It's fun to see all the different ways artists can gather funds and release music. Some artists can speak directly with their fans and tap into what is basically a very cost-effective sales channel. There's no waste in resources when fans pay upfront and the finished project requires no marketing dollars or distribution fees.

Jill Sobule has raised more than $80,000 from 552 fans to record, manufacture, distribute and market her next album. (Online Fandom, via Digital Audio Insider) It took just 53 days to reach the goal of $75,000. Different levels of participation get fans different payoffs...$10 gets a download, $10,000 gets you into the recording studio with Jill. And yes, somebody did pony up $10,000. (Her menu options mimic the way some artist make money at artistShare.)

Marillion was able to gather $725,000 from its fans to record and release a new two-CD set. Over 12,000 fans responded to the band's call for funds late last year. The band has received financial support from fans a number of times in the past, both to record and tour (this article at Sound on Sound recaps those projects).

For those artists that need the help of others, Slicethepie.com is becoming a more formidable option. The company received an additional $2 million in funding. Slicethepie.com helps artists raise money from fans for their projects and collect £2 per album sold.

If you're curious about the terms of a fan's involvement at Slicethepie.com, read the investment agreement. One of my questions was what happens if the artist does not record the album after funds are received? The agreement says the artist has six months to produce an album. After six months, and unless the reasons for the delay "was for reasons outside the artist's control," the artist is required to return the money. Doesn't appear the fans have much recourse if the music never arrives.

The fan-funded model is based upon an honor code, and that may worry some people. Maybe someday an artist would make fraudulent claims to raise cash, or maybe the band breaks up and the money disappears, but for now it's a very genuine give and take between artists and their fans.