The Velo Club: Changes on the Horizon

From the very beginning, The Velo Club has been about proving a point: you can build a successful, lucrative business without taking away the ownership rights of artists or locking them into long-term, restrictive agreements. Our vision has always been to create partnerships where artists remain in control while joining forces with a larger alliance. This way, they push not just their own music forward, but their entire scene.

It's a model inspired by the collaboration seen in large organizations pooling resources or small communities banding together to help each other achieve what might otherwise be unattainable. For artists, this means creating opportunities to fund growth without sacrificing creative independence.

The Power of Partnership

Much like a credit union thrives by lending to its members, The Velo Club operates by offering artists the resources to capitalize on their momentum. If a song starts gaining traction, the right push—like a music video or PR campaign—can amplify that moment exponentially. Through short-term partnerships, artists borrow funds and repay with a split of the profits until the investment is recouped. After that, the earnings are all theirs.

Compare this to traditional licensing deals, where artists are often locked into lengthy contracts that siphon a significant percentage of their earnings. Our approach ensures artists keep the lion’s share of their success. For example, if two artists invest $2,000 into their music and each earns $100,000, a Velo Club artist takes home $96,000, while a licensing deal artist might see just $48,000. Beyond the financials, Velo Club members benefit from the support of their community, creating a network that fosters both individual and collective growth.

Lessons Learned and Success Stories

When we started, we assumed artists and investors alike would jump at the chance to join a system so obviously beneficial. But the reality was more challenging. Artists, understandably wary of an industry that often exploits them, were hesitant to trust us. Investors, on the other hand, didn’t immediately see the potential of streaming data to inform safe, predictive investments.

What we lacked was trust. To build it, we needed results. Fast-forward, and we now have proof. Every single Velo Club artist has grown by at least 20% in monthly Spotify listeners over the past six months, with an average growth of 40%. This growth wasn’t driven by industry favors or mass emails to playlists. It was driven by the artists themselves—sharing strategies, successes, and resources within the collective. Much like Y Combinator’s cohorts of startup founders, the magic is in the community.

The Road Ahead

We’ve proven the concept works, but we’re just getting started. Here’s how we plan to grow and continue empowering artists:

1. Artists Investing in Artists

To solve the issue of initial capital, we’re looking inward. Larger artists on our roster can now contribute to a fund that supports developing acts, earning them equity in The Velo Club. This creates a stable "index fund" of alternative music, where artists benefit from the collective success of their scene—even if their individual careers ebb and flow.

2. Partnering with Independent Labels

Independent labels have always been the champions of new and innovative music. We’re proud to announce a partnership with Wharf Cat Records to market Drop Nineteens’ new album. This collaboration will showcase the power of collective marketing efforts and set the stage for future alliances.

3. Revitalizing Our Magazine

Our magazine has been a cornerstone of our ability to scout and showcase rising talent. Artists like Nate Sib, who we’ve covered, have since blown up, solidifying our reputation. We’re streamlining the process to make it more accessible and planning an archive of legacy articles available to everyone. To expand its reach, we’ll explore incentivizing contributors and offering perks like free show access to subscribers, funded through our profits.

The Mission Continues

These changes are just the beginning. We’re committed to not only maintaining but expanding the trust we’ve built with our artists and their fans. By doubling down on collaboration, transparency, and shared success, we’ll keep proving that there’s a better way to support independent music.

Thank you to everyone who’s been part of this journey. I’ll be reaching out individually to discuss goals and plans. Let’s keep pushing forward together.

Gangster season, indeed.