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Rynda Laurel Midem 2011 Keys to Music Startups a/k/a Startups are like rock bands.
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Rynda Laurel Midem 2011 Keys to Music Startups a/k/a Startups are like rock bands.

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  • 1. Learn the Keys toDigital Music Startup Success Text Rynda Laurel, COO, af83inc (USA/France)
  • 2. INTRODUCTION Thank You to MIDEM & The MidemNet AcademyMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 3. COO, af83inc FR/US Why am I here? www.af83inc.com www.ryndalaurel.com 15+ years experience in the traditional music business working for major labels A&R department scouting talent & making records. (Similar to reviewing tech startups and helping them grow) Worked on soundtracks, Film & TV sync rights, copyright clearances. (One must understand licensing to understand music startups.) Managed artists with major management companies and solo. (Similar to understanding the culture of startups and the mind of an entrepreneur)MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 4. Sources of information to keep you informed: ABOUT YOU ? Who is in the audience? How many of you have a startup in beta? Funded, running beautifully… Are there any VC’s ? Just a great idea? How many of you come from straight tech.How many of you are musicians or know one…. How many of you have made a record or know someone who has?... signed to a major label? Toured the world, won an award? Made money at it? WELCOME TO STARTUPS: SIMILAR CHALLENGES, SIMILAR REWARDSMIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy
  • 5. Sources of information to keep you informed: WHY ARE WE HERE? THE DESCRIPTION SAYS:Digital music startups have specific needs based on their niche and business model. Understanding competitors, points of difference and monetization routes is critical in determining if an innovative idea can become a reality. We are going to hear quotes, success stories and pitfalls through CEOs, VC‟s, digital entrepreneurs and music business experts. I SAY WE ARE HERE TO TALK ABOUT BEING IN A ROCK BAND.MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy
  • 6. Sources of information to keep you informed: IF YOUR STARTUP HAS ANYTHING TO DO WITH: Digital rights Name & likeness Approval from record labels Artist approvals Artist payments YOU ARE REALLY A HIP-HOP ARTIST.MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy
  • 7. Sources of information to keep you informed: IF YOUR STARTUP IS FUNDED BY: Major labels Large internet companies (Yahoo) A bunch of former record label executives A big corporate brand YOU ARE REALLY A POP STAR.MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy
  • 8. I HAVE AN IDEA… LETS…  START A BAND / BUILD A TEAM CREATE MUSIC / CREATE PRODUCT TOUR / NETWORK SELL MERCH / MONITIZE INDIE LABEL / ANGEL INVESTMENT TOUR EVEN MORE / ITERREATE MAJOR LABEL CONTRACT / VC $ ROCK SUPERSTAR / TECH SUPERSTAR PRODUCER / INVESTOR www.shanesnow.comMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 9. The Kurt Cobain Guide to Startup Success 1. Break the Status Quo It wasn‟t cool to play pop music as a punk band. And I wanted to mix the two. ~Kurt Cobain, About a Son 2. Mix Innovation With Fundamentals I don‟t‟ think we‟re better than the other bands… We got attention because our songs have hooks, which stick in people‟s minds. ~Kurt Cobain, About a Son 3. Bake the Marketing Into the Product We didn‟t do anything. It was just one of those „Get out of the way and duck‟ records. ~ Geffen President Ed Rosenblatt Brian Clark: new media entrepreneur and co-founder of Lateral Action. (2008) http://bit.ly/hLWWfoMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 10. GREAT MINDS… MIDEM 2011 During an interview with Ted Cohen (Tag Strategic) and Saul Klein (Index Ventures )… the Rock Band / Music Biz metaphor was used brilliantly… Index looks at who it‟s investing in – the entrepreneur & their team. “Do they have two bassists and no lead singer or the full complement?” Ted asked about “replacing the lead singer” (the founder/developer/CTO in the startup case)…. and it went on…. Read more on the MIDEM blog: http://bit.ly/dTqp71MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 11. MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 12.  PASSION DEDICATION “Love it and live it.” Henrik Ohlin, echolizeMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 13. KEYS: PASSION & DEDICATION (Let’s start a Rock Band) Reason you are here The key that drives everything. Passion leads to dedication. Why you are willing to: Take risk Work long hours, Get on the roller coaster ride & Live the crazy life of an entrepreneur.MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 14. KEYS: PASSION & DEDICATION Passion must be backed up by expertise. Use your passion to recruit the proper people to help you. Use your passion to drive all other keysMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 15. IDEA VS OPPORTUNITY “There are still a great amount of opportunities for enthusiastic startups!” Stéphane Distinguin, faberNovel, af83MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 16. KEYS: IDEA VS OPPORTUNITY (ArtHouse Cover Band or Rock Band …) Is there a real opportunity? How to tell: Ask your friends and business associates Ask your target market Ask an expert in the space and most importantly… WILL IT MAKE MONEY?MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 17. MONETIZATION (How are you going to pay for rehearsal space?) Always know how you are going to make money… Research who has the same business model …and if it is working Create multiple revenue streams when possible.MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 18. MONETIZATION (How are you going to pay for rehearsal space?) Basic Structures: (Freemium) Free w/ paid advanced services Advertising Percentage of Sales Monthly Fees Subscription And…… it‟s wide open… “Think outside the box with business models. The days of paying for music may be close to over.” Roxanne Varza, TechcrunchMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 19. MAKE A GREAT PRODUCT (or… write good songs!)MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 20. SERVICE & IDENTITY “Figure out what you’re about and don’t deviate from solving that problem.” Michelle Yu, SongkickMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 21. KEYS: SERVICE & IDENTITY (What kind of music do we play, who listens to it and what makes it stand out?) What do you do? What kind of need are you filling? What is different about you? Who is your target market? Who is your competition?MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 22. KEYS: SERVICE & IDENTITYMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 23. MIDEM NET FINALISTS 2010 Congrats!MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 24. HAVE A PLAN REVIEW AND ANALYZEMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 25. THE BUSINESS PLAN: (Not exactly Rock Band vocabulary – it should be.) Business Plans vary as much as music genres… 1. No plan, just a wing and a prayer… 2. A website, google analytics and Alexa Rating 3. One sheet with the basics 4. Build the plan as you build the business 5. Thorough plan with financials, roadmaps and projections The most important thing is to have a clear understanding of your product, know what need it fills and how it will make money.MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 26. SWOT ANALYSIS SWOT SWOT Strengths Weaknesses Internal Internal . . SWOT SWOT Opportunities Threats External External . . Do a SWOT analysis quarterly…MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 27. GOAL SETTING RAISING CAPITALMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 28. KEYS: GOAL SETTING (I want to open for the Foo Fighters > need booking agent> need to practice…) You MUST set goals of all types. Suggested – Write down what you want in 5 years and go backwards with the steps it takes to get there until you are at today. Then…. start NOW.MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 29. RAISING CAPITAL (Paying for rehearsal space, merch and the next tour…) 1. Self funded / Bootstrap (DIY) 2. Angel Investment (Indie Label) 3. Major Investor / Venture Capitalist (Major Label) “Your Venture Capitalist is you’re A&R guy. Research what hes signed, find out what he likes, target him intelligently and you have a better chance of a positive outcome.” Ted Cohen, Tag StrategicMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 30. MANAGEMENT & TEAM BUILDINGMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 31. KEYS: MANAGEMENT &TEAM BUILDING (Auditioning guitar players…then getting a manager... & roadcrew) Make sure your team has the same passion and vision. Hire for persons strengths and help build weaknesses Trust your team or it‟s the wrong team. Create a company culture “The most important thing an investor looks for is strength of the management team.” Doug Barry, Selby VenturesMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 32. EXECUTION “Talk is cheap, execution is everything.” Ian Rogers, CEO TopspinMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 33. KEYS: EXECUTION (Practice, Practice, Practice…) Develop a great product If you are a tech company have great tech Make sure user experience is easy and intuitive Adjust according to feedback Don‟t try to be everything to everyone “If its a tech startup, make sure to nail the tech.” Brenden Mullen, Artist DataMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 34. LEARN FROM OTHERS “There is a venerable elephant graveyard of previous music startups that have failed. Learn from them. All of them. Matt Gulligan, Simple Geo “Embrace the startup ecosystem.” Duncan Freeman, Band MetricsMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 35. COOPERATION “Dont go to war with the labels... work with them.” Michael Schneider, CEO Mobile RoadieMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 36. KEYS: COOPERATION (Be nice to the promoters….) Find ways to add value to artists, users and the labels. All three sides need to feel theyre getting something out of it, otherwise they will try to kill your startup. Ben Parr, Co-Editor Mashable Build the companys intellectual property; respect that of others. Tim Wood, LiveCutMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 37. DO YOUR HOMEWORKMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 38. KEYS: DO YOUR HOMEWORK (Learn how to read music charts….) Midem Blog Hypebot Music Think Tank Consequence of Sound Indie Music Tech Sprouter Startup Digest My Venture PadMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 39. INNOVATION FIRST MOVER (or… Elvis, David Bowie, GunsNRoses, Nirvana… to name a few)MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 40. BE READY FOR ANYTHING (or… “we just put your singer in rehab”) “Whatever you offer, some venture- backed hipster dudes might come along and offer it for free or very very cheap." David Dufresne, BandzoogleMIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 41. A few more words of wisdom: “The only two people who matter in the music biz are the artist and thefan. The rest of us need to provide value to those two or get the hell out of the way.” Ian Rogers, CEO TopSpin “Be as open as possible, but stick to your guns and know what you want” Stefan Baumschlager, LastFm “The key to success is focus & instinct - Focus on what you want and trust your instinct dont listen to everyones advice.” Ariel Hyatt, CyberPR I say…. “If at first you don‟t succeed, try, try again”MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 42. LINER NOTES:(Thanks to the following people gave direct quotes and/or advice for this presentation ) Ted Cohen - TAG Strategic Stéphane Distinguin – faberNovel, af83 Ian Rogers - Topspin Ben Parr - Mashable Michael Schneider – Mobile RoadieRoxanne Varza - TechCrunch France Alexander Ljung - SoundCloud Ariel Hyatt - Cyber PR Michelle Yu – Songkick Doug Barry - Selby Ventures Stefan Baumschlager - Last.fm Brian Zisc - SFMusicTech Duncan Freeman - Band Metrics Brian Felson - CD Baby Brenden Mulligan - Artist Data And numerous tech startups that answered my survey…MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 43. ABOUT ME. COO, af83inc FR/US www.af83inc.com www.ryndalaurel.com Moved into the digital space in 2005, as VP of Operations & Biz Dev for boutique interactive agencies specializing in digital marketing for film & TV ( Team building, business development, marketing & general operations) Currently COO of af83inc. af83inc is the international division of af83 / af83media (Paris). The liaison between the tech and new media fields in the US and France. (Tech development, digital platforms, user design, international markets) Enough about me…let’s talk about you…MIDEMNET ACADEMY 2011 --Strategy ModuleMIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy All courses to be available on: www.midem.com/academy
  • 44. Thank you! Text Rynda LaurelCOO, af83inc (USA/France) www.af83inc.com www.ryndalaurel.com