In 1998, he and Bowie launched UltraStar, which pioneered online communities linking artists with their fans and providing interactive fan management services for Bowie and other top artists such as The Rolling Stones, Sting, Destiny's Child, Avril Lavigne and Gloria Estefan.

UltraStar specializes in bringing fans closer to artists. Key to its success is making fans feel like they are part of a VIP community, sharing a unique and special experience. Want to get in on a deluxe travel and concert package for the next big Sting show? How about a personal meet-and-greet with Destiny’s Child before their next show? UltraStar can make it happen.

The company also handles contests and other complicated promotions, such as the David Bowie’s mash-up contest asking fans to create their own digital versions of his songs (the winner gets an Audi TT coupe). UltraStar goes all out for die-hard fans. Consider its "Escapades" program, in which the company creates a customized concert experience, including private parking, a VIP entrance and an exclusive pre-show, high-end party, the best seats in the house and exclusive merchandise.

Goodale sold his UltraStar stake last year to investors and helped with the transition until finally leaving the company just last month. Looking back, he has some interesting reflections about his UltraStar experiences, as well as general perspective on how the very dynamics of the music industry has evolved over the years.

What's this got to do with you? While it's true that few Indie artists have the same deep pockets or fan bases that major label super acts have, you can still cull much from the UltraStar model. Connecting with fans doesn't necessarily require a lot of coin; it just requires effort and creativity.

Instead of a swanky cocktail party, why not a contest for a free house concert, a meet-and-greet or sit-down dinner before the show, or a back stage party afterwards? Why not issue a Full Access badge to fans that sell 10 or more tickets to your show or sign up 25 new people to your newsletter?

Like other successful industry innovators, Goodale urges Indie artists, managers and labels to expand their view of the music business. It’s all about community and cultivating an intimate relationship with fans, whether they number millions or a few dozen.

Today's affordable technology makes it possible for Indies to create cool websites, podcasts, blogs, bulletin boards, and communicate with fans on a level that was impossible before. "There’s an amazing array of really cheap tools available," says Goodale. "What you can get for twenty five hundred bucks today, five years ago you would have had to pay a quarter of a million bucks for," he says. "All of these tools go into the online arsenal."

Too many artists however, don't see the big picture and merely go through the motions. You can't just put up a Web site, says Goodale, and think that you're done. "By default, you need to have a Web site, but the more important thing is the communication," he says. "If you get fooled into thinking that somehow a billboard equals communication, then you’ve misunderstood the value of this stuff."

In fact, Goodale says that the connection fans seek with artists (and artists seek from fans) —combined with mobile and digital streaming technologies—will likely transform the entire meaning of a "live" experience.

"The most interesting thing is what I would call the transformation of live," he says. "The reason why mobile stuff is so fascinating is that mobile stuff allows you to monetize live. It allows you to monetize communication with your friends about the event. It allows you to monetize the transmission of the event." (Interestingly enough, I interviewed Goodale only one day before America Online, XM Satellite Radio Holdings and Anschutz Corp.’s AEG entertainment group launched Network Live, a new venture to deliver live digital entertainment content. Under the deal, shows, mainly at AEG-owned arenas, will be broadcast on XM and at AOL’s Web site. In addition, Network Live expects to expand its offerings to mobile devices).

Goodale, in fact, is so fascinated with the potential of mobile devices, that he and a friend are financing a new video game for cell phones that uses image recognition. "Tell me that’s not pretty powerful." The thought just blows me away.

(EDITOR’S NOTE: In next month's installment of Becoming an Ultra Star, Robert Goodale talks about the plight of record labels and how mobile technology is changing everything).

(Mike Grebb is a writer, journalist and singer/songwriter based in Washington, D.C. He has written for numerous publications, including Wired and Billboard. He just completed his debut solo record, Resolution, which is available at www.mikegrebb.com).