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Revenue Incentive Explanation
First of all, great business model.
I'd like to invest but I am having a really hard time finding any information on your site about the revenue incentive.
The only information I can find appears to be a simple percentage, like 50%, etc...
What does that mean exactly? Does that mean I get a 50% return on my investment? Does it mean I get a proportional share of 50% of the revenue on the album based on my investment - is that before or after any costs? Do I get this return in perpetuity?
Please explain and please update your site accordingly if this information isn't already available. Given your business model I think this is fundamental information that needs to be explained and easily accessible.
I'd like to invest but I am having a really hard time finding any information on your site about the revenue incentive.
The only information I can find appears to be a simple percentage, like 50%, etc...
What does that mean exactly? Does that mean I get a 50% return on my investment? Does it mean I get a proportional share of 50% of the revenue on the album based on my investment - is that before or after any costs? Do I get this return in perpetuity?
Please explain and please update your site accordingly if this information isn't already available. Given your business model I think this is fundamental information that needs to be explained and easily accessible.
I’m frustrated
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Inappropriate?The revenue share percentage is the share all the Believers get from the net music revenue of CD sales and downloads. This is for five years after the release of the Artist's album. For each part we transfer 1/total parts times the Believer revenue paid out to the balance on your profile.
Net revenue stands for the total sales minus the production and copyright costs of the album.
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this answers the question
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This answers the question
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So this means that for a cd at 250.000$ with 10.000 shares with 33% benefits,
We need to raise 1.007.575$ to get back the 1 share at 25$ invested? -
This anwsers the question, but how can believers check the revenue? Do the artists publish some audited financial statements somewhere?
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Inappropriate?I don't know how you calculated that, I think it should be $750,000 net revenue. 1/3 of it would be $250,000, divided by 10,000 parts is $25.
But how many CD have to be sold to earn $750,000? 200,000? 300,000? 500,000?
I’m amused
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Inappropriate?If you only count hard cash, yes. However, for your first $25 you get a limited edition digipak, with higher investments, also come better incentives. I reckon these should count in your decision to invest too.
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Inappropriate?I am with bruce...where is the information that explains this because your reply really didn't say anything...
why don't you guys just disclose the full business plan since investors are being invited to invest!
if this plan is here I don't know where its at..
I like the concept....
I’m confused!!
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Inappropriate?It's quite simple.
If the Revenue incentive is set to 50%, all believers will get 50% of the net revenue of the sold music (CDs, mp3s, I don't know exactly, what's in it).
This 50% will be devided trough all parts. And every believer will get the amount of his own parts.
Example:
Artist has 10,000 parts
50% revenue share
The artist makes a net profit of 20,000$ -> 50% = 10,000$
10,000$ / 10,000 parts = 1$/part (Return of Investment (ROI))
This example is just fictional, better see it as an investment in good music and don't buy too many parts. Just one or two. Maybe PE could bring in some valid ROI, but I don't know. You have to sell too much for this.
I’m confident
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Inappropriate?But how does this work when the proposal is not for the creation of an album, but for something such as tour support? What would constitute 'net' profit? Anything left after expenses?
Your FAQ section is not up-to-date and deosn't cover any of this. In fact it doesn't even mention the ability to set your target at anything other than 50 or 100k.
I’m a barbie girl. In a barbie world.
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Inappropriate?Touring is only for 'Custom' Artist. A revenue share of a tour will be evaluated by SellaBand and proposed on an individual basis.
You are right about the FAQ not being up to date. The link on this page was accidentally still online. We removed all the links from our site, but had forgotten to remove the link from this page. It is now gone.
We are working on getting a new and improved FAQ online.3 Comments Add a comment
This answers the question
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If touring is a custom budget only, then why are so many new "standard" artists being allowed to sign up with this as their plan? Why does the T&C not specifically state that this option is custom only (the fundraising T&C lists 3 options for fundraising but says nothing that any of them are for custom budgets only)
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@Knifelady: I think only changes of the plans are approved by SAB HQ - artists who sign up new can write anything in their plan...
Though we know that the "approval" doesn't add much of value or is a sign of quality, with all the inconsistencies between plan, icons and extra incentives we've seen on artists who changed the plan - and even on the special custom artists... -
My bad, I was under the impression we've added only tours for 'custom' artists and the touring for standard would come later. We do allow it for standard now too.
Anyway, when Artists offer a revenue share when touring, it's their responsibility to return the funds to their Believers. It comes down to trust on that one.
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