Introduction
The Gigmasters.com Gigmasters online booking service was created to enable consumers to find and hire live entertainment in order for them to host weddings or corporate events. The company has over 15,000 musicians in its database. More recently, it has expanded its offerings to include other entertainment services such as comedians, dancers, caterers, photographers, etc.
Gigmaster’s online booking platform uses the Internet’s ability organize and connect the fragmented market of musicians and entertainers to create a searchable database that is user-focused and easy-to use.
Gigmasters is an owned-managed business. Kevin H. Kinyon is the site’s cofounder and Michael J. Caldwell runs it. John Sortino joined their Board of Director recently. All three of these gentlemen have extensive experience in Web development, business development and financial management.
Services
Gigmasters collects a 10% commission fee each time it brokers a transaction between a buyer and seller of entertainment services. The seller pays the company their commission. Gigmasters makes revenue through corporate sponsorships. Amazon.com was a past sponsor as were Emusic.com RollingStone.com Bluelight.com.
There are many other websites which connect buyers to sellers of services. However Gigmasters focuses primarily on music and entertainment. It provides many advantages for its customers. Gigmasters is the only company to offer online presses kits, which allow customers to listen and see entertainers before they hire them. Gigmasters is the only company to offer an online bidding system that allows customers to receive competitive bids from entertainers. It doesn’t have any competition.
The company’s primary revenue streams are corporate sponsorships and booking commissions. However, it also makes revenue from additional fees-based services that it offers to entertainers. These secondary revenue streams will play a greater role as the company grows.
The Market
According to research, the US spends nearly $9 billion annually on entertainment and music. The largest component of this market is the wedding industry. Each year there are over 2.3 million weddings. Over $3.2 billion is spent on music. Other elements of the industry include nightclubs, festivals and corporate events.
The United States also has approximately 13,239 traditional (offline), booking agents. They are paid an average of $2.4 million annually. Many websites offer bookings online, while few of them, if any, have these facilities. These sites are more like corporate “brochures” and spotlight only a few of their big-name entertainers with little more than a phone number available for further information. These agents focus on the high-end market and tend to overlook the huge number of people searching for bands for their private parties, weddings, fraternity dances or corporate Christmas parties. These are just a few examples of the Gigmasters marketplace.
The company will seek to form strategic partnerships with sites such as WeddingChannel.com, TheKnot.com, iParty.com, and Evite.com, whose customers are planning weddings, parties, and events. These sites are high in traffic, and Gigmasters offer them the chance to share in a profitable revenue sharing program. In exchange, Gigmasters receive a steady stream traffic and increased revenue.
Considerations for Financial Planning
Gigmasters is looking to raise $100,000 (representing 5% of equity) to expand its business and pay salary, office, website and advertising expenses. The minimum amount required to raise money is $70,000
The company is expecting to earn solid profits in 2003. These figures are based only on conservative estimates for bookings growth. If the proper funding can be obtained, the company does not expect any significant cash flow problems.