Amazon Selling Sellaband Artists, and You Get a Profit

Published: December 18, 2007, 2:14 pm

Tags: revenue sharing, web2 0 startups, people powered

Amazon has partnered up with a new startup with a business model that looks good on a high level, but may be very difficult to implement. Sellaband asks the users to become investors in up and coming artists and bands, in return for a stake in the band. $10 will get you a one five thousandth stake, and you get to keep some of the profits once the band makes it big. So you’d better do your part to help promote. Now Amazon is doing its part as well, by dedicating a special section to the music produced by those artists from Sellaband. Albums will be sold for about $18, which is a bit steep, especially for artists that aren’t well known yet. With Amazon looking to undercut iTunes in price wars, it seems a bit too novel to have such expensive albums sold on the retailer’s website, from Sellaband. Once Amazon takes its profits from the album’s sale, Sellaband, the band itself, and the investor users are left to split $6, and that’s not an even split.

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