2. Where artists
and fans unite
Participating in the success of a creative endeavor is one of
the most rewarding social entertainment experiences
We Believe
3. Where artists
and fans unite
And we can deliver it for as little as $.99
With an experienced team who has deep marketing expertise
and a track record of success
5. Where artists
and fans unite
Introducing Bandwaggon
The first super social crowdearning marketplace designed
to make promoting talent fun and rewarding
Fans earn points and ongoing royalties for promoting artists
they believe in
6. Where artists
and fans unite
The Dream
Be one of the 1% who are discovered and promoted through
traditional channels (record label, movie studio, publisher)
The Reality
End up one of the 99% who struggle to find a way to get promoted
The Breakthrough
Give artists a new way to engage fans to promote them with status,
rewards, and royalties
The Artist’s Dilemma
7. Where artists
and fans unite
Amanda Palmer’s Story
Gets recording contract
25,000 records sold = failure / not viable
Dropped from label
Launches Kickstarter campaign
25,000 fans donated = $1M+
Greatest Kickstarter success in music category
Since artists retain less than 5% of the revenue in the traditional system they need
millions of fans to be viable. If artists retain more revenue they can have modest success
with a smaller fan base.
Rise of the Micro-Celebrity
8. Where artists
and fans unite
Spot talent
Discover great talent and share with friends
Get credit
Be acknowledged for being a visionary tastemaker
Make someone famous
Share the experience of creative success
Share the dream
Earn royalties, gain influence, and enjoy special perks and privileges
The Fan’s Aspirations
9. Where artists
and fans unite
Points are continuously being earned every time a friend, a friend’s friend or a
friend’s friend’s friend views, shares or purchases
Royalties continue to add up from all purchases that track back to the fan promoter
Points and Royalties Add Up While You Sleep
10. Where artists
and fans unite
purchase content
share content
grow influence
earn royalties
The Bandwaggon
Economy
We call it the Bandwaggon Economy
Artists generate revenue from fans
Fans generate royalties they can invest in new artists
11. Where artists
and fans unite
The Innovation
Every time a purchase is made revenue is split between an artist and a network of promoters.
The artist never receives less than 50% of the purchase price with the remainder being
distributed between a network of fan promoters.
Artist Earnings Formula
Direct Purchase 100%
Direct referral 75%
2nd level 62.5%
3rd level 50%
And so on 50%
Fan Royalty Formula
Direct Purchase 0%
Direct referral 25%
2nd level 12.5%
3rd level 6.25%
And so on 3.125%, (etc)
Every fan receives the same percentage of the purchase price depending upon how close they are
to the purchaser. Purchase price and earnings opportunity are always the same for every fan.
12. Where artists
and fans unite
It’s More than Music
Music
Even big names are seeking independence and justice from the system
Film / Video
Indy films can now get on Netflix but generating real revenue is out of reach
Books
Growing trends in self publishing and short stories are creating new types of opportunities
Games
High quality games can be produced independently but there is no way to distribute them
Apps
They’re getting easier to produce and harder to get noticed
13. Where artists
and fans unite
Growing Markets
Spending (2010)
Online Content.......................................................................... $150 Billion
Music and Software Downloads................................................ $50 Billion
Number of People Sharing Content on Social Networks..............1.2 Billion +
Average Purchase Prices (2010)
$10 / Month
$22 / Month for high-end downloaders
PEW Research 2010
Crowdfunding (estimated 2013)...................................................$6 Billion
Social Commerce (estimated 2015).............................................$30 Billion
14. Where artists
and fans unite
Trends
32 Billion pieces of content are shared on Facebook every week (1.6 trillion a year)
70% of successful campaigners on Kickstarter are media projects (music, film, books)
50% of fans pay more than the asking price on Bandcamp
63% of serious music fans are interested in direct to fan crowdfunding
71% of people more likely to buy based on social media referrals
65% of people purchase downloadable content (33% music, 16% video, 10% e-books)
16. Where artists
and fans unite
Revenue Streams
Primary - transaction fees of 10%
Secondary - sponsorships, promotions and any float on funds held
Growth Assumptions
An inherently viral platform that grows exponentially with modest assumptions
Average purchase per user of $4/month
Average outreach per user - 100 friends every 30 days
Conversion rates vary on next slide for low, mid, high scenarios
17. Where artists
and fans unite
Financial Projections
Low
Year 2013 2014 2015 2016
Conversion Rate 0.4% 0.4% 0.4% 0.25%
Number of Users 0 28,347 1,607,113 23,386,568
Gross Revenue $0 $31,328 $1,381,420 $21,779,455
Net ($209,600) ($1,676,690) ($2,013,849) $13,119,355
Mid
Year 2013 2014 2015 2016
Conversion Rate 0.5% 0.5% 0.5% 0.25%
Number of Users 0 64,874 8,417,140 122,485,512
Gross Revenue $0 $57,936 $5,846,587 $114,068,371
Net ($209,600) ($1,653,003) $1.906,515 $97,480,355
High
Year 2013 2014 2015 2016
Conversion Rate 0.6% 0.6% 0.6% 0.25%
Number of Users 0 140,739 39,614,557 576,467,670
Gross Revenue $0 $105,179 $23,026,394 $536,853,113
Net ($209,600) ($1,611,830) $16,590,529 $483,946,525
Lower conversion in 2016 (.25%) in all 3 scenarios to account for churn
18. Where artists
and fans unite
Marketing Strategy
Partner with music and film festivals across the US
Top artists on Bandwaggon can earn performance or inclusion opportunities
Bandwaggon can be integrated into performances
Recruit brand name influencers
Incentivize influencers to use the platform (trendsetters, musicians, filmmakers, comedians, etc)
Public relations story about artists being able to succeed
Tap into the cause of “fairness” to musicians
Direct outreach to top YouTube and SoundCloud Artists
Incentivizing them to try Bandwaggon
Recruit DJs and electronica musicians
Extremely popular and new mixes are made frequently
Competitions where fans can win trips to festivals, tickets, passes etc.
19. Where artists
and fans unite
Patents are Pending
A system for tracking the sharing of content and distributing ongoing revenue.
Has applications in social commerce and online multi-level marketing.
A system for tracking the sharing of content and measuring all views, shares and purchases and
formulating those into a score. The score provides a unique measurement of popularity that
tracks the influence of a fan and the engagement level of a piece of content.
20. Where artists
and fans unite
Pioneers in peer-to-peer cause marketing
Last venture, Involve Inc. acquired in 2005
IPO 9 months later
Experienced Team
21. Where artists
and fans unite
Core Team
Dean Hollander, CEO / Co-founder
Former CEO / Co-founder Involve Inc., Strategic marketing for Wikipedia, BP Alternative
Energy, Electronic Arts, Warner Bros, DC Comics. Tufts University, American Film Institute
Jon Dartley - COO / Co-founder
Former COO / Co-founder Involve Inc. Former deputy counsel Blackbaud, largest software
provider to NPOs. Columbia University PHD, Rutgers University Law Degree
Josh Unger - Inventor / Co-founder
Director of User Experience, Wireless Generation. UI Architect / Product Designer projects
include American Express, AOL, Comcast, Martha Stewart Living, Web MD. Vassar College
Jonathan Cranin - Acting Creative Director
Former Chief Creative Officer McCann, Created MasterCard’s Priceless Campaign, ETrade
Talking Baby, Branding campaigns for Microsoft, IBM
Kuty Shalev - Acting CTO
Founder / President Clevertech. MBA Columbia University
22. Where artists
and fans unite
Supporting Team
Len Lodish - Lead Angel / Advisor
Vice Dean / Professor Wharton, Diapers.com (acquired by Amazon) Milo.com (acquired by Ebay)
Rick Bank - Angel / Acting Head of Recruitment
Managing Director, Solebury Search
Chris Nagy - Consultant / Acting VP Marketing
Former VP Marketing Sony, Trend Marketing
Nick Rockwell - Advisor
Former CTO MTV, SVP Digital Conde Naste
23. Where artists
and fans unite
Creating Value / Exit Possibilities
We are monetizing social media and content in a new way through a royalty
formula, competition, and a highly social shared experience between artists and
fans.
Once we have established traction the business will grow rapidly through viral
word of mouth and an engaging shared social experience.
The technology and media property will be of value to all social media and content
platforms including Facebook, Google, Amazon, Twitter, Ebay and Yahoo.
24. Where artists
and fans unite
We’ve pre-populated an account with content so you can get a good sense of what
it’s like. Feel free to purchase and share - it’s on the house.
bandwaggon.com
Log in:
demo@bandwaggon.com
PW - demo
Take it for a spin...
25. Where artists
and fans unite
Thanks for checking out Bandwaggon
Please get in touch if you’d like to learn more
Dean Hollander
CEO/Co-Founder
dean@bandwaggon.com
415-259-8160
