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Old 28th November 2007
  #8
Mindreader
 
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Do you need to sell any products at all to stay afloat?

Could anyone answer this question?

In the new world of 'everyone can be in a band and release something', the 'pay as you go' model is very similar to the many rubbish bands I'm sure we've all been in where some bright spark (the uncle playing manager etc) decides that spending a few hundred bucks on t-shirts is a really good move.

Except now, every band, after they realise that no one is coming to their myspace page, realises that they need to 'release something'

So they go to one of the 'new model' vendors (hi guys) who will take a few copies of your CD, stick you on itunes, etc - but it's a pay to play scenario, you pay for the service per track or album

If even 10 percent of all the bands on myspace decide to do this (and also then go on to sell exactly nothing at all), that is a huge amount of money up front.

So it could seem that the 'bread and butter' money for these online distribution companies is in fact the hobbyist/never going to make it/any old band.

Actually, I would imagine that 95% of revenue comes from bands and artists that are never going to sell anything. This is the perfect model - there are many huge companies who's best client is the one who doesn't use the service. Gym membership anyone?

So the question is to the guys here, how much of your revenue comes from actual sales, as compared to registrations? To truly judge the state of music is to see how SALES of independent artists are doing, as opposed to how many artists are living the dream by sending over some mp3's that will never be marketed and will never sell, but for a few dollars, can make them feel part of something.

Even if you sold NO UNITS of all your artists, would you still be in business making a healthy profit?

I am not attacking anyone here. I'm just interested in the 'new model' from the inside out.