Trend: Peer-Selling Sites – Peer2Business

Social Networking and P2P sites enable consumers to have their stake in the music business.

Trend Description:
Whoever has dreamed to be part of the music business, has now the chance to do so – virtually. The music industry has finally discovered the power of social networking and P2P to increase the online sales of even unknown bands and artists. Equipped with special software fans can create their own music-stores online and sell the music they like to their friends, peers and all others who might share their taste. Another model allows fans to buy stock of their favorite – unsigned – band. If the fan and the band can motivate enough other believers (through MySpace, YouTube, or word of mouth) the band gets to record an album and can start making money, which of course will be shared equally between themselves, their believers and the company which made the deal possible.

Cases:

SellaBand.com
On SellaBand.com fans can buy shares of unsigned band’s stock. SellaBand enables the artist to issue 5,000 so called “Parts”, each costing $10. As soon as these stocks are sold, and the artist has reached the goal of $ 50,000 SellaBand assigns a professional A&R person and sends the band to the studio to record a special edition CD which will be send to the 5000 believers who bought into the band. Afterwards the songs are available for free on SellaBands download portable. All advertising revenue will be shared between SellaBand, the Artist and the Believers. SellaBand also provides a regular version of the CD, which the Band can sell at shows, through their own website or via SellaBands online partners. The net profit of these sales will be equally divided between the band and their Believers. The band can also use the CD to find another label to sign onto.

BurnLounge.com
BurnLounge is a community-powered digital music service. BurnLounge provides music fans with the necessary software and an expansive catalog of music, to create and sell music (and fan merchandise) to peers from their own digital music stores. This consumer-driven retailing model draws on the power of peer relationships and shared interests of its seller’s communities. After purchasing the software, participating sellers can sign up as “fans” for free and redeem their BurnReward points for products, services or music downloads on BurnLounge. Affiliates pay an additional $6.95 per month but can redeem BurnRewards points for cash. Music Mogul have to pay a one-time set-up fee off $215 and $14.95 per month to gain access to Business Management features, which allows them to build teams.

Trend Impact:
Consumers are getting used to base their selling-decisions on other consumer’s insights. Recommendation-sites like epinion.com or consumer-reviews on Amazon.com are often recognized as more trustable sources than the companies themselves. To enable the consumers to not only promote but also sell the product takes the concept of customer-recommendation just a step further. Especially cosmetic companies are using this “concentric” retail-concept for decades in the brick-and-mortar world. The new peer-selling sites provide a new platform to promote and sell products online. They are especially suitable for any products which require a certain taste and are likely to create some kind of fan-community based on it.

Sell a Band

Burn Lounge

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