What is SellaBand?:
SellaBand (visit their website) is a fundraising platform for musicians (and their reps). Artists sign up for a profile and pitch a project to be funded, and fans can make financial contributions to help the project see the light of day. In return for their investment, fans get things like t-shirts, unreleased tracks and even trips to the studio. The musicians decide what they want to offer to entice their fan investors. Usually, the bigger the investment, the more special benefits fans get. Some artists opts to promise a revenue share to fans who invest.
UPDATE: Sellaband filed for bankruptcy on Feb 23, 2010.
SellaBand for Artists:
Musicians can sign up for Sellaband for free and set the terms for the investment they are seeking. The projects can be recording, touring, promotion - essentially anything music related. The minimum investment you can request is $10,000. If you reach your goal, SellaBand keeps 10% of the money you have raised.
Note that labels, managers and other industry people can use the website to raise money for project as well.
SellaBand For Fans:
Fans visiting the site can browse members, check out new music, and find projects in which to invest. A charts section of the site highlights the most visited profiles and the projects that are receiving the most investments. After making an investment, fans are able to pull their money out of a project at any time until the project reaches its fundraising goal. Once the goal is reached, no one new can invest in it and no one can pull their money out.
Does SellaBand Work?:
As of 2009, $2,500,000 has been raised on SellaBand since its 2006 launch. A total of 34 projects have been successfully completed. There are over 50,000 members looking for projects in which to invest, so there is money there. The execution of the project depends on the people behind it, so funding is only part of the battle.
Learn More About Music Industry Funding:
Learn about your other funding options in Money and Your Music Career.