MISSION STATEMENT, EXECUTIVE SUMMARY, COMPANY DESCRIPTION, INDUSTRY ANALYSIS, MARKETING & PROMOTION, THE FINANCIAL PLAN

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1 Thank you for purchasing the Record Label Business Plan Template. This Template is designed in professional business plan format and includes components such as a MISSION STATEMENT, EXECUTIVE SUMMARY, COMPANY DESCRIPTION, INDUSTRY ANALYSIS, MARKETING & PROMOTION, THE FINANCIAL PLAN and much more. Besides it being a Professional Record Company Business Plan Template, you will find it packed with tons of ideas. Even though it can be used as is, you should aim to add your own original ideas and plans to it. This entire template can be customized and adjusted to suit your specific situation from a band wishing to sell CD's on a more professional level, to starting and running a Record Label Music Business. This template can also be adjusted for more or less labels and for any genre of music that you will be producing and distributing. You will also customize the names, dates, numbers, etc to make it your own. In this Record Label Business Plan Template, the star of the plan is the fictional company [HU$TLIN 4-A LIVIN ENT,INC.] which of course will become your company once you fill in your company name. In between the sentences you will find sections such as [$xx.xx] or [Name] etc. These are also intended to be filled in with your own customised information. In your files you will find separate numbered documents, and these are intended to be inserted into one complete document, either in the order they are currently in, or in the order of your preference to suit your plan. LEGAL NOTICE: The Publisher has strived to be as accurate and complete as possible in the creation of this product, notwithstanding the fact that they do not warrant or represent at any time that the contents within is accurate due to the rapidly changing nature of the Internet. While all attempts have been made to verify information provided in this publication, the Publisher assumes no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. There are no guarantees of income to be made by using this product. Users are cautioned to rely on their own judgment about their individual circumstances to act accordingly. This product is not intended for use as a source of legal, business, accounting or financial advice, and all users are advised to seek services of competent professionals in legal, business, accounting, and finance field. By using this product you agree to have read and understand the above legal notice. Enjoy the record label business plan, and good luck in your music ventures.

2 RECORD LABEL BUSINESS PLAN [ HU$TLIN 4-A LIVIN ENT,INC.] [ HU$TLIN 4-A LIVIN ENT,INC. ] [ MIDWAY RD STE DALLAS TX ] MISSION STATEMENT EXECUTIVE SUMMARY COMPANY DESCRIPTION INDUSTRY ANALYSIS MARKETING & PROMOTION THE MANAGEMENT TEAM THE FINANCIAL PLAN

3 MISSION STATEMENT [HU$TLIN 4-A LIVIN ENT,INC.] will take advantage of the new technologies and possibilities available today within the music industry offline and online in order to dominate the entertainment market across the world by producing and promoting extremely high quality entertainment products. We will consistently strive to be profitable by producing and distributing extremely high quality recorded music product which will be delivered in the form of [Compact Discs / DVD, Internet downloads,]. [HU$TLIN 4-A LIVIN ENT,INC.] plans to generate additional revenue through the sale of related traditional merchandise such as [T Shirts, Sweaters, Autographed Items, Books, posters, flags, stickers, buttons, wristbands, ] and via sales of USB keys filled with music and other media, [videos,downloads and mp3's] As an independent record label we will have the advantage of owning and controlling all the rights to our music including copyrights and related licenses of our product. This will allow [HU$TLIN 4-A LIVIN ENT,INC.] to create an almost immediate revenue stream and be profitable in a short period of time while we work on continuing the growth of our catalogue.

4 EXECUTIVE SUMMARY [HU$TLIN 4-A LIVIN ENT,INC.] s Chairman of the board, [ BILLY WAYNE WHITAKER ] has produced [ 25 ] of [ Related Products such as Singles, Albums, Music Videos, MP3's and Downloads ] throughout his/her career. These products have generated more than $ [75,000] in income for his/her companies such as [HU$TLIN 4-A LIVIN ENT,INC.] over the past years. Many of these products have gone on to sell well beyond ["Gold" (500,000) ] in sales. [Local / National / International] Recognition has been achieved through winning [INTERNET,RADIO and by WORD OF MOUTH] [Music and video] Productions by [BILLY WAYNE WHITAKER] have also been used in [Independent Film, Major Film, Television Programs, Documentaries] by networks and companies such as [Dallas TX local arts]. [HU$TLIN 4-A LIVIN ENT,INC.] has put together an experienced team of artists, and producers of which when combined, the productions have made it to the top of the [Reverbnation charts artist such as HU$TLEMANN and YOUNG FELLAS] [HU$TLIN 4-A LIVIN ENT,INC.] has strong connections in the music industry through relationships with industry legends such as [J PRINCE OF RAP-ALOT RECORDS AND SLIM AND BABY OF CASH MONEY RECORDS]. By using international online and offline Distribution Company s [CDBABY,ITUNES,SOUNDCLOUD] will provide [HU$TLIN 4-A LIVIN ENT,INC.] the chance to reach and generate revenue in all of the worlds music markets.

5 The professional team of [HU$TLIN 4-A LIVIN ENT,INC.] has established a passion for music genres that includes [ Rhythm & Blues,Hip-Hop,Rap,Country Rap Tunes] The passions for this type of music, combined with the experience in how to break through in the music industry and make a significant impact in all of these genres, will allow the projects to have no trouble reaching the intended audience. Over the last few [months] the team of [HU$TLIN 4-A LIVIN ENT,INC.] has been scouting potential and talented individuals and bands throughout the [City, Country, World] that have presented themselves professionally within the industry by showing that they were able to develop a large following. They have the mailing lists and sales numbers to show for it. We have now signed this exciting group of recording artists within the genres that we plan to produce. These talented and serious artists will allow [HU$TLIN 4-A LIVIN ENT,INC.] to easily penetrate the music industry marketplace. [HU$TLIN 4-A LIVIN ENT,INC.] plans to set itself apart from all other independent record labels in the same genre by using a constantly updated marketing and promotional plan. By using a unique one of a kind adjustable promotional campaign we will be able to take advantage of the constant changes that now occur within the industry on an almost daily basis. Having monitored the successes that other independent labels and artists have gained within the last years due to the growing popularity of [digital downloads on the internet, mp3's and music video's] allowing artists and labels to now reach audiences at home and capture a new potential fan within minutes, we can now target the market, present our music as a stream, obtain addresses of those who have warmed up to our productions and artists, and finalize a first sale almost immediately in the first hour by following up with special offers. Weekly or monthly pre programmed automatic follow up mailings would keep our products fresh in the mind of the targeted audience. By utilizing auto responder technology we can now plan an campaign ahead of time to run on autopilot and meanwhile focus on other areas of our campaign. Besides the internet, of course [traditional full-length CD albums and other media] will be manufactured by [HU$TLIN 4-A LIVIN ENT,INC.], and we will develop other revenue streams using conventional distribution of merchandise via offline retail outlets. Based on extremely conservative calculations [HU$TLIN 4-A LIVIN ENT,INC.] revenue projections, will generate over [$ 20,000.00] in sales revenue throughout the fiscal year [ ] and also [$ 75,000.00] in [ ]. [HU$TLIN 4-A LIVIN ENT,INC.] will be able to reach a positive cash flow in the [first] month of operations while netting profits of [$ 20,000.00] in [ ] and [$ 75,000.00] in [ ].

6 [HU$TLIN 4-A LIVIN ENT,INC.] team is seeking [$250,000.00] in equity investment capital for our exciting company. These funds will mainly be used to: a) [establish a corporate office,] b) [maintain expenses to run the business,] c) [develop our artists and secure new artists,] d) [fund music production budgets, Video Production and other creative expenses] e) [fund marketing and promotional budgets.] f) [fund free concerts for more exposure] Once [HU$TLIN 4-A LIVIN ENT,INC.] reaches profitable levels, we would be in a position to evaluate several options for the future of our company. 1. We could remain completely independent and continue to operate as planned. 2. We may receive the opportunity to be acquired by what may still be considered a major record company at that time, or by some other form of corporate entertainment entity which may very well develop over the years. We may also evaluate the possibilities of an exit strategy which may be considered when our team and our investors are in synch with the idea. COMPANY DESCRIPTION Introduction [HU$TLIN 4-A LIVIN ENT,INC.] is a Record Label that will be providing high quality multimedia entertainment in the form of [Audio, Video,] to a wide range of consumers and will aim to provide a product of commercial appeal. "[If you don t Promote, Nothing Happens]" is one of our motto s, and by remembering this on a daily basis, we will use this knowledge and plan to spend much of our time, energy and finances available ensuring that our marketing efforts are heard and seen throughout the marketplace. [HU$TLIN 4-A LIVIN ENT,INC.] will compete in the marketplace by earning revenue immediately through the creation of high quality and enjoyable music in the form of [Compact Discs (CDs),DVD s (sound & picture combination), CD Rom, Instant Downloadable mp3 files, and vinyl albums for DJ's and other consumers still using this format.] Additional income will be produced from [merchandising, concert tickets, and video/radio promotions ].

7 While conventional marketing paths are being implemented and followed, utilizing the power of the internet, [HU$TLIN 4-A LIVIN ENT,INC.] will also be able to immediately turn around and create valuable income streams right away even only hours after the recordings have been completed. This can be accomplished by having a pre filled database of ready and waiting fans with cash in hand who signed up previously to be put on a waiting list. Trough the power of technology and the talent of our artists and producers we can create new quality saleable recordings at lightning speed. Using the aforementioned strategy we can turn this around into fast revenue streams and put the funds towards additional promotion and growth of [HU$TLIN 4-A LIVIN ENT,INC.] [HU$TLIN 4-A LIVIN ENT,INC.] PERSONNEL [HU$TLIN 4-A LIVIN ENT,INC.] has put together an extremely talented group of individuals who are educated on the music business and passionate about the music it self. We have come together to form this forward thinking company. Combining the two main ingredients for success will present [HU$TLIN 4-A LIVIN ENT,INC.] as one of the industry's leading entertainment companies in its genre. [HU$TLIN 4-A LIVIN ENT,INC.] co-founders are: [BILLY WAYNE WHITAKER] [ALIJI TARQI ALI] [HU$TLE-MANN] For the music production aspect of the business we teamed up with: [Durrough and Big Chieffa] who is already a well known producer, and recording artist and has been in the business for [over 10 years] [Big Chieffa] has also worked as a [C.E.O] for other major companies and labels such as [ EAT GREEDY RECORDS ], [DURROUGH MUSIC GROUP], throughout his/her career within these organizations he/she has directly been responsible for [ GOLD RECORDS] and contributed to well over [ $500, ] in revenue for those companies by securing productions within Film and Television for networks such as [ UNIVERSAL ], [SONY ], and [GRIFFTER RECORDS] For the Talent Management aspect of the business we teamed up with [ALIJI ALI] Who has been the CEO of the well known talent management company [HU$TLIN MANAGEMENT] has joined us and will use his/her talent management skills in areas of A&R (Artist & repertoire) and artist promotion, including all aspects of the music industry, to guide our artists in the development of their careers. We feel confident that [ALIJI ALI] will provide the proper guidance needed based on

8 past results from the successful career launches and maintenance of artists such as [ HUSTLEMANN] [GRIFFTER BOYZ], [ C-PONE], [ GUTTA GAME], [ YOUNG FELLAS]. For the [opporational] aspect of the business we teamed up with: [KHLISHIA HALL] who graduated from [SOUTHERN UNIVERSITY]. He/She has a solid business background and also knowledge of the entertainment business. He/She will bring the necessary business expertise to the table in order to guide [HU$TLIN 4-A LIVIN ENT,INC.] in daily matters of business accounting and related financial functions and transactions. [ HU$TLIN 4-A LIVIN ENT,INC. ] Is in its initial stages going to develop the talent, produce the music and market the finished product to the masses. Based on the success of this, [ HU$TLIN 4-A LIVIN ENT,INC. ] will ad more ways to profit in addition to the distribution of music. [ HU$TLIN 4-A LIVIN ENT,INC. ] will strive to fully maximize the success and profit potential of each artist in their genre of music. We plan to produce and promote inspiration and positive, yet commercially viable music in all the popular major selling genres such as [ R&B, Hip Hop, Country Rap Tunes ]. Our efforts will be to sign artists who share in these values as our Artist and Repertoire Department considers additional recording artists to sign with us. RECORDING OF THE MUSIC Current technologies such as computer based music production equipment such as [Cubase (tracking software)] for recording and [Wavlab (editing software)] for editing will allow us to do much of the music and rhythm programming and pre production from within a basic environment consisting of a computer and software. Many projects can be completed up to almost 50% from home or a smaller commercial music project studio in order to reduce overhead expenses. Later on, the partial projects can then be transferred over to a larger studio for continuation and or completion of the project. This could include recording the artist s vocals and adding live instrumentation via the use of studio musicians including guitarists and other essential musicians to add to the feel of the song and production. By doing so we will be able to lower our production costs. Once the pre production stage has been reached, The projects will completed at recording studios such as [ THE KITCHEN STUDIO], in [DALLAS]. All of these studios are professional multi-million dollar facilities, and have recorded well known major artists such [SCARFACE] [UGK] [ERICA BADU] [PIMP C AND BUN B] [HUSTLEMANN]. Artists have chosen to record their projects at the recording studios mentioned for several important reasons including

9 1. The design of the studio s interior recording areas of which the atmosphere creates inspiration in order to be at the height of creativity when in session. 2. The equipment used at these studios are of the highest quality and are up to date including the availability of digital recording systems which will allow for editing and arranging on the fly as opposed to re recording thus saving time and money. 3. The price when pre-purchasing blocks of studio time allows for steep discounts. [HU$TLIN 4-A LIVIN ENT,INC.] will continue to carefully research and take advantage of any sales promotions that are being promoted at the time, and we will be sure to request any information on possible near future promotions before booking studio time for future projects. Even though the team of [HU$TLIN 4-A LIVIN ENT,INC.] have an extensive music production background in order to produce high quality music product cost effectively, we will also be calling on a number of external record producers for the recording and overseeing of our projects. At times when a recording is completed, some productions may require a remix suitable for the club that needs a certain type of flavour, and usually there are certain producers that specialize in this. At other times we may commission a remixer to take the same song and remix it into a different style all together in order to target a completely different market with the same song. This will translate in additional revenue being generated from the recording of the same project. In order to compensate these producers they will be paid an up-front fee + points (royalties) from unit sales. MANUFACTURING Currently many choices for manufacturing music product are readily available in order to turn our productions into salable formats such as [compact discs, DVD s, videos, downloads,mp3's]. [HU$TLIN 4-A LIVIN ENT,INC.] will be outsourcing this job to manufacturing facilities that have proven themselves over the years in providing high quality product. Even though we will choose our manufacturing facilities based on pricing per units, we will also be selecting based upon quality of the product as well as the ability to meet our delivery expectations. [HU$TLIN 4-A LIVIN ENT,INC.] has narrowed our choices down to several manufacturers such as [Cdbaby] [Disc Makers] and [CD Master Copy].

10 DISTRIBUTING OFFLINE [HU$TLIN 4-A LIVIN ENT,INC.] will consider distributing it s product internationally through [UNIVERSAL RECORDS OR SONY MUSIC] Some of our team members have dealt with this distributor and have had a positive working relationship with this company. By allowing this established distributor to distribute our product [HU$TLIN 4-A LIVIN ENT,INC.] product will be exposed to the world's music markets. Through signed agreements and arrangements with [UNIVERSAL RECORDS OR SONY MUSIC] [HU$TLIN 4-A LIVIN ENT,INC.] will generate [$ $15.00] per unit sold. DISTRIBUTING ONLINE [HU$TLIN 4-A LIVIN ENT,INC.] Will sign non exclusive licensing agreements with [Itunes, Cdbaby, DatPiff, Amazon, SoundClick and or Musicxray] in order to make our products available on the internet as digital downloads. This will allow us to reach the online audience who have not visited physical record stores recently. By targeting the online community we will be able to increase our revenue significantly. MARKETING AND PROMOTION [HU$TLIN 4-A LIVIN ENT,INC.] Will develop and implement unique ways to market and promote our artists. A customized marketing campaign will be devised for each artist based on the genre of music. Our main goal will be to have a plan in place prior to the completion of an album in order to keep the momentum going. This as opposed to finishing an album and then finally beginning the next phase. [HU$TLIN 4-A LIVIN ENT,INC.] will work with Established Music Video Production companies in order to create the visual presence for our artists. A music video will be produced in support of albums released by us. Our Team has developed a network of contacts in the Music video production area and this will allow [HU$TLIN 4-A LIVIN ENT,INC.] to make high quality music videos on a low budget.

11 Music Videos will be produced for at least [3 SONGS] from the album to be released, and the production and shooting will be as close to the release of a particular song in order to keep up with the ever changing trends. For example, if a music video is targeted to the younger hipper crowd, and the video shows a person using a cell phone, we would not want that phone to be an older model. We would attempt to gain access to a phone model that may not have been introduced as yet into the market in order to keep the video looking fresh. [HU$TLIN 4-A LIVIN ENT,INC.] plans to hire independent radio promotion companies in order to reach radio station program directors and music video network directors. We will also make use of the services of Public relations firms in order to publicize and promote [HU$TLIN 4-A LIVIN ENT,INC.] recording artists. In addition, our marketing plan television promotion, dance club promotion, submitting our products to the movie industry, and this will be followed up on via telephone and , and we will make use of the Internet in order to capture the online audience via music video websites, Internet radio stations, etc. MUSIC VIDEOS Music videos have been an important element in order to contribute to a successful product launch for an artist. [HU$TLIN 4-A LIVIN ENT,INC.] plans to shoot at least three music videos for each new album released. [HU$TLIN 4-A LIVIN ENT,INC.] has built solid relationships with several Music Video production companies including, [214 MEDIA] and [TOP PUP MEDIA]. Through having previously made use of the services provided by these companies, we are now able to obtain the use of their services from story board development to finished production at significant discounted pricing. Upon completion of the music videos, they will be distributed to such networks as [BET] [MVT] and [106 N PARK]. [YOUTUBE] which currently are the most watched music channels in [ CENTRAL US ] where we plan to market and promote our product. We will also be making use of the services provided by record and video promotion companies in order to secure air time for [HU$TLIN 4-A LIVIN ENT,INC.] artists. Besides traditional offline music video promotion channels we will further utilise the internet in order to gain additional exposure for our music videos. This can be

12 accomplished by creating profiles for [HU$TLIN 4-A LIVIN ENT,INC.] on popular video websites such as [Youtube, Mecafe, Reverbnation,] and uploading our music videos onto these sites. DISTRIBUTION FOR OTHER LABELS [HU$TLIN 4-A LIVIN ENT,INC.] will make use of its distribution network to allow for the distribution of projects for other smaller, independent record labels. A key factor affording [HU$TLIN 4-A LIVIN ENT,INC.] the opportunity to capitalize on this, is the company's close, personal relationships with both [EAT GREEDY RECORDS] and [DORROUGH MUSIC]. [HU$TLIN 4-A LIVIN ENT,INC.] s ability to claim top dollar from these international distribution companies will enable it to earn a middleman fee on the distribution and manufacturing of other companies' products. [HU$TLIN 4-A LIVIN ENT,INC.] will earn between [$2.00] and [$4.00] for each unit manufactured and distributed. Company founders have had discussions with numerous record labels across the country who are interested in working with [HU$TLIN 4-A LIVIN ENT,INC.]. Partnerships with these companies will be dictated by the strength of company management, the quality of both their artist and product and the size of their marketing and promotion budget. The independent distribution division of the company will be incrementally increased over a [1 -year period] with [5] independent projects being distributed in [2013], [5] in [2014] and [5] in [2015]. MERCHANDISING [HU$TLIN 4-A LIVIN ENT,INC.] will create additional income and profits through the creation and manufacturing of merchandise. This merchandise will be based on our company and artist s image and music that is released. The creative side of this including the development of images such as logos and other artwork related matters will be handled by both our internal creative department and also outsourced to potential talented artists whose work fit into our creative vision. The distribution of merchandise including but not limited to [t-shirts, posters, buttons, etc.] will be outsourced to an established merchandising company which will handle the online and off-line retail aspects of this. [HU$TLIN 4-A LIVIN ENT,INC.] has a significant number of associations with merchandising contacts working within a broad range of areas from sports and electronics to everyday household items. Normally were most record labels may only sell standard items such as [t-shirts, posters, buttons, etc.], [HU$TLIN 4-A LIVIN ENT,INC.] will stay ahead of the game by continuing to research what is new in today's market and adapt our merchandising strategies towards this.

13 This newer type of merchandise would include [USB keys that come preloaded with our artist s music, or even fully loaded MP3 players and downloads]. CONCERT PROMOTION [HU$TLIN 4-A LIVIN ENT,INC.] plans to promote a number of live concert shows during any given month. These concerts will be held at a diverse selection of popular concert venues throughout [US]. To begin, [HU$TLIN 4-A LIVIN ENT,INC.] will aim to put together and promote approximately [3 number] of shows per month. By doing so this will allow additional exposure for our company and recording artists. In addition, by putting on concerts will allow [HU$TLIN 4-A LIVIN ENT,INC.] to generate additional revenues from the sale of [Merchandise, Concert tickets and CD's]. MUSIC INDUSTRY ANALYSIS - INDEPENDENT RECORD LABELS Independent record labels, especially newer start up labels usually operate on smaller budgets in order to find develop and produce music for talent, and also to put towards the marketing aspect of the business. In order to compensate for the lack of funds, independent record labels usually end up being forced to become very creative in finding new ways of getting their music heard. For an independent record label it is important to find, sign and develop unique, dedicated and extremely talented artists right from the start in order to produce and release well above average high quality music. This is because an independent label may not be able to afford investing time energy and funds into a project that ends up producing mediocre results or loss in profits. Once an independent record label finds an artist that is a sure bet, and the artist has become popular and has grown a large loyal fan base, the independent label that the artist signed to will be able to take advantage of the artists popularity, and many new opportunities may present itself to the label. One of these opportunities that may present itself is based on the fact that Major record labels have had a history of either being open to licensing finished product from an independent label that seems to be doing well, or at times may even invest funds into other areas such as recording and completing an album projects, up to the manufacturing, distribution, promotion and marketing of an artist with a potential. In many cases however, these type of arrangements come with a price for the independent label as the larger company may ask for larger percentage of the total income in exchange for the upfront services and funds provided. At times an independent record label may choose to simply stay with using independent manufacturing and distribution channels available today such as [UNIVERSAL] and this makes sense when sufficient demand has already been created either nationally or internationally for the product intended to be distributed.

14 MUSIC INDUSTRY SALES VOLUMES. Compact Disks are still a popular format while digital music sales are catching up to make a greater share of music sales. In the first half of 2009, CD sales comprised of 65 percent of all music sold while paid digital downloads comprised of 35 percent of music sales. 2 years prior in 2007 digital music downloads comprised just 20 percent of sales. This means that digital music sales are growing at a rate of 15 to 20 percent annually, while compact disk sales are falling by an equal proportion. If this trend continues, then it can be predicted that digital music sales will almost equal CD sales by the end of The recorded music industry generates a greater proportion of its revenues through digital sales than the film, magazine and newspaper industries combined. Industry Digital share of revenues Games 35% Recorded music 20% Newspapers 4% Films 4% Magazines 1% PWC Global Entertainment and Media Report (2008), IFPI Key markets The US is the world leader in digital music sales, accounting for some 50 per cent of the global digital music market value. Single track downloads crossed the one billion mark for the first time in 2008, totalling 1.1 billion, up 27 per cent on Digital album sales totalled 66 million, an increase of 32 per cent (Nielsen SoundScan). In Japan, a predominantly mobile music market, digital sales helped overall trade revenues to growth in the first half of million mobile singles were sold in 2008, an increase of 26 per cent on the prior year (RIAJ). The UK saw the biggest increase in digital sales in the first half of 2008 among the top markets, with sales up by 45 per cent. 110 million single tracks were downloaded in 2008, up 42 per cent on Digital album sales also rose sharply, by 65 per cent to 10.3 million now accounting for 7.7 per cent of the albums market (OCC/BPI).

15 France saw digital music sales grow 49 per cent in million online single tracks were downloaded in 2008, up 20 per cent on 2007, while 1.4 million digital albums were sold, up 27 percent (SNEP). In Germany, online single track downloads totalled 37.4 million in 2008, a 22 per cent growth on Digital album sales increased by 57 per cent, totalling 4.4 million (Media Control GfK International). [About 36 million Americans or 27% of internet users say they download either music or video files and about half of them have found ways outside of traditional peer-to-peer networks or paid online services to swap their files, according to the most recent survey of the Pew Internet & American Life Project. The Project s national survey of 1,421 adult Internet users conducted between January 13 and February 9, 2005 shows that 19% of current music and video downloaders, or about 7 million adults, say they have downloaded files from someone else s ipod or MP3 player. About 28%, or 10 million people, say they get music and video files via and instant messages. However, there is some overlap between these two groups; 9% of downloaders say they have used both of these sources. The survey has a margin of error of plus or minus 3 percent for results based on internet users. In all, 48% of current downloaders have used sources other than peer-to-peer networks or paid music and movie services to get music or video files. Beyond MP3 players, and instant messaging, these alternative sources include music and movie websites, blogs and online review sites. There are several other highlights in the new Pew Internet Project survey: 49% of all Americans and 53% of internet users believe that the firms that own and operate file-sharing networks should be deemed responsible for the pirating of music and movie files. Some 18% of all Americans think individual file traders should be held responsible and 12% say both companies and individuals should shoulder responsibility. Almost one in five Americans (18%) say they do not know who should be held responsible or refused to answer the question. The public is sharply divided on the question of whether government enforcement against music and movie pirates will work, but broadband users strongly believe that a government crackdown will not succeed. Some 38% of all Americans believe that government efforts would reduce file-sharing and 42% believe that government enforcement would not work very well. Broadband users are more skeptical about government anti-piracy efforts. Some 57% of broadband users believe there is not much the government can do to reduce illegal file-sharing, compared to 32% who believe that enforcement would help control piracy. Current file downloaders are now more likely to say they use online music services like itunes than they are to report using p2p services. The percentage of music downloaders who have tried paid services has grown from 24% in 2004 to 43% in our most recent survey. However, respondents may now be less likely to report peer-to-peer usage due to the stigma associated with the networks. The percentage of internet users who say they download music files has increased from 18% (measured in a February 2004 survey) to 22% in our latest survey from January Still, this number continues to rest well-below the peak level (32%) that we registered in October ].

16 MARKETING GOALS AND OBJECTIVES To make use of [HU$TLIN 4-A LIVIN ENT,INC.] s effective marketing & promotional plan. Release and promote singles with complementary music videos, followed by a full length CD and digital album. Ensure that each project enters and maintains a high position on the music industry music charts. Employ independent music promotion services. Make use of publicity companies to bring together advertising and artist s promotional activities. Create and maintain a positive image for [HU$TLIN 4-A LIVIN ENT,INC.] and its artists by not only being recognized for achieving popularity in sales and music, but also by reaching out to the community such as supporting charities, etc. [Do interviews for hip-hop magazines, photo shoot's, free concerts and free singles giveaway] MARKETING AND PROMOTION STRATEGY When taking into consideration the enormous amount of product being released online and off-line to the music industry throughout the world, it will be important to make sure that [HU$TLIN 4-A LIVIN ENT,INC.] s artists and product remain visible in this highly competitive market. The success of [HU$TLIN 4-A LIVIN ENT,INC.] s releases from a financial perspective will be guaranteed by having a proper promotional and marketing budget in place. This will ensure that our company will generate profits from our releases. The budget will be separated and used to put towards the following plan. As the intent is to release at least three songs off of any given album, we will begin by shooting creative music videos for each of these songs. When the production of these music videos are completed, [HU$TLIN 4-A LIVIN ENT,INC.] will then release the first single and the accompanying music video. Once this has been accomplished radio stations, television and video networks offline and online will be approached in order to make sure that significant broadcasting of the first single is in place. This will be followed up with the release of the second single, and this will take place approximately 2 months after the first. By using this line of attack it will allow [HU$TLIN 4-A LIVIN ENT,INC.] to increase the number of singles sold online and

17 off-line, which in turn will create enough demand for my record label to release a full-length CD. Just prior to the release of the full-length CD, [HU$TLIN 4-A LIVIN ENT,INC.] will begin to concentrate on media promotion. This will include advertisements online and off-line via print and website promotions. From the success of the initial single releases, the industry and its consumers will be curious to learn more about the artist, and we will be providing this through setting up interviews for the artist and also articles written up in relevant music industry trade publications, and music websites. In addition of course radio and television will help to expose the artist who will drop by and give an interview and promote the upcoming full length CD release at the same time. It is at this point that the artist may announce a specific date when the new product will be made available to the public. On the date of the release of the full-length CD, [HU$TLIN 4-A LIVIN ENT,INC.] will ensure that music retailers will be giving our product significant exposure in order to ensure that the public is made aware that this is a new product being released today. This will be accomplished by having previously designed Retailer programs in place which will include having our product made available for listening within the stores, and also by having provided the retailer with window displays and advertisements. From this point on more singles will be released off the album and by doing so this will keep the artist fresh in the mind of the public. Using the momentum created by the above plan will allow [HU$TLIN 4-A LIVIN ENT,INC.] s artists to perform at local clubs and also to make appearances at local radio and television stations and retailers and continued support of the album. RADIO PROMOTION In the past, radio promoters were able to try and impress a radio program director by presenting him or her with a great new artist or song. In turn the station might give it a spin and see how it goes. However times have changed, and receiving a radio airplay today, especially on commercial radio stations can be an extremely difficult thing to achieve. This is due to the fact that most commercial radio stations do not make the decision on the local level in regards to what songs are to be played. Those decisions are these days usually made by a corporate entity. [HU$TLIN 4-A LIVIN ENT,INC.] will employ [K104, 97.9 THE BEAT and radio personality BAYBAY ] which is an experienced and knowledgeable radio promotional company whom will take a realistic approach to promoting our product. This company will work from facts and sales figures relating to our artists, and from this they will approach the appropriate contacts and radio stations based on the current level of the artist's career. This will ensure that our product is not blindly mailed out to hundreds or even thousands of radio stations, but that the product is delivered to radio stations that will be open to playing our music. A significant percentage of these radio stations will include college radio, as these types of stations are usually

18 more open to playing music from independent labels and also newer artists. As our artist s career rapidly progresses, [K104, 97.9 THE BEAT and radio personality BAYBAY ] will already have an established network in place which includes business relationships with the decision-makers at the larger commercial radio stations as well. Once radio airplay has been achieved on commercial stations [K104, 97.9 THE BEAT and radio personality BAYBAY ] will remain involved with measuring the results of the campaign by gathering information from music industry sources pertaining to current chart position and other relevant statistics. BROADCAST MUSIC VIDEOS As part of the promotional campaign, in addition to approaching radio stations, [HU$TLIN 4-A LIVIN ENT,INC.] will also work on securing television airplay for the artist s music videos in order to ensure a larger national and/or worldwide exposure. Besides television, the promotional department will also ensure that several videos are uploaded online to popular music video websites allowing potential new fans who may spend more time online on these websites, than offline watching music programs on TV, to find our product. 1 YEAR CAMPAIGN SAMPLE BUDGET Music Videos 2 Videos $30,000 $60,000 Independent Promotion Publicity Company 6 months $3,500/month, 9 months $54,000 $31,500 Touring/Promotional Travel $2,500/month, 6 months $15,000

19 Print Media $3,600/month, 9 months $32,400 In-Store/Co-op 6 month campaign $37,500 Promotional CDs/Mailings 4,000 CDs/1,000 Singles $5.500 Total Marketing & Promotion Budget $235,900 DANCE CLUB PROMOTION [HU$TLIN 4-A LIVIN ENT,INC.] will be working closely with [ACCESS DALLAS]. This company provides a full range of services that relate to club music promotion and marketing. This will run in conjunction with our marketing and release plans in order to achieve the best possible results for all releases that are geared towards the dance club crowd, and also for releases from our other genres that are remixed for the clubs. In the early stages we will be able to test our recordings effectively by having the club DJs give them a spin in order to test the crowd s response to the track. This will provide us with extremely valuable information pertaining to the production of the track, and also the hit potential. [ACCESS DALLAS] has already established a large network of contacts within the clubs throughout the country and also worldwide. PUBLIC RELATIONS [HU$TLIN 4-A LIVIN ENT,INC.] will make use of [O'Dwyer's PR] in order to create mass interest for our artists in the music marketplace. This company's responsibilities will include arranging interviews on relevant radio programs, television programs, etc, and creating articles and marketing materials relating to our artists. This material will then in turn be sent to music industry publications and other relevant sources off-line and online.

20 Print Advertising [HU$TLIN 4-A LIVIN ENT,INC.] will use a combination of media for our print advertising campaigns including placing advertisements in mass print mediamagazines and newspapers. When deciding on which newspapers to advertise in, we will take into consideration the type of newspaper, geographical area they cover, size of their distribution, and more importantly the type of readership. My record label will strategically place display ads in the proper sections of the publications such as new music releases or upcoming performances in the entertainment section in order to reach our target audience. Magazine advertising specifically in music or music business related magazines will allow us to zoom in on our specific target audience for a particular artist. For example a hip-hop artist, or rock artist, could be promoted in the relevant publications catering to that particular genre. Since advertising deadlines for these type of publications are usually months in advance from publication we will ensure that all departments within my record label are working in sync with each other in order to coincide with the release. A positive point however is that since most magazines are full-color and allow high graphical content, [HU$TLIN 4-A LIVIN ENT,INC.] s creative department will be able to put all their creativity into these ads. CHARITY INVOLVEMENT Both the company [HU$TLIN 4-A LIVIN ENT,INC.] and its artists will make an impact in the community as we become and remain actively involved with Charity. Our involvement will not only be for the benefit of enhancing the public image of [HU$TLIN 4-A LIVIN ENT,INC.] and its artists, but also for the benefit of these charities as we will be able to plan and promote performance type activities which will generate revenue for these chosen charities and also exposure for us at the same time. MOTION PICTURE TIE-INS [HU$TLIN 4-A LIVIN ENT,INC.] will be submitting the music to the movie industry in order to gain additional exposure for our music releases. When a song is included in a movie soundtrack from a major motion picture release, this then translates into an additional revenue stream and promotion for our music.

21 INTERNET MUSIC MARKETING STRATEGIES In response to the growing popularity and necessity for a presence on the Internet, [HU$TLIN 4-A LIVIN ENT,INC.] will create and design an internet presence for itself. [HU$TLIN 4-A LIVIN ENT,INC.] s web site will be intended to advertise the company, announce and advertise new releases, sell company products and merchandise and offer communication to visitors, customers and fans. Furthermore, visitors to the web site will be able to sample music clips from [HU$TLIN 4-A LIVIN ENT,INC.] artists. Management has secured a domain name for the site of which the URL is www. [hustlin4alivinentinc].com [HU$TLIN 4-A LIVIN ENT,INC.] will create space on its web site for each artist signed to the company in order to allow the visitor to learn more about our artists. In addition each artist will also have their own website allowing for a more intimate experience for the fan. Search Engine Optimization. In order to maintain high rankings within the search engines [HU$TLIN 4-A LIVIN ENT,INC.] will use to services of a Search Engine Optimization Company. This type of company will be an invaluable asset in our Internet marketing campaign as they specialize in knowing how to raise the Search Engine positions of all our websites. They will monitor those positions on the regular basis, and adjust their optimization strategies to account for undesirable results in any given month. This job would take allot of time, effort, and specialized knowledge, therefore it is will be in our best interest to outsource this task rather than try to maintain high Search Engine positions on our own. PPC (Pay Per Click) Advertising on Search Engines. Besides using the above search engine optimization strategies in order to reach and maintain high generic rankings [HU$TLIN 4-A LIVIN ENT,INC.] will also make use of pay per click advertising on the Search Engines. Currently the largest PCC program is Google Adwords, however we will also implement pay per click advertising campaigns on other search engines such as Yahoo, and Bing. This will allow us to show up almost immediately within the search engines when a search is performed for a particular type of music or artist. We will be able to use keywords relating to a particular search phrase and in return show up under the sponsored results.

22 Marketing And Promotion. In order to capture the names and addresses from the visitors to our websites [HU$TLIN 4-A LIVIN ENT,INC.] will integrate attractive looking opt in forms were the visitor can put their name and address in. We will give them an incentive to do so in exchange for either a free song, or some other form of incentive. Mainly the purpose of collecting our visitors addresses are to be able to follow up with them with information regarding [HU$TLIN 4-A LIVIN ENT,INC.] s upcoming releases and promotions. This will be done by using auto responder technology were we can pre program a series of s to go out on a particular time and date. The same will be done on our individual artists websites were potential fans can sign up to receive communications regarding the particular artist they signed up to. In addition however to only sending out promotional type s [HU$TLIN 4-A LIVIN ENT,INC.] will also be sending interesting articles, and from time to time another freebie to the subscriber as a thank you for being on our ing lists. Blogging [HU$TLIN 4-A LIVIN ENT,INC.] will be setting up a blog for the company, and also for each individual artist. Blogging about our company and our artists will be another ideal way to create new fans and come in contact with people from all parts of the world. Since we will also be discussing certain topics within the genre or the general music industry as a whole, such diverse people who will visit from different countries and cultures may have different viewpoints and will wish to discuss it. Therefore, this will open the opportunity for a great deal of discussion and debate, which in turn will make the blogging site more interactive and sticky as people will more likely come back often. When the relevance and keywords used in any articles posted on our blog match the search terms of a user in a search engine, in time this would also increase the rankings of our websites in the search engine's considerably. Social Network Marketing In order to have a presence in all of the popular social network of websites, [HU$TLIN 4-A LIVIN ENT,INC.] will be joining all the currently popular social network websites and set up profiles for our company and our artists. Most of these websites work in a way where you add friends to your profile, and this will allow us to find, or be found by potential fans with similar tastes in music to the products that we create. Many of these types of websites also allow for paid advertising similar to the pay per click concept. We will take advantage of this type of advertising and create ads targeted to a specific user group of people on these websites. For example we will be able to narrow down an advertising campaign only to show up on the profiles of people to listen to a particular type of music etc. Example of Social Network Marketing - Twitter

23 [HU$TLIN 4-A LIVIN ENT,INC.] will take advantage of the popular social networking website Twitter. This micro blogging platform will enable us to post messages on what we are doing. [HU$TLIN 4-A LIVIN ENT,INC.] will set up a one main account for [HU$TLIN 4-A LIVIN ENT,INC.] and also individual accounts, one for each artist. Our accounts will be fully customized in order to represent the image of [HU$TLIN 4-A LIVIN ENT,INC.] and our artists by using our logo and also the artistic graphical images in the background of the artist s page. Twitter will also allow us to add a URL back to our label website and also our artists websites. Our individual artist twitter pages will also contain a short artist Bio which is currently limited at 160 characters. However this will be sufficient in order for our artists to sell themselves using keywords relating to their genre, etc. Since twitter is a great way to meet new people online, particularly those with similar interests, [HU$TLIN 4-A LIVIN ENT,INC.] will be able to target and attract potential fans who mention particular musical interests in their own bios on twitter. Since twitter allows potential fans to use their mobile phone in order to get updates, we will be able to reach them this way as well with any news from our artists. [HU$TLIN 4-A LIVIN ENT,INC.] will eventually have a team of staff members dedicated to setting up and maintaining these accounts. [ Article Marketing. [HU$TLIN 4-A LIVIN ENT,INC.], and its artists will be able to make use of article marketing in order to write about any given topic such as a musical style or what's happening in the industry etc. Articles can be submitted ourselves to article directories or also via article submission services who in turn will send out the articles to all of the article directories related to what we are writing about. The benefit of writing and submitting an article to be posted online is that there is room for a resource box on the bottom of the article such as this article was written by [HU$TLIN 4-A LIVIN ENT,INC.], or [ YOUNG FELLAS ] with a link back to any of our websites. It is of great benefit as well in order to generate additional traffic, if we allow our articles to be re-posted by others on their own websites as long as the resource box is kept intact. This allows for a possible viral effect to take place.