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Marketing Proposal

HONEYWAGON

Prepared for: Honeywagon, Bryan Clark, Mo Levone, Loren Ellis Prepared by: Johnathan Hepner, CEO - Vyral Music

September 3, 2010 Proposal number: 001


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Table of Contents Executive Summary

ii

Objective

ii

Marketing Goals

ii

Departmental Overview

iii

Web Tools

iv

Setup / Admin

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Content Development

vi

Marketing / PR

vii

Social Networking

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Distribution / Fulfillment

ix

Touring

x

Licensing

xi

Closing Comments

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Appendix A:

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Appendix B:

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Appendix C:

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Appendix D:

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Appendix E:

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Executive Summary Objective

To utilize direct-to-fan marketing techniques in order to increase revenue. We will do this through a website squeeze page which will collect important data from our website visitors including name, email, and zip-code. In return for this data, we will offer free content to our users. Using this data, we will market our selection of products through newsletters. Coupling this will online advertising, online and traditional PR, and social networking, we seek to build a loyal fan-base of fans that will in-turn purchase our products and therefore sustain a viable business model. There are a few basic areas that we will focus on during this campaign: Set-Up & Admin/Content Development/Marketing & PR/Social Networking/Distribution & Sales/Touring/ Licensing/

Marketing Goals

• Develop a comprehensive automated email response system for new fans. • Organize and create banner ads, logos, favicons, graphics, and photos for use across all web platforms and formats. • Develop a strategy for each social network and or music network we wish to operate in, including design of our profile/home page, marketing and networking strategies, and tools and concepts to help increase interaction between us and the fan. • Collect 10,000 emails through our squeeze page • Develop a list of blogs, music review sites, secondary and college radio stations, and media outlets that cater to our genre(s). • Develop a large catalog of products so that we can maximize the revenue earned through each transaction and minimize loss-of-sale due to an inadequate product line. This includes music, merchandise, subscription based revenue, and premium product lines. • Develop a comprehensive strategy for creating a massive amount of free content via various types of media and information. • Develop a system for deploying large amounts of content via social networks and the internet. • Develop online marketing strategies for ppc advertisements as well as pay-to-pay ads through internet radio • Research and compile a list of bands, artists, and brands that we can team up with to offer affiliate products through our newsletters. • Research and compile a list of bluegrass festivals, indie music festivals, and other areas where large amounts of potential fans will gather in order to set up live shows, and plan marketing strategies for each event. • Start developing a strategy for MIDEM 2011, where we will attempt to secure international distribution and licensing deals through the development of contacts found in the MIDEM.NET directory, as well as implement a strategy for efficient networking while in attendance. • Research and compile a list of potential corporate brands we could partner with in order to receive sponsorship through funds or product. • Enter into any and all contests, competitions, awards, and etc. that pertains to our release. • Develop a strategy to leverage the massive audience already fans of Michael Jackson through fan sites, .organizations, and foundations. • Compile a list of volunteer opportunities and organizations that we can partner with in order to gain positive PR through volunteer work, donations, or help with fundraising & events • Compile a list of retail outlets that we can consign or distribute physical units as well as a strategy for accounting and fulfillment of those stores. • -and much more....

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Departmental Overview Department

Short Description

Distribution

We will use traditional Brick & Mortar methods as well as digital distribution outlets

Publishing/Licensing

Secure licensing opportunities in film/TV/advertising

Music Analytics

We will measure website traffic, analyze social networking stats, and track sales

Fan Management

Gather and collect emails and info on our fan-base

Social Networking

we will use many different social networking sites as well as music networking sites to build our fan-base, convert sales, and create buzz

Touring

We will use live shows to promote the CD, gain fans, support the record, generate radio play, and generate revenue

Video

Music videos, behind the scenes footage, montages, video blogs, podcasts, and live streams.

Mobile

iphone & android applications, mobile marketing, text and voicemail marketing

Radio

traditional radio and internet radio with a concentration on bluegrass formats and secondary markets. We will also leverage syndicated shows for increased exposure.

Image

Photos, graphic design, website and social network design, logos, style and wardrobe, as well as band member info.

PR

Leverage traditional as well as web based music news outlets for buzz.

Marketing

Facebook ads, google ad-words, magazine and print ads, and banner placement throughout the web.

International

Leverage international resources from foreign labels to license our product in worldwide markets

Promotions

Contests, giveaways, exclusive offers and more.

Street Team

The street team will help us to engage fans through spreading content and news and allow us to leverage other areas through local help.

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Web Tools Vyral Music utilizes a number of various web-based applications to help aggregate content distribution, get analytics, handle accounting and much more. Here is a brief overview of the various sites we will be using throughout this campaign to manage your business. We provide this list to our artists because we believe that it is not the tools themselves that drive sales and increase visibility, but the strategies implemented through the use of these tools that deliver results. Includes: • Nimbit - Our Direct-To-Fan Management Platform. Nimbit controls all distribution and fulfillment, as well as our email list and newsletter. We also handle all storefronts and back end accounting & inventory through Nimbit. It is truly the “hub” of our operation • ArtistData - This is a content and social network aggregator that allows us to post status updates, blog, concert dates and much more across a wide variety of social networks, concert listing sites and press outlets. Think of artist data as your data hub. • TubeMogul - Video upload and distribution can be a very time-consuming process. TubeMogul solves this problem by allowing us to aggregate our video upload across all sites like YouTube, Vimeo etc. • BandMetrics - a music analytics application that is used in conjunction with a few other sites to get detailed stats on your bands visibility. • NextBigSound - Another music analytics site that helps analyze data from various social networks and content sites. • Google Analytics - A powerful web analytics tool that is tied to your main website to help analyze and track stats on website viewers and page visits. • RockDex - A web application that grades your band’s social media “worth”. • G2.FM - An online booking site that provides detailed venue and gig information and assists in booking shows • Sonicbids - An online booking site that also provides many opportunities for booking live shows and more. This is also the site that will provide us with the tools to build our EPK • UStream - a streaming video site that will allow us to utilize the power of live streaming shows, podcasts and much more. • Bandize - An online platform for band management. We will use this to house all relevant info on the band, music, touring, press, accounting, as well as the calendar and project task assignments. • SoundCloud - a site that allows the upload and hosting of our music with detailed track info. • Fuser - an inbox aggregation system that allows band members to receive all email and social network messages and respond to them from a central location • Pump Audio/Rumblefish/Beatpick/YouLicense - online sites for finding and submitting to licensing opportunities • RootMusic - A website dedicated to the creation of custom Facebook “band” fan pages • Box.Net- A website for uploading and exchanging large files across the internet

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Setup / Admin This is the most important and also most time consuming step in the process. This is where you get your plans down on paper, develop your budget, and create the foundations for which all future plans and strategies will rely upon. Many of the data collected and the set-up procedures done here will be relied heavily upon throughout the entire process of this campaign. Includes: • Direct-To-Fan System Setup (set-up and organize all features of the DTF system) • Manufacturing (CD, Merch, Print, etc) • Website Design (layout, features, content) • Photography (Photo Shoots, Live Show Video, etc) • Social Networking (account set-up, profile design, features, content) • Data Mining ( Lists for Blogs, Websites, Radio, News & Media, Bands, Corporate Brands) • Squeeze Page Set-Up (Design and deployment of squeeze page, thank-you page, etc) • Social Network Aggregation (Set-up system for managing social network accounts) • Brainstorming (Band & 3rd Party Blog Topics, Promotion Ideas, Duty Delegation, etc) • Budget (Advertising, Manufacturing, PR, Administrative, Creative, Release Goals) • Street Team (Set-up street team, develop strategies & promotions, create T&C) • Music Analytics (Set Up, free tools Band Metrics, NBS etc, Google & Facebook Analytics) • Album Logistics (UPC Barcodes, ISRC Codes, Soundscan Registration, etc) • Band Logistics (Bios, Credits, Band Agreement, Publishing & Licensing Info, Band Roles, etc) • Publishing (PRO Registration, Sound Exchange, Copyright, License Info, etc) • Scheduling/Project Management (Marketing Timeline, Calendar, Task Assignment, Milestones) • Band Management (Contact Info, Release Info, Company(s) Info) • Goal Setting (Long Term, Short Term, Sales, Revenue Figures, Time-Based Accomplishments)

Timeline: 2/4 weeks

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Content Development Without content, you cannot expect your band to develop into a profiting business for its members. During this process, we will come up with product ideas, content ideas, and potential revenue streams. This is also the stage of the process where we develop our free content which will be used to build our email list, reach out to new audiences, and interact with our fan-base. In this stage, we will also be dealing with the manufacturing of our products, as well as the very strategic development of price points. Includes: • Compile Product Ideas. (Music i.e. CD’s, Digital, Merchandise, Mobile, etc)* • Compile Free Content Ideas (Promotions, Giveaways, Squeeze Page, etc)** • Compile Premium Content Ideas (Packages, Private Shows, Autographed Merch, etc)*** • Design Products (Graphic Design of products, Photos for storefronts) • Product Descriptions (brief descriptions of all products, Naming of products) • Develop Fan Club (Price Point, Package Offers, Features List, Members-Only Content) • Locate Manufacturers (Find Manufacturing Companies, gather pricing info,) • Set Price Points (Develop price points for all products, create cost analysis spreadsheet)

*see appendix B for complete list of product ideas* **see appendix C for complete list of free content ideas** ***see appendix D for complete list of Premium content ideas***

Timeline: Initial: 2-4 Weeks/ Ongoing

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Marketing / PR Now that you have developed your content, it is time to concentrate on spreading the word. Marketing and PR are vital to the success of any company, and your band is no different. We will utilize various strategies to gain the most leverage within our means. We will concentrate heavily on web-based strategies, but will also explore traditional methods. Includes: • PPC Ads (Google Ad-words, Facebook Ads, StumbleUpon, You-Tube) • Digital Retailers (iTunes, Amazon, Napster, Rhapsody) • Pay-Per-Play Advertising (Jango, Grooveshark) • Banner Ads (Paid Placement, Free Opportunities) • Link Exchange (Through Music Sites, Genre Related Sites, Other Bands, Corporate) • Charity/Volunteer (Partnerships, Fundraising, Raise Awareness, Contests) • Blogs (Genre Related, Review Sites, Guest Writing, Interviews, News Stories) • Corporate Branding (Artist Deals, Sponsorships, Appearances, Promos, Advocacy) • Video (Music Videos, Podcasts, Streaming, Behind The Scenes, Interviews, etc) • Mobile (App Development, Voicemail, SMS Marketing, etc) • Print Ads (Magazines, Newspapers, Industry-Related Publications, Journals) • Retail Marketing (Displays, P&P, Listening Stations) • Trade-shows & Festivals (MIDEM, POPCOM, Bluegrass Festivals, Industry Events, etc) • Non-Traditional Strategies (Develop Custom Ideas & Free Strategies) • Info Pages (Wiki, Yahoo Music, AOL Music, etc) • Free Streaming Radio (Pandora, Shoutcast, Live 365, Shoutcast) • College/Secondary Radio (Airplay, Phoners, Station Visits, Station ID Promos, etc) • Syndicated Radio Shows (Airplay, Phoners, Interviews, etc)

Timeline: Ongoing

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Social Networking One of the key components to any business in the new era of the internet is your social networking presence. Social Networking is not a series of tasks, but more of an ongoing strategy based on strong marketing principles, interaction concepts, and content delivery. Engagement is the 1st key goal of any social networking campaign. Once you have engaged, then the final step is conversion (convert fans/followers into buyers). One of the key mistakes to any social networking campaign is the overuse of self-promotion. We will not focus entirely on promoting our products and image, but rather on engaging potential fans and gaining their trust. Networks Include: • Facebook (Design, Info, Content Delivery, Status Posts, Storefronts, Friends) • Twitter (Develop Followers, Engage Like-Minded Tweeters, Deliver Content, etc) • Myspace (Design, Content, Storefront, Updating) • Reverb Nation (Design, Info, Content Delivery, Status Posts, Storefronts, Fans) • Last.FM (Design, Content, Fans, Listeners, Increased Plays, Sale Conversion) • You-Tube (Channel Design, Content, Fans, Increased Views, Video-Replies, SEO) • Ping (iTunes10) (Development of Marketing Strategies, Profile Design, Content, Friends) • Music Networks (Virb, Bebo, iLike, Pure Volume, OurStage, Digital Rodeo, etc)* *see appendix E for complete list of social networks*

Timeline: Ongoing

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Distribution / Fulfillment The Final Step in the Direct-To-Fan process is often the most misunderstood. Distribution & Fulfillment is arguably the most important area of any successful business. We aim to leverage many different avenues both digital & physical to increase the reach of our product line and generate the maximum revenue possible. There are 2 main areas of distribution that we will concentrate our efforts: Digital, Physical. Both of these areas will be met through direct-to-fan distribution practices. In this section we will also cover the accounting procedures and practices that need to be in place in order to successfully manage incoming revenue and outgoing costs. TWO AREAS: Digital: • Digital Music Retailers (iTunes, Amazon MP3, Napster, etc)* • Subscription Based Distribution (Fan-Club, Cloud-Based Retailers, etc) • Ringtones (For Mobile Devices, Iphones, Android, etc) • Streaming Video (Live Concerts, Interviews, etc) *see appendix A for a complete list of digital retailers*

Physical: • Retail Stores (Consignment, Distribution Deals) • Live Shows (Sales through “Merch” booths)

Direct-To-Fan Outlets: • Website (Digital Downloads through storefront, online ordering, pre-order, fan-club) • Social Networks (Myspace & Facebook Storefronts, Offers through posts, etc) • Newsletters (Product offers, links to retailers, affiliate offers)

Direct-To-Fan Management: • Fulfillment (Drop-Shipping, Packaging & Warehousing, Order Tracking) • Accounting (Automated Accounting Through Direct-To-Fan System) • Reporting (Sales Reports, Trends, Key Markets) • Inventory (Supply Tracking, Automated Low-Inventory Notices) • On-Demand Merchandising (No Up-Front Costs, Fullfillment, Online Design)

Timeline: Initial: 4-8 Weeks

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Touring We here at Vyral Music understand that touring is hard to do. Not only is it time consuming to be out on the road, but it is also a painstaking process booking gigs and appearances, and the developing key relationships needed to secure gigs. However, we also believe that touring is not something that should be cast aside. There are many valuable things to be accomplished by playing your music live, and by making appearances in retail outlets, radio stations, media outlets, and festivals. Includes: • EPK (Design & Development, Content, Hosting) • Press Kits (Design, Manufacturing, Content) • Booking (Traditional Bookings, SonicBids, G2.fm, other online sites, corporate, festivals) • In-Stores (Retail Appearances, Signings, etc) • Radio Appearances (Interviews, Live Performances) • - Media Appearances (Newspapers, TV Stations, TV Programs, Magazines, etc)

Timeline: Ongoing

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Licensing One of the major revenue streams overlooked by most bands/artists is through the licensing of your music to TV & Film. This includes movies, TV shows, web series, TV ads, web ads, video games, radio ads/jingles, retail store music, and much more. We believe that by tapping into this vast market, you will be able to create an additional stream of revenue from your music, and in return gain exposure through the use of your music in various formats throughout different markets. We also believe that securing foreign licensing deals can be a gold mine for your band. Our plan for accomplishing success overseas is by focusing our primary attention on MIDEM 2011. This conference (the biggest music licensing conference in the world) is held each year in Cannes, France. We hope to leverage the MIDEM.NET directory along with other resources to schedule key meetings and network through various social events at the conference in order to secure international licensing and distribution deals. Includes: • TV & Film Placement (Media Supervisors, Licensing Companies, Online Sites) • Advertisement Placement (Web-Based Ads, TV Commercials, etc) • Radio Advertisement Placement (Radio Ads, Jingles, etc) • Retail Store Music (Compilation CD’s, Retail Store Licensing, etc) • Foreign Licensing (Deals with Foreign Labels & Distributors, MIDEM attendance)

Timeline: Ongoing MIDEM Timeline: Start October 1st - January 2010 (Conference Date)

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Closing Comments Honeywagon, Vyral Music is not in the business of creating pop stars, nor do we care about social status or the rise to stardom and fame. We are focused on creating a business model that will help you profit from your music career and build a sustainable business model. We believe that the key to this is through direct relationships with your fan base, coupled with the development and distribution of content across various platforms. There is no longer a need to feel lost in the shuffle. Our hopes are that your goal is the same as ours. And that is to make a living creating and performing music. We believe that content is your voice, and vyral music is your microphone.

Sincerely,

JOHNATHAN HEPNER Vyral Music 1029 Sharpe Ave Nashville, TN 37206 Tel: 615.944.5589 Email: info@vyralmusic.com www.vyralmusic.com

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Appendix A: Retailers: USA: • AmazonMP3

Canada: • 7digital

• 7digital

• Bell All Access Music

• AOL Music

• Bluetracks

• Artist Direct

• Classical Archives

• BearShare version 6 or higher

• eMusic

• eMusic

• Hip Digital

• iLike

• iMesh

• imeem

• InMusic MP3 Store

• iMesh

• iTunes Canada

• iTunes

• Jamster

• MP3.com

• Motime

• MySpace Music

• MuchMusic

• Napster

• Mymusic

• Qtrax

• Napster Canada

• Rhapsody

• Puretracks

• Vevo

• Telus

• Yahoo! Music

• Ur Music

• YouTube

• VEVO

• Zune

• Youtube • Zunior

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Appendix B: Digital Content: • Podcasts • Digital Downloads • Ringtones • eBooks • Fan-Club Subscription • eTickets Physical Content: • CDs • DVDs • USB Drives • Vinyl • Hats i.e Cowboy Hats, Ball Caps, Trucker Hats, etc. • Beanies • Picture Frames • Shot Glasses • Bottle Openers • Shirts • Polos • Tank-Tops • Hoodies • Sweatshirts • Stickers • Keychains • Mugs • Panties/Boxers • Journals • Download Cards • Photos • Posters • Guitar Pics/Drum sticks • Water Bottles • Frisbees • Shoes • Sandals • Laminates • Rock Band Song

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Appendix C: Free Content:

• Band Blogs • News Stories • Collaborations • Funny Stories/Videos • Behind-The-Scenes Videos • Music Videos • Free Song Downloads • Free Online Tools • Pictures • Live Show Recordings • Interviews • Informative Articles • Show Tickets • Promotional Items (Hats, Mugs, Pens, Pencils, Stickers, etc)

Appendix D: Premium Content Ideas:

• Merchandise Packages • Custom Happy Birthday Recording • Custom Song written about a fan • Signed Gear i.e. Guitars, Bass, Drum Heads, etc • Private Show/Performance, acoustic performances • Private online fan meet & greet • Unreleased recordings • book of poetry, writings • Memorabilia i.e. set lists, drum sticks, show posters, old merch

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Appendix E: Social Networks: • Facebook

• IJigg

• Myspace

• Buzznet

• Twitter

• Jukebox Alive

• ReverbNation

• SoundCloud

• Last.FM

• iSound

• iLike

• SoundClick

• iMeem

• Garage Band

• PureVolume

• Fuzz

• Bebo

• MyTracks

• Digital Rodeo

• Tunesmith Pro

• Virb

• The Sixty One

• YouTube

• Amie Street

• Ping (iTunes)

• Share The Music

• Foursquare • Yahoo • Google • AOL • Our Stage • Foursquare • Hi5 • Orkut • FloTunes • Mercora Radio 2.0 • MOG • JamNow • MusoCity • Haystack • Sonific • Midomi

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Honewagon Marketing Proposal