Problem Buying music, merchandise and concert tickets is currently a transaction…not a relationshipbuilding process. The relationshipbetween Fans and Musicians is a zero-sum pie.
What is FanLP?Loyalty Point platform for musicians to reward fans for supporting early and often (Long-Term Incentives). All music on FanLP is available for free and legal download.
How Does FanLP Work?When Fans Do This: Go to Concerts Buy Merchandise Donate $ for Free Music Spread the Word/Share Music Support Their Fav Artists
How Does FanLP Work? They Get This: * Fans can save these up and spend them on cool prizes like an autograph T-Shirt or Backstage Pass. * The earlier a fan supports an artist (When artist needs it most), the more fans are rewarded as the artist grows…much like investing in an early stage company ;). They are rewarded with unique recognition and perks such as priority access to music/concerts + more.
Problem: Apple iTunes Artist ReceivesFans Receive 65 centsA Song (65% cut of $1) Very Transaction Based!
Music D-Loads via FanLPFans Receive Artist Receives• Free Music • Valuable Customer data• Loyalty Points (prizes, perks, recognition, status) • Loyalty Incentives for fans• Fan Equity (“Stake” in artist growth prospects) • Potentially more than $1 • Lower transaction feesGreater Incentives & Long-Term Benefits As a Result of the Transaction
Problem: TicketmasterFans Receive Artist ReceivesA concert ticket $40 for the ticket (Minus a lot b/c of high fees Very Transaction Based!
Buying Tickets via FanLPFans Receive Artist Receives• A concert ticket • Valuable Customer data• Loyalty Points (prizes, perks, recognition, status) • Loyalty Incentives for fans• Fan Equity (“Stake” in artist growth prospects) • Lower ticket feesGreater Incentives & Long-Term Benefits As a Result of the Transaction
Why Artists Want to Use FanLPLoyalty Points (LPs) Offers fans greater incentive to support artists regularlyFan Equity Offers fans greater incentive to support an artist early on when they need the $/support the mostAnalytics:
Growth Plan 1. On-Board Artists Contact Artists via Social Media & Other Artist Introduction Target Record Labels, Promoters, & Band Managers
Growth Plan2. On-Board Music Fans to Artist Loyalty Program At Artist Concert, we’ll have: Table/Booth Brand Ambassadors/Customer Educators Offer FanLPs (artist-endorsed on stage) for free-signup to FanLP Teach Fans how to use and earn more LPs Provide Artist with Social Media Content Copy & Paste Status Updates/Tweets to Promote their New LP Program Artist Offer LPs to fans to share their music/upcoming concerts
Revenue Models1) % of Concert Ticket Revenues2) % of Merchandise Revenues3) % of Free Music Donations4) Premium Subscription Model with Advanced Analytics & Features * Lower % fees for signing up to Premium Model5) % of Sponsorship Revenues6) % of Video Ad/Ad Revenues
Exit Strategy• We’re VERY open to selling early (At >=$20M Valuation)• Potential Buyers Bought out LiveNation and other music ticketing companies. They are slow & clunky, so buying out competition is strategic for them. A legal and convenient free music option that still gets artists paid is a threat to iTunes. A legal and convenient free music option will likely be a threat to major record labels and buyout gives them strategic edge over indie labels.
We Need $500,000 $100,000 Founder Salary (1 year) $33,333 Salary x 3 founders (Tristan, Kevin & Tech Co-founder) $150,000 Marketing Brand Ambassadors at Concerts Online Marketing Manager & Interns Marketing/Promo Materials $150,000 Product Design & Development Team $100,000 Legal Expenses Office (Shared Office Space in NYC) Other General Expenses
Proposed Investment ScheduleInitial Investment: $100,000 (Get us through Alpha & Beta Phase)* 5-10 Artists, On-Board Fans, Iterate based on feedbackMonth 1: Start of Beta* 50 Artists, On-Board Fans, Iterate Based on FeedbackMonth 2: Beta* 100 Artists, On-Board Fans, Iterate Based on FeedbackMonth 3: Transition from Beta to Full Launch* 150 Artists, Iterate Based on Feedback, Start Hiring Mktg, Design, Dev)Month 4: $400,000* Full Launch: Scale & GrowYou can pull out and keep your equity at any stage in the investment schedule to mitigate risk for you!