RawBe.at

Revolutionising the discovery of unsigned talent

Summary

• How it all started• The success so far• The current revenue• The bigger vision • Part 1• Part 2• Investment needed• Forecast

Back Then

Now

The Dream

Back Then

One Revenue Stream

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…

Now

….The pivot turned into

an online ethical record label supporting artist in 3rd world countries and creating music with a solution

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.

Founder

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 sound sweep technology.

Even got support from

People are uploading videos of their dog falling asleep to our music

Each music brand uses a specific piece of sound technology and music styles.

And now even expanding into different niches.... for example music to help people concentrate during work or studying

hmmm you sure that will work?.....

The 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

Other Revenue

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

a7records

Music with a Solution

RawBe.at

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.....

• making £3000 from Groupon in revenue in 1 day shows that daily deal relationships need to be scaled.

• With the support from DogsTrust and the success of an American company called Through A Dogs Ear shows the potential for RelaxMyDog both offline and online

• EOD! (entertainment on demand) licensing the music into airlines, hotels and hospital digital on demand systems is a huge opportunity.

• Finally creating more brands to enter the market of many micro niches… like yoga music, meditation music, brain music, etc

Part 1 : Forecast

***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 forecasted, especially if the current brands are expanding, as well as new brands being created.

competitors make £1500 - £3000 a month for sleep and relaxation music website,. Once again, with good SEO, growing the current brand and expanding into new brands I believe the monthly figure could be a lot higher.

As our brands and content grows, this will in effect grow the sales from digital stores such as itunes, amazon mp3, etc.

Creating a valuable offering so affiliate marketers can promote the product through sites such as ClickBank.

Link-sharing, is like selling adds on your site. When we had a good ranking for the keyword “relaxing music” we were approached by a mattress company to give them a back link.

Mobile apps, this is all about creating good quality content, that can go viral. The potential for revenue is a lot higher than what I have predicted.

Airlines, hotels, and hospitals. This is the big one that could bring in huge revenues from licencing the music to their entertainment on demand systems. From limited and unverified knowledge I know that getting on one airline brings around £600 a month. Showing that the potential is a lot bigger than what isforecasted.

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 BDM will not be required once we have all the relationships with the airlines set up.

YouTube £5,500 Saleries £4,500On-site sales £3,000 SEO £800in-store sales WW £4,000 Social Media £500Digital store sales £2,500 Accounting fee's £100Affiliates £1,000 Server £60link-sharing £600 offline marketing £1,000Mobile Apps £1,500 online marketing £600Airlines, hotels, Hospitals £5,000 Artist £2,300

Total £23,100 Total £9,860

Net Profit £13,240

Part 2 : RawBe.at

Music with a solution

a7records

rawbeat

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 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

• $150 million in revenue for 2011

• on track to do $1 billion in revenue

YouTube is the main source of revenue for Vevo however there is a rift forming in their relationship

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

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 platform can get signed to our label which creates the revenue streams from album sales, gigs, tours and many more.

further potential ...• mobile apps (add revenue)• Merchandising• advertising free subscription

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

Vevo’s figures (YouTube) $0.43 per stream X3.5 billion streams (291 million streams a month)

= $150 million

Vevo has 50,000 videos

This does not take into account Vevo’s other revenue streams

a7records current Figures (YouTube)

£1 a day (on average per video)X80 videos = £80 a day = £2400 a month

Even if I could scale it up to 1000 videos that’s £1000’s a day

If we had Vevo’s capacity of 50,000 videos

That’s £50,000 a day, £18.25 Million a year

YouTube has something called “monetizable views” which means the average payout per video grows when the library grows. That is why Vevo gets $0.43 per view whereas I get £0.01 per view.

These figures are based on the worst case. I have not taken into consideration the growth of monetizable views.

These figures also don’t take into consideration videos that have gone viral.

Part 2 : Forecast

Monthly Forecast before FY1

Month 10 Month 11 Month 12In Out In Out In Out

YouTube £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

These figures are based on worst case scenario

• Based on the metric from the previous slide. If we had 825 videos at around £1 a day per video. (not taking into account all the other natural factors that increase growth) then the income still looks positive.

• Daily Motion is an advertising relationship I already have set up. Taking into consideration they are not as big as YouTube in terms of audience, shows the realistic estimations.

• Vevo’s has a powerful facebook app which is linked to their central platform. I Believe we can replicate the same approach to achieve those earnings.

• Filtering traffic from YouTube to the central platform and getting our own advertisers will create a strong revenue stream.

• Distributing artist albums onto digital stores and taking a small percentage of the sales.

• An audio streaming platform which is similar to spotify, with revenue coming from advertising and a subscription service.

• Signing artist and promoting them through gigs, tours, etc could be another stream.

• As a purely digital business, the costing is simple, we pay artist their share of the revenue and pay staff to grow the platform.

Part 1 and Part 2 : Overall Forecast

Month 12 of FY1In Out

YouTube £32,000 Artist £30,000Daily Motion £9,000 Saleries £5,000Facebook £10,000 marketing £5,000Central platform £15,000Digital Distribution £4,000Audio Streaming £1,000a7records £8,000

YouTube £5,500 Saleries £4,500On-site sales £3,000 SEO £800in-store sales WW £4,000 Social Media £500Digital store sales £2,500 Accounting fee's £100Affiliates £1,000 Server £60link-sharing £600 offline marketing £1,000Mobile Apps £1,500 online marketing £600Airlines, hotels, Hospitals £5,000 Artist £2,300

£102,100 £49,860

net Profit £52,240

Mainstream music

Music with a solution

***Figures based on worst case scenario

RelaxMyDog could be a viral wild card because from small scale testing within a contained audience it has proven to be successful.

With the backing of DogsTrust, the video responses on Youtube and the potential opportunity in America. Even getting it registered for the music charts could create some hype.

Some of the above streams have been repeated as they will be record as two separate sub brands under the main brand

Investment (over a 2 year period)Investment (for 2 year period)

Video platform development £120,000Artist scouts £60,000Hosting £20,000social media marketing £80,000PPC £50,000SEO £80,000Legals with artist and content £30,000artist re-investment £150,000offline marketing £40,000

total £630,000

Entering New Markets £50,000Mobile Apps £30,000Business Development Manager x2 £40,000staff £30,000RelaxMyDog offline Marketing £15,000

total £165,000

final total £795,000

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, finding artist from developing countries and also maybe requiring travel.

Hosting cost is based on the future growth targets for the site.

To create the maximum online and offline hype, marketing will require a big boost so we can go viral.

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.

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.

the app market for sleep is popular showing its a proven concept. The aim is to flood the market with quality apps across the brands.

Business Development Managers will break into airlines, hotels and hospitals. They will expand relationships with daily deal companies. They will get the relaxmydog brand into stores. They will work on building the online affiliate partnerships.

Once we get these relationships, BDM's will no longer be required. So they are a temporary cost.

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

• Dominate micro niches and continue to grow the audience.

• Its already proven

• Licence the music into airlines, hotels, hospitals

• RelaxMyDog – potential wild card

• Mobile App (e.g sleep related apps are a proven concept), flood the market with high quality apps

• Differentiate music videos into all genre’s and position ourselves as the providers of raw user generated content that has not be manipulated by major labels.

• Multiple revenue streams

• Even if we got to 50,000 videos (the same as Vevo) however every other aspect stayed the same ( nothing else grew) ….. That’s still an estimated £18.25 million a year in revenue.

Music

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 artist from developing countries

a7records

• 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 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