SDM’s business model is Hyperlocal, Grassroots and Organic, and will be rolled out globally. It’s about parlaying local market centers that are rich with emerging artists and songwriters with a passion for positively impacting lives through compassion and empathy. Our (compensated) music business luminary Mentors and local Musicpreneurs programs are for the discovery, development and marketing of local emerging artists and songwriters, and our intended work with established talent (some of whom we’ll proudly reintroduce to new audiences). What further distinguishes SDM is its model that not only diversely monetizes music and a lean chain of music support experts, but concomitantly drives funding to social causes virtually without dilution.
What follows is an overview of some of the ways Musicpreneurs are compensated (those who bring in other Musicpreneurs will also receive a one-year Referral Percentage Bonus of the referred Musicpreneur’s earnings). Logically, most all of the social causes brought to the table have the potential to develop into paying podcast sponsors which will generate a percentage for the Musicpreneur. SDM associates use our Slack account (SociallyDrivenMusic.Slack.com) to suggest a list of local causes/charities (and potential sponsors) we can interview. We also invite Artists/Causes/Charities to submit a guest blogpost as an effective way to lead into the podcast.
Artists, Songwriters, Mentors and Musicpreneurs are encouraged to sign up to be an SDM associate (click on the SociallyDrivenMusic.com link), as long as they choose a cause they care about and are registered to vote.
1. One source of talent and project acquisition for SDM is through the use of Mentors and Musicpreneurs working in tandem with local fans. It is anticipated that there will be 10 to 15 Mentors (with industry resumes), are each responsible for developing a network of Musicpreneurs brought to them by SDM or who they bring to the table (selected and trained in the SDM artist-centric development culture), who will be responsible for building the Club fan base and encouraging fans to upgrade their association to a premium membership.
2. This network of Mentors and Musicpreneurs (M&M) is tasked with finding new talent and music projects and presenting them to SDM for development purposes. Some of these new artists and songwriters will be offered exclusive agreements. Others will be offered an “option” to work with SDM in which case SDM will provide services, software, data and/or potentially the use of sound and recording equipment in exchange for a first option on the emerging talent. SDM uses this system as a “Farm Team” to identify, develop and groom up-and-coming artists.
3. Fan Clubs are built through the network of Mentors and Musicpreneurs, and are built around particular artists. Mentors and Musicpreneurs are free to promote the clubs of their choice, but are encouraged to support all clubs associated with SDM. Fans have the option to sign up under free or paid subscriptions. Paid subscribers will receive various benefits, such as access to personalized products, contests, special invitations to meet talent (face-to-face or online) and advanced notice of special events. Fans that chose to sign up through a free account can later upgrade to a paid account. The free account will not have the access to the benefits described in the paid account above.
4. SDM’s plan is to develop fan clubs as talent is identified. During this period, the club will also be promoting the talent through social media to potential new fans, encouraging them to sign up with the club. The goal is to have 5,000 fans by the end of the four month period signed up. After the initial four month period described above (one month for the Mentor, one month for the Musicpreneur, and two months to build the fan base), it is expected that the club will continue to grow at a rate of 10% per month. It is also anticipated that 20% of the free subscribers will want to convert to a paid subscription each month. SDM anticipates a 2.5% fan attrition rate.
5. M&M will also be responsible for generating interest and excitement in the new talent and projects. For their efforts, M&M will be compensated with a percent of certain revenue generated from the new business. Mentors will receive 10% of the revenue generated from Fan Club subscriptions and 5% of the royalties generated by business brought to SDM for the first three years of the royalties. Musicpreneurs will receive 10% of revenue generated by Podcast Sponsorships they procure, 5% of the revenue generated from the Fan Club subscriptions and 5% of the revenue generated by merchandise sales associated with their Fan Club.
6. The Socially Driven Music interactive podcast invites artists, songwriters, fans, philanthropies and causes to come together with stories that empower their fight against the futility of allowing oneself to believe that the obstacles to improving what they care about may be just too daunting. SDM is the catalyst to empower groups of like-minded people. SDM expects to develop its Podcast to showcase its music in conjunction with spotlights of social causes with a series of live events, pop-up concerts and live streams. SDM anticipates generating revenue from the Podcasts and Events through sponsorships/targeted advertising, and plans on promoting its fan recruitment over these outlets through contests*, artist spotlights and conversations with social causes organizations (interviews, live performance broadcasts, etc.). The sponsorship universe will be expanded by considering the companies that interact with and offer services to the causes/charities.
*Artists and Songwriters will select a “Preferred Mentor” with whom he or she would like to work. Artists and Songwriters may pay a small fee for contest critique of material by Musicprenuers (must select a Cause they are passionate about as mandatory part of sign-up criteria). SDM may have Right of First Refusal. Song then goes from Musicprenuers to SDM for submission into Contest. Contestants of filtered selected material is then entered into contest via Contest App/platform and SDM Podcasts, Email, Events, etc., with prize by Sponsor of Contest (sponsorships extended from Podcasts and Events). Winners are introduced to Mentors for mutual agreement of working together. SDM will offer select winning Contestants a Publishing, Recording or Development Deal with the Preferred Mentor (or a mutually determined alternative). *Contest voters will incur a small fee to participate unless they are Premium Fan Club members.