1. Addictive Flow Jessica Escalona

2. What is Addictive Flow? ► We’re not just a recording studio. We’re a production company. ► Specialize with hip-hop and R&B artists. ► Provide the artist with:  Music production & recording  Promotional Services  Distribution Services  Merchandise Services

3. What happens when an artist gets signed? ► The artist will be signed on a contract for 8 years. (Contract includes details on royalties, billing, and artist expectations). ► Within these 8 years, Addictive Flow will:  Record their album.  Promote the artist, as well as, the music produced. (Through the internet, street teams, scheduled appearances, etc.)  Distribute the music. (This includes CD printing, iTunes, AmazonMP3, etc.)  Work to design their artist web pages & profiles.  Design and manufacture the merchandise.

4. Artist Contract ► 8 Year Contract ► Must record 2 albums. ► Recoup artist expenses. ► Royalties ► 70% of the money made from CD Sales (digitally & traditionally) ► 50% of Merchandise Sales ► Artist will not make royalties form CDs or merchandise unless artist expenses have been recouped. ► Addictive Flow does not handle concert booking.

5. Recording ► The company’s personal recording studio.  Used to record & produce our client’s music.  Used to make extra profit from outside clients that just want simple recordings (vocal tracking, audition tapes, etc.) ► Client gets 2 studio albums covered by Addictive Flow. ► Extra studio time for other singles or albums must be paid for at a discounted price.

6. Distribution ► Addictive Flow will work for the artist to distribute music digitally and traditionally. ► Use of SongCast – distribute music digitally. ► Traditional CDs will be sold on the Addictive Flow website.

7. Promotion ► Websites ► MySpace, Facebook, Twitters, etc. ► Street Teams

8. Merchandise ► Addictive Flow will design merchandise ► This includes!:  T-Shirts  Mugs  Bumper Stickers  & MORE! ► Bandwear.com (Merchandise Company)

9. What do we need to start Addictive Flow? ► Studio Equipment - $42,410.13 (includes taxes) ► Marketing Equipment - $3,849.86 (includes taxes) ► Business Flyers – approx. $99.00 ► Website Hosting – approx. $90.00/year ► UPC Code - $750.00 (initial fee) + $150.00 (maintenance fee) ► Total: $ $49,039.42 – approx. $50,000.00

10. Expenses to Start Out

11. How will Addictive Flow start out? ► In-Home Studio Recordings & Productions ► Start out with only 2 or 3 artists. ► Work out of an in-home office. ► Wait before making big decisions. (gives time to save money!)

12. How much will it cost to run Addictive Flow? ► Studio Utilities: approx. $585.00/month ($7,020.00/year) ► Rent: in home studio (for first 5-10 years) ► Website: $90.00/year for hosting ► Distribution: $150.00/year for UPC Code Maintenance ► Studio Maintenance: Approx. $300.00/month ($3,600.00/year) ► Artist expenses: $3,500.00/year/artist. ($10,500.00/year for 3 artists) ► Total expenses: $21,360.00/year (first 5-10 years)  Approx. $98,840.00/year (after the move to a bigger recording studio space)

13. How much will it cost to run Addictive Flow? (First 5-10 Years)

14. Total to start out is?

15. Expenses Per Artist (overall) ► Studio Time: Covered (Personal Recording Studio) ► Distribution through SongCast: $5.99/month + $19.99/album AND/OR $9.99/single ► CD Duplication: 300 CDs @ $279.00+Tax (Approx. $0.93/CD) ► Website Hosting: $90.00/year ► Merchandise Budget: approx. $1,500.00 ► Total: Approx. $2,000.00 (start out), approx. $3,500.00/year (an extra $1,500.00 from start out)

16. How are we making profit? ► CD Sales (Digitally & Traditionally)  $10.00/CD - 70% of Sales (after production costs, $5.95/CD) ► Merchandise Sales  T-Shirt @ $15.00 – Addictive Flow Makes: $4.00/shirt (after production costs)  Bumper Stickers @ $3.00 – Addictive Flow Makes: $.50/sticker (after production costs) ► Renting out the studio  $55.00/hr to outside clients  $35.00/hr for extra studio time to our clients.

17. How will Addictive Flow expand? (Next 10 years?) ► Expand the recording studio.  After 5-10 years, move to a office/warehouse space in Hoboken, NJ.  Costs: $6,041.67 + Tax/month (approx. $72,500 lease/year) ► Work the recording studio, production office, and promotion office in one building. ► Become our own personal distributor of CDs & music. ► Start hiring people to work for the company. – Create teams (i.e. production team, promotion team, etc.) ► Sign more artists. Branch out from 3-4 to maybe a dozen or more.

18. How much will it cost to run Addictive Flow? (After Recording Studio move)

19. As time goes on… ► Although cost will grow as we expand. We hope as more clients come in, the more money we make. ► The demand becomes greater for our artists, which bring more profit.