RawBe.atRevolutionising the discovery of unsigned talent
Summary• How it all started Back Then• The success so far Now• The current revenue• The bigger vision• Part 1• Part 2 The Dream• Investment needed• Forecast
Back ThenOne Revenue Stream
Inspired by a Book, Amman Ahmed wanted to take a leap into the unknown’s ofthe entrepenruial world.It was the first time, something made sense to him, as he never understood theconcept of education and having a career.EasySleepMusic was the first venture started with £2000 which he self-fundedfrom his student loan.He was inspired a niche market and a unique sound technology and just took therisk…Which pivoted into the next thing…
….The pivot turned intoan online ethical record label supporting artist in 3rd world countries and creating music with a solution Founder Started by Amman Ahmed who stumbled across the idea of creating solution orientated music (using specific sound technologies) and signing artist from 3rd world countries. That combined into a totally low cost purely digital and highly viral automated online record label.
Support from as a YouTube Advertising Partner and have an account manager (who was a former MTV manager) to help me as an up and coming record label Support from Virgin Pioneers which back me with contacts, press features and overall support for my business. The Growth so far… That’s now 1.2 million views a month Yes that’s right… music for dogs using Each music brand uses a specific piece of sound technology and music styles. sound sweep technology. Even got support from People are uploading videos of their dog falling asleep to our musicAnd now even expanding intodifferent niches.... for examplemusic to help people concentrateduring work or studyinghmmm you sure that will work?.....
The Revenue Other RevenueYouTube Adsense Revenue digital sales average £600 a month for EasySleepMusic however the site has taken a hit with rankings due to a bad investment in SEO services and website infrastructure past few months have now averaged £200 a month RelaxMyDog digital sales are £170 a month however this brand is very under developed at the moment. Also setting up relationships with daily deal sites. For Example with Groupon I set up a deal which brought in a revenue of £3,000 in one day. Revenue also comes from affiliate partnerships The site has been hit hard with sales due to bad SEO techniques and the recent Google search algorithm update. I have one main artist at the moment and two others in the pipeline who will start to get paid. Right now, they are paid on the performance of their videos on YouTube. That will soon spread to performance of the sales as well. The overall picture from an ethical stand point is that payments are huge sums to 3rd world artist and makes a difference. For Us.... it makes economical sense to have 3rd world artist.
The Dream RawBe.atMusic with a Solution a7records
Part 1 : Music with a solution So what’s that diagram all about.... • well the main revenue is from youtube. • SEO and Social media needs to be strengthened as the current competitors from keywords alone are making £1500- £3000 a month in on-site sales just from the Sleep Music niche. • Email Marketing needs to be optimized • affiliate sites and partnerships could create a potentially huge revenue stream. • Now a Daily Motion (like YouTube) advertising partner which is another revenue stream.• Mobile Apps where you can create your own sleep music/relaxation or even dog music..... • EOD! (entertainment on demand) licensing the music into airlines, hotels and hospital• making £3000 from Groupon in revenue in 1 day digital on demand systems is a huge shows that daily deal relationships need to be scaled. opportunity.• With the support from DogsTrust and the success of an American company called Through A Dogs Ear • Finally creating more brands to enter the shows the potential for RelaxMyDog both offline and market of many micro niches… like yoga online music, meditation music, brain music, etc
Part 1 : Forecast YouTube £5,500 Saleries £4,500 On-site sales £3,000 SEO £800 in-store sales WW £4,000 Social Media £500 Creating a valuable offering so affiliate marketers can promote Digital store sales £2,500 Accounting fees £100 the product through sites such as ClickBank. Affiliates £1,000 Server £60 link-sharing £600 offline marketing £1,000 Link-sharing, is like selling adds on your site. When we had a good ranking for the keyword “relaxing music” we were Mobile Apps £1,500 online marketing £600 approached by a mattress company to give them a back link. Airlines, hotels, Hospitals £5,000 Artist £2,300 Mobile apps, this is all about creating good quality content, that Total £23,100 Total £9,860 can go viral. The potential for revenue is a lot higher than what I have predicted. Net Profit £13,240***This forecast is based on worst case scenario and in someareas limited knowledge.With the rate of the Youtube revenue growing, I believe thatadsense revenue is likely to be higher than what is Airlines, hotels, and hospitals. This is the big one that couldforecasted, especially if the current brands are expanding, as well bring in huge revenues from licencing the music to theiras new brands being created. entertainment on demand systems. From limited and unverified knowledge I know that getting on one airline brings aroundcompetitors make £1500 - £3000 a month for sleep and £600 a month. Showing that the potential is a lot bigger thanrelaxation music website,. what isforecasted.Once again, with good SEO, growing the current brand andexpanding into new brands I believe the monthly figure could bea lot higher. The costing is based on worst case scenario and that can all be cut down as soon as more elements of the business start to become automated. For Example, aAs our brands and content grows, this will in effect grow the sales BDM will not be required once we have all thefrom digital stores such as itunes, amazon mp3, etc. relationships with the airlines set up.
Part 2 : RawBe.at rawbeatMusic witha solution a7records A centralised music video platform that is also syndicated (spread across) social sites with advertising models. Revolutionising the discovery of unsigned talent a7records will turn into the main record label backing a music video sharing and syndication concept. Let me explain to you what I mean first by showing you an example of a well known brand.
So Vevo is backed by major record labels to license the music video content. that is thensyndicated across the web to places like youtube and facebook as well as their own platformon vevo.comVevos main revenue stream comes from advertising.• Started on December 8th 2009 YouTube is the main source of revenue for Vevo however there is a rift forming in their relationship• $150 million in revenue for 2011• on track to do $1 billion in revenue
The Plan..... • A central platform that is syndicated with social media sites but we only work with unsigned artists from developing countries. • The main revenue stream will come from advertising. • The music on the platform will cater to all genres. whereas Vevos focus is commercial music only. The Brand will be split into two sections... • Music with a solution (which leads from part 1) • general music
the main revenue stream will come from advertising through the central video platform and social platforms for example, as a YouTube partner, I have an account manager who helps me optimize and customizes my features to generate more money on my current channels. other revenue streams include album submissions to digital stores like itunes, etc. and the audio streaming service. artist that become really popular on ourfurther potential ... platform can get signed to our label• mobile apps (add revenue) which creates the revenue streams from• Merchandising album sales, gigs, tours and many more.• advertising free subscription
The most cost effective approach is tostart on youtube, daily motion andother social platforms that allowadverting partnerships.there is no cost for content hosting onsocial sites and they will provide theadvertising.this will allow us to gain anaudience, to get artist and contentand some revenue while the majorplatforms are being developed.Vevos focus is commercial, as aresult has more views per videoOur focus is diverse, as a result largeamounts of content is needed to reachthe viewership level of Vevo
Vevo’s figures (YouTube)$0.43 per streamX This does not take into3.5 billion streams (291 million streams a month) account Vevo’s other revenue= $150 million streamsVevo has 50,000 videos a7records current Figures (YouTube) YouTube has something called “monetizable views” which means the £1 a day (on average per video) average payout per video grows when X the library grows. That is why Vevo 80 videos = £80 a day = £2400 a month gets $0.43 per view whereas I get £0.01 per view. Even if I could scale it up to 1000 videos that’s £1000’s a day These figures are based on the worst case. I have If we had Vevo’s capacity of 50,000 videos not taken into consideration the growth of monetizable views. That’s £50,000 a day, £18.25 Million a year These figures also don’t take into consideration videos that have gone viral.
Part 2 : ForecastThese figures are based on worst case scenarioMonthly Forecast before FY1Month 10 Month 11 Month 12 In Out In Out In OutYouTube £25,000 Artist £22,000 YouTube £29,000 Artist £26,000 YouTube £32,000 Artist £30,000Daily Motion £7,000 Staff £5,000 Daily Motion £8,000 Staff £5,000 Daily Motion £9,000 Staff £5,000Facebook £8,000 marketing £5,000 Facebook £9,000 marketing £5,000 Facebook £10,000 marketing £5,000Central platform £11,000 Central platform £13,000 Central platform £15,000Digital Distribution £2,000 Digital Distribution £3,000 Digital Distribution £4,000Audio Streaming £1,000 Audio Streaming £1,500 Audio Streaming £1,000a7records £5,000 a7records £6,000 a7records £8,000 £59,000 £32,000 £69,500 £36,000 £79,000 £40,000 net Profit £27,000 net Profit £33,500 net Profit £39,000 • Based on the metric from the previous slide. If we had 825 videos at around £1 • Distributing artist albums onto digital stores and taking a small percentage of a day per video. (not taking into account all the other natural factors that the sales. increase growth) then the income still looks positive. • Daily Motion is an advertising relationship I already have set up. Taking into • An audio streaming platform which is similar to spotify, with revenue coming consideration they are not as big as YouTube in terms of audience, shows the from advertising and a subscription service. realistic estimations. • Signing artist and promoting them through gigs, tours, etc could be another • Vevo’s has a powerful facebook app which is linked to their central platform. I stream. Believe we can replicate the same approach to achieve those earnings. • Filtering traffic from YouTube to the central platform and getting our own • As a purely digital business, the costing is simple, we pay artist their share of advertisers will create a strong revenue stream. the revenue and pay staff to grow the platform.
Part 1 and Part 2 : Overall ForecastMonth 12 of FY1 In OutYouTube £32,000 Artist £30,000Daily Motion £9,000 Saleries £5,000Facebook £10,000 marketing £5,000 Mainstream musicCentral platform £15,000Digital Distribution £4,000Audio Streaming £1,000a7records £8,000YouTube £5,500 Saleries £4,500On-site sales £3,000 SEO £800in-store sales WW £4,000 Social Media £500Digital store sales £2,500 Accounting fees £100 Music with a solutionAffiliates £1,000 Server £60link-sharing £600 offline marketing £1,000Mobile Apps £1,500 online marketing £600Airlines, hotels, Hospitals £5,000 Artist £2,300 RelaxMyDog could be a viral wild £102,100 £49,860 card because from small scale testing within a contained net Profit £52,240 audience it has proven to be successful. ***Figures based on worst case scenario With the backing of DogsTrust, Some of the above streams have been repeated as they will the video responses on Youtube be record as two separate sub brands under the main brand and the potential opportunity in America. Even getting it registered for the music charts could create some hype.
Investment (for 2 year period) Investment (over a 2 year period)Video platform development £120,000 the development costs include social media (e.g facebook apps) platforms, central platform like vevo.com and future development. Also includes mobile app development.Artist scouts £60,000Hosting £20,000 artist scouts, finding artist from developing countries and also maybe requiring travel.social media marketing £80,000 Hosting cost is based on the future growth targets for the site.PPC £50,000SEO £80,000 To create the maximum online and offline hype, marketing will require a big boost so we can go viral.Legals with artist and content £30,000artist re-investment £150,000offline marketing £40,000 artist reinvestment allows us to make a difference as we can launch the careers of the best performers on the platform before we eventually sign them to the label.total £630,000 To have strong SEO and social media across all current brands and new brands we believe a signification amount needs to be invested. there are 100s of niches such as yoga music, meditation music, concentration music, etc where the potential is huge.Entering New Markets £50,000Mobile Apps £30,000 the app market for sleep is popular showing its a proven concept. The aim is to flood the market with quality appsBusiness Development Manager across the brands.x2 £40,000staff £30,000 Business Development Managers will break into airlines, hotels and hospitals. They will expand relationshipsRelaxMyDog offline Marketing £15,000 with daily deal companies. They will get the relaxmydog brand into stores. They will work on building the online affiliate partnerships.total £165,000 Once we get these relationships, BDMs will no longer be required. So they are a temporary cost.final total £795,000 can hire a number of interns to write content for all the brands which will help with the SEO as well. They can also scout the talent, manage the music creation and the artist portfolio. The RelaxMyDog has support from DogsTrust. A secret weapon and massive validation for the product which has not been exploited yet. Putting a marketing campaign into place will accelerate this brand.
Music with a solution Music • Dominate micro niches and continue to grow the • Differentiate music videos into all genre’s and position ourselves audience. as the providers of raw user generated content that has not be manipulated by major labels. • Its already proven • Multiple revenue streams • Licence the music into airlines, hotels, hospitals • Even if we got to 50,000 videos (the same as Vevo) however every • RelaxMyDog – potential wild card other aspect stayed the same ( nothing else grew) ….. That’s still an estimated £18.25 million a year in revenue. • Mobile App (e.g sleep related apps are a proven concept), flood the market with high quality apps A viral platform that allows unsigned raw talent to get recognized and allow them to monetizePossible Pivot: work withunsigned artist or only unsigned a7recordsartist from developing countries • Sign the popular artist to our backing record label and create the revenue streams that come from a label. Album sales, gigs, tours, etc
A centralized viral digital platform that is also syndicatedwith social sites allowing unsigned artist to be given the best possible chance of exposure. Allowing unsigned artist to create a revenue stream Giving the audience a diverse portfolio of music fromdog music…. To classical rock…. To main stream hip hopAllowing advertisers to position their branding in front of an audience of millions