We done our research and strategy on creating a viable online radio station for the hood that will work for the hood and our people. Our goal is to create a positive and progressive alternative to the crappy terrestrial Black radio stations we got that are negative, trifling and ran by self-hating Boule morons seeking to exploit and asperse the culture of African-Americans for profit. Overall, running an online radio has been legislated with political lobby by the radio stations and music industry to be very expensive for any amateur to enter the game. However, we some straight hustlers here and we found plenty of loopholes and workarounds to create a Black radio station and that is the information we are going to share. Understand Online Radio Is Too Expensive Since online radio has been legislated in early 2000s, cats cannot just download radio software and stream songs over the Internet. If you visit the ruling at http://www.copyright.gov/fedreg/2002/67fr45239.html you will see that it cost about .002 per performance, per stream which means if you are playing 15 songs an hour for 24 hours and 365 days a year and you have 2,500 listeners, that is a cost of .72 per day from each listener and $657,000/year in royalty fees to pay out for an online radio of that load. The average cost of a good online radio nowadays is around $200,000/year and that is just royalty fees you got to pay out. Not going to talk about it in this article but this is why I told you to look at creating radio stations in emerging parts of the world like Africa in Tanzania and Kenya and Nigeria or in Malaysia or Indonesia or even Columbia or Peru where these high royalties do not exist but you can monetize off a large audience at a higher profit margin. You may be able to do terrestrial radio in those countries as a hybrid operation – keep this international option in mind as you read this article. Now, if you can figure out the exemption here at http://www.law.cornell.edu/uscode/text/17/114 and I think it is a possibility what I’m talking about doing actually falls under this exemption but do not know yet of this writing, then we may find it financially easier to launch Black streaming radio stations in our hood. But overall, if you try to do the common thought of just playing songs all day over the Internet as an online radio station, you are going to spend more than six figures a year. Here is the problem with spending $200,000/year playing popular songs and stuff like that – the broadcasting of the songs have zero economic value and are basically a commodity. You are not going to make money playing popular rap songs or top 40 stuff because people nowadays can get those songs anywhere, including YouTube audio ripping and peer-to-peer downloading of that song. So you are basically paying all that money to broadcast popular songs that have no value to the audience you are targeting because they can listen to it through other channels. The challenge to launching an online radio station is to reduce and control the amount of royalties you have to pay out. Terrestrial radio like to put on talk radio and comedians to crack jokes or have cats call in and say Black women ain’t ish and Black men ain’t ish either to have discussions instead of play songs to pay out royalties. What we strategized for our online radio launch is to use a combination of geo-fencing and stream limiting so we can control the cost of the online radio operation and not be blindsided by popularity and have to pay a lot of money we don’t have. Scattered Vs Centralized Looking back at the dotcom failure, one of the biggest failures was a firm called Web Van that tried to be an online grocery that deliver food from a warehouse. You go online, make an order and they ship food to your front door. I believe I used that service and some cat came with a bin and took all the food out of the bin we ordered and said have a nice day and I think he expected me to tip him too. The reason why they failed was because they launched as a nationwide service and was stretched too thin. However, PeaPod and other home grocery services stayed local to one area like Chicago and still in business to this day. The point of this story is similar to online radio broadcasting – you don’t want to just launch some web operation then run your mouth talking about you national or international or anybody in the world can now access your web stuff – you sound like a complete dumbass talking like that. Instead of creating a scattered national or international online radio operation where someone in Dusseldorf, Germany can listen to your online radio and it cost you money but they not spending any money, you focus on being local and specific to an area like the West Side of Chicago or South Side of Houston and promote small in that area. That way, you control your growth and you also control how much money you spend and target those who are there to make money. This is why you focus on centralization. So for an online radio station, what we decided was either we can use a wi-fi/WLAN coverage for a small area in a hub market and let people in that local area stream the radio station. For example, we take a busy corner in Harlem for example and run a store-bought $50 Wi-Fi router with $50 range extender antennas on top of buildings and limit only to 50 people to listen to at first launch. This is a physical implementation of limiting to a local area in Harlem so cats locally can listen to the radio station. Or we can just do it over the Internet and with an app, we geo-fence where the geo-location coordinates of the person, if they are not located in Harlem, we cannot play a stream for them and tell them they outside of the network. While this sound crazy to you, I want you to think about this strategy for a minute. The first thing is if we focus on the 4th Ward in Houston commercial zone hub area, we promote local businesses in the 4th Ward in Houston on our small radio station like barbershops and hardware stores and bakeries and we do interviews and broadcasts with them. But in addition, anybody who enter that area, we got these audio streams interviewing local business with local ads and that creates a hypermarketing opportunity to encourage spending in the 4th Ward Houston businesses. So you think of numbers like “oh, you don’t got a million listeners!” like some sideline punk, then you don’t understand quality versus quantity or the long-tail aspect and need to go to business school to understand how money is made, homey. Because that 50 stream is enough for 50 cats to come into the community, listen to an active radio station and we promote local business and they walking distance to go support a local business. The majority of economic activity comes from people who are less than 6 miles to a business. That’s called being smart with local Black radio, not chasing popularity with local Black radio and make it work for the local Black community. Applied Area Domination We discussed area domination in the following article link http://www.dreamandhustle.com/how-hood-entrepreneurs-can-learn-from-7-eleven-area-domination-strategy-to-pursue-our-global-domination-strategy/ and it’s funny no one provided one comment or feedback on the article although this is the core strategy to all of the hustles we are working on and the one that we believe will work. I love how Black people act like they have a problem discussing business strategy from someone who is not White or like to listen to business advice from some jive ass Black business con artist with a suit on. But anyway, instead of launching a radio station that covers all of America, what me and my crew going to do is launch radio stations that focus on one hood at a time – yes, one hood at a time. We are not going to build a radio station focusing on Chicago, we are going to focus on 87th and Cottage Grove and Chatham area with a radio station that promotes local artists, local business and still play the popular music and other good syndicated content. Then we going to concentrate on area domination of 87th and Cottage Grove in Chicago with local advertising and promotion to local cats in that area. See, we will do it like 7-Eleven where they focus on one area, dominate that little area and extract profitability out of that area. Then we move to the next area and extract profitability. Do you know who else does that besides 7-Eleven? Yeah, you guess right – Wal-Mart does the same strategy and that’s how they are one of the richest firms in the world. Guess who else does that? Yeah, you are so smart – Shell and BP does the same thing with gas stations with identifying local profitable areas one spot at a time. So instead of this crazy national rollout, we focus on small areas, promote a small radio station in a hood area and then promote local businesses and get the money from that area and then move on to other corners in the hood all over the country like we Starbucks and ish. If a radio station is not profitable in a hood corner, we shut it down and divest from that area and just focus on profitable areas around the country. That’s how an online radio station can be properly managed instead of some big national rollout and going into debt real fast paying out $200,000 in royalties. Execution Okay, some of you skeptics still thinking how do you roll this kind of online radio station out because after all, CARP still need $10,000 upfront to get started. That $10,000 is inhibiting cats from starting their business. So here is our execution strategy. Pre-Launch Web Site. This will be a web site for our online radio broadcast and we will not start broadcasting. The goal is to get users to signup and what we will do on that web site is showcase the type of music we will play and we will use our data to target local business in that area over the web. The goal is to hype up that little area to know we are about to show up. We get advertisers lined up and we embed YouTube videos of the artists on our upcoming playlist with a link to iTunes to start generating revenue before we even broadcast. Kickstarter. This is optional but something you can consider to raise your $10,000. If you pick the right area, you can crowdfund and pitch this same idea we doing to raise your $10,000 or even your first year of $200,000 to cover the royalties payout. Explain how you will do it through geo-fencing or do it through physical WLAN transmission and the benefit for local economic development and how you will expand to other locations. I bet your ass will get a lot of people wanting to see you launch this if you do the Kickstarter right. You give cats who invest advertising time, acknowledgement over the air or premium services and that is what we talking about next. Build the Premium Services on the Commodity Broadcast. The broadcasting is a commodity and not going to bring in any money. What is going to bring in money is having people in Atlanta pay a subscription to listen to the local broadcast in Brooklyn, their hometown. Then you have as an iOS or Android mobile application a streaming software that let people buy songs being played off iTunes, display advertisements and coupons for local business and you get a cut of that revenue. You build interactive services on top of the broadcast, something terrestrial radio cannot really do right now. Area Domination. If you do physical installation of WLAN, that comes at a physical cost of cats wanting to sabotage your ish. But if you do cloud-based broadcasting and geo-fence so only cats in Dallas can listen to it, you can geo-fence other areas around the world quickly to manage the number of streams and your local area buildup properly. For real, stop all this “nationwide/international launch” crap that is too big and too wide for you to manage and you go broke real fast with some cat in Ohio listening to your ish and you cannot make money off of. Focus on building up locations and make them profitable and move on to the next one. Now, what you will end up doing is creating a super Black online radio empire that span multiple cities and here is what you do next – now you can syndicate shows and national advertising campaigns to all those local Black communities while promoting the local communities at the hood level at the same damn time. Your online radio operation will be manageable and not blow up out of control because you have the formula to hype up a local area, see if the hype response is there before launching and then you run that local area. Remember – focus on the urban high density hoods, work with local businesses in that small area and promote to that small hood area and take in revenue. Then you do that with the Hispanic and Korean community with their music then you take that same hustle worldwide and then you got a real Black-owned and operated radio broadcast empire that truly touch the local community and have a real media empire on your hands.