Okay, here's another idea for value add.
Fans usually love learning about the artists. Part of "the system" needs to be artist information. Artist blogs, phones to create photo blogs for the more popular artists.... discussion boards for artists....
Since it will be grass roots, the artists will love being able to hear from the fans....
oh man, that's an exciting idea... maybe that's what will make this whole thing work.
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I am really jazzed on a record label called Sounds Familyre. Their site is set up with blogs that their artists/promo people can update. check em out -- http://www.soundsfamilyre.com.
I am really into community-based record labels. another good one is arts and crafts records.
i wonder if you could start a prototype of The System with the bands that all know each other (lacey, dmethod, team november, graham, etc). i think making it a community is important. it makes people feel like they're part of something important. did you ever see makeoutclub.com?
also Myspace.com is, in my opinion, one of the best marketing/networking/hosting tools for indie music. It is like the old MP3.com plus.
there's so much to respond to. i'd love to get together with you over an adult beverage or two to talk more.
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