OFFBEAT MUSICIANS FIND SUCCESS ONLINE.

Byline: Evan Pondel Staff Writer

Jagan Jones nearly lost his reggae beat.

After two decades of playing and producing, the Jamaican-bred keyboardist almost called it quits facing a load of debt and little support from a major record label. His connection to the famed Marleys and Peter Tosh had faded. His suburban lifestyle in the San Fernando Valley was not conducive to touring.

So Jones called on friends and family, pooled $120,000, and cut a new album titled ``Decision,'' which is poised for release in the next week. But don't look for it in mainstream record stores - try CDBaby.com, a Web site devoted to independent artists who are trying to make a go at the music business without backing from a ``big four'' label.

It's all part of a new formula that has been taking shape in the music industry since the late 1990s. It begins with recording a CD, building a Web site and reaching out to fans whose Internet connection is strong enough to transmit MP3 files. But the formula goes even further, with artists now able to cultivate a personality online without ever stepping foot on stage.

``If I could go with a major label, I would go with the right contract. But considering I'm not, the Internet will have to do for now,'' said Jones, 38, whose Jamaican accent is still strong despite several years as a Winnetka resident. ``Hopefully, CD Baby will help make things happen.''

The Portland-based company is essentially a CD warehouse for independent musicians. Approximately 72,800 artists sell their music at CD Baby, with almost $10 million paid to artists since the company's inception in 1998. The company keeps $4 for every CD sold, while the artist keeps the remaining portion - usually $6 to $8.

``And we sell everything, from well-known singers all the way down to mom playing the organ,'' said John Steup, vice president and director of operations. ``What we try to do is make it easy for artists by eliminating barriers.''

But that doesn't necessarily help consumers. Record labels have long been the filters, often signing bands that were easy on the ears. With the advent of independent music libraries, it becomes increasingly more difficult to separate the good from the bad, especially when looking for something new.

Joel Leach, professor of music industry studies at California State University, Northridge, said the major labels still serve an important purpose. ``And their ability to sell individual songs online could help improve the quality of an album.''

The more individual songs a consumer downloads, the more money a label will generate. In many ways, such a notion has inspired a growing number of businesses that are purely devoted to the marketing of music online.

ArtistShare is one such company. The brainchild of musician and computer programmer Brian Camelio helps artists develop themselves creatively without retaining the rights to their music. The musician must pay a fee upfront, usually ranging between $750 and $5,000. Then ArtistShare formulates a business model, ultimately selling the band through strategies employed via the Internet.

``What we believe is the value is in the artist. And with no way to protect digital music, we wanted to think of a way to leverage this bad situation into a good situation,'' Camelio said.

ArtistShare has already proved its ability to draw talent, working with Phish's Tres Anastasio, jazz guitarist Jim Hall and Grammy-nominated composer Maria Schneider. Camelio said artists like Schneider have been able to generate $10,000 a month in sales with ArtistShare.

When asked whether he views his company as the nemesis to all record labels, Camelio said, ``There's no real animosity. We are more concerned about artist development. But even though many of us are artists, we also think like businessmen.''

With rampant piracy forcing many industry executives to think more about the bottom line, artists are also tapping their entrepreneurial wits. Robyn Rosenkrantz and Michael Glover have been without a record label for more than a decade. Their band, Bright Blue Gorilla, has relied on an Internet presence and tenacious touring to keep their music alive.

``You just have to work hard at it,'' said Glover, who sells 2,000 to 3,000 CDs a year. ``But the good thing about not being signed is that we keep all of the money we generate from sales.''

Glover and Rosenkrantz also rely on CD Baby for sales. Though the couple says touring often generates more revenue, a combination of Internet sales and in-person sales is ideal.

Much like Bright Blue Gorilla's experience, a relationship between the marketing of music online and concert venues is just starting to percolate. The Knitting Factory, a New York and Los Angeles concert venue known for its independent spirit, perceives the Internet as an effective medium for bands to get started.

``And the growth of independent online music stores has been critical to serving the independent music scene,'' said Jared Hoffman, president of Knitting Factory Entertainment. ``As for us, we are happy to see a band if their following is generated mostly through online sales and distribution.''

Among the main destinations for independent music sales is eMusic.com. The New York-based company has about 500,000 tracks that are accessible with a subscription starting at $9.99 per month for 40 downloads.

``What we are seeing in the industry is that there are new aggregators,'' said David Packman, eMusic's chief operating officer. ``And now, as an artist you have to determine what's the best way to manage your career. That ultimately depends on what kind of music you are selling.''

Evan Pondel, [phone]

evan.pondel(at)dailynews.com

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2 photos

Photo:

(1 -- color) Robyn Rosenkrantz and Michael Glover of Bright Blue Gorilla use the Internet to sell their music.

Tom Mendoza/Staff Photographer

(2 -- color) Reggae artist Jagan Jones, playing keyboard in his Winnetka home, is one of many independent artists turning to the Internet.

Andy Holzman/Staff Photographer