1. Learn the Keys to
Digital Music Startup Success
Text
Rynda Laurel, COO,
af83inc (USA/France)

2. INTRODUCTION
Thank You to MIDEM & The MidemNet Academy
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
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3. COO, af83inc FR/US
Why am I here? www.af83inc.com
www.ryndalaurel.com
15+ years experience in the traditional music business working for major labels
A&R department scouting talent & making records.
(Similar to reviewing tech startups and helping them grow)
Worked on soundtracks, Film & TV sync rights, copyright clearances.
(One must understand licensing to understand music startups.)
Managed artists with major management companies and solo.
(Similar to understanding the culture of startups and the mind of an entrepreneur)
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

4. Sources of information to keep you informed:
ABOUT YOU ? Who is in the audience?
How many of you have a startup in beta?
Funded, running beautifully… Are there any VC’s ?
Just a great idea?
How many of you come from straight tech.
How many of you are musicians or know one…. How many of you have made a record or
know someone who has?... signed to a major label? Toured the world, won an award?
Made money at it?
WELCOME TO STARTUPS: SIMILAR CHALLENGES, SIMILAR
REWARDS
MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy

5. Sources of information to keep you informed:
WHY ARE WE HERE?
THE DESCRIPTION SAYS:
Digital music startups have specific needs based on their niche and business
model.
Understanding competitors, points of difference and monetization routes is
critical in determining if an innovative idea can become a reality.
We are going to hear quotes, success stories and pitfalls through CEO's,
VC‟s, digital entrepreneurs and music business experts.
I SAY WE ARE HERE TO TALK ABOUT BEING IN A ROCK BAND.
MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy

6. Sources of information to keep you informed:
IF YOUR STARTUP HAS ANYTHING TO DO WITH:
Digital rights
Name & likeness
Approval from record labels
Artist approvals
Artist payments
YOU ARE REALLY A HIP-HOP ARTIST.
MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy

7. Sources of information to keep you informed:
IF YOUR STARTUP IS FUNDED BY:
Major labels
Large internet companies (Yahoo)
A bunch of former record label executives
A big corporate brand
YOU ARE REALLY A POP STAR.
MIDEMNET ACADEMY 2011 - Strategy Module All courses to be available on: www.midem.com/academy

8. I HAVE AN IDEA…
LETS…
 START A BAND / BUILD A TEAM
CREATE MUSIC / CREATE PRODUCT
TOUR / NETWORK
SELL MERCH / MONITIZE
INDIE LABEL / ANGEL INVESTMENT
TOUR EVEN MORE / ITERREATE
MAJOR LABEL CONTRACT / VC $
ROCK SUPERSTAR / TECH
SUPERSTAR
PRODUCER / INVESTOR
www.shanesnow.com
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

9. The Kurt Cobain Guide to Startup Success
1. Break the Status Quo
It wasn‟t cool to play pop music as a punk band.
And I wanted to mix the two. ~Kurt Cobain, About a Son
2. Mix Innovation With Fundamentals
I don‟t‟ think we‟re better than the other bands…
We got attention because our songs have hooks,
which stick in people‟s minds. ~Kurt Cobain, About a Son
3. Bake the Marketing Into the Product
We didn‟t do anything. It was just one of those „Get out of the way and duck‟
records. ~
Geffen President Ed Rosenblatt
Brian Clark: new media entrepreneur and co-founder of
Lateral Action. (2008) http://bit.ly/hLWWfo
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

10. GREAT MINDS…
MIDEM 2011 During an interview with Ted Cohen
(Tag Strategic) and Saul Klein (Index Ventures )…
the Rock Band / Music Biz metaphor was used
brilliantly…
Index looks at who it‟s investing in – the entrepreneur & their team. “Do
they have two bassists and no lead singer or the full complement?”
Ted asked about “replacing the lead singer” (the
founder/developer/CTO in the startup case)…. and it went on….
Read more on the MIDEM blog: http://bit.ly/dTqp71
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

11. MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

12.  PASSION
DEDICATION
“Love it and live it.”
Henrik Ohlin, echolize
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

13. KEYS: PASSION & DEDICATION
(Let’s start a Rock Band)
Reason you are here
The key that drives everything.
Passion leads to dedication.
Why you are willing to:
Take risk
Work long hours,
Get on the roller coaster ride
&
Live the crazy life of an entrepreneur.
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

14. KEYS: PASSION & DEDICATION
Passion must be backed up by expertise.
Use your passion to recruit the proper people to help you.
Use your passion to drive all other keys
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

15. IDEA
VS
OPPORTUNITY
“There are still a great amount of
opportunities for enthusiastic
startups!” Stéphane Distinguin,
faberNovel, af83
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

16. KEYS: IDEA VS OPPORTUNITY
(ArtHouse Cover Band or Rock Band …)
Is there a real opportunity?
How to tell:
Ask your friends and business associates
Ask your target market
Ask an expert in the space
and most importantly…
WILL IT MAKE MONEY?
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

17. MONETIZATION
(How are you going to pay for rehearsal space?)
Always know how you are going to make money…
Research who has the same business model
…and if it is working
Create multiple revenue streams when possible.
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

18. MONETIZATION
(How are you going to pay for rehearsal space?)
Basic Structures:
(Freemium) Free w/ paid advanced services
Advertising
Percentage of Sales
Monthly Fees
Subscription
And…… it‟s wide open…
“Think outside the box with business models.
The days of paying for music may be close to over.”
Roxanne Varza, Techcrunch
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

19. MAKE A GREAT
PRODUCT
(or… write good songs!)
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

20. SERVICE & IDENTITY
“Figure out what you’re about
and don’t deviate from solving
that problem.” Michelle Yu,
Songkick
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

21. KEYS: SERVICE & IDENTITY
(What kind of music do we play, who listens to it and what makes it stand
out?)
What do you do?
What kind of need are you filling?
What is different about you?
Who is your target market?
Who is your competition?
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

22. KEYS: SERVICE & IDENTITY
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23. MIDEM NET FINALISTS 2010
Congrats!
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MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
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24. HAVE A PLAN
REVIEW AND
ANALYZE
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MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
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25. THE BUSINESS PLAN:
(Not exactly Rock Band vocabulary – it should be.)
Business Plans vary as much as music genres…
1. No plan, just a wing and a prayer…
2. A website, google analytics and Alexa Rating
3. One sheet with the basics
4. Build the plan as you build the business
5. Thorough plan with financials, roadmaps and projections
The most important thing is to
have a clear understanding of your product,
know what need it fills and how it will make money.
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

26. SWOT ANALYSIS
SWOT SWOT
Strengths Weaknesses
Internal Internal
. .
SWOT SWOT
Opportunities Threats
External External
. .
Do a SWOT analysis quarterly…
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

27. GOAL SETTING
RAISING CAPITAL
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

28. KEYS: GOAL SETTING
(I want to open for the Foo Fighters > need booking agent> need to
practice…)
You MUST set goals of all types.
Suggested – Write down what you want in 5 years and
go backwards with the steps it takes to get there until
you are at today.
Then…. start NOW.
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

29. RAISING CAPITAL
(Paying for rehearsal space, merch and the next tour…)
1. Self funded / Bootstrap (DIY)
2. Angel Investment (Indie Label)
3. Major Investor / Venture Capitalist (Major Label)
“Your Venture Capitalist is you’re A&R guy.
Research what he's signed, find out what he likes, target him intelligently
and you have a better chance of a positive outcome.”
Ted Cohen, Tag Strategic
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

30. MANAGEMENT
&
TEAM BUILDING
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

31. KEYS: MANAGEMENT &TEAM BUILDING
(Auditioning guitar players…then getting a manager... & roadcrew)
Make sure your team has the same passion and vision.
Hire for persons strengths and help build weaknesses
Trust your team or it‟s the wrong team.
Create a company culture
“The most important thing an investor looks for is
strength of the management team.” Doug Barry, Selby Ventures
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

32. EXECUTION
“Talk is cheap, execution is
everything.” Ian Rogers, CEO
Topspin
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

33. KEYS: EXECUTION
(Practice, Practice, Practice…)
Develop a great product
If you are a tech company have great tech
Make sure user experience is easy and intuitive
Adjust according to feedback
Don‟t try to be everything to everyone
“If it's a tech startup, make sure to nail the tech.” Brenden Mullen, Artist
Data
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

34. LEARN FROM
OTHERS
“There is a venerable elephant graveyard
of previous music startups that have
failed. Learn from them. All of them. Matt
Gulligan, Simple Geo
“Embrace the startup ecosystem.”
Duncan Freeman, Band Metrics
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

35. COOPERATION
“Don't go to war with the
labels... work with them.”
Michael Schneider, CEO Mobile
Roadie
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

36. KEYS: COOPERATION
(Be nice to the promoters….)
Find ways to add value to artists, users and the labels. All three sides
need to feel they're getting something out of it, otherwise they will try
to kill your startup.
Ben Parr, Co-Editor Mashable
Build the company's intellectual property; respect that of others.
Tim Wood, LiveCut
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

37. DO YOUR
HOMEWORK
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

38. KEYS: DO YOUR HOMEWORK
(Learn how to read music charts….)
Midem Blog
Hypebot
Music Think Tank
Consequence of Sound
Indie Music Tech
Sprouter
Startup Digest
My Venture Pad
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

39. INNOVATION
FIRST MOVER
(or… Elvis, David Bowie, GunsNRoses,
Nirvana… to name a few)
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

40. BE READY FOR
ANYTHING
(or… “we just put your singer in rehab”)
“Whatever you offer, some venture-
backed hipster dudes might come along
and offer it for free or very very cheap."
David Dufresne, Bandzoogle
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

41. A few more words of wisdom:
“The only two people who matter in the music biz are the artist and the
fan. The rest of us need to provide value to those two or get the hell out of the
way.” Ian Rogers, CEO TopSpin
“Be as open as possible, but stick to your guns and know what you want”
Stefan Baumschlager, LastFm
“The key to success is focus & instinct - Focus on what you want and trust
your instinct don't listen to everyone's advice.” Ariel Hyatt, CyberPR
I say….
“If at first you don‟t succeed, try, try again”
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

42. LINER NOTES:
(Thanks to the following people gave direct quotes and/or advice for this
presentation )
Ted Cohen - TAG Strategic Stéphane Distinguin – faberNovel, af83
Ian Rogers - Topspin Ben Parr - Mashable
Michael Schneider – Mobile RoadieRoxanne Varza - TechCrunch France
Alexander Ljung - SoundCloud Ariel Hyatt - Cyber PR
Michelle Yu – Songkick Doug Barry - Selby Ventures
Stefan Baumschlager - Last.fm Brian Zisc - SFMusicTech
Duncan Freeman - Band Metrics Brian Felson - CD Baby
Brenden Mulligan - Artist Data
And numerous tech startups that
answered my survey…
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

43. ABOUT ME. COO, af83inc FR/US
www.af83inc.com
www.ryndalaurel.com
Moved into the digital space in 2005, as VP of Operations & Biz Dev for
boutique interactive agencies specializing in digital marketing for film & TV
( Team building, business development, marketing & general operations)
Currently COO of af83inc.
af83inc is the international division of af83 / af83media (Paris).
The liaison between the tech and new media fields in the US and France.
(Tech development, digital platforms, user design, international markets)
Enough about me…let’s talk about you…
MIDEMNET ACADEMY 2011 --Strategy Module
MIDEMNET ACADEMY 2011 Strategy Module All courses to be available on: www.midem.com/academy
All courses to be available on: www.midem.com/academy

44. Thank you!
Text
Rynda Laurel
COO, af83inc (USA/France)
www.af83inc.com
www.ryndalaurel.com