Bandtastic is a new startup out of Mexico that aims to help bands play live by allowing fans to crowdfund concerts.
VentureBeat posted an article that explains their model. Bands are free to post a concert. Voting takes place on Facebook and if enough people buy in the concert is on. Bandtastic actually calculates the total cost for the band. They also act as the promoter of the show and take a 10% cut of earnings for the event itself. For shows that sell alcohol it can be an extremely lucrative model.
However, there are challenges that face the site, as VB guest writer M Chris Johnson explains…
Unlike the U.S. public, the public in Mexico is still somewhat leery of online payments due to a perception that they are vulnerable to fraud. Still, Bandtastic, which accepts credit cards and PayPal, says its experience is that people will get over their misgivings about electronic payments if they really want to see a band.
This echoes my concern for the US market. Bandtastic is convinced it won’t be a problem long term, and they hope to build more confidence with every live event.
If successful, this could be a model to watch. Could Bandtastic bring their service to the US?