Introduction
The Gigmasters.com Gigmasters online booking system was created to help consumers hire live entertainment at weddings, corporate events or other events. The company boasts a list of more than 15,000 musicians. In recent years, the company has added entertainment services such as comedians or dancers to its roster.
Gigmaster’s online booking system takes advantage of the Internet’s ability to organize and connect the fragmented marketplace of musicians and entertainers into a searchable database that is consumer-focused, and easy-to-use.
Gigmasters operates as an owner-managed company. Kevin H. Kinyon (co-founder) and Michael J. Caldwell (co-founders) are the two individuals who manage the site. 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 receives a 10% commission each time it brokeres a transaction between a buyer or seller of entertainment services. The seller pays the company their commission. In addition to booking commissions, Gigmasters earns revenue from corporate sponsorships of its bi-monthly newsletter. Amazon.com has been a sponsor in the past.
There are many other websites which connect buyers to sellers of services. However Gigmasters focuses primarily on music and entertainment. It offers many benefits to its customers by doing this. Gigmasters is the only company that provides online press kit, which allows customers to hear and see entertainers prior to hiring them. Gigmasters is the only company to offer an online bidding system that allows customers to receive competitive bids from entertainers. None of its competitors do.
In addition to its primary revenue sources of booking commissions and corporate sponsorships, the company also derives revenue through additional fee-based services it offers its entertainers. As the company expands and has additional resources these secondary revenue streams become increasingly important.
The Market
Research indicates that the United States spends close to $9 billion each year on music, entertainment, and other media. The wedding industry is the biggest part of this market. Every year there are more than 2.3million weddings. Music is used to fund over $3.2Billion of these events. Other elements of the industry include nightclubs, festivals and corporate events.
There are also approximately 13,239 traditional (offline) booking agents in the United States. They are paid $2.4 billion per year. Many have websites, but few, if any, offer the ability to book directly online. These sites look more like corporate brochures and feature only a few big-name entertainers. There is no contact information for more 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 events are the Gigmasters market.
The company will look to establish strategic partnerships with sites like WeddingChannel.com and TheKnot.com. These sites are used by wedding planners and party organizers. Gigmasters will offer these high traffic sites the opportunity to share in a viable revenue sharing program, and, in return, Gigmasters will benefit from a steady stream of traffic and increased revenue.
Considerations for Financial Planning
Gigmasters has raised $100,000 (representing 5% equity), to expand its business and pay office, salary and advertising expenses. Minimum amount required is $70,000
The company hopes to make solid profits by 2003. These estimates assume a conservative estimate of bookings growth. If funding can be secured, the company should not have major cash flow problems.