mean buying stock in a band or writer, photographer, even a filmmaker. Not in the traditional 'fund-raiser' sense, but actual shares of digital media.
I would approach with intense caution. The entertainment business is full of investment scams. They scam the investors and the artists. Record Labels are nothing but bankers dressed in polyester suits.
Never, ever trust their projected numbers...if they can scew you....they will.
Tom, I agree. the major labels, publishers have really screwed the pooch -pardon my french.
what we hope to achieve with scent of indie is a new found renaissance-revolution.
one of the main differences with us and others is the artist w/ scent of indie keeps 100% rights. our job is what the old school Anr were supposed to do, promote the artist and allow people to enjoy the art form, support the art form -and our addition, make a profit from that support.
I believe you can do this.
If you would countact the Music writers Guild, Country Music performing Artists Association, places like this, they have and sometimes will provide a performing Artists list of performers who are open for or advertising for a silent investor, and can provide you contact info.
Make sure you use your own lawyer, because the contact for those artists will be a lawyer also. so protect yourself and get a fair deal. There are some really good Artists out there with good portfolios. But remember, it is like penny stocks. You gamble.
MAKE SURE THEY HAVE NOT ALREADY SOLD RIGHTS TO THERE OWN SONGS TO A MAJOR COMPANY.
Sometimes those companies see the talent in an Artist so they con them, buying up the rights to prevent them from entering the market and compeating against the Bigger artists they already represent.
Capitol Records in Nashville is famous for that trick. They have killed many a good ACT and religated them to Bars and Music festibles, and small venues holding them back. So Be carefull and good luck.
You might consider starting your own label, and make CD's for distribution to Music Stores, on your own, representing Artists that sign with you for a trial. DJ's can be your best friends at times.
If the DJ's give it air time, and the CD's take off? Your in with your own Lable. As a holder of rights, you yourself can sell shares to other Investors, thus becoming a broker. Stage concerts and showcase those folks on your Lable. Make money!
Jon in nashville
thanks for the reply.
. scent of indie . is doing this plus a lot more.
we have set up a stock exchange for all Independent Art forms, created a Partner in Arts program -which is ordinary people owning their own label, gallery, etc, within our company. Thus acting as AnR, distribution, marketing and sales of digital media for artists.
it is definitely a new and exciting way for everyone to get involved on many levels with the independent arts.
if you haven't yet, have a look at our website and feel free to drop us a note with your feedback.
I only glanced over your hubs and website. I'm slightly curious.
Are investors making a profit thus far?
If you want to give it a try without risking any real money then try registering at hsx.com (hollywood stock exchange) I started there probably 6 years ago but havent been on in over a year. It's just for fun but it gives you an idea of what movies are being talked about, in development, in production, and under wrap.
Lita, the program is brand new so we are watching closely how members ratio their interaction & profit level.
Again, something about the program that is unique is the investor CANNOT lose their investment because the value can never go below what they bought the shares for
Rich, I am very familiar with HSE. The real differences:
1. with SOI you are buying actual shares of content.
2. you are not competing to see "if" this movie etc will succeed, you are investing, knowing that the value will increase. Same is the one for sports -can't recall the name offhand.
-- off the cuff --
In short, our members (fan-investors) are investing in the actual content (mp3, ebook, etc). They can opt in for as little as 20 shares.
One perk is that they can open their own 'label, gallery, publishing house' and manage artists they bring in, plus endorse them through events, etc, which SOI helps with.
Second perk: it is risk free and comes at no cost to the member.
The artist gets 99% of all IPO profit for each offering as well as marketing, etc we do internally/externally.
and again, this is for Independent Arts/Artists not the mainstream carbon-cutout pop star, if you know what I mean.
That doesn't make much sense. At least when you say that you can't lose you initial investment. It sounds like you're investing in independent artists and filmmakers. What happens if their work doesn't do well? What if they're not a breakout hit? How do you recoup your investment. I imagine, after all, that the investment money is going to be used for equipment, travel, editing, etc. If that money is spent, then how do you recoup it?
Your investment is a cash investment. Since you are buying shares of content (movies, songs, etc) the investment itself is protected by the system algorithm.
Unlike most 'fundraiser' companies that use the investment for the things you mentioned, as a stock exchange, we hold your investment as liquid. You can sell at any time to recoup.
If the stock does well -increases in value - you sell the shares for profit, else sell to break even.
hope this explains a bit more.
So if it does well, where does the increase in value come from? If you're part of investing in the project, that comes from sales. If it runs more like the stock market, that's a bit more speculative. In that case the value rises because people are bidding on the value going up. That's the sort of thinking that got us in trouble in housing. Unless the value of the IP is tied into the the revenue stream, all you're doing is speculating on value.
I can't even see where value itself comes from, other than from the investors themselves, let alone profits. Frankly looks like yet another Ponzi scheme to me.
Do you work in tandem, I and D?
I wouldn't go so far as to call it a Ponzi scheme, but rather very speculative. If they use new investors to pay off old investors then, yes, it's a Ponzi scheme. Think back to the worst days of the housing bubble when people bought houses just because you could expect the value to go up, or in the NASDAQ during the late '90's.
Well, I fail to see where money come from. Say I own a box of books, and i open a stock exchange to trade a right of ownership of those books. the only money in the system are investors' money - unless I sell books to strangers, but then i don't own that stock anymore, and have nothing to trade...
Looks quite shady to me.
That's why it's speculative. Interestingly enough it's how many people buy stocks these days. It used to be that stocks paid dividends on investment, but fewer and fewer companies do anymore. If you got part of the revenue from sales, I'd say go for it. But if there are no "dividends" so to speak, I'd pass.
This is why it's good to think like an economist. Unless you can figure out where the money is coming from or going to, you can't make a good decision.
Let me clarify.
1. you are investing in a post-production product (a song, a book, a movie). these items are called shares or units. so you can buy 20-5 million units of whatever songs you like.
now, here is how the valuation works:
the song is rated by a point system of 0-100. id the song rates 100 it has a value of $1.00 per unit. You and other people invest in the actual song (mp3).
say you buy 20 units @ $1.00.
as soon as you buy the shares, the actual market value increases depending on the units issued.
2. the difference versus NASDAQ, NYSE, NIKKEI and other companies is they rate stock on a pre-product. Like Microsoft raising 50M because they think they might have an amazing product.
with scent of indie, you see the final product and then decide to invest in it. when the market price rises, you sell into the markets and make profit.
3. the way the algorithm is designed, the price can never go below the issue value -in this case $1.00. It also has a ceiling of $2.00 per unit. So in essence you know how high or low your shares can go.
ps. A pozi is one person using thousands of people investment to cover a false investment.
pss. privet misha, kak dela? govoritch po rusky?
Yeah, Russians do speak Russian, but i don't think this thread is the best place for this.
Don't think you addressed my concern, in all your posts. Also, what clearing house do you have? Any stock exchange is as good as its clearing house, and if you are going to do the clearing yourself, where is the guarantee you don't run away with my money?
Misha, yes, I see your point.
Our initial valuation is done at random by survey of people who like a particular genre. Upon receipt of the data, scent of indie works with the artist to determine what product would be best to introduce to the public. If the rating returns a low number, we rate it a C. if mediocre, a A, etc etc.
Clearing begins at this point,. we prep the content to insure maximum quality. As for running away, we can't (even if we thought of it) because we are locked into the artist and their fan base plus the survey watch dog group.
But beyond that, we don't own your investment nor the artist content. We are like a money market account, an escrow.
both the artist and fan-investor benefit. Our portion is a small percentage. so it is in our best interest to help both the artist and fan, else there is no point in us doing what we do.
what precisely were your concerns, maybe we can clarify them.
OK, you work like a money market account. Your investors provide you with money and you use that pool of money to invest in particular artists and musicians. You have a particular system you use to evaluate the possible hot properties. In return for your help in getting them to market you get some of the profit from the sales, some of which reverts to your investors. In addition, the properties can increase in value if they sell well offering a secondary market to make money. In that respect it's very much like a stock market.
Have I missed anything?
Tech, WE don't invest your money. YOU invest in the final product -be it a CD, Movie, whatever. There is no secondary market save the trading floor. The IAO is separate from the exchanges to create the floor/ceiling ratios whereby enabling the investor to know beforehand the outcome.
There is no hidden item or number. you know upfront the product, the value pre-post market.
The artist knows the same.
now, when the units are introduced to the market floor, the ratios kick in and flux. Based on the level of units any one investor has, the variable for valuation can be one penny to one dollar per unit.
So you provide a ranking system by which we can select artists to invest in. So what happens to the money we invest in the artist? Do they use it for marketing and distribution or what?
the IAO portion goes to the artist which they use to create additional content.
but as I said, as a fan-investor you can open a house and manage artists whereby promoting them, marketing, etc and enough the spotlight plus a large part of the trade fee proceeds from the exchange market.
The IAO being the initial offering on the artists works?
That's what my thought was with the microsite. By pulling in new fans, I'll not only be making money from the website, but also on my investment in the artist. OK, I just wanted to see the possibilities of investing in an artist. It makes much more sense now.
Rather than equate it to a stock market, it may be clearer to suggest a music label or marketing artists.
we thought the word . consortium . (collection of labels, publishing houses, etc) would confuse folks. so we picked stock market.
So that's where the confusion stems from. Stock market is really a blanket term. There's all sorts of investment vehicles included in the term. That makes much more sense now. Thanks for answering my questions.
So you don't actually get a portion of the sales of the song, book, whatever, right?
you own the rights to resell, yes.
but the artist keeps copyright.
no matter what it is, if you invest in it and it valuates, you get the difference in cash. each digital unit is worth whatever market value.
again, you are investing in DIGITAL UNITS not hard cover encyclopedias, man.
though you get the hard copy -if you want it - as well.
you could. but you would have to create a means to protect BOTH the artist and the investor/investment.
we have created a micro-site within the program already to do just that. It is -in essence- you owning a label, publishing house, etc where you manage artists and receive a large percentage of the content trade fee value per issuance.
i know what you're thinking, but no, you don't own a retail store -like BurnLounge or a mini iTunes, CDbaby, Reverb Nation, eMusic, Imeem, si-mi, Snocap 'storefront' and then try to re-sell the content at retail value.
those modals are redundant and do nothing for the artist or investor. Even Amie street takes up to 40% of the profit. scent of indie takes less than 1% from the artist post-sell on IPO.
what you are doing is buying actual digital units at face value and profiting if the value increases.
as a bonus we give you the hard copy for free.
My thought was more like setting up a microsite to pull in people who are fans of a particular genre and marketing to those fans. That way you don't compete with the "big box" retailers of the online world, but a niche market.
I have to say that I don't understand what you mean by protecting the artist and investor. I guess the question I'm asking is do I get resale rights to the media I invest in.
Technically you do, but why would you want resale rights? Burn Lounge tried that and they got in a 'sheep' load of trouble. Besides you're competing with iTunes as a retailer not to mention any other person who owns that content as well. It is what I would call a catch 22 market. Both of you have content that is te same that no one can download. know what I mean? ... i would not recommend it.
our system is designed as a stock market -but a secure one. we know how high the value can go and we know the base value. so on both ends we insure that the artist and investor walk away happy.
believe me, it took 2 years for us to finalize the algorithm and economics behind it before we submitted the paperwork the the FED for patent.
Not if I have a subscriber base. The best way to do that I think would be with an e-magazine. Think something like Rolling Stones for the indie set, alongside merchandise sales and song downloads.
That has been done.
Rhapsody, MyMusicAddiction, etc.
Those modals -again- are outdated. Even ReverbNation is fighting to stay above water and they don't have a retail division. They are only marketing the artist, creating street teams, etc (and selling widget snake oil). n e way....lol
even if you had 100K people, how many of those 100K would be constant repaeat consumers? how many downloads can they each accept -no matter the price. and how many new artists would get the value, exposure, credit, marketing and 100% profit from your merchandising/e-zine?
I did sign up and was wondering what the units to order means.
Ah, that's what I thought. Does buying one share allow you to use the IP for merchandising purposes then? Also when the price listed is price per share, correct?
You've mentioned having artists on there. Would you be able to sell things like comics on there or just artwork?
to do merch, you would need to open a house and have the artists register under your house name.
the price in IAO is per share, yes.
everything from songs, albums, paintings, sculpture, metal work, all forms of literature -including comic books, films, movie trailers, photographers, even karaoke!
How do you go about opening a house? Are there any costs involved? Who would then control the IP, the house or the artists?
if you open a house, you control the IAO sales.
scent of indie does the work, preps the offering, etc.
it is up to the house to sell the units to members.
after the time line, you can opt to sell the offering to another house or scent of indie moves the remaining shares to the OTC (Exchange Markets)
the house is free to open.
each house receives 40% of the trade fee on all sold units from offerings they manage. you can add any artists you like and as many members as you like.
if you want the . soi pi business package . ( business cards, tee shirt , etc.) there is a fee for that.
the only requirement to open a house: you must be a registered member.
Interesting. I was wondering how you found your artists. A member can open a house and solicit for artists. By doing an IAO you can judge how popular a band or artist might be. I'm assuming that a house can issue IAO for music, movies, art, etc. correct?
all issues must be cleared through . scent of indie .
the house owner or curator can have artists upload any content they like or believe will be valuable for issue. once we clear the content, we set up the offering and contact the house & artist for final approval.
After this, we put the issue to IAO and the house can sell units before it goes to the general markets. kind of like a pre-sale.
we found a large group of artists through friends and the net.
also have a line up of many more this autumn.
A member can open a house and seek artists/members on their own or solicit artists/members already in the program - so long as they are not with a house already.
it really is fun.
Hi, just wondering how things are going with your member account on soi360.
FYI: They did a huge upgrade to the site recently.
Keep me posted.
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