Music Download Business - Paying artists

[mattnelson]

Hey guys (and gals),
I am looking to start a basic download site for indie artists in two countries. I will be using paypal micro as it has cheaper rates than regular paypal.

My question is, how much do you think is far to pay artists per dollar (ideally the tracks will be $0.99 each).

I will have to cover the costs of the paypal transaction and then a little bit of the hosting as well, although as I am to be running many websites and will probably be sharing a server to start with. I think paypal will be 10c, and then it'll be the hosting and hopefully some profit for myself.

Should I pay a flat rate per track sold, say 50-60%, or should I make it a more complicated system where they get a share of the profits according to how many tracks they sold compared to everyone else etc.

I think the flatrate will be a lot less confusing for both myself and the artists, and also make them feel more secure and less likely that they are getting shafted.


Cheers,
Matt

[akula]

Hey guys (and gals),
I am looking to start a basic download site for indie artists in two countries. I will be using paypal micro as it has cheaper rates than regular paypal.

My question is, how much do you think is far to pay artists per dollar (ideally the tracks will be $0.99 each).

I will have to cover the costs of the paypal transaction and then a little bit of the hosting as well, although as I am to be running many websites and will probably be sharing a server to start with. I think paypal will be 10c, and then it'll be the hosting and hopefully some profit for myself.

Should I pay a flat rate per track sold, say 50-60%, or should I make it a more complicated system where they get a share of the profits according to how many tracks they sold compared to everyone else etc.

I think the flatrate will be a lot less confusing for both myself and the artists, and also make them feel more secure and less likely that they are getting shafted.


Cheers,
Matt

ummm yeah, u're competing with amiestreet and thesixtyone etc, so...ur pricing's gonna be complicated..

[mattnelson]

ummm yeah, u're competing with amiestreet and thesixtyone etc, so...ur pricing's gonna be complicated..

as with any industry theres gonna be some stiff competition. my plan is to focus on my region (country/continent) more rather than worldwide to begin with. this is sort of a holiday project to get some residual income when uni/college starts again

[Encrypted]

You need to make potential users want to use your site over others. Why should they use your music download site over the hundreds that are already out there? Something to think about.

[akula]

as with any industry theres gonna be some stiff competition. my plan is to focus on my region (country/continent) more rather than worldwide to begin with. this is sort of a holiday project to get some residual income when uni/college starts again

yeah..umm, i think you may want to rethink your opportunity selection
i'm somewhat familiar with your market...and the overwhelming evidence is that there are much easier ways to make money than "to start a basic download site for indie artists"
take a step back, try to stop convincing your self that you have a good opportunity and look at the facts from a critical perspective