Let’s talk about SellaBand, shall we?

Are you familiar with the forward-thinking site that allows listeners to invest in artists they support? This page will show you how it works, complete with a handy how-to video. Basically, fans (aka, “Believers”) find artists they like, invest $10, and receive an album (upon completion) plus a chance to help sell the record and increase their investment. It’s a pretty ideal situation for all parties—“For the first time fans and artists can be in business together”—although there seems to be numerous flaws.

Such as:
“Once you’ve reached the Goal of $50,000 SellaBand will provide an experienced A&R person to guide your recording process. Together with a top Producer you get the chance to record a collection of your best songs in a state-of-the-art Studio.”

Um, not to be Mr. DIY here, but who the hell needs to drop $50k on a record? I can think of countless records that have been done for less than half (or even 1/5) of that amount. Also, few terms raise the red flags like “experienced A&R person.” I assume people want their $10 investment to go into a finished product that sounds better than a bedroom four-track demo, but there should be a middle ground between that, and dropping $50k on a recording.

Also, setting the finishing price at $50k seems a bit too lofty. According to this Wired post, only 14 of the 6,500 bands on the site has made it to the $50k level.

I assume we all know that the days are numbered for the music industry as we know it, and something like SellaBand is an inspiring way to knock down the wall between performer and fan, but is this the answer? Could there be a better way?