Business Plan for Social Media Talent Agency

This Business Plan for a Social Media Talent Agency allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Company Name] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [Company Name] It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to [Company Name]

Upon request, this

______Signature

______Name (typed or pr

______Date

1.0 Executive Summary ...... 1 Chart: Highlights ...... 2 1.1 Objectives ...... 2 1.2 Mission ...... 2 1.3 Keys to Success ...... 2 2.0 Company Summary ...... 2 2.1 Compan O i ...... 3 2.2 Start-up ...... 3 Table: Sta ...... 3 Chart: Sta ...... 4 3.0 Products ...... 5 4.0 Market Ana ...... 7 4.1 Market S ...... 13 Table: Ma ...... 15 Chart: Ma ...... 16 4.2 Target M ...... 16 4.3 Service ...... 16 4.3.1 Com ...... 17 5.0 Strategy an ...... 18 5.1 SWOT A ...... 18 5.1.1 Stre ...... 18 5.1.2 Wea ...... 18 5.1.3 Opp ...... 18 5.1.4 Thre ...... 18 5.2 Competi ...... 19 5.3 Sales St ...... 20 5.4.1 Sale ...... 23 Table: ...... 23 Chart: ...... 24 Chart: ...... 24 5.5 Mileston ...... 25 Table: Mi ...... 25 Chart: Mil ...... 25 6.0 Manageme ...... 26 6.1 Personn ...... 26 Table: Pe ...... 26 7.0 Financial P ...... 27 7.1 Start-up ...... 27 Table: Sta ...... 28 7.2 Importan ...... 29 7.3 Break-even Analysis ...... 29 Table: Break-even Analysis ...... 29 Chart: Break-even Analysis ...... 29 7.4 Projected Profit and Loss ...... 30 Table: Profit and Loss ...... 30 Chart: Profit Monthly ...... 31 Chart: Profit Yearly ...... 31 Chart: Gross Margin Monthly ...... 32 Chart: Gross Margin Yearly ...... 32 7.5 Projected Cash Flow ...... 33 Table: Cash Flow ...... 33 Chart: Cash ...... 34 7.6 Projected Balance Sheet ...... 35 Table: Balance Sheet ...... 35 7.7 Business Ratios...... 36 Table: Ra i ...... 36 Table: Sales Fo ...... 1 Table: Personn ...... 2 Table: Profit an ...... 3 Table: Cash Flo ...... 5 Table: Balance ...... 7

1.0 Executive Summary

Introduction

The consumption of entertainment is changing at an unprecedented rate, on a truly global scale. The ever increasing speed, robustness & interconnectivity of the global telecommunication system has increased young consumers' expectations and demands for entertainm

As a result o destination for Generation (YouTube), c per day. [Company Name] will function i o monetize their fragmented super-stardom

The Market

With almost ned primetime audiences of ABC, CBS, F ubmitted videos, with little to no consistenc ociate their brands to videos with such low

In 2007 YouT share (up to 50%) in the ad revenue gene to purchase top of the line video camera uTuber’s began to produce high quality e

Out of the 15 making between five and six figures a yea

Service and

Despite mass nch out into more lucrative mainstream m e artists, providing them with a full studio a s. The combination of these consistently m, will overnight create an incredibly pro

[Company Na nels, office space, business model develo fornia.

Chart: Highlights

1.1 Objectives

a. Full Capac eding 100 million views per month. b. Develop an nstream platforms. c. Succeed in

1.2 Mission

The Mission tertainment objects. We will offer distincti atform whereas Consumers can enjoy the

1.3 Keys to Succe

a. Assemble tive platforms & mediums b. High qualit ne entertainment properties c. Strong & c obal brands

2.0 Company Sum

[Company N ross the world through the acquisition & ompany will become highly profitable through the advertising revenue off [Company Name] Corp Channels, sale of Pre-Recorded music of [Company Name] Artists, licensed Consumer products based off of [Company Name] IP and other ancillary profit centers. [Company Name] will own and control the copyrights and licenses of its properties, which will enable [Company Name] to create immediate revenue streams while growing its library of content into a multi-million dollar asset.

It starts with [Company Name] Corp identifying the right properties. The barrier to entry is so low in today's entertainment climate; everybody is now a potential artist. On the Internet, a lot of different types of videos can generate massive viewership numbers. [Company Name] will hand-pick talent that produces consistent viewership numbers with dedicated audiences, that the Company feels can cross-market into mainstream media and entertainment.

Chart: Start-up

[Company Name] will have a record label component which is currently in the process of securing distribution through a major label.

• Full distribution apparatus for digital and retail outlets • Will create comprehensive marketing and promotional campaigns • Secure radio placement for [Company Name] artists by leveraging entertainment industry contacts to create collaborations with mainstream artists

Marketing/P

•Full Service

•Works with [ g traditional marketing & PR iniatives as w

•Will also wo & new product offerings in order to maxi

• Utilize [Com p initiatives across multiple platforms & m

Production

[Company Na at is being exploited through the full studio distributed content.

•[Company ribution on their respective YouTube Cha

• Production ream media outlets.

•Production specifically for release on mainstream o

Distribution

•[Company N ecorded Music, Videos, and Episodic Seri

• [Compa ership for each video. Booking

•[Company Name] booking department will create consistent “payday” opportunities for YouTubers by “booking” them jobs on TV Shows, Films, and Commercials

•[Company Name] will also work with YouTubers to create unique opportunities for live appearances including music & comedy tours

By creating a across a variety of different media platfor all platforms.

In addition, [C hire" basis.

4.0 Market Analys

People are w TIME AUDIENCE OF ALL 3 MAJOR US B

In 2011, mor ainment. Additionally, more content provi n digital platforms including the web as a easingly be employing new video opportu els, branded entertainment. Those marke D and HD. Digital video will not be define ch as iPad, mobile devices, internet-enab

2011 is going tent that’s relevant to them. The concept vice. As mobile continues to expand and a rtunity to deliver advertising in a far more ze that taking the traditional television mo

Many reports ntly. Nielsen data showed a sharp increas ent and average of 11 hours on the service

Research firm sed on usage. Google sites, which include n based on comScore data. Most of comS Hulu.

The extraord age of 283 minutes watching video on the , primarily TV episodes and films. Most of

YouTube and ns on the Internet, although one is a high subscribers and most have abandoned it

It is purely a coincidence that Netflix will use a Google Android based platform to help move its service to portable devices. A new Qualcomm (NASDAQ: QCOM) chip will be the hardware engine for the product. Google has Android and YouTube among its most broadly distributed product lines. YouTube is pre-installed on many smartphones. Netflix is at work to get more installations of its service.

Google believes that YouTube’s future is to market premium content and streaming services to its hundreds of millions of users. The management of the world’s largest search engine company knows that advertising supported content cannot make YouTube profitable. It needs another source of sales which only subscriptions for premium content access. People who use YouTube are clearly willing to stay on the site for long periods. YouTube’s business plan puts it on course to battle Netflix. YouTube is large enough to do what Hulu and Blockbuster have not been able to do. Netflix may finally have a worthy competitor.

There is a lot of money to be made on YouTube. In fact, these ten YouTube stars are rumored to have earned close to or more than $100,000 dollars from ad revenue based solely on their YouTube video postings.

TubeMogul, a th an estimate of how much they make fro a company or brand.

Yahoo has m st paid stars on YouTube.

As a suggest geviews) are only estimated and quite ho than they actually had, we dropped Med way to show off top viewed independent

TV is mergin ith increasing frequency – and viewers a

1. The viewer

2. Businesse went on strike a few years ago because rnet-viewed content).

3. Content pr on the episodes that viewers are watching.

The irony is t ol that limited the number of viewing optio that watching was a given. But, with cab d from?

And then the ote ‘TV’ shows and selling advertising. A

However, co NBC and Fox to become champions o make money by having the content on Hu

Between the explosion of immerging technologies and the advent of social media it is no surprise that viewers are longer interested in a “one way” viewing experience. Viewers want to be able to watch what they want, whenever they want, on whatever device is most convenient for them. They also want the ability enhance their viewing experience by sharing it with whomever they please across their vast network of digital social connections. Given the current landscape of media consumption, there is a “perfect storm” aligning which will allow [Company Name] to take a select group of YouTuber’s to the next realm of profitability. Below is a list of already successful YouTubers:

TOP YOUTUBE TALENT TO ACQUIRE:

1. Shane Daw

Shane Dawso it channel. His other channels are

2. The Anno

If you like talk Dane Boedigheimer is the creator of Th

3. Philip DeF

Phillip DeFra o pop culture.

4. Ryan Higa

Ryan Higa is be a Gangster” which went viral, and help

5. Fred – Sa

Fred is the se urrently making a movie with Nickelod

Views: 200,6 6. Shay Carl – Said To Have Made Over $140,000

Shay Carl makes comedy skits for YouTube. According to Yahoo, he held down 20 different jobs before finding his niche doing DJ and VJ gigs with YouTube.

7. Smosh –

Ian Hecox an e Music Video” was shot in 2006, and sin

8. The Youn

The Young T Uygur is the host of the Young Turks

9. Natalie Tra

Natalie Tran skits, and is a video blogger.

10. Mediocre

When Greg B udget web videos.

11. iJustine

She has mad have received more than 25 million views, a cheeseburger got 600,000 YouTube view f the web's most popular lifecasters.

12. Matty B

Pint sized rap ’s rap video “Eenie Meenie” had

Source: 24/7 Wall Street, Indyposted.com, Zimio - Author "Bradshaw", Socialblade

4.1 Market Segmentation Generation Y, also known as the Millennial Generation (or Millennials), describes the demographic cohort following Generation X. As there are no precise dates for when the Millennial generation starts and ends, commentators have used birth dates ranging somewhere from the mid-1970s to the early 2000s. Characteristics of the generation vary by region, depending on social and economic conditions. However, it is generally marked by an increased use and familiarity with communications, media, and digital technologies.

YOUTUBE CONSUMERS AVIDLY WATCH THEIR FAVORITE STARS AND CAN'T JUST WALK INTO WALMART OR BEST BUY THEIR MERCHANDISE AS THEY CAN HANNAH MONTANA OR THE JUSTIN BEIBER

Licensors o

Royalties rat s have become a bit more negotiable an ngaging in licensing and/or developing th ng arena, the old taboo of celebrities do

Advertising

[Company Na purchase advertising space on [Company

[Company Na tude of platforms created by [Company Na

Record/Mus

All of this gro track downloads, full album downloads, m 3.82 billion in 2013, up from $2.22 billion i n mark through 2013.

Despite the g e as physical sound carriers (i.e., CDs) co n from $4.32 billion in 2009. These are sta mer spending.

Now that the ther music selling services existing, the o nues.

The tipping p n digital music has eclipsed spending on

In today's m The fast pace of marketing technology an s to capitalize on this trend.

Chart: Market Analysis (Pie)

4.2 Target Market

YouTube pa e] will receive the revenue generated fro

4.3 Service Busine

[Company Na

• Consum • Booking • Marketin • Ad Sale • Recorde • Distribut • Producti

Competitive

TuneCore

TuneCore is ans and other rights-holders the opportun y p , , p ce, Rhapsody, eMusic, and others for sale. TuneCore also offers other goods and services to the music community, including sale of equipment and expertise.

However, TuneCore lacks the full-business model that is required to be able to successfully monetize a music property in today's fragmented media landscape. [Company Name] not only offers all of the above but in addition offers representation in cross- marketing into the mainstream entertainment world including but not limited to branding, merchandise, intellectual property licensing and shopping talent and television/film concept property to major media outlets.

District Lines District Lines is touted to be dedicated to creating the world’s most innovative marketplace. They intend to build an honest and secure environment that allows artists to sell their products and consumers to embrace their passions.

They tend to lean more into the merchandise promotion of their represented artists and appear to not pay attention to the overall process of true talent cultivation and exploitation for mutually beneficial profits.

TubeMogul

TubeMogul’s ences. TubeMogul services are powered ry month from the Internet’s top publisher ever again have to choose engagement video ad network.

TubeMogul p cks providing the "one-stop- shop" model offered. [Company Name] feels that this thing the today's YouTuber needs.

Ad.Ly

Ad.Ly helps b most popular platforms.

More than 1,0 es to their fans.

This is where a full well-rounded service platform. [Co

4.3.1 Competition

Highly viewed mmunity members of unique online talent ndustry. With the combined high producti ere is high competition.

THERE ARE LICENSING TO ITUNES. [COMPANY Company differs from other companies is asis, much like other service companies. Name] will be exponentially enhancing th 5.0 Strategy and Implementation Summary

[Company Name] has clearly defined the target market and has already differentiated the Company by offering a unique solution to talent, advertisers and consumer’s needs. [Company Name]'s sales and marketing strategy will be a combination of targeted mass marketing techniques as well as a focused direct sales team approach. Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved.

5.1 SWOT Analys

The SWOT a ompany Name] must address. It al s potential threats.

5.1.1 Strengths

• In the p esponse to special branding requirem • Assemb ve industries. • Busines • The Co ar purchase Generation Y consum

5.1.2 Weaknesses

• Access • Similar c • Challeng

5.1.3 Opportunitie

• Genera e massive audiences with very loy

5.1.4 Threats

One thing tha llars and premium CPMs as they have co ps with advertisers at News Corp and NB his form of programming is interactive an y more effective, but also measurable.

Hulu

Hulu has one nt. YouTube and others will continue to s ead to its demise in the end. This is immin

However, YouTube is expected to grow due to providing content that is not licensed, is sometimes private and candid and not readily available through other channels of entertainment. TuneCore

TuneCore is an online distribution service for music founded in 2005. TuneCore principally offers musicians and other rights-holders the opportunity to place their music into online retailers such as iTunes, AmazonMP3, Zune Marketplace, Rhapsody, eMusic, and others for sale. TuneCore also offers other goods and services to the music community, including sale of equipment and expertise. TuneCore differs from traditional music distribution by not taking any percentage off of its customers' sales and not asking for rights, copyrights or masters nor requiring exclusivity.

However, Tu Name] not only offers all of the above bu d including but not limited to shopping bra concept property to major production ou

District Line

District Lines ts in limited categories.

They tend to pay attention to the overall process of tru erly fragmented and has not consistency a

5.2 Competitive E

Tube Nation's won't leave clients spending more (as the major brands presented on mainstream ompany's target consumers. [Company Na arket's needs.

Another com urrent technological lifestyle statement. [C wants to represent style, high quality licensed materials. The Company bel art of their lives. To facilitate that connecti eir communities as well as comment on in the future.

[Company N will be careful and select the top YouT media.

1) Ad Sales [Company Name] will be able to offer advertisers innovative turn-key solutions that will allow them to effectively target consumers utilizing [Company Name]s far reaching “Micro-Network” of digital platforms

a) YouTube Channel’s i) Google sells their ad inventory themselves, and [Company Name] will simply collect a 50 percent share of this revenue each month. Ad inventory units include pre-roll ads, banner placements, digital displays, & interactive video based units. (1) As [Company Name] succeeds in repositioning its properties as mainstream entertainment objects, Google will be able

ii) [Co ll allow [Company Name] to sell iii) [Co properties, as well as web des on each site

b) Social M Social Media 9-2010 email usage declined nearly 60 per the CTR (click through rate) on email refe ainst their 24 percent of all content referr

i) [Co he company to offer these plat ii) Tw used to increase number of imp

c) Web De i) Eac essly integrated into not only the maximize referrals from one des ii) [Co on the videos which will be rep (1) dded players d) Conten i) [Co orks as to maximize video view ts unique “Micro-Network” e) Brande i) [Co t will not only allow them to rais ed links in videos to drive con f) Mobile

In Dece wsers, accessed applications or down martphone adoption, 3G/4G device o mption of mobile media.

i) [Co watch & share content with oth ii) The al pre-roll & banner ads are not bile views as part of its total number of impressions generated by its Micro-Network iii) While mobile advertising is still in its infancy, Mobile based ads have increased by 150 percent in the past two years. However many advertisers are still skeptical of the fragment nature of mobile media. [Company Name] will sell the leverage its other platform offerings to sell mobile ad inventory as part of a bundle, defragmenting the mobile reach.

2) Consumer Products

a) Licensing i) As [Company Name] properties succeed in positioning themselves as mainstream assets, the company’s Licensing Dept will begin signing up licensees & commanding large advances as well as generous royalty rates ii) [Company Name]s licensing sales team will work to identify & sign up global licensees across a wide spectrum of categories for each property including (1) Toys (2) (3) (4) (5)

iii) Lice duct licensees with existing adv b) Retail i) [Co utlets further expanding the ma c) E-Comm i) Util orate E-Commerce offerings of l ntaining the integrity of the bra

3) TV & Film a) The com n-digital outlets i) Ded successful online properties for ii) Ded (1) o networks & studios in that ut major marketing budgets,

iii) TV s whereas our artists can be fea ough the company’s digital plat

4) Booking The company ous TV, Film, & Commercial Projects as w a) [Compa tream entertainment space b) Booking

5) Recorded M

a) All produ ugh a major label b) [Compa sumer Products & TV/Film Projects he Music itself

Chart: Sales Monthly

Chart: Sales

7.0 Financial Plan

The following is the financial plan for [Company Name].

7.1 Start-up Funding

[Company Name] is seeking funding in the amount of $2,212,866 in order to fund start-up costs including:

• Legal • Rent for • Office S • Office E • YouTub • Employe • Promotin • Website

The Compan these start-up costs will be funded by the

Chart: Profit Monthly

Chart: Profit

Chart: Gross Margin Monthly

Chart: Gross

Chart: Cash

1. Shane Dawson – Said To Have Made Over $315,000

Shane Dawson has three different YouTube Channels. His most popular is a music parody and comedy skit channel. His other channels are a vlog called AskShane, and a channel that he films solely from his iPhone.

2. The Annoying Orange – Said To Have Made Over $2

If you like talking fruit, you’ll like The Annoying Orange. It’s he creator of The Annoying Orange, as well as the voice.

3. Philip DeFranco – Said To Have Made Over $181,000

Phillip DeFranco has a Monday through Thursday YouTub

4. Ryan Higa – Said To Have Made OverSaid To Have M

Ryan Higa is the least prolific YouTuber user on this list, bu went viral, and helped him earn 2.6 million subscribers.

5. Fred – Said To Have Made Over $146,000

Fred is the second most subscribed to user on YouTube. L with Nickelodeon.

Views: 200,656,150 6. Shay Carl – Said To Have Made Over $140,000

Shay Carl makes comedy skits for YouTube. According to Yahoo, he held down 20 different jobs before finding his niche doing DJ and VJ gigs with YouTube.

7. Smosh – Said To Have Made Over $113,000

Ian Hecox and Anthony Padilla make up the comedy duo o t in 2006, and since then they have racked up 1.7 million subscribers.

8. The Young Turks – Said To Have Made Over $112,00

The Young Turks run a political talk show on YouTube, bu oung Turks talk show.

9. Natalie Tran – Said To Have Made Over $101,000

Natalie Tran is the most watched YouTube user in Australi gger.

10. Mediocre Films – Said To Have Made Close TO $10

When Greg Benson’s TV show, “Skip TV” was canceled. H

11. iJustine - Said To Have Made Over $216,000

She has made more than 400 videos, including videos on 25 million views, 16 million on YouTube alone. Her popularity is such that a video about her wanting to order a cheeseburger got 600,000 YouTube views in a week. She is sometimes described as a "lifecasting star,” a "new media star," or one of the web's most popular lifecasters.

12. Matty B Raps - Said To Have Made Over $176,288 Pint sized rapper MattyB only just turned 8 years old but is already being called the next “Bieber”. MattyB’s rap video “Eenie Meenie” had over 500,000 views and made the front page.