This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Derek Sivers: Why I Gave CDBaby to Charity

HUNT VALLEY, Md. ( TheStreet) -- To celebrate the release of my book The Ultimate Financial Plan, co-written with Jim Stovall, I invited four entrepreneurs, bloggers and authors who've been an inspiration me to share some of their feelings on personal finance. I can't tell you how honored I am that any of them, much less all four, accepted my invitation.

We kick off today with a post that will blow your mind from entrepreneur and best-selling author Derek Sivers, also a musician with enough technical ingenuity, passion and vision to have truly changed the way music is delivered today. You've probably benefited from his work without even knowing it.

Derek Sivers created CD Baby, then gave it away in exchange for the minimum legal annual return from a charitable trust.

Frustrated there were no online outlets for independent musicians (meaning most of the musicians out there who haven't received a big record contract), Derek created one -- first simply to sell MP3s of his own music. After a few other bands asked if he could replicate the trick on their websites, he realized he could create a company to do it; a few years later, Apple's (AAPL) famed Steve Jobs, was knocking on Derek's door asking him to make his extensive online library of independent music available on iTunes.

At the peak of his success, Derek felt the call to leave his baby -- CD Baby -- in the qualified hands of others. He sold the company for $22 million. (Not bad for a "struggling musician.") But get this -- he had already placed CD Baby in a trust that would irrevocably give the proceeds to charity. Here's a piece of his story he was kind enough to share:

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs