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From the Where2sing.com forum:

David: With respect to the newsletter topic of karaoke track production, I don't think you can compare a garage sale website to music distribution - at least in the sense of adopting that model and make money. The reason why Craig's List, Ebay and other sites that 'sell once-off' things work is that they cater to everyone. Everyone, at some point, needs to sell stuff. They have written off the cost - effectively - of the item they need to sell and the website can carry effective ads due to high pageviews. Thus, the listing fees can be very low yet they still make money because of huge volume and everyone is happy.

Music distribution inputs are *not* written off - you still have to pay the musicians to produce the tracks, license the song and attempt to sell to a niche audience that are probably only going to buy a couple of CD's worth of music - at most - each month. Thus, say $100 per month across 500 hosts is an optimistic $50,000 per month which you need to recover from advertising. With such a niche audience, thus low page-views, this is probably a big ask imho.
Submitted by Music Addict on 24-04-2010

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