Vinylmint's Growth Strategy Story
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Transcript of Vinylmint's Growth Strategy Story
www.vinylmint.com 1
Growth Strategy
April 2014
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Creative directors searchstatic music catalogs today
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Finding great royalty-free sounds online,is a challenge.
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Variety in freelance voice talentis tough to find, at an affordable rate.
Vinylmint is a non-union, freelance marketplace of voice actors, sound
designers, and translators.
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INSTRUMENTALSVOICE OVERS TRANSLATIONSSPECIAL EFFECTS
Why do people use Vinylmint?
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High-quality compositions and voice overs
A variety of submissions
A short turnaround time on requirements
Compettive prices for talent
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Create a brief with your sound requirements
Launch a contest into the community
You receive world-class compositions
You select a winner
How does the contest work?
1
2
3
4
How does the marketplace work?
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Melomics ContestsSound Libraries
• Music Publishers• Social Libraries• YouTube• Gaming Development Platforms• TV Network Libraries
• PROs• Music Publishers• Soundcloud• Melomics• TV Networ Libraries• Vinylmint Community
Buyers Sellers
• Flexible Pricing• Greater Curation and Variety• Saves Time
Value
Business Model
UserAcqusition
Gather User Information
Intelligent Suggestions
RevenueModel
From• SEO and SEM• Newsletter• oAuth Integrations• Social Validation
Includes• User Accounts• Recent • Purchases• Polling• Sound Queries
Based On• Social Network Profiles• Proficiency• Recent Activity, Ratings, Comments
Fee Types• Contest Commissions• Catalog Licensing• Marketplace transactions
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Value to Buyers
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Find quality sound solutions at a
competitive price
Increase their internal value with external ideas
Quickly recieve effective sound concepts with
high ROI
Use the worldwide online network of musicians
to mantain their competitiveness
Media Buyers
Value to Sellers
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Recieve financial rewards
Be discovered by musicians globally
and levorage brandsfor your portfolio
Sell your sounds in a powerful marketplace
to influence sound creators globally
Socially connect with sound designers around
the world
Sound Creators
User Acquisition Cost for SellersConversion
16%
2%
20%
30%
CPU
$25
$125
$0
$100
Source of Users
MailChimp
Vinylmint
Craigslist
Data to Leverage
Geographic location, website engagement
Social presence, societal influences, interest, brands they buy, demographic data
User engagement, duration of activity, skill level, sound design style
Talent interest, skill level, and size of talent market
All facts are attributable to IFPI unless otherwise noted.1. NPD Group, internet users aged 13+ Q3 2010 2. Pollstar 3. US Department of Labor and RIAA 4. Tera Consultants
$249 Average price for 40 sounds
$4.6 billion trade value of the digital sound market worldwide
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per new contest
Growth Strategy
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API Marketing
• Integration with Unity Asset Stores• Soundcloud oAuth and file sharing• Content ID resgistration with YouTube• File sharing integrations into Box, Dropbox, and Skydrive• API posting in the Mashape
marketplace
DAWs, Social, & Software
• Sound libraries available
on mobile phones
• Cataloging for ringtone services
• Keyword optimization from affiliate
libraries, Shazaam, and Pandora
Content Marketing
• Reddit Partnership
• Vinylmint Music Forum
• Vinylmint Music Blog
• Music Blog Acquisitions
• Academic Whitepapers
• Fireside chats, town halls,
and hangouts
Catalog Integrations
• You Tube• Vimeo• Getty Images Music• Unreal• Oculus• Videoblocks• Pond5• Second Life
PR & Direct Marketing
• Guest Blogging• Blog Placements• Music School Fellowships• Graduate Fine Arts and Advertising Schools• Seminars and Webinars
• Tradeshows and Conferences
Launch Growth Maturity
SEO & Retargeting
• Google keyword optimization• Twitter, Facebook, YouTube and LinkedIn Ads• Keyword search re-engineering• Retargeting across media networks• Referral systems and social
notifications
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Competitive Advantages
Key Competitor
• Competition based revenue model
• A volatile competition model launch
• An uncurated community
• Underdeveloped sound library
Potential Entrants
• Remix competitions used to
advertise products and services
to their communities.
• Small to mid-sized companies with access to capital to raise additional
investment rounds.
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Defensibility
Competitive Advantages
• User specific cost savings
• Custom sound designs to enhance a brand’s acceptance
• Highly skilled community of creative sound designers
• Ability to A/B test sound engagement and nurture brand evangelists
• Easy and intuitive user interface
Defensibility
• High service switching costs
• Alternative income source
• Integration partnerships to expand platforms to a global scale (Ole Musicbox, YouTube, Box and SkyDrive)
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Vinylmint is poisedto become a market leader
X X
X
Curation Collaboration Customization
X
Product Evolution
Advertising and Predictive Analytics
Large expectedUser base
Real-timeuser data
Highlyengaged brand
evangelists
Highly targeted sounds and key
data points
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Sound Marketplace
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Business and Tech Team Has Strong Track-Record
Associate Marketing Director,
Kedar Entertainment Group
(digital content strategy)
Jeff MullerCTO & Co-Founder
Jeremy JohnsonCIO & Co-Founder
Byron MorganCEO & Co-Founder
Bryan NelsonDeveloper & Co-Founder
Creative Director,
JohnRich Media,
(user interface design
and community management)
Lead Systems Architect,
Tele-Consultants Inc.,
(systems architecture and project
management)
Database Administrator,
InnovaSystems International,
(business intelligence and database design)
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Board and Other InvestorsPhilip Hawken• COO/ Business Manager of ESL Music
Joe Fuller• CTO of Dominion Enterprises
Rusty Greer• General Counsel of Landmark Communications
Eric Spence• Vice President of Mosley Music Group
Dr. David A. Bryan• Director of Advanced Technology
at Polycom
• CTO of Jasomi Networks
(Acquired by Ditech)
• Lead Architect of Vovida
(Acquired by Cisco)
Gary McCollum• General Manager and SVP, Cox Communications Virginia
Aneesh Chopra• Managing Director of the Advisory Board Co.• Secretary of Technology for Gov. Time Kaine• Chief Technology Officer for Pres. Barack Obama
Peter Ryder• President, Americas of Jovoto• Managing Director of Computer Sciences Corporation• Partner of GPS International
Additional angel investors:• Zack Miller, Managing Director of Hatch Norfolk• Rob Goodman, Partner at Kaufman & Canoles• Dr. Wil LaVeist, President of LE Enterprises
Market Size - US & UK
sounds submittedto digital libraries each year
• 50% increase in digital music licenses sold by 2016
Source: IFPI
130 M
• Creators between 16-35 age range
13 M 13 Million sounds licensedto digital music services
US
UK
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Advertising Agencies
19,949 462,300 $4.8 Billion
Agencies FreelancersMarket
Opportunity
Video Game Development Communities
13,313 2,000,000 $12.1 Billion
Company Game DesignersMarket
Opportunity
US & UK Music Publishers
772 1,500,000 $4.2 Billion
Company Composers Market
Opportunity
Market Segmentation & Targeting
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Revenue Forecast ($000)actual 2014 2016
Revenue
Expenses
EBIT
$218
100
$118
$8,500
1,000
$7,500
Investment Sought:$150K Seed Round: Now$1MM Series A Round: 18 Months
Use of Proceeds:Implementation of a contest self service model, inventory automation, audio-tagging, payment disbursement system, acquiring business development talent. Acquire Melomics technology.
$10
9
$1
$1,404
625
$779
2015
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High Revenueand High Margins
Great revenue potential for in community transactions, increased contest volume, and appreciating music catalogLaw of large numbers ensures high revenue
Very high operating marginsFree customer acquisition, digital goods transactionsfor supplemental income for users creates incentives
Execution difficulty decreases as Vinylmint increasesit’s network of buyers and music portfolioHardest part is grabbing great case studies to prove