The internet has changed for ever how music is distributed. Tracks can now be accessed digitally by downloading from iTunes and other sites and through file sharing. The age of the big record company with its list of signed-up musicians may be ending, and certainly the big companies seem to have fallen on harder times.

To emphasize the point, Radiohead released their album “In Rainbows” on line on 10th October 2007 asking purchasers to choose their own purchase price (which could be for nothing). The album became a best-seller on both sides of the Atlantic, and was eventually released in traditional format.

The internet is also allowing fans to become partners of musicians and co-owners of their output. Here are two popular international websites where musicians can be published and fans can become part of the process and even co-owners of the recordings.

Sell a band
On the Netherlands-based, not to be confused with the Sellafield nuclear reprocessing plant, this is how it works. A musician signs up for free, first having accepted the terms and conditions of the site. They then create a profile, which includes a picture, a biography, a maximum of 3 demo songs and details of any website or social networking site. The musician or band then sets out to raise $50,000 by finding 5,000 Believers each prepared to invest $10. Believers can be recruited via the website, or the musician can plan an active role in trying to find these 5,000 people.

Once the money has been raised, the musician records their CD, and this is then promoted and distributed by the musician, the website and the 5,000 Believers doing what they can. Believers get a free CD in return for their investment plus a share of the profits.

This is the process of becoming a Believer:

1. Find a musician you want to believe in. Select a category of music and then search on the website. Or find a friend who wants to become a great musician and get them to sign up on Sellaband.
2. Read the terms and conditions and then sign up as a Believer. This is free.
3. Buy one or more parts of your selected musician. Each musician issues 5,000 parts.
4. Help you musician achieve the target of selling 5,000 parts.
5. Get a sneak preview of your musician as their music is being transformed into a CD.
6. Receive your own “Limited Edition” copy of the CD.
7. Make money. Three of the songs on the CD will be distributed as free downloads. The other tracks will cost 50 cents each to download, and the net profit is split between the Believers, the musician and Sellaband.
8. Make more money. You will get a share of the royalties on album sales, and you can open your own Shop on Sellaband to sell related products from your musician.
9. Promote the music. Spread the word. It’s in everybody’s interest!
Find out about how Sellaband works at: www.sellaband.com

Slice the pie
A similar website is the UK-based SliceThePie, where:
• Musicians can raise money directly from their fans so that they are able to professionally record and release their albums
• Fans can become emotionally and financially involved at all levels of the music industry – scouting, breaking, investing in and influencing real musicians.
• Investors can gamble on, trade in and profit from the success of the musicians they invest in.
• Musicians who secure finance pay SliceThePie a small royalty on album sales but keep all their copyright and publishing rights.

There are two routes for a musician to get funding. If they already have a dedicated fan base of over 5,000 fans, then they may be able to go directly to the financing stage, and they should contact SliceThePie.

Alternatively, they can join a SliceThePie Arena. Each Arena is divided into 3 stages:
1. Scout Room: Up to 1,000 musicians enter a Scout Room where music fans give high quality feedback on each musician’s three demo tracks.
2. Showcase: Up to 20 musicians with the best reviews from the Scout Room are then featured in the Showcase, where fans vote for their favorite.
3. Get financed: 
 Musicians seek support from fans on the Showcase. Those who get enough support receive the £15,000 needed to record an album. Whatever happens, the most popular artist is guaranteed £15,000.

Fans can also earn money as a Scout by reviewing new music and spotting talent. The better you become at this, the more you will earn per review and the more influential your vote will be. Find out about how SliceThePie works at: www.slicethepie.com

I fought the Lloyds
A band called Oystar have just released a protest song in the UK called “I Fought the Lloyds” about what happened when Dan Understanding tried to reclaim bank charges where he felt he had been overcharged. The track features a cameo from Martin Lewis, the MoneySavingExpert, together with Mr Horse who bears a passing resemblance to the Lloyds stallion and Dan who got £531 pounds back from Lloyds Bank by following the simple steps that were given on Martin Lewis’s MoneySavingExpert.com website.

“I Fought the Lloyds” got prominent coverage when the case by the Office of Fair Trading against the big banks started in January 2008. The MoneySavingExpert organized a campaign to get people to download the track. “If you’ve reclaimed bank charges, plan to, or support the cause… let’s get the song to the top of the agenda by getting it to the top of the charts. Order the 50p download and cross your fingers for a number 1 in the week of the bank charges test case.”

The track was released on 7th January 2008. It became Number 1 in the download charts and on January 13th was Number 25 in the Singles Charts. “I Fought The Lloyds” is available from iTunes or by texting “bankers” to 82822. Texts cost 50p + your standard text message charge.

Dan Understanding and co-vocalist Kev Campbell are selling shares in themselves as “Blairs Britain” on Sellaband. So you can support them and their protest music, and at the same time make an investment in two musicians with a purpose.

Find out about Oystar and the story of “I fought the Lloyds” at: www.oystarmusic.com
Watch the video of “I fought the Lloyds” at: www.youtube.com/watch?v=yLIe5X9DBew

And find out how to challenge your bank charges at: www.moneysavingexpert.com

For more education on careers in the music industry, check out: www.Music-Career-Guide.com

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Just like any business you have to have multiple streams of income to make enough money to survive. Here are some different ideas for streams of income that a musician can have.

1. Live performances finding venues that will pay you for playing a live set.
2. Lessons Bass, Guitar, Drums, Vocals, Songwriting etc..

Giving lessons is a great way to make money while keeping everything focused on your craft.

Residual income – Creating something that will continue to make money for you after it has been created. Merchandise!

8×10 Glossy – one of the best sellers! Costco makes the for a dollar and you can sale them for $3.00. That is a great margin of profit.

CD’s – MP3’s Learning how to build a website that sales your CD when you are not even there is ideal! (I am writing an article specifically on this subject)

T Shirts – Not my favorite but you must have them for the fan who wants them. Consider these more of a investment in advertisement than anything. Walking bill boards is what I call them.

Hats – Hats and Tee’s you basically double the price of what you bought them for when you sale them.

Hoodies – In the great northwest this is a big-time item. Sell these the same way as you would the hats and tees.

Necklaces – If you have a girl fan base what are you gonna do? Guys like dog chains.

MP4’s – video downloads for your fans that have video ipods.

If you are a musician one of the natural skills you learn is how to record your own demo material. Take advantage of this skill set. Many artists become good enough producers and engineers to make their own CD’s. As an independent artist this is where you can really start to get ahead.

If you are becoming semi famous within your own neighbor hood, having your own studio can become a very good stream of income. The cool thing is that when they see you are doing well in the industry and you are out making things happen they want you to help them. Even if you don’t become a recording engineer another way of making some good side income is performing on other bands CD. A guest guitar player, or sing some harmonies. I love this idea of playing on other people’s albums. You get this cross marketing thing happening. Everyone wins with this.

So let’s take a look at how every small business feeds the other. Giving lessons eventually will be creating your own cliental for your own recording business. It is also a way to build up your fan base while performing live. Every student loves to see their teacher doing it for real in a concert. It is also great for potential students to know that their teacher is a professional player or performer. Great selling point!

The website you will build, well that is going to be your business partner in this whole thing. The site will answer any questions your clients may have when you are not able to be there in person. Having live video footage of you out in cyber space makes it more likely for a stranger who sees’s this to want to come out and watch you play live. No one wants to pay a cover charge to see someone not very good, but if you have live video footage and you are good they will be more apt to pay a cover charge for the admission of your show.

When they do make it out to a show and you blew their mind with your sound but they didn’t bring enough money to buy a copy of your CD the business card with your website will direct them to buy it online. Still making it possible for you to make the sale down the road and gaining a life long fan. Hope some of these pointers help.

For more education on careers in the music industry, check out: www.Music-Career-Guide.com

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