Going his own way, Patrick Wolf who is on his own without the backing of a major record label

With his Byronesque white shirt, plus-fours and salmon pink scarf, Patrick Wolf looks nothing like your typical wheeler-dealer. Yet this glittery pop futurist finds himself at the head of the current wave of musician-entrepreneurs.


After the moderate success of his 2007 album The Magic Position, Wolf has jumped ship from Universal's Loog imprint to hock his future on Bandstocks, a website where artists attract investors to fund an album in return for a cut of net profits.


The former indie artist has returned to his DIY roots, though he wants to record his material properly and ensure international distribution.


Wolf deals with the issue of dirtying artistic credibility with his usual flamboyance. "Why not show people my bank statements? I've just made a video where I'm showing my bum, so I'm Tracey Emin-style; you could put a camera on me 24 hours a day. I have no shame, no dignity. Put it all out there!"


More practically, the singer feels that his new album The Bachelor stands a better chance on Bandstocks than with a major label that might be unsure of how to sell him to a mainstream audience.


"I refused to compromise with a deeply personal album and if you are unconventional, [major labels] are unsure how to ram you down the throats of the Tesco audience.


"I was terrified, to tell the truth, that I would never see any income. I'd been coasting along and didn't have any money in my bank account. I didn't get into this to make money, but there should be a certain level of respect between business people and creatives."


Wolf can also rely on a dedicated audience keen to hear his new material, and so willing to stump up cash ahead of time. Other acts with established fans have explored similarly innovative distribution and funding models, from free downloads to exclusive deals with Starbucks.


Yet the most unforgiving, and increasingly pervasive, means is via a share issue – throwing your music into the implacable, unseen hand of the market. It is, though, a model that ticks several zeitgeist boxes. First, it relies on the wisdom of crowds; acts have to pass a showcase stage before they open to investment.


And, in the system pioneered by the Dutch site Sellaband in 2006, they must reach a specific target before money is released. Such mechanisms imply criticism of major labels' A&R departments that rely on a 10% success rate: nine out of 10 acts fail, with the rare golden geese providing funds to record and promote less popular names. No wonder Wolf complains about seeing little return.


In theory, this is all well and good, though share-dealing sites have yet to fatally undermine the established way of business. Sellaband offers a cosy, happy-clappy version of share ownership that describes its investors as "believers".


The firm has raised cash for 30 acts to record with professional producers.


Its first UK capture was the loungey trip-hoppers Second Person, who raised $50,000 to work with Tony Platt, engineer of AC/DC's Back in Black.


Even though the resulting mini-album/EP The Elements failed to excite a wider audience, the band were impressed enough to rejoin Sellaband last month to secure twice as much funding.


Bassist Mark Maclaine explains that sales have been scant, with only a meagre return on investment for believers, although they do get a copy of the album. "I guess many also see getting a CD for $10 as a good return on their investment."


Maclaine reckons 200 original supporters have come in for the next album. With the extra money, Second Person hope to spend more on recording and to pay extra musicians properly, as well as have more marketing punch. "We have a strong and dedicated fan base but in order to expand that, we'll have to look at ways of getting the album out to people who would otherwise not have heard our music."


Sellaband's rival Slicethepie emerged in 2007 with a different model that emphasises exchange. Users are invited to review anonymous tracks in return for a small fee, with the most popular acts entering a two-week showcase, after which the winners attempt to earn investment, in this case a relatively frugal €17,000.


From then on, Slicethepie takes a back seat, describing itself as a financing site rather than a label.


This has attracted groups that previously would have signed with their local indie label before setting out on a tour of pub venues.


Most intriguing are Birmingham's Walk.Don'tWalk, a more poppy Reel Big Fish thanks to their robust ska rhythms and forceful trumpet.


Their album A Horse To Be Reckoned With is due out this month, following in the wake of Shortwave Fade's Deletia. This more polite outfit were an early winner of Slicethepie's talent contests, yet only managed to unveil their album in March.


A latecomer to the scene, Bandstocks only launched last year as its founder Andrew Lewis wanted to build the most robust business model possible; so robust that shares invested via his site are regulated by the UK's Financial Services Authority.


Also on board are two former B-Unique executives (the label behind Kaiser Chiefs).


For investors, as long as they are already fans, it seems like a no-lose situation. You get a free download of the album and a credit on the physical release (magnifying glass may be necessary), among other incentives.


With major profits still to materialise, maybe this is how shares work: buy now, hear later.


Shares in Patrick Wolf's The Bachelor are available at www.bandstocks.com and his single 'Vulture' is out tomorrow


Hard-Headed Rock Stars


New ways to make money


Radiohead These former EMI cash cows 'sold' their 2007 album In Rainbows exclusively from www.radiohead.com, with purchasers able to name their own price, starting from a very reasonable zero pounds. It still topped the charts when it was released.


Jack L In recent years, Irish artists, including Jack L, Metisse, The Revs and The Celtic Divas have taken advantage of tax legislation under the Business Expansion Scheme to finance the recording and distribution of their albums.


Marillion Pioneers of album-by-subscription, the veteran proggers have requested fans to pay before they play at www.marillion.com since 2001. Over recent years, such loyalty has been rewarded with deluxe editions and sleeve credits for the faithful, while the band maintains the rights to its own material.