Validating new business model for a label company .. help me please !!!

femuc

New member
hey guys,
im currently evaluating a new/different business model for a label company and I need your support and opinion.

first of all my knowledge in the music industry is not that good, so please bare with me and support me.

the idea is to start a label company that uses fan base to select talents through fans financial support.

this means, my label company will have a platform where talents can make profiles and try to market themselves. our team will boost market some exceptional talents. and not fans will look through the profiles and find talents which they love, trust and wanna invest on.

lets say fans financed one talent, then the label company will use the money to make an album and portion of the album profit goes back the shareholders(fans) who financed the album and the rest goes to the singer, publisher, ...

the problem I see in the music industry is that label companies are in charge to make a decision whether this or that talent is worth adopting and they always think if the risk involved since if the talent turns out to be a bust then they loose a lot of money. what I am doing is reducing this risk by making the decision in the hands of the fans and not the label company. if the fans are gonna invest their money, then they will make sure that they choose the best talents out there.

this way, the label company operation is paid for in advance and all the revenues are pure profits.

tell me what do you guys think. what am I missing. is this even a problem im solving.

thanks a lot.
 
so you want fans to invest their money in an artist, BUY the album when it comes out and than get a portion of that same money back?
 
Hey Bobby,
just to make sure we have the same basis.
There are millions of fans out there, and you don’t need them all for an album investment. Few thousands fans will invest and the rest will buy just like any new album out there. It is possible that a fan who invested will buy the album when it comes out and theoretically he will buy the album discounted by the returns he/she gets.
So now what is your core question?!
 
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