reverb . com
we' re always interested in partnering with manufacturers and suppliers. contact jim at jim @ urltoken .
and given the 3. 5% transaction fee that the company takes, that means urltoken will reach profitability next year, kalt says .
it’s been a long strange trip for serial entrepreneur david kalt on the road to raising $ 25 million for his two - year - old music gear marketplace, urltoken .
he began dabbling in trading vintage and used equipment on ebay and found the experience less than fulfilling. so the entrepreneur launched urltoken as an online marketplace where musicians could buy and sell any gear .
urltoken is an equal employment opportunity employer. urltoken prohibits discrimination based on race, color, religion, national origin, gender, sexual orientation, gender identity, age, physical or mental disability, or veteran status. this policy applies to recruiting, hiring, transfers, promotions, terminations, compensation and benefits and also states that retaliation against any employee who files a complaint regarding possible violations of this policy will not be tolerated .
on the urltoken site that can range from pricey vintage pieces of rock paraphernalia like lynyrd skynyrd guitarist ed king’s old axe or grateful dead guitarist jerry garcia’s fuzz pedal to a guitar tuner that’ll sell for $ 1. 00 .
kalt, whose first company was an online options brokerage, founded the company in 2013 after forsaking money markets to buy and run a chicago - based guitar shop called the chicago music exchange .
his experience running the store brought him back to his dot - com days and his knowledge of less - than - transparent markets .
“i saw this massive spread between what dealers were looking to make and what consumers and musicians were getting for it, ” says kalt .
the market for musical instruments is massive and fragmented, kalt says. roughly $ 15 billion in new musical instruments get sold every year and around $ 7 billion is spent on used gear globally, according to kalt .
perhaps unsurprisingly, it’s sales on items like the one - dollar tuners that make kalt’s business as successful as it is (that actually may be a bit hyperbolic, the company focuses on deals in the $ 280 to $ 300 range). this year, the company expects sales to reach roughly $ 90 million and kalt expects to clear $ 250 million in sales in 2016 .
numbers like those tend to attract investor interest, and after putting together a smaller seed round from friends, family and musicians like cheap trick’s rick nielsen and country music singing sensation brad paisley, kalt went to the market for institutional capital .
with the new cash, kalt intends to make a push into international markets, specifically in europe and japan, and expand into adjacent markets. for instance, the company just launched reverb lessons where would - be musicians can find and connect with teachers online .
“we’re looking at acquisitions similar to our lessons business, ” says kalt. “it could be other musician - related portals. it could be booking gigs, it could be event related. ”
for any true marketplace, content is almost as important as inventory, says kalt, and to that end reverb’s website and mobile apps give users historical pricing data, tools to list gear, as well as product reviews, demo videos, histories and interviews with artists .
the content helps create a stronger community, says kalt, which helps when a company is competing in a fragmented market .
ultimately, says kalt, the company is trying to give musicians more flexibility. “we empower musicians to get in and out of an instrument in a way they never would have been able to before, ” says kalt. (so bands really can sell their guitars and buy turntables, or sell their turntables and buy guitars) .
david kalt, optionsxpress cofounder, raises $ 2. 3 million lightbank investment in newest musical venture – techli
david kalt, optionsxpress cofounder, raises $ 2. 3 million lightbank investment in newest musical venture
reverb. com, an online exchange for new and vintage musical instruments and gear, announced a series a investment from well - known chicago venture firm lightbank. this included the support from high - profile startup veterans eric lefkofsky, ceo of groupon, and brad keywell, lightbank founder .
the $ 2. 3 million series a funding will allow for expansion of the fast growing company, including hiring of new technology employees .
since its founding in late 2012, the site has drawn 4, 000 dealers armed with “powerful tools to maximize exposure, ” the company reported, so that dealers and customers can find the right prices for their instruments. the vintage, handmade, new and used instrument marketplace is a $ 7 billion industry that kalt is tapping into .
“we estimate there’s another $ 70 billion of merchandise that’s not in the market, ” kalt told techli. “guitars and gear that sit in attics and basements, largely forgotten and gathering dust. we’re trying to get all of those instruments into the hands of people who will use them. ”
the company is growing 40 percent month over month, with 10, 000 active customers and 50, 000 registered users .
kalt also founded optionsxpress which sold to charles schwab for more than $ 1 billion, and clientbase, the first crm for the travel industry. he has also been the owner of the chicago music exchange for about three years. this well known chicago music store sees visits from celebrities such as tom petty, brad paisley and johnny depp .
kalt has more than doubled revenues of the 17 - year - old store since he took it over. and now, he’s able to sell through traditional brick and mortar, as well as through new online media. the chicago music exchange sold $ 500, 000 worth of guitars on ebay during reverb’s inaugural year, and the inefficiencies of the platform are what inspired kalt to build the newer, more efficient musical marketplace .
he said in an earlier interview with techli that this helps them “connect the dots between store experience” and online selling, using video, photos and descriptions to better create an emotional, customer experience. this gives customers the information they need to make the sale. as the internet grows infiltrated with sales and sites, this customization and personalization becomes increasingly important .
niche marketplaces are rising throughout the e - commerce space. there’s well - known etsy for jewelry all the way to up - and - coming chicago - based mystery tackle box for fishing gear. and larger marketplaces are purchasing new ones to keep up with innovation in the space. recently, ebay’s paypal subsidiary bought chicago - based braintree, as the next wave of e - commerce demands better customer support and marketing of products .
brad keywell, managing director and founder at lightbank, told techli that the firm is attracted to the “focused marketplace approach to the musical instrument space, the size of the space, and the adjacent opportunities. ” but he also said the firm acknowledges kalt’s proven success as an entrepreneur .
lightbank invests in early stage companies and has invested in more than 50 companies raising more than $ 1. 5 billion total. the reverb funding also includes investment from startup pioneer eric ries, rick nielsen of cheap trick, david lowery of cracker, and camper van beethoven along with lefkofsky and keywell .
“i go way back with brad and eric, and we’ve been fans of each other’s businesses for years and years, ” kalt said. “they understand marketplaces, so it made sense for them to be part of the investor group for this round. ”
and the firm returned the praise. “david is a passionate, dedicated, resourceful, and experienced entrepreneur – he knows how to assemble a great team and build world - class technology, ” keywell said .
“we have a huge amount of confidence in david and are thrilled to back him in this endeavor. ”
sonali basak fell in love with the start - up world during her short time in chicago. she believes small businesses and start - ups are the heart of the american economy. she is a broadcast and business reporter at medill news service, pursuing her masters at northwestern university. she got her bachelor of arts from bucknell university in english and econ. she loves food and sports, and when she’s not writing, she’s running. find some of her writing here: basakwrites and fun stuff here: sonali basak
david kalt, optionsxpress cofounder, raises $ 2. 3 million lightbank investment in newest musical venture | a closer read
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as the world’s most popular gear website, our sellers gain access to a huge network of musicians and collectors through a broad variety of tools to help them sell, all for the same low fee of 3. 5% once it sells .
list as many items as you want for free. if they sell, reverb' s selling fee is only 3. 5% - no matter what .
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use our shipping estimator to figure out exactly how much to charge, then buy and print shipping labels directly from us when your gear sells .
reverb and the people that work there are musicians that understand the universal in - and - out flow of gear .
sometimes you need to do a bit of spring cleaning and they make it really simple and don' t gouge you with tons of fees. it' s my go - to for finding new tools for making music and for getting rid of the ones that i don' t need anymore .
our sales on reverb eclipsed our sales on amazon for the first time and we continue to see our numbers grow .
we were an early adopter of reverb and will keep investing in our presence there as i believe it' s an integral sales platform for the future of selling gear .
reverb gives me access to cutting edge e - commerce sales and marketing tools that have never before been affordable or accessible to mom & pop shops like mine .
two years ago, i had negligible online sales. this year 20% of my store' s revenue will come from reverb. that type of growth in this economy has been a godsend .
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david kalt bought and sold instruments on ebay for the last three to four years and he hated it .
i experienced a lot of pain in the overall user experience. pain in the lack of focus. pain in the sophistication as it relates to instruments ,
kalt says. he was tired of paying 10 percent of the transaction fee to the marketplace behemoth, and he wanted a change .
he invested $ 500, 000 of his own funds and launched reverb in january to take on ebay' s instruments vertical. reverb is an online marketplace for buying and selling old and new equipment: guitars, bass, drums, brass instruments, string instruments, violins, viola, pro audio mikes, and recording gear. it' s designed specifically for the music vertical - - unlike ebay which
focuses on a lot of verticals, and is not doing a very good job of any one ,
kalt says. reverb takes a 3 1 / 2 percent cut off transactions, seriously undercutting ebay' s fees .
reverb' s website and ios app have search functionality designed specifically for musicians, who can comb through listings characterized by make, model, color, year and other options. you can see it on the home page where they group by category, including weird options that instrument fanatics probably love like
japanese vintage
or
rarest of the rare .
every item on the platform is accompanied by a price guide as a reference point, that allows buyers and sellers to see in realtime what that instrument' s estimated value is. the price is automatically aggregated from platforms like ebay - - that way, people don' t have to go hunting to compare and contrast the make and model with listings elsewhere .
kalt is sitting pretty in a position straddling tech startups and the music industry. he made his money by starting, building, and selling two companies, one of which sold for $ 1 billion to charles schwab. in 2011 he dropped $ 7. 5 million purchasing the 23 - year - old chicago music exchange, which regularly sees celebrity customers like adele, mumford and sons, and johnny depp. kalt' s passions are tech and music, and reverb is the culmination of those two worlds .
the site launched in january and kalt says it' s seeing 25 - 45 percent growth both in number of transactions and sales .
last month $ 180, 000 of gear sold through reverb ,
kalt says .
this month we' re on track to do $ 330, 000 in transactions .
kalt is in the process of raising $ 1 - 2 million from friends and family to grow the business, but he' s avoiding institutional money .
while i love the venture world and what it' s all about i' m not looking for a partner at this stage in the game ,
kalt says .
reverb' s success is pegged to its ability to draw users away from traditional marketplaces like ebay. since the site is cheaper for sellers to use and cleaner looking for buyers, its value proposition is clear. now, kalt just needs to put some money into marketing to get the word (sound ?) out .
welcome to the reverb price guide, the ultimate resource for music gear pricing and information. these price ranges utilize a combination of expert research, external market data, and real - time reverb transactions to estimate the current value of items in used but original condition .
examine our up - to - the - day charts to use see long - and short - term trends for the gear you' re watching .
get a gauge on recent sales in various conditions and price your listing for the best return on your gear .
worried about overpaying? research recent sale prices on gear you want to find a fair price .
some of the most famous brands in music have been around for over a century. that’s a lot of gear, but never fear: our dating & pricing hub gets you detailed info on fender, martin, ludwig, and more favorites .
want to get your first old school showcase piece but not sure where to start? our vintage guitar faq runs through staple information like pricing, condition, and worth to make a savvy, informed purchase .
buy new, used, and vintage gear from musicians and shops around the world .
explore thousands of articles and videos created to help you grow as a player .
reverb protection has you covered. we provide a safe, secure community for finding the gear you want .
list as many items as you want for free and only pay a 3. 5% fee when a listing sells, one of the lowest around .
welcome to the reverb deals and steals page. our team of experts are constantly combing the site to find the best buys on gear, and this page is where all the hottest listings end up. some deals come via discounts from big shops, while others are the result of individual sellers who are especially motivated to move an item quickly. regardless of their origin, we do our best to showcase the best values and bargains on reverb and help you find the gear deal of a lifetime .
list as many items as you want for free. only pay if your listing sells on reverb .
you' re in the company of over a hundred thousand sellers and a million customers .
interested in layaway? ask this seller to send you an offer with layaway terms. learn more
we recommend accepting offers on your listing so you can negotiate with interested buyers and increase your chances of making a sale. you' ll never be required to accept an offer .
you sell an instrument for $ 90 + $ 10 shipping = $ 100 order total .
$ 3. 50 selling fee ($ 100 x 3. 5 %) .
$ 2. 95 payment processing fee ($ 100 x 2. 7% + $ 0. 25) .
note: sellers that only accept paypal will be charged payment processing by paypal instead of reverb. paypal' s rate is 2. 9% + $ 0. 30
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you' ll be able to communicate safely and securely with your buyers through reverb messages – for your privacy and protection, don' t include phone numbers, email addresses, or external links .
reverb supports shipping or local pickup of your item – trades, cash deals, and other offsite transactions are not allowed .
i will ship with tracking to the listed regions. to negotiate shipping rates to other locations, please send me a message .
please note that orders must be shipped out within 3 business days of payment clearing .
when someone buys from you, they' ll see your
shop
name. make it something fun !
electric guitars have come to define the very soul of rock, country and countless other genres of popular music. with brands like gibson, fender, rickenbacker, gretsch and others elevating and perfecting the format in the' 50s, electric guitars have evolved over the decades with new designs constantly pushing the instrument into new territory. in the' 80s brands like charvel, kramer and ibanez dominated the scene with slick
shredder
guitars. moving into the' 90s, makers like paul reed smith helped lay the groundwork for a movement of boutique builders who' ve taken the art of guitar craft to its current height. today, you can find all manner of electric guitar here on reverb. whether you' re looking for a beginner instrument or a high - end masterwork, you can find deals on new, used, vintage and boutique electric guitars here .
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we’re constantly brainstorming ways to improve our platform and communicating with our users to learn what features will help them buy and sell gear. at reverb, innovation is everyone’s job. we all ask questions, take risks and think about how to move the needle .
our team of musicians and music lovers work across teams to accomplish one goal: make buying and selling music gear easy. we hold weekly all - hands meetings to discuss our successes and challenges, and everyone - regardless of department or level - has the opportunity to take the floor .
we’ve changed the way people buy and sell instruments around the world by building a community that supports musicians and their passions. from buyers who find the perfect piece of gear that reminds them of their childhood to sellers making substantial side income from the site, we live for our customers and their success stories .
every day my team is building the technology that helps musicians discover more ways to expand their sound .
how cool is that? we believe in the right tool for the job, building for the future and always learning .
our amazing college interns created a film that gives a glimpse into what it' s like to work at reverb .
if you have an idea or an interest, you’re encouraged to speak up and pursue it. during my first month at reverb, i expressed interest in getting more involved with our articles and videos. now, i' m a key member of the team that shapes our content strategy. ”
whether you need help using the site, assistance with a particular order, or expert advice on what gear to grab next, the reverb team is always ready to help .
if you have a question about a specific item, use the
message seller
link to communicate with the seller of that item directly. this can be found on the right side of any listing page next to the other sale details. it can also be found on individual orders on your buying dashboard .
we' re at the ready via our on - site chat box at the bottom right corner of the screen throughout the week and are always ready to help. if no one is available via chat, use the box to send us a message and we' ll reply within 24 hours .
to find an answer immediately, be sure to check out our help center as well as info on reverb protection. for more about our reverb payments system, see our reverb payments faq. you can also get some great info about who we are on our about us page .
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call us 9am - 8pm m - f, 9am - 6pm sat, and 10am - 5pm sun (ct). leave a voicemail at other hours and we' ll get back to you as soon as possible.
urltoken is an online marketplace to buy and sell music gear which launched in 2013 . the site allows anyone , from large dealers and manufacturers to small shop owners and individuals , to create free listings for musical instruments and other related equipment . reverb also includes an integrated price guide that pulls transaction data to determine fair market values for a wide range of instruments and gear . reverb charges a 3.5 % sales fee for items sold through the platform , and has also released iphone and android apps which include the site 's main features . reverb was founded by david kalt , owner of the chicago music exchange and co-founder of the online options brokerage optionsxpress . in november 2013 , reverb raised $ 2.3 million in investment which included funds from chicago-based firm lightbank , as well as david lowery and cheap trick 's rick nielsen . in december 2015 , reverb announced an additional $ 25 million in funding in a series b round led by summit partners . in addition to shops from individuals and dealers , reverb has also hosted gear sales for a number of artists including rick nielsen , ray lamontagne , ben kweller , rex brown of pantera , and wilco . in 2015 , reverb launched a new business to connect music teachers and students dubbed reverb lessons . 
urltoken is an online marketplace to buy and sell music gear which launched in 2013. the site allows anyone, from large dealers and manufacturers to small shop owners and individuals, to create free listings for musical instruments and other related equipment. reverb also includes an integrated price guide that pulls transaction data to determine fair market values for a wide range of instruments and gear. reverb charges a 3.5% sales fee for items sold through the platform, and has also released iphone and android apps which include the site's main features. reverb was founded by david kalt, owner of the chicago music exchange and co-founder of the online options brokerage optionsxpress. in november 2013, reverb raised $ 2.3 million in investment which included funds from chicago-based firm lightbank, as well as david lowery and cheap trick's rick nielsen. in december 2015, reverb announced an additional $ 25 million in funding in a series b round led by summit partners. in addition to shops from individuals and dealers, reverb has also hosted gear sales for a number of artists including rick nielsen, ray lamontagne, ben kweller, rex brown of pantera, and wilco. in 2015, reverb launched a new business to connect music teachers and students dubbed reverb lessons.
urltoken is an online marketplace to buy and sell music gear which launched in 2013. the site allows anyone, from large dealers and manufacturers to small shop owners and individuals, to create free listings for musical instruments and other related equipment. reverb also includes an integrated price guide that pulls transaction data to determine fair market values for a wide range of instruments and gear. reverb charges a 3.5% sales fee for items sold through the platform, and has also released iphone and android apps which include the site's main features. reverb was founded by david kalt, owner of the chicago music exchange and co-founder of the online options brokerage optionsxpress. in november 2013, reverb raised $ 2.3 million in investment which included funds from chicago-based firm lightbank, as well as david lowery and cheap trick's rick nielsen. in december 2015, reverb announced an additional $ 25 million in funding in a series b round led by summit partners. in addition to shops from individuals and dealers, reverb has also hosted gear sales for a number of artists including rick nielsen, ray lamontagne, ben kweller, rex brown of pantera, and wilco. in 2015, reverb launched a new business to connect music teachers and students dubbed reverb lessons.