Techdirt:A Business Model Involving Free File Sharing The Key is : Is file-sharing an act of promotion or distribution?
The RIAA and some musicians see it as distribution of product, and therefore see it as lost revenue. Other musicians see it as promotional material, which will result in concert ticket sales, T-shirt sales, lunchbox sales, and sponsorship money. And yes, it will also sell CD’s.
The key is to turn people into fans. No one buys CDs or goes to concerts of musicians they have never heard of. But turn them into a fan and you will have several years of revenue from that person. Give them the samples for free so that they can learn about you. Let them share those samples with other people. Word will spread.