It seems like a simple concept but it does take a great deal of bravery to give away the music you have worked so hard on and hope these other ways of making money work out. It has been proven that the CWF+RTB Business Model works but to get to the point of success with that model, the first part of the equation needs to come true. Bands need to connect with their fans in a way that will keep them coming back for more. It starts with good music. The listener needs to be impressed with the free music they are getting and respect the band and their practices before they will think about taking the next step to actually buy something from the band like concert tickets or merch.
Trent Reznor decided to start releasing his music for free online, knowing it would have ended up on file sharing sites anyways. He is still able to make money off of premium sales because the fans respect the business practices and enjoy his music so much that they will spend more than the average CD costs just to have a piece of history from that band.
To actually make it to this point, it takes a long time to build up a fan base out of nothing. As long as you give the people a good show, are a respectable band and show the fans you care, the fans in turn will give back to make sure you can keep on entertaining.