Public Enemy has signed an innovative deal with fan-funded record label SellaBand. The Amsterdam-based online label has an interesting business plan: getting fans to support a project based on name and idea alone with $25 donations. In return, they’ll receive a numbered copy of the album, as well as a share of the revenue that the currently-untitled product produces. For P.E., their goal is to raise $250,000 from 10,000 donations, so the fans are, in a way, investing in a piece of the stock of the album. This un-traditional-yet-intriguing new business model is interesting in it’s approach towards establishing a new fan-centric music business. What a cool way to show support for a group you like; you don’t have to buy their CD anymore, you’re helping to make it.
“SellaBand’s financial engine model goes about restructuring the music business in reverse…It starts with fans first, then the artists create from there. The music business is built on searching for fans and this is a brand new way for acts to create a new album with fans first, already on board.” – Chuck D.
check out the Public Enemy / Sellaband project here