As a label manager you have to define your business model. We do not want to force anybody doing something he is unhappy with. Your label is your business and you have to manage it the way you want. Before to open your business, you will have to choose one and only one business model. It will be used all the time and for all artists registered with your label.
The good news is that you will be totally free to use the business model that suits you.
What we will offer is to support all possible business models that are legally acceptable somewhere in the world.
This does not mean that all business models are acceptable in the country you are living (and where you operate your business). You already know that laws and business regulations are not the same everywhere in the world. You will have to check with your lawyer, accountant and/or tax adviser what is possible for you before to make a final decision and use it for your label.
We will begin to support four different business models.
Here they are with a small presentation:
- Classic: the label fund everything using their own money
- Believer: The label defines the budget that is splitted in a defined number of parts that the believers will buy before the CD is recorded.
- Subscription: The label sale by subscription the CD before it is recorded
- Free_CCAnCnD: The artists allow free download of their work for non commercial use based on a Creative Common license (Attribution + Non Commercial + No Derivative Works)
As you might already know, we did not invent these business models.
The “Classic” is used by nearly all existing record companies… The “Believer” is used by Sellaband… We are not aware of any website using the (sale by) “Subscription” business model but know that it had been in use for books edition at least since 1750 (when Diderot published the first known encyclopaedia)… The “Free_CCAnCnD” is currently used by Jamendo…
This is just the beginning and if you request it, we will support more business models when and if required.
As always your comments are more than welcome.
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