I'v been in many original bands and I can tell you as a fellow musician and band leader that this will not work. If your business model is based on the bands paying you...good luck. We're broke from day 1!
I hear where you're coming from but bands spend money on fliers that cost $0.15 a piece, just hoping you'll go home and listen to their music online. We know, because we have done all of that stuff for our own band.
For $0.15, we can play you for 15 people who love your genre of music and put links to your show's box office right there on the homepage. That means for $15, we can play you for 1,500. You won't find better value anywhere, and if you can't sell one $15 concert ticket with the links to the box office right there, God help us all!
I see what your trying to do but I just don't think it will work. Your tapping the wrong stone. There's always going to be more fans then bands. You should be finding a way to bring new music to your fans and bringing new fans to your bands. Figure that out and you will have something no one else has. That has value.
But labels aren't. The promotional reach is the whole point of signing away your music to a record deal. What will be interesting is if Earbits can turn payola into actual record sales. In radio or elsewhere paid music promotion exists, the evidence of conversion rates has always been fuzzy.