I have been working hard in pursuing a spot in the big leagues in the music industry. The goal is to reach the Grammy’s and sustain in the Billboard Charts. I’m looking for an active business partner investor who will team up with me on the business side of this venture.
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Here's a very brief background of myself. My first single reached over 30 Countries. My last single reached to number #33 on the BDS Charts which reflects the Billboard charts on the category “Tropical Airplay Songs.” I was able to invest some capital on that single but it was hardly enough to just get airplay on the North East side of the Country. My team of co-producers and co-songwriters have accomplishments that include a 2016 Latin Grammy Award, 2014 Latin Grammy Nomination, ASCAP and SACM awards.
I'm currently seeking an investment of either $250K to get started and up to $1M from an active business partner investor to help me fund a multi-faceted marketing and promotional campaign for the U.S. and some parts of Latin America. This includes: radio promotion (“pay for play” aka payola), digital marketing campaign (Instagram, Facebook, etc.), social media promotion, video organic promotion (“views” on Youtube), record promoter, promotion performances, music video creations and singles finalization. For a song to be a hit, you first have to invest on it to get it to certain level. Then from there if the song is good it will take off. An intangible asset collateral is what this venture has to offer. Anything we release, negotiate or anything we produce for the label/company for any artist including myself will become an intangible asset for my business partner.
Once we start becoming profitable with any of the singles we release, revenue will come from different sort of streams. The list starts from digital streams and sales which is more than 300+ online stores such as iTunes, Spotify, AppleMusic, AmazonMusic, GooglePlayMusic, Youtube and many more. We get paid publishing, royalties and synchronization royalties every time the songs play anywhere. We get paid to license any song or any sponsorship we take. We get paid for events, shows, merchandise and any tour we join. We will also start seeing album sales once we get to the point of releasing it.
The first guarantee return of investment comes from Publishing and Songwriting. These come from either ASCAP, BMI, SESAC or SACM, depending on who is sign with whom. The U.S. pays about $0.10 cents per one play and your earnings depend on how many plays you get. The artist, the featuring artist and the song itself play a huge factor on getting the single programmed by program directors. One of my suggestions for every single to work is investing on a collaboration/ft with a major artist to get an easier radio placement.
Here’s a fact breakdown of one of my good buddy’s earnings for one of his songs he wrote. His song was a hit single in the U.S. The label invested about $100K on radio, the return of investment was $400K, that got split half ways into the publishing and songwriters. So now you got $200K for the publishing and $200K for the songwriters and that gets distributed to who ever owns that. This was only played on about 300 Latino Regional radio stations in the U.S. which is considered a hit song because you pretty much triple the investment on radio only.
Not only you get mechanical revenue for performing rights from radio but also for the times it plays on the internet which is called synchronization royalties, live shows and anywhere from organizations that need to report performing rights.
Digital single revenue sales are a bit more simple. The download song sales for about 0.99 cents. Out of that the wholesale price we keep 70% and the retail markup price the digital store keeps is 30%. If we decide to release the single sales under a distribution company they will also get a % but they will push the song to all digital platform editors. For example TuneCore distributes to all digital stores and keeps nothing of your sales but you would have to have your own personal media promoter get you to the digital platform editors. If we sell a minimum of 100,000 downloads on iTunes, that’s about $70K of revenue from iTunes itself per single. There’s roughly about 300+ digital stores out there. We are also getting paid for streams and that ranges from $0.019 to $0.0006 depending on the digital platform.
Licensing a song creates a different revenue stream. For example a Telemundo 15-30 second commercial pays about $20K minimum. If its something bigger like TV or Film it ranges from $50K to $100K. The bigger the song the bigger the opportunity to license the song. Besides getting paid for licensing we are also getting paid for the airtime, mechanical royalties for the performing rights of it.
For paid events at the beginning they range from playing free for promotional purposes to $5K. These are mostly radio and small organization events. Once we have momentum to the point where we can organize our own small shows, that’s were we will make our money. For example; House of Blues fits about 1500 guest. Projecting having a sold out show for $30 per person. That’s about $45K for 1 small show. Out of that you pay the space rental, lets say $2,500 and crew/musicians about another $2,500. We are left with $40K for the artist/company. Projecting a minimum of 10 small shows, that’s about $400K of net revenue.
If our singles are creating great momentum, and we get invited to be an opening act for a major artist or event for several shows then our fee can negotiate into a flat rate pay per show. Depending on how much momentum the singles are getting and the artist keeps growing the range for booking ranges from $25k to $500K per show. This is revenue for the artist/company. At that point we take advantage on selling merchandise. From hats to T-Shirts either on live events or online creating another source of revenue stream.
The album sale is the objection. After the 4th single release we then release the entire album for sale. This can sell for $10 per download. If we sell a minimum of 50,000 digital copies in the U.S. (only) that gives us about $500,000 gross sales leaving us with $350,000 net. This is not including traditional physical copies that still sale in Mexico, Central and South America.
The seeking investment funds are divided and invested into 4 singles (songs). This is a brief projection on how funds will be spent but projections will change depending on negotiations.
$5K Production; mixing and master engineers
$2K Design, Photos, Stylist, Art, EPK
$5K Video Creation
$8K Label Single Publicist
$120K Radio, pay for play, payola — U.S./Puerto Rico
$50K Radio, pay for play, payola — Central and South America
$40K Social Media: Viral Music Video and Artist Social Media Accounts
$10K Miscellaneous; Promo Events (example: important stages), Travels, Hospitality
Roughly about $240K per single. Radio takes the most chunk of it and it's definitely a subject to talk about since different markets give you different times frames for the return of investments.
The U.S. is the biggest market so the return of investment will take a bit longer to show once we start releasing singles. It’s important to know that radio and digital platforms go hand by hand for this to work. I’ll say that by the 3rd single the return of investment in the U.S. will start showing. Each single can be promoted for about 3-4 months then after that releasing the next. In Mexico, Central and South America the return on investment is quicker but the payout is a bit less. Why, because they are much smaller regions and also getting on radio reaching to the top 10 makes it much easier. Therefore, royalties, shows, sales, etc, start coming in sooner from those regions.
It’s also important to know that for this to work everything has to be strategically planned and this is what I mean. The single has to be release in every single radio station at the same time. If it releases on Friday, we have to make sure that all possible radio stations release it on that same Friday for us to hit the Billboard charts next week. The more stations that program it, the higher we debut in the charts. Prior for this to work. The single has to be hot on YouTube and digital platforms to make it easier for program directors to program the track.
This business opportunity can be 50/50 split between me and my investment partner. This includes ownership of all the masters we release, anyone we release in the future including my self with a 360 deal agreement with the company. With that the investor gets paid first from any sort of revenue stream we produce. This should include any type of copyright, trademark, venture or anything that the artist or the company generate.
Multiple partner investors for the seeking $1M it’s also an option since I know $1M could be a lot for 1 partner. The $1M investment is for a period of 1 and 1/2 half maybe 2 years to secure the investment of the 1st, 2nd and 3rd single if the numbers happen to fail by the end of the 3rd single promotion. By that point we will release the 4th single and the album at the same time.
A business possibility could be that by month 7-8 on the 2nd single release the single can blow up and generate the rest for us. By that time we would only have invested a projection of $480K. To reduce the risk of the investment we are making sure that the singles we release are written and co-written with songwriters that have singles in the charts out in the market today. We are making sure that the music production, mixing and mastering are at the level and also making sure that the sound is compatible with radio to hit everyone in general. This also includes making sure that my image as an artist is where it needs to be, also that we are hiring the right publicist, the right radio promoter companies for the singles, the right social media marketing team which makes the difference into making a hit.
In the past couple years the Latino Music Industry has become a booming niche. Now days becoming and transitioning into the mainstream Anglo music everywhere. From Katy Perry, Alicia Keys, Madonna, Janet Jackson to Drake releasing Spanish Language singles all featuring Latinos and in most cases them being the featuring proves that this business niche will continue to grow.
Even though I have prepared an electronic business plan to show for this business label company I decided to be more straightforward to what I'm seeking and how it happens. If it's a business that may interest you please give me a call, text or email me. Thanks for reading and I look forward on hearing from someone.
NOT LOOKING FOR A LOAN, LENDERS OR SCAMMERS! THANKS