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Inhance Media is social commerce business connecting Artists

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					                                           Executive Summary
                              Inhance Media, Inc. has developed new patent-pending technology for tightly
                              integrating commerce with social networking to exploit the revenue potential of viral
                              marketing and sales. Our site, Inhance.Net, is a social/commerce network focused
                              on the highly coveted consumer segment of bands, their music and their fans. By
                              leveraging music, advertising and sales technology, and an extraordinarily rich user
                              experience, we believe we will quickly attract a large volume of users and generate
                              more revenue per member than any other music or social networking business.

Funded and advised by some of the biggest names in the music business, Inhance.Net is a superset of consumer
features from three successful business categories: 1) Social Networking, e.g. MySpace, FaceBook; 2) Digital
Downloads, e.g. iTunes, Rhapsody, Jamster, etc; and 3) Gen X/Y Lifestyle Retail, e.g. Zumiez, Hot Topic, etc.

Inhance.Net goes well beyond linking members of a social group with rudimentary communication tools.
Inhance.Net is an effective music and merchandise sales environment, subtly woven throughout a very fun, very
cool Flash-animated user interface, specifically tailored to bands, their music and their fans. The Inhance.Net
website is graphical, animated and highly stylized, resulting in an all new user experience that, in testing, elicits
immediate positive response from our target audience. We believe it is perfect for the audio/video subject
matter and creates a tremendous business advantage. Further, it gives Gen X/Y brand advertisers extraordinary
freedom of expression to tell and sell.

Today, more than 100 million music fans spend some of the highest “time per visit” sessions on websites such
as MySpace, FaceBook and others. Unfortunately, these users must leave the social network to actually
purchase music, ringtones, band merchandise, unique Gen X/Y clothing and accessories, and a myriad of other
consumables that they love. Similarly, more than one million artists and bands have created a page on
MySpace, but cannot actually sell their music, create CDs, t-shirts, manage their performance calendars, and
other sales and marketing activities without utilizing a variety of online and traditional businesses. Finally,
while the traffic on many social networks creates tremendous revenue potential, highly desirable Gen X/Y brand
advertisers are limited to serving banner ads to these passionate consumers. Gen X/Y brand advertisers are not
able to leverage the One-to-One-to-Many viral sales potential that social networks theoretically represent.

National brands and advertising agencies have always used the star power of celebrity endorsement to influence
consumers. Using our state-of-the-art interface and product placement sales technology, Inhance.Net harnesses
the trendsetting power of individual artists and bands, and turns this trendsetting power into the world’s largest
“direct sales force” for Gen X/Y lifestyle products and services. With Inhance.Net, companies can target
highly specific demographics or geographies and instantly leverage the influential star power of a national act or
an up-and-coming new band to directly recommend and sell their products to their most desirable consumers.

Our research shows that bands, fans and brands are frustrated with disintegrated socializing and shopping on
today’s social networks, and instead would prefer to integrate these services in one location. Inhance.Net
represents a new web experience and delivers the following integrated features to bands, fans and brands:
                Bands                                  Fans                           Gen X/Y Brands
   Website design/hosting                Website design/hosting             Advertise to specifically targeted
   Stream/sell songs, ringtones,         Purchase music from all major       bands and fans
    photos, etc.                           music labels and Indie bands       Direct sales in the retail stores of
   Advertising and retail sales          Other digital downloads such as     individual bands
    revenue sharing                        ringtones, games, etc.             Create self-branded websites and
   Custom CD production/sales            Social Networking tools such        online retail stores
   T-shirts, hats, and other custom       as email, photo sharing, IM,       Comprehensive ad campaign
    band merchandise                       blogging, PodCasting, etc.          management, storage and
   Communicate with fans via             Create custom CDs, t-shirts,        streaming technology
    email, IM, video, blogging,            etc. from favorite bands           Endorsement by Bands/Fans via
    PodCasting, etc.                      Purchase Gen X/Y products           IM, email, blogging, and other
   Business management tools              from exclusive brands               viral marketing methods
The bands/fans market segment was carefully chosen based on size, spending and overall zeal. In the US alone
there are more than 3 million individual musicians and more than 400,000 consistently working bands. On
average, these bands spend more than $3000 per year on CD production, website design/hosting, digital
distribution, posters, t-shirts and a wide variety of other music products and services. In addition, there are more
than 100 million members of various social networks, most of which are passionate music fans who spend
billions of dollars each year on music, mobile services and various lifestyle products and services. Through
Inhance, independent musicians and bands can take control and make more money from their artistry and fame
than any other single source of management or distribution. On Inhance, fans will do more than simply interact
and purchase, they will engage and interact at a deeper level than on other social networks. Inhance will
become part of their routine, individuality and lifestyle. And leveraging Inhance, Gen X/Y brands will influence
and directly sell to these highly engaged consumers, as never before.

Inhance has valuable content partnerships with major record labels, mobile content providers and custom
merchandise manufacturers. These are key company assets that create compelling, differentiating content. We
believe our content and customer acquisition tactics will allow us to achieve early, large-scale trial and that our
features and usability will result in the acquisition and retention of a critical mass of 100,000 bands and one
million fans within 15 months of launch. We believe our technology will provide a rich user experience that
will result in longer “time per visit” sessions than other social networks. Our research shows that our bands will
spend at least $200 per year on our site; our fans will spend more than $30 per year, and the accompanying
traffic will generate $10 million per year in advertising and sponsorship revenues. At the 100K/1M, band/fan
membership milestone, we will generate an annualized run-rate of $60 million per year from the following
highly scalable digital and hard merchandise revenue streams:
     Digital music downloads (Major labels and Indie)           Custom CD manufacturing and sales
     Other downloads, e.g. ringtones, wallpapers, etc.          Custom clothing manufacturing and sales
     Mobile messaging, games, contests and services             Reselling select GenX/Y merchandise
     Premium membership (basic usage is free)                   Advertising, placement, sponsorships

Inhance was founded in 2005 by former USC quarterback Brandon Hance and an exceptional group of graduate
and doctoral students from various USC School’s of Music, Business and Computer Science. Today, Inhance
has nearly 50 employees in Los Angeles and an engineering subsidiary in Mumbai, India. This rising young
team has been surrounded by seasoned professionals from Ernst & Young, Apple Computer, Microsoft, Konami
Digital Entertainment, AvenueA/RazorFish, Warner Brothers, Capitol Records and the Universal Music Group.
Collectively, we have more than 100 years of technology and music industry experience including 40+ platinum
records, more than a billion dollars in record sales, and more than 50 software product development/launch
cycles. Based on this diverse experience and successful track record, we feel we are uniquely qualified to win in
this business category.

Our company is closely held with an “A” round of preferred equity financing coming from company insiders,
friends, family, and high net worth individuals in the music and entertainment industry. We are currently
seeking a second round of equity funding to rapidly scale personnel and technology infrastructure, and to create
sufficient customer acquisition and other marketing programs to achieve our revenue forecasts. Based on our
previous fundraising success, we believe additional funds will be readily available that will allow us to execute
our business model quickly and efficiently.




                                             My Music.      My Life.

				
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posted:7/28/2012
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