The issue of fair pay for band members recently came up and I thought I'd share a way that I have been using for around 25 years that seems to work and benefits the band unit as a whole as well as each member.

Often a band might jointly own a PA system and or lighting system. That's great until someone leaves. Usually that person just has to say goodbye to the money he has invested because as we all know most bands don't have cash on hand to buy out a member.

Or, one person may own all the PA and lights and the band splits the gig money equally. This really isn't fair to the person who is storing, hauling, repairing, investing etc. They have money out and the other members don't.

So one of the things I've done to eliminate this sort of issue is to initiate an "investment incentive" program. Here's how it works:

1.Everyone is a stockholder in the band by virtue of the equipment they own that facilitates doing a gig.

2.The value of each member's stock is determined by estimated "fair market" value on items not currently under warranty. Items under warranty get full retail value.

3. All members equipment together equals 100%. Whatever a member's total is is his percentage of stock. (example: member A owns $4000 worth of gear. Band total is $10,000. Member A owns 40% stock)

4. A set amount from each gig is set aside off the top as a stock pool. Say a gig pays $500. $100 is taken off the top for the stock pool and the rest divided equally. Member A would then get $40 from the stock pool plus his equal split.

This encourages members to own more equipment and newer equipment thereby benefiting the whole band. Members get paid more fairly based on their contributions to owning equipment that makes the unit fly. This way the slackers can't sit back and get paid the same as the guys that are putting more on the line. You want more money? Invest in the band or update the quality of your own gear. Of course there are limits such as a 2 guitar limit (main and a back up). That way someone won't just keep buying stuff that directly benefits mainly them. It eliminates many problems of joint ownership too.