business model, business model canvas, columbia, customer development, lean launchpad, lean startup, steve blank

1. Digital Tip Jar John MacDonald
Dagur Eyjolfsson
Roger Milford
Edgar Richmond
Karan Viegas
# of interviews since yesterday: 14
Total interviews: 74

2. (Independent/Amat
eur/hobbyist)
Musicians agree to
share their
generated revenue
in exchange for our
hosting, publishing
& free marketing
services.
The “Tips” come
from fans who want
to show their
appreciation.
• Software
development
• UI design
• Demand creation
skills
• Musicians want to
make money and
build a following
doing what they
love.
• Fans want to
support musicians
and artists, and
they have limited
options to do so.
• Digital Tip Jar
empowers fans
and artists, and
makes connecting
easier, more
convenient.
• PayPal, Stripe,
Square
• Designer +
Developers
• Talent Agents &
Influencers
• PayPal = 2.9% of transactions + $.03
• Hosting
• Marketing & BD
• Design & testing of MVP
• Free Accounts
• 5% of transactions = .05(Suggested tip amounts +
“Pay what you want”)
• Word of Mouth.
• Social media
(Instagram, Twitter,
Facebook,
Soundcloud,
BandCamp,
Venmo, YouTube)
• MusicianU
(existing platform
and network for
dissemination)
• Dedicated
developers
• Maximizing return
for artist (lower
fees for us).
• Gamify – publish
tips on both artist
and fan’s behalf.
• Referrals
Business Model CanvasDigital Tip Jar DAY 1

3. Day 1 Hypothesis
ARTIST
(Trying to break
into the music
industry)
FAN
(Wanting to
support up and
coming talent)
Artist
needs
Money
Digital Tip Jar

4. • Software
development
• UI design
• Demand creation
skills
• PayPal, Stripe,
Square
• Designer +
Developers
• Talent Agents &
Influencers
• PayPal = 2.9% of transactions + $.03
• Hosting
• Marketing & BD
• Design & testing of MVP
• Free Accounts
• 5% of transactions = .05(Suggested tip amounts +
“Pay what you want”)
• Word of Mouth.
• Social media
(Instagram, Twitter,
Facebook,
Soundcloud,
BandCamp,
Venmo, YouTube)
• MusicianU
(existing platform
and network for
dissemination)
• Dedicated
developers
The “Tips” come
from fans who want
to show their
appreciation and
share to friends.
Artists
Artists receive
financial support and
shares/referrals
simultaneously
Fans are able to
support artists they
love by giving them
money and by sharing.
Friends of fans hear
about new music from
friends
• Get – New fans
• Keep – culture of
giving &
acknowledgement
• Grow – expanding
fanbase
Business Model CanvasDigital Tip Jar DAY 2-3

5. Day 2-3 Hypothesis
ARTIST
(Trying to break
into the music
industry)
FAN
Artist
needs
Money
Artist wants
Recognition
Digital Tip Jar

6. • Software
development
• UI design
• Data analytics
• Online music
providers
• Designer +
Developers
• Agents &
Influencers
• Hosting
• Marketing & BD
• Development
• Potential licensing of APIs
• Potential Freemium Model
• Ads
• Additional features for a subscription fee.
- Detailed Information about ranking
- Geographical exposure.
- Real time data
• Word of Mouth.
• Mobile (iOS,
Android)
• Finance
• Web site
• Data aggregator
Independent
Musicians who share
music online
• Musicians want to
be appreciated by
fans
• Musicians want to
be able to measure
their online
exposure time to
fans
• Get – Online ads,
promotional
giveaway / agents
• Keep Regular
feedback on
progress & teach
how to improve
exposure
• Grow – expanding
fanbase
Business Model CanvasDAY 4

7. Day 4 - 5 Hypothesis
ARTIST
(Trying to break
into the music
industry)
FAN
Artist wants
Recognition

8. • Software
development
• UI design
• Data analytics
• Online music
providers
• Designer +
Developers
• Agents &
Influencers
• Hosting
• Marketing & BD
• Development
• Potential licensing of APIs
• Potential Freemium Model
• Ads
• Additional features for a subscription fee.
- Detailed Information about ranking
- Geographical exposure.
- Real time data
• Word of Mouth.
• Mobile (iOS,
Android)
• Finance
• Web site
• Data aggregator
Independent
Musicians who share
music online
• Musicians want to
be appreciated by
fans
• Musicians want to
be able to measure
their online
exposure time to
fans
• Get – Online ads,
promotional
giveaway / agents
• Keep Regular
feedback on
progress & teach
how to improve
exposure
• Grow – expanding
fanbase
• Musicians are
willing to pay a
premium for
enhanced insights
Business Model CanvasDAY 5

9. Customer Segment
• Jake
• 25 years old
• Posts songs on Youtube, Spotify
and SoundCloud regularly.
• Aspiring to be professional.
• Inquisitive about skill level.
• Looking for recognition.
• Steve and the Granny Smiths
• 3 year old band
• Starting to gain recognition
• Looking for best channels to
increase visibility.
• Interested in monetizing

10. Music streaming &
download
services
Social
Media
Data Science
Analytics
Music analytics
Petal Diagram

11. Sample Report- MVP
HISTORICAL
AIRTIME
Daily and
Monthly
Views
Social
Media
Traffic

12. Channels: Web and/or Mobile
Free Customers
MUSIC VITALS
Paying Customers

13. Revenue model - Freemium
LICENSE
OR API
FIXED COST DISCOUNTPROFIT + VARIABLE COST
Price List
price
Profit analysis
Paying users
Free users
Music VitalsData providers
Free account
• Weekly time data spent
listening to your music
Paid account
• Daily data
• Ability to see data filtered by
streaming provider
• Social media integrations

14. Product-Market Fit
Learn more about how much time
fans are spending listening to their
music
View audience
analytics
Too many diff. platforms to track
Additional information about
Listening behavior
Aggregate analytics
from all platforms to
one
Aggregated
analytics
dashboard
VALUE PROPOSITION CUSTOMER SEGMENTS

15. Future Hypothesis
ARTIST
(Trying to break
into the music
industry)
FAN
MUSIC EVENT
ORGANIZERS
(RANKING)

16. What we learned: WEDNESDAY
ARTISTS
HYPOTHESIS • Artists want to be able to track
audience activity across every digital
platform
• Artists want to be able to view
the analytics of other artists
similar to them as well
EXPERIMENT • We interviewed established
professional artists and bands
• We did online research to further
evaluate the extent of this demand
and size the market
• We interviewed artists, subtly
bringing up the subject of
competitiveness of the
industry and how they can get
an edge
RESULT • Yes, nearly every ambitious
professional artist cares about their
numbers and want to track them
closely
• Yes, many semi-professional
and professional artists
validated our hypothesis.
• The industry is vicious, and
sometimes, being different can
translate to more fans, more
gigs, more sponsorships and
even record deals.
ITERATION • We narrowed our focus towards
music analytics
• Provide a feature that would
allow artists to view analytics
of rival artists, possibly for a
fee or on the basis of other
success criteria
PASS/FAIL 80% 60%, INSIGHT
Digital Tip Jar

17. What we learned: MONDAY
ARTISTS FANS
HYPOTHESIS • Artists want to be able to earn
money from fans as
tips/donations
• Fans want to support artists
they love by giving them money
and by sharing their content
with friends.
EXPERIMEN
T
• We talked to musicians (from
amateur hobbyists to semi-
professional artists) to
understand their pain points.
• We visited the Manhattan
• We spoke to listeners & music
aficionados
RESULT • Artists are motivated by
successful crowdfunding
campaigns, but those work once
they have passionate fans only
• They feel that small tips will not
necessarily be a revenue stream
that is worth their time.
• For many, a larger fan following
translates to bigger financial
success in the long term
• Fans are not so keen on giving
tips. Not repeatable.
• They can already share and
recommend their favorite
artists via various channels
• They want to discover new
music
ITERATION • Stop pursuing tipping concept, or
• Bundle tipping with
marketing/publicity incentives
• Stop pursuing tipping concept,
or
• Bundle tipping with
marketing/publicity incentives
PASS/FAIL 60% + INSIGHT 75%
Digital Tip Jar

18. What we learned: TUESDAY
ARTISTS FANS
HYPOTHESIS • Artists want to be able to earn
money from fans as
tips/donations
• Fans want to support artists they
love by giving them money and
by sharing their content with
friends.
EXPERIMENT • We talked to musicians (from
amateur hobbyists to semi-
professional artists) to understand
their pain points.
• We visited the Manhattan
• We spoke to listeners & music
aficionados
RESULT • Artists are motivated by
successful crowdfunding
campaigns, but those work once
they have passionate fans only
• They feel that small tips will not
necessarily be a revenue stream
that is worth their time.
• For many, a larger fan following
translates to bigger financial
success in the long term
• Fans are not so keen on giving
tips. Not repeatable.
• They can already share and
recommend their favorite artists
via various channels
• They want to discover new
music
ITERATION • Stop pursuing tipping concept, or
• Bundle tipping with
marketing/publicity incentives
• Stop pursuing tipping concept,
or
• Bundle tipping with
marketing/publicity incentives
PASS/FAIL 60% + INSIGHT 75%
Digital Tip Jar

19. New Hypotheses to Test (Thursday)
HYPOTHESIS PASS/FAIL CRITERIA
Artists want to know the total
time spent by their audience
on all their digital content
60%
Artists would be willing to pay
a premium to view analytics of
other artists similar to them
50%, INSIGHT
Gamification of the charts
would help retain customers
70%
Digital Tip Jar

20. Market Size
US Music Industry
$15.5B
Independent musicians
$5.6B
Digital Revenues = 45% of Ind. musicians
$2.52B
Digital Tip Jar

21. Columbia B8521-001: The Lean Launchpad
DIGITAL TIP JAR - TEAM
Name
John
MacDonald
Dagur
Eyjolfsson
Roger
Milford
Edgar
Richmond
Karan
Viegas
Degree &
Major
MBA ’17
Finance
Entrepreneurship
MBA ’17
Finance
MBA ’17
Entrepreneurship
MS ’17
Applied Analytics
MS ’18
Management
Science &
Engineering
LinkedIn URL
https://www.linkedin.c
om/in/johnhigginsmac
donald
https://www.linkedin
.com/in/dagure
https://ca.linkedin.co
m/in/roger-milford-
20b7b3b
https://www.linkedin.c
om/in/edgar-
richmond-3185a3a1
https://www.linkedin.
com/in/karan-viegas
Area of
Expertise
Subject Matter
Expert e-Commerce
Strategy
Formulation
Customer
Engagement
Product
Management
Role Product Picker Hacker Hustler Designer Designer
Fun fact
Former Actor
Former
Bodybuilder
Fluent in Swahili
& Afrikaans
Worked @
Def Jam Records
12 years Piano &
Drums