How does SellaBand make a living as it’s no longer in the split of the sales revenue and you’ve decided to stop having banner ads on your site?
Thanks for asking, but don’t worry. It’s not that we don’t get any money from the sales of music as there’s a handling fee that we deduct from the gross revenue to get to the net revenue that we distribute to artists and Believers. This fee is to cover costs like CD storage and shipping and administration of sales. To cover our costs for producing and co-ordinating the recording process, we will take a fee of $5,000 out of the recording budget. Although the money of Believers is vested in an escrow account, so we can’t use it to buy some new and shiny cars, the interest from this account will be used to cover our operational costs. Another revenue stream that remains is publishing. And we’ll add more and more sponsors to SellaBand.
