"In the new music economy, you need to build an audience and energize them to act on your behalf and forward your music virally. Later, they can become paying customers. Don't ask them for their money first. Once fans are sold on you, you'll be able to 'upsell' them special shows, backstage passes, webcasts, a live concert download, a multimedia product, your iPhone application, a premium package for $75."
Read the full article here, and you might want to follow his blog as well.