears it was totally mishandled and ended up exposing the incompetence at SellaBand HQ. The site went bust shortly afterwards only to re-emerge again bought by new owners. Public Enemy have remained with SellaBand but dropped their target and still have not reached it.=

It is a shame that SellaBand’s failure has cast doubt over the viability of Fan Funding – however it was SellaBand that failed not the model which they were unable to implement.

UPDATED 2010

In an Industry changing move SellaBand is opening up Fan Funding for all artists… maybe the whole music industry:

The Funding Target Is Now Flexible

Artists can aim to raise anything from $10k to $100k, it means artists can test the water on a smaller budget, use the money wisely, have some success, find new fans and then return for a larger budget if they like.

Artists Can Set Their Own Incentives

Now artists can get creative with incentives and can respond to what fans actually want: studio tracks for remixes, badges, posters, stickers, guestlist etc. Want to contribute more how about a visit to the studio, or a custom track just for you, a private gig, or deluxe box set etc. It is all up to the Artist to give the fans what they want.

And if artists don’t deliver? Well they will struggle to build a fanbase or come back and fund again – A democratic process just as it ought to be.

“Artists will always own the master recordings and keep 100% of publishing rights.”

With this move SellaBand has opened up Fan Funding to the entire music industry = Fan Funding is no longer just for unsigned bands – Artists who are working with indies or majors can use SellaBand and Fan Funding. In fact these changes mean that Record Labels, Artist Managers, Producers, Media Companies can all use SellaBand to assist the artists they are working with.

Revenue Sharing Is Optional

It will be interesting to see how much of an effect this has on projects. Do fans really want o.01% of an album? Or is it being involved in the experience and supporting the artist that motivates them. I expect different believers want different things and Artists can now offer that now.

SellaBand was the first open Platform for Fan Funding and is now the most complete

The changes being implemented at SellaBand will mean that Fan Funded will become a sustainable way for all artists to work with their fans to develop and control their careers.

Record labels, artists and other Music Companies are increasingly exploring alternative income models for music such as: Subscription Model, Playlist Model (”Url as Mp3″ such as Spotify) and the Fan Funded Model pioneered by artists like Marillion Radiohead and Nine Inch Nails and then made accessable to all by companies like SellaBand.com, Kickstarter, Pledgemusic.com etc