2004.04.20

Hello Harpers

I am passing on this information as I have found a relatively painless and soon to be effective way to create a web based distribution of your CDs. Favestreet is very much in Beta and is starting on what is the first phase of a five phase program that promises to be an exciting development for independent musicians. I trust the motivation and creators behind this project implicitly.

I have two "mentors" on the web (David Nevue & Bob Baker) that I follow and watch assiduously as they are the only so-called "experts" that I can find on the web that actually have the artist's interests at heart. All the other offered advice I find is the fame-gravy-train industry centric pap where the ever renewing multitude of artists are treated as the krill at the bottom of the food chain to be harvested for the profitability of the few at the top.

I have a major project in the works that requires me having access to a number of harpist's CDs to sell through my Favestreet store. I am encouraging you to read the following description and consider enrolling as a Favestreet Artist Partner. I have enrolled and encourage you to do so as well. This is not multi-level-marketing. It is for REAL! Let me know if you are interested.

I will let David and Bob speak for themselves if you wish to explore their links later.

Namaste
Stephen Vardy
[email protected]

(The following has been lifted and abridged directly from David Nevue's Favestreet page.... copyright is ascribed to David but I have found it published elsewhere as it was most likely written by Bob Baker)

FaveStreet Distribution - For Independent Musicians

What is FaveStreet? FAVE stands for "Faith and Values Entertainment," and is a distributor of "family friendly" music by both independent and major label artists. FaveStreet offers you an opportunity for selling and promoting your music unlike any other.

FaveStreet loves the idea of OMD (Online Music Distribution), but realizes that good, old-fashioned marketing is still required to give independent artists an equal opportunity to receive the attention they deserve. That's why FAVE does things a bit differently.

First, if you partner with FAVE, you get your own retail store. You get more than just a web page, you get an entire store from which to sell your music. Here's why....

The average music buyer is searching for music by established artists they already know and love. FAVE understand this, and FAVE's marketing approach to independent music takes advantage of this. As a partner with FAVE, your music is positioned right alongside the CDs of chart-topping artists in your store. So, when someone comes searching your store for music from say, Johnny Cash, Third Day, Shania Twain, Norah Jones or U2, your product is featured on that very same page.

Not only that, but FAVE PAYS YOU for the sale of these other artist's CDs, too. So you make money not only when you sell your own CD titles, but also when your visitors buy the titles of their favorite major-label or independent artists. Think of it. You can let your fans know that when they buy ANY CD from your store, they are supporting your music. You're no longer dependent on your fans buying your new CD release and then waiting two years until you release another album before they shop again. Your fans can support you on an ongoing basis by buying all their music directly from YOU.

FAVE rewards success. If your CD does well in your own store, FAVE will expose your music to larger and larger audiences within the FaveStreet network of stores. As your sales grow, and as your CD proves itself, you'll benefit from increased exposure. FAVE then take those artists who succeed online and moves them into retail distribution. That's right, your 'independent' CD becomes available in traditional retail outlets - like Wal-Mart.

FAVE brings new customers to YOUR MUSIC. FAVE has spent the last three years developing relationships with thousands of non-profit groups whose memberships currently exceed 30 million people! These non-profit organizations - church youth groups, school clubs, symphonies, charities, and even independent media and radio stations - use FaveStreet as a fundraising program for their cause. They have their own stores, too, and they raise money by selling CDs, DVDs or VHS titles to their supporters. As a partner with FaveStreet, your music is automatically included in their catalog. These customers, who have never heard of your music, will be able to search for, sample and purchase your titles through FAVE.

There are ZERO up-front fees for establishing your own FaveStreet store. Nice, huh? Unlike other OMD stores, FaveStreet recovers set-up costs and IT expenses ONLY if you have success selling music from your store. You never pay a dime out of pocket. FAVE will never ask you for your credit card. You'll never owe FAVE anything. FAVE wants to put your music in front of millions, pay you better than the major labels or distributors, never charge you a penny, and we will never require exclusivity or long-term commitments.

Here's what your FaveStreet Store will look like. You can put whatever banner you want at the top, edit the title bar text, and put whatever item you want in your "featured artist" spot in the top right corner. There are many more cool features in the works right now. We're putting together a quality, full-featured retail store you'll be proud to say is your own.

FAVE is willing to negotiate cost-per-unit with established indie artists and labels as necessary. For new artists, FAVE operates from set parameters (details below). The following chart compares FaveStreet's compensation plan with Major Distribution and typical Online Music Distributors:

*FAVE's compensation plan always exceeds plans offered by traditional major distribution companies. At the same time, FAVE remains competitive with the best of the OMD's. Here's the details...

FAVE pays you a 33.4% commission on the profit from the sale of ANY title from your store, including major-label releases. This amount is your retail commission. For your own CD titles, you receive a wholesale cost-per-unit (CPU), plus the 33.4% retail commission. Example: For new artists, FAVE's recommended CPU is $6 on a CD. So when you sell your own CD, you receive $6 + 33.4% of the difference between the CPU and the retail price you set. If you set your CD price at $14.95, your gain is approximately $8.98 per sale. At $12.95, your gain is approximately $8.32 per sale. Don't forget, while you're selling your own CDs, you're also getting retail commissions on any other CDs, DVDs or videos sold through your store.

FAVE also pays referral commissions of 8.35% of the profit, on all sales by artists or labels you refer to FaveStreet. Thus, if you partner with FaveStreet, and you refer another artist, non-profit group, or label who also becomes a partner, you earn an 8.35% of the profit from all of their sales, in addition to the 33.4% of profit you are getting from your own sales.

The Bottom Line is...

When you partner with FAVE, you get your own full-service record store. FAVE handles all content management, stocking, fulfillment, accounting and reporting. All you do is promote your store to your fan or client base. Also, you'll never have to shop for 'best price' on your own music purchases, as you can purchase from your own store and receive a 'rebate' via your own commissions.

Covering Expenses: As previously stated, FaveStreet does not require any up-front fees, and you'll never have to pay FAVE anything to participate. However, FAVE does reserve a portion of your retail commissions (the 33.4%) to cover the expense of maintaining and operating your store for you. The reserve amount is 50% of your retail commission up to a maximum of $20/month. Please understand this reserve comes only out of your retail commissions (the 33.4%), not the wholesale cost per unit you receive for your CD. Example: If you make $10 in retail commissions in a calendar month, FaveStreet reserves $5 (50%) of that to cover the cost of maintaining your store for that entire month. If you make $1000 in retail commissions, FaveStreet reserves only $20 - you get $980. Again, you'll never owe FAVE anything. You never pay a cent out of pocket. This is just how FAVE tries to cover some of the costs of operating the system. If you have any questions about this, please contact us.

Shipping and Fulfillment: FAVE has fulfillment facilities in Tennessee and North Carolina. Many labels or artists prefer to do fulfillment themselves, and if you wish to do so, you can do that. But if you'd rather not bother, FAVE offers complete shipping and handling services. You just send your products to FaveStreet, and it's all taken care of. FAVE becomes your warehouse.

Customer Info: When someone orders your product from your store, you'll be forwarded the customer's information so you know who bought your CD. This allows you to follow up and develop a relationship with your customer beyond your FaveStreet store if you wish.

Brick-n-Mortar Distribution: FAVE has traditional distribution relationships for top-sellers in the FaveStreet system in both the general (like Wal-Mart) and Christian Booksellers Association (CBA) markets. Qualification is open to all FAVE partners, and may be immediately available to established artists and labels.

This is only the beginning

Everything you have read is just Phase One of a five-phase business plan designed to rattle the structure of the existing music distribution model.

Even Phase One isn't complete yet. What you see at the store now isn't the final, phase one product. There's more to come - lots of new features in the works, including streaming audio clips, digital distribution, and a fully-stocked CD and DVD catalog. We're taking our time, taking it slow, putting together a quality, full-featured store.

Are you ready to Partner with FaveStreet?   OK, But Read This First....

FAVE stands for "Faith and Values Entertainment" and as such adheres to a "family friendly" standard for all content. In other words, FaveStreet won't distribute or sell obscene, violent, adult-oriented or 'Warning Label' products. Though FAVE does not advocate or condone government-imposed censorship, this decision has been made as a private company. What, exactly, is the FAVE standard? As the founder says, "If I have to put my hands over my 7-year old daughter's eyes or ears when playing a CD or DVD," FAVE will not carry that title.

Is your music family friendly? If so, and if you'd like to distribute your music via FaveStreet, fill out and submit the Partner Program Form. A representative will get back to you to give you more information on how to proceed. Also, there is a conference call every week where you can find out more about FaveStreet and ask ANY question you have. The call-in information changes weekly, so if you submit the form, we'll get you the info for the next call as soon as we have it.

(Stephen's Note: The conference call hosted by Bob Baker takes about an hour and is a real eye opener.)