RawBe.at is revolutionizing the discovery of unsigned talent by creating an online ethical record label and music platform called a7records. The platform will centralize music videos that can be syndicated across social media sites and generate revenue from advertising. It will focus on unsigned artists from developing countries and provide them exposure and revenue sharing. The founder seeks an investment of £795,000 over 2 years to develop the video platform, hire staff, market the brands, and expand into new areas like mobile apps and global markets. The forecast estimates the business will be profitable and generate over £50,000 per month in revenue by the first year.
2. 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
4. Inspired by a Book, Amman Ahmed wanted to take a leap into the unknown’s of
the entrepenruial world.
It was the first time, something made sense to him, as he never understood the
concept of education and having a career.
EasySleepMusic was the first venture started with £2000 which he self-funded
from his student loan.
He was inspired a niche market and a unique sound technology and just took the
risk…
Which pivoted into the next thing…
6. ….The pivot turned into
an 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.
7.
8. 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 music
And now even expanding into
different niches.... for example
music to help people concentrate
during work or studying
hmmm you sure that will work?.....
9. The Revenue
Other Revenue
YouTube 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.
10. The Dream
RawBe.at
Music with a Solution
a7records
11. 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
12. 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 fee's £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 some
area's limited knowledge.
With the rate of the Youtube revenue growing, I believe that
adsense revenue is likely to be higher than what is Airlines, hotels, and hospitals. This is the big one that could
forecasted, especially if the current brands are expanding, as well bring in huge revenues from licencing the music to their
as new brands being created. entertainment on demand systems. From limited and unverified
knowledge I know that getting on one airline brings around
competitors make £1500 - £3000 a month for sleep and £600 a month. Showing that the potential is a lot bigger than
relaxation music website,. what isforecasted.
Once again, with good SEO, growing the current brand and
expanding into new brands I believe the monthly figure could be
a 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, a
As our brands and content grows, this will in effect grow the sales BDM will not be required once we have all the
from digital stores such as itunes, amazon mp3, etc.
relationships with the airlines set up.
13. Part 2 : RawBe.at
rawbeat
Music with
a 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.
14. So Vevo is backed by major record labels to license the music video content. that is then
syndicated across the web to places like youtube and facebook as well as their own platform
on vevo.com
Vevo's 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
15. 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 Vevo's focus is
commercial music only.
The Brand will be split into two sections...
• Music with a solution (which leads from
part 1)
• general music
16. 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 our
further 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
17. The most cost effective approach is to
start on youtube, daily motion and
other social platforms that allow
adverting partnerships.
there is no cost for content hosting on
social sites and they will provide the
advertising.
this will allow us to gain an
audience, to get artist and content
and some revenue while the major
platforms are being developed.
Vevo's focus is commercial, as a
result has more views per video
Our focus is diverse, as a result large
amounts of content is needed to reach
the viewership level of Vevo
18. Vevo’s figures (YouTube)
$0.43 per stream
X This does not take into
3.5 billion streams (291 million streams a month) account Vevo’s other revenue
= $150 million
streams
Vevo 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.
19. Part 2 : Forecast
These figures are based on worst case scenario
Monthly Forecast before FY1
Month 10 Month 11 Month 12
In Out In Out In Out
YouTube £25,000 Artist £22,000 YouTube £29,000 Artist £26,000 YouTube £32,000 Artist £30,000
Daily Motion £7,000 Staff £5,000 Daily Motion £8,000 Staff £5,000 Daily Motion £9,000 Staff £5,000
Facebook £8,000 marketing £5,000 Facebook £9,000 marketing £5,000 Facebook £10,000 marketing £5,000
Central platform £11,000 Central platform £13,000 Central platform £15,000
Digital Distribution £2,000 Digital Distribution £3,000 Digital Distribution £4,000
Audio Streaming £1,000 Audio Streaming £1,500 Audio Streaming £1,000
a7records £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.
20. Part 1 and Part 2 : Overall Forecast
Month 12 of FY1
In Out
YouTube £32,000 Artist £30,000
Daily Motion £9,000 Saleries £5,000
Facebook £10,000 marketing £5,000 Mainstream music
Central platform £15,000
Digital Distribution £4,000
Audio Streaming £1,000
a7records £8,000
YouTube £5,500 Saleries £4,500
On-site sales £3,000 SEO £800
in-store sales WW £4,000 Social Media £500
Digital store sales £2,500 Accounting fee's £100 Music with a solution
Affiliates £1,000 Server £60
link-sharing £600 offline marketing £1,000
Mobile Apps £1,500 online marketing £600
Airlines, 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.
21. 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 £60,000
Hosting £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 £50,000
SEO £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 £30,000
artist re-investment £150,000
offline 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 100's of niches such as yoga music, meditation music, concentration music, etc where the potential is
huge.
Entering New Markets £50,000
Mobile Apps £30,000 the app market for sleep is popular showing its a proven concept. The aim is to flood the market with quality apps
Business Development Manager across the brands.
x2 £40,000
staff £30,000 Business Development Managers will break into airlines, hotels and hospitals. They will expand relationships
RelaxMyDog 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, BDM's 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.
22. 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 monetize
Possible Pivot: work with
unsigned artist or only unsigned a7records
artist 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
23. A centralized viral digital platform that is also syndicated
with 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 from
dog music…. To classical rock…. To main stream hip hop
Allowing advertisers to position their branding in front of
an audience of millions