We used the "split the CDs approach" and it worked well. One band member has a home studio so he did all the production work. WE used gig proceeds to pay for the CDs and artwork. We pressed 1000 CDs. 500 were doled out among the band members to do with as they wished - give away or sell. The guy who did all the production work (hours and hours and hours of it) is getting all the proceeds of selling the other 500 CDs, as compensation for his time. We're all very happy with the arrangement - maybe it could work for you. The key factor I guess is that none of us is in this for the money, and we appreciated all the work the producer put into the CD. Good luck.