Music is a hobby for me. It is definitely a negative cash flow proposition. Now I did make some money over at streetjelly.com -- but I spent twice as much tipping other folks!
I miss you Kevin!
I know what you mean, I donate my tips to charity and then buy more for other performers. :>
So until SJ and other sites like this draw enough civilian audiences it will be hard to make money, if indeed we can call a few hundred dollars a month "money" in this day and age.
Later,
I think a single site like SJ is unsustainable, for the reasons mentioned. With no new money, it ends up costing the participants, and eventually people walk away from negative cash flow situations.
But the dynamic changes when you consider a whole bunch of similar sites. With many sites a musician can "play the circuit" and not wear out the same audience with the same songs. By "travelling" from site to site, there is also potential to gain new fans who will follow you to other "gigs"
If you like the SJ concept, why not sign up at every similar site you can find? Here's a list of places I've found... there may be more:
streetjelly.com
concertwindow.com
stageit.com
justjamit.com
showslinger.com
numubu.com
and hopefully before too much longer, BitCONCERT.com
with 8 sites, you could play twice a week with no repeat audiences for a month. And once you are bringing your own audience, the necessity of buying your way into the clique by donating your hard-earned tips to the system would no longer be necessary.