Become A Music Investor
With the advent of the internet, the way that business is done in the music industry is constantly changing. Fans are now in charge of what they want to listen to and unsigned and independent artists can get their music out to a wider audience. Indeed without the internet consumers were finding it increasingly difficult to find the music that they actually wanted to listen to and just listened to whatever the charts and the radio stations fed them. Things are very different now, instead of turning to record labels unsigned artists are turning to the internet and their existing fanbases as the new alternative way of 'getting signed' without actually getting signed.
Unsigned and independent music artists raise the funds for their project (eg an album) by selling preorders of the album before it's even been made. In addition, several artists are using online platforms that allow them to sell shares in their project so that fans and investors can potentially make a profit. In fact, when Slicethepie's trading exchange was still running (the world's first music industry stock market) investors made over 400% profit on 15,000 contracts that were issued in the band Scars On 45. The band went on to get signed to Atlantic Records.
If you're serious about becoming a music investor it's a good idea to team up with as many other investors as possible and work on a promotional system to help spread the word about the artists you've invested in. For information on how to build a promotional music network check out my hub Start A Record Company. The following sites are the best places on the internet to check out the latest undiscovered talent who are looking for finance.
SellABand - Although Sellaband recently went bankrupt it was taken over by german investors and is still going strong. At Sellaband you can preorder/fund albums and get a small percentage of the profits depending on how much you invest. Some artists may be offering up to 100%.
MyMajorCompany - My Major Company describe themselves as a record label with fan-funding at it's core. In return for 10GBP an investor can own 1 share out of 100 in an artist. Investors can earn up to 40% of sales in albums, merchandise and live performances.
AKA Music - AKA Music lets investors become producers, the funds are used to finance the production of an album and investors earn up to 40% of sales. AKA Music describe their system as betting on your favourite artists.
For My Band - A relatively low profile german website, similar in concept to the sites above. Fans and investors buy shares in an album, the funds are then used to produce the album and those who own shares make money from sales. However, with ForMyBand investors are given their own music store to help promote and sell the music they have invested in.
Slicethepie - The beauty of Slicethepie is the fact that only the highest rated artists are allowed into a showcase where they have to raise funds within a specific time period or start again. This gives you the advantage of knowing which artists are most popular. However, artists on Slicethepie are not required to share profits although some of them have, in the past, offered percentages for life and not just on their albums.
Investing in music is a risky business and you should remember that only one in every twenty artists that gets signed to a record label actually goes on to become successful with enough promotion and marketing in the right places. You need to be able to recognize a good deal when you see one which is not always as easy as it sounds, a little bit of research goes a long way.