Musicians are another in what seems like a growing list of groups to take advantage of the concepts behind the open source movement. More and more, large record companies are losing their stranglehold on the industry.

Thanks to some great recording programs, almost anyone with a microphone jack in their computer has a way to record and mix original songs.

This is where SellaBand comes in. Like NewAssignment.Net, SellaBand relies on crowds to make logistical mountains into molehills.

The site basically gives you a MySpace type page to exhibit your mp3s, but instead of friends, you get ‘believers.’ These disciples of your rock scripture invest in your music at $10 increments until you’ve raised $50,000. Then, the magic happens at the studio, your faithful get a copy of your album, and the songs are posted online for free. For every download, you and your financiers, the original ‘believers,’ share in ad revenue. (More details here.)

By deferring the cost and talent of scouting to a large population of music lovers, SellaBand puts powerful marketing and production tools into the hands of those with a personal interest in the music. Potentially, this is a perfect service for bedroom musicians who think they have the next big thing but have no exposure. It’s one of several examples of crowdfunding.

SellaBand uses a similar model to the one that NewAssignment.Net might follow: Interested parties invest in a research project or investigation they would like to see completed, and while profits might not be shared, seeing an investigation through to completion will be its own reward. The big question for both sites is: Will it work?

SellaBand sounded good enough to one of its founders. Johan Vosmeijer, to quit his job as an executive at Sony BMG to help head up the project. In a blog post on Monday, Vosmeijer wrote, “It appealed to me as a music lover first and foremost and then, after the potential had sunk in well, I just wanted to be part of this movement.”

But while a lot of European pop bands already seem to be doing well on SellaBand, a few critics are throwing some water on the hype fever. Sam Rose at the P2P Foundation writes, “It may seem hard to believe, but I am convinced that a huge number of artists will not use Sellaband.com, because of the issues that will likely arise with artistic and image control and direction.”

Judging by the excitement they’ve created in journalists and musicians, NAN and SellaBand have undeniably tapped into something important. The work both sites are doing is important for the future of crowdsourcing regardless of whether or not they become the precise model for the future. They’re testing the waters now so that more mainstream incarnations of participation-driven services can stand on the shoulders of their work.

As for musicians, perhaps they can look forward to a time when they can choose between a hundred different sites like SellaBand depending on the contracts and services provided by each.

Keith Axline is the photo editor at Wired News. He also moonlights as a tech and music writer in various places like the SF Guardian and his blog Hesitating.org.