Describe the key problem or unmet need that you will address for your customers. If you have a common business, such as a restaurant or nail salon, explain why your customers need your particular restaurant or nail salon.
Please read the instructions file. I need your help writing a business plan. There are a number of sections on the business plan that I need you to write for me.
Each section on the business plan does not need to be long. About 1 paragraph for most of them should be sufficient. In the instructions, I provided some guidance for you on this. Please focus on being detailed enough, but concise in your responses.
I have attached all of the necessary documents that you must use to help me complete these sections of the business plan. Please read through these documents carefully so that you are answering everything accurately.
PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS.
Requirements: 2.5 pages
INSTRUCTIONS
PROBLEM WORTH SOLVING
In approximately 2 paragraphs:
Describe the key problem or unmet need that you will address for your customers. If you have a common business, such as a restaurant or nail salon, explain why your customers need your particular restaurant or nail salon. Do you offer lower prices? More convenient hours? A better location? A specialty that is not otherwise available in your area, such as a Moroccan restaurant or a late-night taco truck?
If your company is doing something new and different, explain why the world needs your innovation. What is it about the existing solutions that is subpar? Maybe your new medical device avoids the need for invasive surgery to treat a serious medical condition. Or maybe you are improving on a mediocre product category — creating a better hospital gown, an easier way to de-wrinkle clothing, a more convenient way to outsource your tax preparation, and so on.
If your company solves several distinct customer problems, describe them all here. You may want to rename the topic to be plural: “Problems Worth Solving.”
OUR SOLUTION
In 2 paragraphs,
Explain how your company will address the problem you identified above. What products or services do you offer, and how do they meet your customers’ need? For example, if the problem is that parking near the local college is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations near both classrooms and off-campus student housing.
If your company is tackling several distinct problems, describe your solutions individually here. You may want to rename the topic to be plural too: “Our Solutions.”
SALES PLAN
In 2-3 paragraphs:
Explain how you plan to sell your products or services. You do not need to cover marketing activities here — that is, how you are going to attract potential customers. Focus instead on how you will turn those prospects who express interest — the people who visit your store, who sign up for your newsletter, who ask for an estimate — into paying customers. For a simple business, such as a food truck, that is pretty simple. You might want to talk about the payment methods you accept and any order tracking tools you are using.
For a sales-heavy business like insurance or enterprise software, talk about the nuts of bolts of the sales process. How will you nurture leads to get them ready to close? What kind of staffing do you need? Do you have a commission structure? Sales territories? Quotas? Also, describe any key sales activities that you will use to build and maintain your sales pipeline, such as prospecting calls and emails, networking events, trade associations, existing customer followup, thought leadership, referrals, and so on.
TECHNOLOGY
Describe any important software, hardware, or other information technology that you use now or plan to use later to operate your business. That might include a point-of-sale system to take payments, an e-commerce engine for your website, a CRM solution for managing your pipeline, marketing tools for generating leads, and so on. For an industrial company, be sure to cover any industry-specific technologies that you have developed or purchased to power or manage your operations.
EQUIPMENT & TOOLS
List any specialty equipment that you have or plan to acquire to do your work. This is an important component of the business plan for many industrial companies. A steel fabrication plant, for example, needs CNC lines, welding machines, drill presses, and other metalworking tools. Likewise, with a photography studio business, having the right sort of cameras, lighting rigs, editing tools, and so on is going to be key.
If your forecast includes plans to make major capital expenditures — investing in another fermenting tank for your microbrewery, for instance — be sure to discuss the cost, benefits, and timing of those purchases here.
KEY METRICS
In 1 paragraph:
Explain which performance metrics are most important for understanding how your business is doing. What does success mean for you, and how will you know it when you see it? Is it critical to contain your direct costs in a low-margin industry? To generate a certain number of leads to keep your sales pipeline full? To get a certain level of traffic on your website or convert a certain percentage of those visitors into customers? To keep a certain amount of cash in the bank?
The goal here is to keep your plan alive by tracking your actual results, identifying poor assumptions or weak performance as early as possible, and correcting course right away to keep your business on track. The first step is to get clear on which metrics are going to be the most important to watch closely.
Hint, Use these:
Key Metrics:
Tickets Sold per Night: Tracking the number of tickets sold per show will give us insight into the demand for our performances and help us assess our popularity.
Average Box Office Gross: Monitoring the average box office gross per show will help us gauge the overall financial success of our performances.
Net Box Office Receipts: Calculating our net box office receipts after accounting for necessary adjustments will provide a clear view of our actual earnings.
Touring Frequency: Tracking the number of shows we perform per year will be crucial in estimating our annual revenue potential.
Audience Engagement: Measuring audience engagement through social media interactions, fan club memberships, and merchandise sales will help us gauge the strength of our fan base and its growth over time.
KEY ASSUMPTIONS
In 1 paragraph:
Describe how you came up with the values in your financial forecast. Did you project your revenue based on past results, market research, your best guess at how many people who visit your store and what percentage of them might buy, or some other method? What kind of growth are you assuming? What are your key hires and notable expenses? What level of profit do you expect to generate?
Your readers can see the full forecast detail in your plan. Use this space to craft the story behind the numbers. How do your financial projections reinforce your sense that this is a strong business opportunity and one worthy of your time and investment?
HINT: USE THESE GRAPHS TO HELP YOU ANSWER THIS:
USE OF FUNDS
In 1 paragraph:
If your forecast includes loans, investments, or other financing, use this space to explain what you plan do with that money. Will it help to cover operating costs as your new business scales up? Will it finance capital expenditures, such as the purchase of expensive equipment? Will it enable you to add personnel or expand your marketing to increase revenue? Give your reader a clear picture of why these funds are needed and how they will pay off.
If you are not seeking financing, you can just remove this topic from your plan.
SOURCES OF FUNDS
In 1paragraph:
Describe your financing plans. Are you investing your own money in the business? Do you have a credit card or line of credit? What other types of funds — personal or business loans, equity investments from others, etc. — do you expect to receive and when? If you do not have the full detail of future financing worked out yet, that is understandable. Just explain what you do know and when you expect to sort out the details.
If you are not seeking financing, you can use this space to explain your plan to bootstrap your company, funding its growth from its own profits. Or you can just remove this topic from your plan.
CAIRO KNIFE FIGHT
(163,397,337 Video Views, 355K monthly subscribers on YouTube as of 7/28/23)
-Cairo Knife Fight is a two-piece band, originally formed in New Zealand. now residing in Las Vegas.
-Cairo Knife Fight’s guitar player, George Pajon Jr, is a founding member, and still the guitar player, of The Black Eyed Peas.
-George has also co-written most of the big BEP hits with Will I Am, and has won 9 Grammy’s.
-George has played/toured with other notables including: Fergie, Carlos Santana, Macy Gray, John Legend, Nas and Sting, just to name a few.
-Nick Gaffaney, the other half of CKF, is a one of a kind talent, not only playing drums and singing at the same time, BUT, he also plays bass keyboard all while singing and drumming. Only a handful of people on the planet possess the neurological ability to accomplish such a feat, and it’s truly astonishing to see.
-We recorded all 20 songs at Dave Grohl’s studio on the legendary Neve console from Sound City, the same console responsible for some of the biggest selling albums of all time.
-The songs were produced by longtime Foo Fighters and 606 engineer, John Lousteau, along with the band themselves.
-Vocals were recorded at the bands own studio in Los Angeles, and were produced by Phredley Brown, best known for his work as Musical Director and guitarist for Bruno Mars, Katy Perry, and Vocal Producer on the hit television series American Idol…he also happens to be George’s Brother In Law!
-The songs were mixed by Dylan Dresdow (multi-grammy winning producer/mixer: Prince, Michael Jackson, Madonna, Usher, Black Eyed Peas, Nas, etc.) at the Future, the acclaimed Hollywood studio owned by Will I. Am.
-Churn has over 118K Spotify streams, and over 52K views on YouTube.
-I’ve got a big profile piece on George coming out in Premier Guitar within the next couple of months, and we just did an interview with Guitar World which will be out soon, too.
-We just went back into Grohl’s studio over Memorial Day weekend to record two songs with Dave Lombardo (Slayer/Mr. Bungle/etc) producing and drumming alongside Nick, and Stu Hamm came in to play bass.
***ALL WITHOUT THE HELP OF A LABEL.
Here are a few press pieces from this year.
I have a full feature on George coming out in Premier Guitar and a smaller piece coming out in Guitar World, as well.
● Loudwire – “Churn” inclusion on ‘Editors Picks’ list –
● Glasse Factory – “Churn” Release News –
● True Skateboarding Magazine – “Churn” Release News –
● Melodic – “Churn” Release News –
● Hardbeat – “Churn” Single Review –
● Roadie Metal – “Churn” Release News –
OVERVIEW CAIRO KNIFE FIGHT is redeÞning what two musicians can create live, slaying audiences across the globe with their beautifully raw and primal uniqueness. Formed in New Zealand, and now residing in Las Vegas, Cairo Knife Fight is: NICK GAFFANEY on lead vocals, drums and keyboard bass (all at the same time) andÉ GEORGE PAJON JR. (Seven time Grammy winning guitarist for some of the biggest names in the business: Black Eyed Peas, Fergie, Carlos Santana, Macy Gray, John Legend, Nas and Sting, just to name a few) creating seemingly limitless guitar soundscapes and incendiary riffs. The bandÕs incorporation of various loops and live treatments deÞes believability and pushes the limits of what two musicians can do on one stage. George and Nick used the pandemic lockdown to record 20 new songs at Dave GrohlÕs 606 Studio, in Los Angeles. Produced by John Lousteau (longtime Foo Fighters and 606 engineer), and the band themselves, the album was recorded on the legendary Neve console from Sound City, the same console responsible for some of the biggest selling albums of all time. Vocals were recorded at the bands own studio in Los Angeles, and were produced by Phredley Brown, best known for his work as Musical Director and guitarist for Bruno Mars and Katy Perry, and Vocal Producer on the hit television series American Idol. The album was mixed by Dylan Dresdow (multi-grammy winning producer/mixer: Prince, Michael Jackson, Madonna, Usher, Black Eyed Peas, Nas, etc.) at the Future, the acclaimed Hollywood studio owned by Will I. Am, of the Black Eyed Peas. [email protected] Poole Management919.271.8220
THE PLAN: In January of 2023, we hired independent promotion company, CO5 Music, to ÒquarterbackÓ our songs to radio, servicing our Þrst single, CHURN, to rock radio on January 17th. In February we showcased the band at #HAPPENS, an annual music convention attended by Rock and Alternative Radio Station Program and Music Directors from around the US, along with the record label community. CHURN was released globally on February 14th, 2023, ultimately reaching #36 on both the BILLBOARD and MEDIABASE Rock charts. We serviced our second single, NOTHING AT ALL, to rock radio on 7/12/23, and in less than two weeks weÕve debuted on BILLBOARDÕs Rock chart at #88. NOTHING AT ALL will be released globally on August 9th, 2023. We begin our ÒMaking Friends NOT Money TourÓ in Denver on August 13th, and will be performing for radio stations around the Midwest through Labor Day, planning to extend the tour through the end of the year, and cover as much of the US as is feasible. On May 26th and 27th, 2023, the band went back into Dave GrohlÕs studio (606) to record two songs with Dave Lombardo (Slayer/Mr. Bungle), including a cover version of Black SabbathÕs classic, WAR PIGS, with Lombardo producing and playing drums alongside Nick, and the legendary Stu Hamm on bass guitar. We Þlmed the entire session and have video from both songs being edited as of this writing. We are prepared to repeat this process for at least four more singles over the next 24 months, and have already have one completed video for the song AFTERBIAS, and our team in New Zealand is currently working on videos for NOTHING AT ALL and LONG HELD LIE. KEY ASSETS: ¥www.cairoknifeÞght.com SOCIAL MEDIA: ¥Facebook ¥YouTube (162,958,817 Video Views, 355K Monthly Subscribers as of 7/26/23) ¥Spotify (continued) [email protected] Poole Management919.271.8220
FUNDING AND USE OF PROCEEDS: CAIRO KNIFE FIGHT is raising a Series Seed Round in Q3/4 to support the development of the band at Rock Radio and for touring expenses. With a goal of raising $1.5M, we are offering equity partnership (in perpetuity) in Cairo Knife Fight Enterprises (CKFE), as follows: OUR OFFER: $100,000 investment = 1% ownership equity, up to 15% ($1.5M). Investment will be paid back within 2 (two) years. All ownership proÞts will be calculated on GROSS receipts, and paid annually. -GROSS RECEIPTS TO INCLUDE: ¥Box ofÞce/touring receipts (see below) ¥Merchandising ¥.666% of all Music Publishing per $100K ¥Music sales (physical, on-line, streaming) ¥Marketing partnerships -EXCLUSIONS: ¥Any amounts received by Artists for sound and lighting expenses. ¥Any amounts received by Artist for travel or lodging expenses incurred during any live performance engagements. ¥Any amounts received by Artist pursuant to any recording agreement for actual recording costs. ¥Any amounts received by Artist for endorsements provided that the fees are paid in the form of musical instruments and/or musical equipment. ¥Any amounts received by Artist from any record company as reimbursement or payment of live performance expenses. FULL BUDGET AVAILABLE ON REQUEST (continued) [email protected] Poole Management919.271.8220
There are numerous revenue streams for a band to proÞt from, including: ¥Box OfÞce Receipts (touring) ¥Merchandising (t-shirts, etc) ¥Music Sales (physical, on-line, streaming) ¥Marketing Partnerships (Brand Sponsorships/Endorsements ) ¥Publishing Royalties (Performance, Mechanicals, Streaming, Synch, Ring-Tone, YouTube, etc.) ¥Record Label Deal (advance) BOX OFFICE RECEIPTS: I recently did a bit of research on box ofÞce receipts from a couple of other two-piece bands, Royal Blood and 21 Pilots. Royal Blood somewhat similar to CKF, and 21 Pilots more of a Top 40 band. Keep in mind that these numbers are box ofÞce gross receipts and do not include other obvious income streams such as sales, streaming, publishing, merchandising, synch licensing, etc. Here’s what I found (source: Pollstar 7/1/22): *ROYAL BLOOD: Averaging 4,275 tickets sold per night with an average box ofÞce gross of $199,471 per show. Assuming a conservative net adjustment of $50,000 per show, their net box ofÞce receipts are approximately $150,000 per night. Performing 80 shows per year we get a net proÞt of approximately $12M annually. *21 PILOTS: Averaging 10,487 tickets sold per night, this bands average box ofÞce gross is around $768,870. Conservatively adjusting for net, they’re netting close to $700K per night. If 21 Pilots does 80 shows a year (probably more), this band is making $56 MILLION per year, just on touring!!! As you can see, this is potentially BIG business, and again, this is only touring income. (continued) [email protected] Poole Management919.271.8220
MERCHANDISING: ¥Our merchandise (merch) has always been unique and a big draw. Part of the early investment is to purchase more merch. ALSO, merch deals are very common and can bring up to 7 Þgures. For now, we will spend approximately $30K for a run of t-shirts/hats/posters/etc., and should make all this money back within one year (or less), then this becomes a very nice revenue stream. MUSIC SALES: ¥Retail (brick and mortar, mail order), sales at shows and streaming. Sales of CD’s, vinyl, etc., just aren’t what they once were, sadly. However, if we have hit, all that changes. The reality here is that sales are probably the least important element for proÞt, and always have been. Way more money to be made elsewhere. MARKETING PARTNERSHIPS: ¥Corporate partnerships can be extremely proÞtable, and we plan to pursue them vigorously. In fact, we’ve already been approached by AMG/Mercedes Benz for a potential partnership for the F1 event in Las Vegas this year. They’re simply waiting on us to get funded and on the charts. Furthermore, bands can make huge dollars playing corporate events. This is a major potential revenue stream for artists/bands. RECORD DEAL: ¥While the idea is to do this without the help of a traditional record company and record deal, it may be in our best interest to partner with a label to break the band outside of America. PUBLISHING/ROYALTIES: ¥Music royalties, licensing fees and the numerous other streams of revenue available to songwriters, performers and producers can be difÞcult to navigate. The good news is, the rapid growth of technology has produced more opportunities for distribution, new forms of music royalties and more ways than ever to track and collect monies due the band. The challenge is in knowing what types of royalties and fees are out there. ¥In the world of music royalties, it all starts with the song. Each song is protected by copyrights in two categories: 1.A copyright for the songwriting, or “composition,” categorized as COMPOSITION. 2.A copyright for the “performance,” categorized as SOUND RECORDING. (continued) [email protected] Poole Management919.271.8220
-PUBLISHING REVENUES INCLUDE: ¥Songwriter Public Performance (Radio, TV, Live Performance) ¥Mechanical Royalties (earned with sale of music in physical and digital form) ¥Streaming (see below) ¥Synch (income for music used in a tv show, movie, game, commercial, etc.) ¥Ringtones (this counts as a reproduction and generates a mechanical royalty) ¥Sheet Music Sales (rare, but still a revenue stream that can add up) ¥Digital Performance (Pandora, Sirius/XM) STREAMING PLATFORMS: Most competitive DSPÕs (Digital Service Provider) ¥Spotify ¥Apple Music ¥Tidal ¥Amazon Music ¥Pandora ¥Soundcloud ¥iTunes ¥TikTok -How much do Artists proÞt per stream via DSP? ¥Each platform gives a different percentage per stream. ¥Yet, if one pays more per stream, it may not have as many users. ¥Therefore, the artist might make more on a lower paying platform due to a higher volume of streamer. SPOTIFY ¥$0.00437 per stream ¥1,000 streams = $4.37 APPLE MUSIC ¥$0.0073 per stream ¥1,000 streams = $7.30 iTUNES ¥Artist is paid $0.99-$1.25 per download ¥1,000 downloads = around $1,000 [email protected] Poole Management919.271.8220
FOR MORE INFORMATION, CONTACT: GARY POOLE 919.271.8220 [email protected] [email protected] Poole Management919.271.8220
GPMEstimated Operating Costs, including SG&E, Production and Staffing: Buying our way onto a tour – $100,000 ¥Pay to play. ItÕs a reality of the business. We will find the right act (Metallica, Tool, etc.) and negotiate support dates. Production – $25,000 ¥This is for building a moveable riser and scenery for the stage show. Tour support – $100,000 ¥This will be used for van/bus rental (or purchase), fuel, tour insurance, hotels, meals, strings/sticks, etc. This amount should keep the band on the road for 1-2 years. Booking Agent – $10,000 ¥While the booking agent takes a 10% cut of the deal, itÕs smart business to create an incentive for the agent to get us in the right rooms, then bigger rooms. After the first year of touring, this expense should be covered by what we make touring. Tour manager/FOH/Driver/Merch – $1,250 weekly x 3 TOTAL $150,000 ¥Initially weÕll need a 2-3 person crew, including: Tour Manager, Front of House Sound, guitar/drum tech, and someone to sell/inventory merch. The low end of the going rate would be around $1,250 per week per person. IÕm estimating 30-40 weeks of touring for 1-2 years, doing approximately 90-100 shows per year. After one year, we should be able to cover this on our own. Merch – $30,000 (one time cost, including artwork) ¥Design and manufacturing of t-shirts, etc. We should make all this money back within one year, and then this will be a nice profit stream to help offset some of the other costs. Artwork – $10,000 annually ¥Artwork for albums/singles, merch, fliers, etc Marketing – $15,000 per single ¥Use your imagination, because thatÕs what marketing an artist takes. The skyÕs the limit on how much we spend; however, you can count on hiring at least one independent marketing company as well as buying into various marketing programs as they arise. Other expenditures charged to the marketing department include: photo shoots (including stylists and make-up artist), package design, video production, etc. I have separate line items for photos/videos. [email protected] Poole Management919.271.8220
GPMRadio promotion – $100,000 per single ¥As we have discussed, it takes approximately $100K to break an artist at Rock Radio (other formats cost more). You have to buy your way onto and up the charts. There are ÒindieÓ promoters that act as gatekeepers to their respective radio stations, you canÕt avoid paying them, end of story. Also, weÕll want to fly the band in to play various radio station shows, interviews, etc. Publicity – $50,000 annually ¥Most publicists charge $3,000 to $5,000 per month. I can always negotiate a better deal, but even then, we have to pay. Social Media – $60,000 annually ¥The first thing everyone looks at are Social Media numbers (Spotify/YouTube). To insure growth and maintenance we have to pay. Everyone does it. At some point, though, we should be successful enough that these numbers take care of themselves. VideoÕs and Photography – $40,000 per video ¥Pretty much self explanatory. This amount covers stylist, wardrobe, etc., as well. Recording – $100,000 ¥George paid for these two records out of his own pocket and needs to get paid to back. With recording, mixing, mastering, travel, meals, etc, weÕre in about $100K ($50K per record) Manufacturing – $30,000 ¥In theory, the record label would cover this expense, although it would be recoupable, but since weÕre building this budget to do this without a record label, $30K is about what it will take to manufacture vinyl albums. Website – $10,000 annually ¥Building and hosting the website is imperative, and none of us are experts, so weÕll hire it out. Travel and Entertainment – $45,000 annually ¥WeÕll all need to get out there and schmooze with radio programmers, promoters, press, etc. Health Insurance – $25,200 annually ¥Health insurance for George, Nick and me will be approximately $2,100 monthly. AttorneyÕs fees – $30,000 annually ¥$2,500 per month retainer. [email protected] Poole Management919.271.8220
GPMConventions – $20,000 annually ¥Radio and Record conventions. There are a few, this budget covers everything from admittance to flying the band in to perform. Miscellaneous – $12,000 annually ¥Just in case. Salaries for one year*** – $210,000 ¥The three of us have been working for free thus far. We need to get paid. After a year of touring and radio, IÕm anticipating weÕll be able to sustain incomes from touring, merch, and sales. LLC and Bank Account – $5,000 ¥This is a one time expense to establish our LLC and put enough money in the bank as a cushion and to get three credit cards. TOTAL $1,177,200 $322,800 remaining into account for use as needed [email protected] Poole Management919.271.8220
There are numerous revenue streams for a band to proÞt from, including:
¥Box Office Receipts (touring)
¥Merchandising (t-shirts, etc)
¥Music Sales (physical, on-line, streaming)
¥Marketing Partnerships (Brand Sponsorships/Endorsements )
¥Publishing Royalties (Performance, Mechanicals, Streaming, Synch, Ring-Tone, YouTube, etc.)
¥Record Label Deal (advance)
BOX OFFICE RECEIPTS:
¥Our potential success at radio should help us land a powerful booking agent, which will help get us in bigger rooms, in front of bigger audiences. Within 1-2 years we should be headlining sheds if not stadiums. As of this moment, the band is making approximately $1K per show. The natural progression is to increase our nightly draw as our popularity increases, hence the radio campaign. Our goal is to be able to command six Þgures per night. We plan on performing 80-100 shows per year. You can do the math from there. Obviously, there are expenses incurred by touring, such as production, crew, travel, insurance, etc, and these expenses are taken off the top. Touring is where we’ll make the majority of our money.
MERCHANDISING: ¥Our merchandise (merch) has always been unique and a big draw. Part of the early investment is to purchase more merch. We’re currently talking to a couple of companies to get the best price for our merch. ALSO, merch deals are very common and can bring up to 7 Þgures. For now, we will spend approximately $30K for a run of t-shirts/hats/posters/etc., and should make all this money back within one year (or less), then this becomes a very nice proÞt stream.
[email protected] Poole Management919.271.8220
MUSIC SALES: ¥Retail (brick and mortar, mail order), sales at shows and streaming. Sales of CD’s, vinyl, etc., just aren’t what they once were, sadly. However, if we have hit, all that changes. The reality here is that sales are probably the least important element for proÞt, and always have been. Way more money to be made elsewhere.
MARKETING PARTNERSHIPS:
¥Corporate partnerships can be extremely proÞtable, and we plan to pursue them vigorously. In fact, we’ve already been approached by AMG/Mercedes Benz for a potential partnership for the F1 event in Las Vegas this year. They’re simply waiting on us to get funded and on the charts. Furthermore, bands can make huge dollars playing corporate events. This is a major potential revenue stream for bands.
RECORD DEAL: ¥While the idea is to do this without the help of a traditional record company and record deal, it may be in our best interest to partner with a label to break the band outside of America. MASCOT RECORDS has shown interest for three years now and we are in constant communication with the labelÕs Head of A&R, Stu Fine. We prefer to not sign a deal with them for North America, but outside of the US is deÞnitely of interest to us, and could net us a substantial advance.
PUBLISHING/ROYALTIES: ¥Music royalties, licensing fees and the numerous other streams of revenue available to songwriters, performers and producers can be difficult to navigate. The good news is, the rapid growth of technology has produced more opportunities for distribution, new forms of music royalties and more ways than ever to track and collect monies due the band. The challenge is in knowing what types of royalties and fees are out there.
¥In the world of music royalties, it all starts with the song. Each song is protected by copyrights in two categories:
[email protected] Poole Management919.271.8220
1.A copyright for the songwriting, or “composition,” categorized as COMPOSITION.
2.A copyright for the “performance,” categorized as SOUND RECORDING.
-PUBLISHING REVENUES INCLUDE: ¥Songwriter Public Performance (Radio, TV, Live Performance)
¥Mechanical Royalties (earned with sale of music in physical and digital form)
¥Streaming (see below)
¥Synch (income for music used in a tv show, movie, game, commercial, etc.)
¥Ringtones (this counts as a reproduction and generates a mechanical royalty)
¥Sheet Music Sales (rare, but still a revenue stream that can add up)
¥Digital Performance (Pandora, Sirius/XM)
STREAMING PLATFORMS: Most competitive DSPÕs (Digital Service Provider)
¥Spotify
¥Apple Music
¥Tidal
¥Amazon Music
¥Google Play Music
¥Deezar
¥Pandora
¥Soundcloud
¥iTunes
¥TikTok
[email protected] Poole Management919.271.8220
-How much do Artists proÞt per stream via DSP? ¥Each platform gives a different percentage per stream.
¥Yet, if one pays more per stream, it may not have as many users.
¥Therefore, the artist might make more on a lower paying platform due to a higher volume of streamer.
SPOTIFY
¥$0.00437 per stream
¥1,000 streams = $4.37
APPLE MUSIC
¥$0.0073 per stream
¥1,000 streams = $7.30
TIDAL
¥$0.0125 per stream
¥1,000 streams = $12.5
AMAZON MUSIC
¥$0.00402 per stream
¥1,000 streams = $4.02
GOOGLE PLAY MUSIC
¥$0.00676 per stream
¥1,000 streams = $6.76
iTUNES
¥Artist is paid $0.99-$1.25 per download
¥1,000 downloads = around $1,000
TIKTOK
¥?
DEEZAR
¥$0.0064 per stream
¥1,000 streams = $6.40
[email protected] Poole Management919.271.8220
PANDORA – (mechanicals collected via Sound Exchange)
¥$0.01682
¥1,000 streams = $16.8
SOUNDCLOUD – ($0 unless you are in their partner program)
¥$0.004 per stream
¥1,000 streams = $4
As you can clearly see, streaming is the least lucrative revenue stream, however, if your song pops and you start getting billions of streams, that could deÞnitely be a game changer.
We’re in the thick of things now, and it appears that we might just have a big olÕ hit on our hands!
Our strategy is rock solid, with a plan to release at least two more singles to radio in 2023 with relentless touring to support the airplay.
Let me know if you have any other questions, concerns, thoughts, suggestions.
[email protected] Poole Management919.271.8220
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