The community is most likely a mix of musicians AND music lovers. So even Fandalism's original goal of serving musicians is what it is, I'm sure there are music lovers who are enjoying the community's work as well.
All of the monetization solutions suggested thus far does not cover both ends of the users.
I'm more of a coder / developer guy but occasionally I like to play the product guy. So here is my suggestion so let me know what you think especially you, Philip, if you are reading:
KickStarter for Musicians. Be the online version of American Idol or British's Got Talent. You have musicians and also they have their audiences on Fandalism.
First mission is to scout or fund the first internet musician superstar. Get the winner into a professional studio, get a few singles out. Backers get singles free, the rest gets to buy the singles fr a price. Fandalism gets a cut of the sales. The rest should be history.
Up vote if you think this will work or comment if you have more to add.
@pud What do you think? If you really want to venture out this way, I'm available for a ride. ;) That would be fun.