SellaBand Bankruptcy Shows Poor Execution; Not A Condemnation Of Fan Funding
from the too-bad,-but... dept
Unlike the more recent crop of companies in this space, that appear to be a lot more flexible, Sellaband was pretty rigid in its setup. Rather than designing itself as a platform for fan funding, it tried to position itself as a label that also used fan funding -- but that required doing a lot of stuff that labels help with, and one of the complaints with Sellaband was that it wasn't well setup to handle much of that. Separately, unlike other fan funding options, Sellaband used to require a band to raise $50,000 -- which is a lot more than many bands might need. Eventually this changed, but it made things slow going for Sellaband. Furthermore, one of the bigger problems with Sellaband was that it didn't quite have the model right. It did very little to encourage actual connecting with fans, and never did a really good job setting things up so fans had a good reason to buy. Sellaband seemed to assume that people would just support a band for an "investment" in their album. But that mucked up the fan relationship a bit. Fans support a band because they want quality product (music, experience, access) back, not potential monetary returns.
The failure of Sellaband is a failure of execution, but certainly not of the idea that you can create models that allow content creators to build business models by getting fans to support them via more creative business models.