Is Crowd-Funding the Next Revenue Maker for the Music Business?

By Patrick Nelson | February 18, 2014 | The Mothly Fool – Buried in crowd-funding web site Indiegogo this month is an unusual proposal for those wishing to get in on the occasionally lucrative music business.

Start-up Gideen wants you to contribute to its website development costs via Indiegogo, and in return Gideen will let you choose a song from its pre-launch song database, and give you a third of the future music income of that chosen song for five years.

Your cost is $25 to make the Indiegogo pledge.

Twenty-five bucks for a third of a Madonna song? Madonna reportedly made $125 million in 2013.

Not quite. The database that Gideen wants to build is of undiscovered, developing-level songs, not established music by known-quantity artists. Madonna and her established ilk will be nowhere to be found.

Business model

Gideen’s unique business model is to create a website—using existing seed capital and future Indiegogo contributions, and then populate that website with undiscovered music, which it will then sell a piece of.

It reckons that by doing that, it will provide financially for music creators, and also investors: The investor gets a stake in the future revenue—if any—of the intellectual property.

The fly in the ointment is obviously that the music is unproven, and there may well be a very good reason that it is—there’s no guarantee that it’s any good. Indeed, this could be the failing in the entire business model.

Gideen calls this undiscovered music market a “secondary” market and says it’s estimated to be 70 times the existing primary market … though Gideen doesn’t provide anything to back up that claim. The primary market is the Madonnas and Lady Gagas of this world.

What’s interesting is that you get to choose the musicians, producers, and songwriters that you want to invest in after listening to tracks. So you get to play music mogul, and if you trust your “ears” and reckon you can spot a hit—or better, longevity, the holy grail of the industry—you could conceivably recoup your investment.

read more:


BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

Mountain XpressFaces in the crowd: WNC crowdfunding initatives | Mountain XpressMountain XpressEach week, Xpress highlights notable WNC crowdsourcing initiatives that may inspire readers to become new faces in the crowd. This week features a feature ...and more » [...]

Crowdfund InsiderMassive Rule 147 Amendments May Be On The Horizon Impacting Intrastate CrowdfundingCrowdfund InsiderAlmost a year ago, the SEC proposed certain amendments to the current Rule 147 which were intended to help foster, and increase the viability of, Intrastate crowdfundin [...]

AZCentral.comTiny companies lure investors under Arizona crowdfunding lawAZCentral.comInvestors who make bets under the state's one-year-old crowdfunding law certainly have the potential to get in on the ground floor, but they must be patient and might not receive any returns. Th [...]

MarketWatchWhy a crowdfunding site is giving out $10,000 scholarships ...MarketWatchIt's another indication that families are struggling with college costs.and more » [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

BBC NewsNHS trust 'relies' on crowdfunding to equip wardBBC NewsAn NHS trust has launched a crowdfunding appeal to buy equipment for a new hospital unit because "it cannot get started without donations". The Royal National Orthopaedic Hospital (RNOH) in Stanmore, n [...]

MottoIVF: More Couples Crowdfunding to Pay for Procedure - MottoMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports.More Couples Who Can't Afford IVF Are Turning To Crowdfunding For HelpRomperCouples des [...]

EntrepreneurIs Crowdfunding Right for You? Answer These 7 Questions to Find ...EntrepreneurLess than a third of crowdfunding campaigns reach their financial goals. Will yours be one of them?and more » [...]

ForbesVenture Crowdfunding Revisited: An Update with NIN VenturesForbesI am about to head off to attend the Global Crowfunding Convention (GCC) 6 in Las Vegas. It will be my fourth time attending. The crowdfunding industry has grown from $16 billion in 2014 to $34 billion in 2015, and [...]

CFB Finance

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |