11/04/2024
Business Proposal for Implementing a Wireless Remote Tracking Video Online Paid Experience for Rick’s Cabaret New Orleans
Prepared for: Rick's Cabaret New Orleans
315 Bourbon Street
New Orleans, LA 70130
Prepared by: StormBorn Productions LLC
I hope that this finds you well, and that as a friend who used to work across the street at The Royalsonesta as a bar back when I was twenty one, I know the value of the hard work it takes to earn a dollar.
Please take the time to truly consider this opportunity for $800,000 a year profit in the first year after implementation with a starting minimum subscription base of around 3,000 monthly subscribers!
This opportunity has the potential for unlimited income for a pittance of less than $100,000 investment.
Please believe me when I say that I’m looking out for your best interests; which I’m sure are like all the rest of humanity’s, the ability to pay our bills, look after our families, keep them safe, and enjoy the finer things in life.
I have come a long way in the twenty two years since I left the Royal Sonesta to pursue a degree at University of Louisiana at Lafayette and continue my progression through life.
I am soon to be add to my laurels a Master’s of Science in Entertainment Business from Full Sail University. My degree will be conferred on December 27th, 2024!
My continuing education has helped tremendously with my knowledge of the business aspects of the entertainment industry.
Executive Summary
StormBorn Productions proposes to implement a comprehensive wireless remote tracking video online paid experience for Rick’s Cabaret located at 315 Bourbon Street, New Orleans, LA. This proposal outlines the necessary steps, costs, and strategies for launching a high-quality, engaging, and legally compliant streaming platform with wireless remote tracking cameras capable of running for 16 hours or more, wireless audio systems, age verification systems, robust user engagement features, and integration with the club’s house sound system. The goal is to provide a secure, immersive, and profitable platform for streaming and tipping dancers, including VIP rooms for private shows accessible only to paying VIPs.
Objectives
• Enhance Digital Presence: Extend the club’s reach to a global audience.
• Increase Revenue Streams: Generate additional income through subscriptions, tips, exclusive content sales, and VIP room access.
• Ensure Legal Compliance: Adhere to local, state, and international laws regarding online adult entertainment.
• Provide High-Quality Experience: Use advanced wireless technology for an immersive viewing experience.
Market Analysis
The online adult entertainment industry has seen significant growth due to increased internet accessibility and technological advancements. The U.S. adult and pornographic industry is valued at approximately $10 billion, with online platforms contributing a substantial portion of this revenue.
Competitor Analysis
• OnlyFans: Subscription-based model with tipping.
• CamSoda: Live streaming with integrated tipping.
• Chaturbate: Free live streaming with optional tipping and premium content.
Target Audience
• Adults aged 18-50, primarily male, interested in adult entertainment and live performances.
• International audience with high internet pe*******on and discretionary spending.
Implementation Plan
Phase 1: Initial Setup and Implementation
Step 1: Legal Compliance and Age Verification
1. Consult Legal Experts
• Engage with local legal firms to ensure compliance with Louisiana Revised Statutes and New Orleans ordinances.
• Obtain necessary permits and licenses for online adult entertainment.
2. Age Verification Systems
• Implement age verification systems such as Jumio, Veriff, ID.me, Yoti, and Onfido to comply with local and international regulations.
Step 2: Website and Mobile App Development
1. Hire Development Team
• Utilize Fiverr for experienced developers and designers.
• Estimated Cost: $5,000 for website development, $5,000 for mobile app development (iOS and Android).
2. Design and Development
• Design Phase: User-friendly interfaces and interactive features.
• Development Phase: Backend infrastructure for streaming, payment processing, and age verification.
• Testing Phase: Comprehensive testing across devices and browsers.
3. Compliance Integration
• Integrate age verification systems into the registration and login process.
Step 3: Wireless Remote Tracking Camera System Setup
1. Purchase Equipment
• 8 PTZOptics Move 4K Auto-Tracking PTZ Video Cameras with built-in tracking capabilities and battery life of 16 hours or more at $2,199 each = $17,592.
• Wireless tripods and mounts for camera setup: 8 at $100 each = $800.
• Blackmagic Design ATEM SDI Extreme ISO 8-Channel Switcher = $1,295.
• Total Camera System Setup: $19,687.
2. Installation and Configuration
• Use less intrusive camera mounting options such as discrete wall mounts, ceiling mounts, and compact mounts to ensure minimal disruption to the club’s aesthetic and operations.
Step 4: Wireless Audio System Configuration
1. Purchase Equipment
• Wireless audio transmitters and receivers (e.g., Sennheiser XSW-D or Rode Wireless GO II) for high-quality sound transmission: 8 sets at $299 each = $2,392.
• Wireless microphones for performers: 8 at $200 each = $1,600.
• Wireless audio mixer: Behringer X Air XR12 = $399.
• Total Audio System Setup: $4,391.
2. Installation and Configuration
• Connect wireless audio transmitters to the club’s sound system and integrate with the streaming platform.
Step 5: Streaming Software and Computer Setup
1. Purchase Computers
• 4 high-performance streaming computers capable of handling multiple 4K video streams: $2,000 each = $8,000.
• Specifications: Intel Core i9 processor, 32GB RAM, NVIDIA GeForce RTX 3080, 1TB SSD.
2. Software Setup
• OBS Studio for video stream management (Free).
• Restream for multi-platform streaming ($19/month = $228/year).
• Streamlabs for tips and donations ($12/month = $144/year).
• Total Streaming Software: $372/year.
3. Testing and Optimization
• Conduct test streams and optimize settings for low latency and high quality.
Step 6: Initial Marketing Campaign
1. Develop Marketing Strategy
• Create promotional content for social media, email marketing, and influencer partnerships.
• Launch targeted campaigns to attract early subscribers.
• Marketing Budget: $8,000.
VIP Room Implementation
1. VIP Room Design and Setup
• Designate a specific area within the club as a VIP room for private shows.
• Install additional high-quality wireless remote tracking cameras with enhanced features for privacy and exclusivity.
• Implement secure access control to ensure only paying VIPs can enter the virtual VIP room.
2. VIP Subscription and Access
• Offer exclusive VIP subscriptions with higher fees for access to private shows.
• Provide additional features such as personalized interactions, custom content requests, and higher tipping options.
• Profit Sharing for VIP Room: Distribute a portion of the revenue from VIP subscriptions, tips, and custom content between the club, performers, and StormBorn Productions.
Audio Integration and Two-Way Sound
1. House Sound Integration
• Connect the club’s house sound system to the wireless audio system using professional audio interfaces and wireless transmitters.
2. Chat and One-Way Sound for VIP
• Implement chat and one-way sound for VIP streaming using wireless audio mixers, allowing VIP viewers to chat while hearing the performance sound.
Comprehensive Equipment List
Main Stage Wireless Streaming Setup
• 6 PTZOptics Move 4K Auto-Tracking PTZ Video Cameras with tracking capabilities ($13,194)
• Wireless tripods and mounts ($600)
• Blackmagic Design ATEM SDI Extreme ISO 8-Channel Switcher ($1,295)
• Wireless audio transmitters and receivers ($1,794)
• Wireless microphones for performers ($1,200)
• Wireless audio mixer: Behringer X Air XR12 ($399)
• Additional Audio Equipment: Wireless audio interfaces and accessories ($500)
• 360-Degree Camera: Insta360 Pro 2 ($4,599)
• 4 high-performance streaming computers ($8,000)
VIP Streaming Room Wireless Setup
• 2 Additional PTZOptics Move 4K Auto-Tracking PTZ Video Cameras with tracking capabilities ($4,398)
• Enhanced Privacy Features ($1,000)
• Secure Access Control ($500)
• Wireless audio mixer: Behringer X Air XR12 ($399)
• High-Quality Wireless Microphones and Headsets ($300)
• Soundproofing Materials ($700)
Costs and Financial Projections
Initial Setup Costs
1. Legal Compliance and Consultation
• Consultation Fees: $10,000
• Permits and Licenses: $2,000
• Total Legal Compliance: $12,000
2. Website and App Development
• Website Development: $5,000
• Mobile App Development (iOS and Android): $5,000
• Total Development Costs: $10,000
3. Wireless Remote Tracking Camera System Setup
• Cameras: 8 PTZOptics Move 4K Auto-Tracking PTZ Video Cameras at $2,199 each = $17,592
• Wireless tripods and mounts: 8 at $100 each = $800
• Video Switcher: Blackmagic Design ATEM SDI Extreme ISO 8-Channel Switcher = $1,295
• 360-Degree Camera: Insta360 Pro 2 = $4,599
• Total Camera System Setup: $24,286
4. VIP Room Wireless Setup
• Additional PTZOptics Move 4K Auto-Tracking PTZ Video Cameras: 2 at $2,199 each = $4,398
• Enhanced Privacy Features: $1,000
• Secure Access Control: $500
• Wireless audio mixer: Behringer X Air XR12 = $399
• High-Quality Wireless Microphones and Headsets = $300
• Soundproofing Materials = $700
• Total VIP Room Setup: $7,297
5. Wireless Audio System Setup
• Wireless audio transmitters and receivers: 8 sets at $299 each = $2,392
• Wireless microphones: 8 at $200 each = $1,600
• Wireless audio mixer: Behringer X Air XR12 = $399
• Additional Audio Equipment: Wireless audio interfaces and accessories = $500
• Total Audio System Setup: $4,891
6. Streaming Software and Computer Setup
• High-performance streaming computers: 4 at $2,000 each = $8,000
• OBS Studio: Free
• Restream: $19/month = $228/year
• Streamlabs: $12/month = $144/year
• Total Streaming Software: $372/year
7. Initial Marketing Campaign
• Social Media Advertising: $3,000
• Influencer Partnerships: $5,000
• Total Initial Marketing: $8,000
8. Startup Fee to StormBorn Productions
• Implementation Fee for Six Months Leading Up to Launch: $20,000
Total Initial Setup Costs:
• Legal Compliance and Consultation: $12,000
• Website and App Development: $10,000
• Wireless Remote Tracking Camera System Setup: $24,286
• VIP Room Wireless Setup: $7,297
• Wireless Audio System Setup: $4,891
• Streaming Software and Computer Setup: $8,372
• Initial Marketing Campaign: $8,000
• Startup Fee to StormBorn Productions: $20,000
• Grand Total: $94,846
Monthly Operating Costs
1. Management Fee to StormBorn Productions
• $5,000
2. Operational Costs
• Staff Salaries: 2 operators and 2 moderators at $20/hour
• Sunday to Thursday (4 PM to 4 AM): 14 hours/day * 5 days/week = 70 hours/week
• Friday and Saturday (4 PM to 4 AM): 14 hours/day * 2 days/week = 28 hours/week
• Total Weekly Hours: 92 hours/week
• Monthly Hours: 92 hours/week * 4 weeks = 368 hours/month
• Monthly Salaries: 368 hours/month * $20/hour * 4 staff = $29,440
3. Software Subscriptions and Maintenance
• Restream: $19/month
• Streamlabs: $12/month
• Miscellaneous Software and Maintenance: $500/month
• Total Software Costs: $531/month
4. Talent Compensation
• Average Monthly Compensation per Performer: $2,649.93
• Number of Performers: 20
• Monthly Talent Compensation: $2,649.93 * 20 = $52,998.60
Total Monthly Operating Costs: $83,500.60
Revenue Projections
1. Subscription Revenue
• Average Monthly Subscription Fee: $29.99
• Target Subscribers: 3,000
• Monthly Subscription Revenue: $89,970
2. Tips and Donations
• Average Monthly Tips per Viewer: $10
• Active Viewers: 2,000
• Monthly Tips Revenue: $20,000
3. VIP Room Access
• VIP Subscription Fee: $149.99
• Target VIP Subscribers: 250
• Monthly VIP Revenue: $37,497.50
4. Exclusive Content Sales
• Average Monthly Sales per Viewer: $5
• Active Viewers: 2,000
• Monthly Content Sales Revenue: $10,000
Total Monthly Revenue: $157,467.50
Profit Projections
1. Monthly Revenue: $157,467.50
2. Monthly Operating Costs: $83,500.60
3. Monthly Profit: $73,966.90
Annual Projections
1. Annual Revenue: $157,467.50 * 12 = $1,889,610
2. Annual Operating Costs: $83,500.60 * 12 = $1,002,007.20
3. Annual Profit: $1,889,610 - $1,002,007.20 = $887,602.80
Profit Sharing with StormBorn Productions
Overview
To incentivize StormBorn Productions for their ongoing support and management, a profit-sharing model will be implemented. This model will ensure that StormBorn Productions is rewarded for their contributions to the success of the platform.
Profit Sharing Structure
1. Base Management Fee
• StormBorn Productions will receive a base management fee of $5,000 per month for ongoing support, maintenance, and management of the platform.
2. Profit Sharing
• In addition to the base management fee, StormBorn Productions will receive a profit share based on the monthly net profit.
• Profit Share Percentage: 10% of the monthly net profit.
Example Profit Sharing Calculation
For a given month with the following financials:
• Total Monthly Revenue: $157,467.50
• Total Monthly Operating Costs: $91,169.60
• Monthly Net Profit: $73,966.90
Profit Sharing for StormBorn Productions:
• Base Management Fee: $5,000
• Profit Share: 10% of $73,966.90 = $7,396.69
• Total Monthly Payment to StormBorn Productions: $5,000 + $7,396.69 = $12,396.69
Annual Profit Sharing Calculation
For an annual projection:
• Total Annual Revenue: $1,889,610
• Total Annual Operating Costs: $1,002,007.20
• Annual Net Profit: $887,602.80
Profit Sharing for StormBorn Productions:
• Base Management Fee: $5,000 * 12 = $60,000
• Profit Share: 10% of $887,602.80 = $88,760.28
• Total Annual Payment to StormBorn Productions: $60,000 + $88,760.28 = $148,760.28
Operator and Moderator Profit Sharing
Overview
To motivate and retain high-quality operators and moderators, a profit-sharing model will be implemented in addition to their hourly wages. This ensures that the staff are incentivized to maintain the platform’s performance and user satisfaction.
Profit Sharing Structure
1. Base Salary
• Operators and moderators will receive a base salary of $20/hour.
2. Profit Sharing
• Operators and moderators will receive a profit share based on the monthly net profit.
• Profit Share Percentage: 3% of the monthly net profit, shared equally among the operators and moderators.
Example Profit Sharing Calculation
For a given month with the following financials:
• Total Monthly Revenue: $157,467.50
• Total Monthly Operating Costs: $83,500.60
• Monthly Net Profit: $73,966.90
Profit Sharing for Operators and Moderators:
• Profit Share: 3% of $73,966.90 = $2,219
• Number of Operators and Moderators: 4
• Monthly Profit Sharing per Staff Member: $2,219 / 4 = $554.75
Annual Profit Sharing Calculation
For an annual projection:
• Total Annual Revenue: $1,889,610
• Total Annual Operating Costs: $1,002,007.20
• Annual Net Profit: $887,602.80
Profit Sharing for Operators and Moderators:
• Profit Share: 3% of $887,602.80 = $26,628.08
• Number of Operators and Moderators: 4
• Annual Profit Sharing per Staff Member: $26,628.08 / 4 = $6,657.02
Talent Compensation Plan
Overview
The talent (performers) will play a crucial role in the success of the wireless remote video online paid experience for Rick’s Cabaret. The compensation plan includes performance-based incentives, a share of the tips, and a share of the subscription revenue.
Compensation Structure
1. Performance-Based Incentives
• To motivate performers to engage with the audience and increase viewer retention, performance-based incentives will be provided based on the number of active viewers and engagement metrics.
• Active Viewer Bonus: $1 per active viewer above 500 viewers per session.
• Engagement Bonus: $100 for sessions with an engagement rate (likes, comments, shares) above 75%.
2. Tips and Donations
• Performers will receive a significant portion of the tips and donations they earn during live streams. This will encourage them to interact more with the audience and create a personalized experience for viewers.
• Performer Tip Share: 70% of total tips and donations.
• Club Tip Share: 30% of total tips and donations.
3. Subscription Revenue Share
• Performers will also benefit from a share of the subscription revenue, particularly from VIP subscriptions, which include access to private shows and exclusive content.
• Standard Subscription Share: 10% of monthly subscription revenue allocated to performers.
• VIP Subscription Share: 20% of monthly VIP subscription revenue allocated to performers involved in VIP shows.
Example Compensation Breakdown
For a performer with the following metrics in a month:
• 20 hours of live streaming per week
• Average active viewers per session: 600
• Engagement rate: 80%
• Total tips and donations: $2,000
• VIP Subscription revenue: $9,999 (with 10 VIP sessions)
Performance-Based Incentives:
• Active Viewer Bonus: (600 - 500) * $1 * 20 sessions = $2,000
• Engagement Bonus: 10 sessions * $100 = $1,000
Tips and Donations:
• Performer Tip Share: 70% of $2,000 = $1,400
Subscription Revenue Share:
• Assume there are 20 performers sharing the total subscription revenue.
• Standard Subscription Share: 10% of $89,970 = $8,997
• Share per Performer: $8,997 / 20 = $449.85
• VIP Subscription Share: 20% of $37,497.50 = $7,499.50
• Share per Performer (assuming 10 VIP performers): $7,499.50 / 10 = $749.95
Total Monthly Compensation for Each Dancer:
• Performance-Based Incentives: $3,000
• Tips and Donations: $1,400
• Subscription Revenue Share: $449.85
• VIP Subscription Revenue Share: $749.95
• Total: $5,599.80
This compensation structure ensures that performers are well-compensated for their time and effort while also providing strong incentives to maximize viewer engagement and revenue generation. By aligning performer compensation with the success of the platform, Rick’s Cabaret can attract and retain top talent in the industry.
Taxes and Legal Compliance
Overview
To ensure full compliance with local, state, and federal tax laws, Rick’s Cabaret must account for various tax obligations related to the implementation of the online streaming service. This includes sales tax, income tax, and any specific taxes applicable to adult entertainment.
Tax Considerations
1. Sales Tax
• Subscription fees, tips, and content sales may be subject to sales tax depending on state and local regulations.
• Ensure that the platform is configured to collect sales tax at the applicable rate for each transaction.
2. Income Tax
• Revenue generated from the streaming platform will contribute to the club’s overall income and will be subject to federal and state income tax.
• Proper accounting practices should be followed to report this income accurately.
3. Adult Entertainment Taxes
• Some jurisdictions impose specific taxes on adult entertainment businesses. Verify if New Orleans or Louisiana has any such tax requirements.
4. Payroll Taxes
• All staff salaries, including operators, moderators, and performers, must include appropriate payroll taxes such as Social Security, Medicare, and state unemployment taxes.
Compliance Steps
1. Consult a Tax Professional
• Engage with a tax advisor familiar with the adult entertainment industry to ensure all tax obligations are met.
2. Implement Tax Collection Systems
• Integrate sales tax collection features into the payment processing system.
• Ensure accurate and timely filing of all required tax returns.
3. Maintain Detailed Records
• Keep thorough records of all transactions, including subscription fees, tips, donations, and performer payouts.
• Ensure that all financial records are easily accessible for tax filing and audits.
Conclusion
Implementing a wireless remote tracking video online paid experience for Rick’s Cabaret presents a significant opportunity to enhance digital presence, increase revenue streams, and provide a high-quality, legally compliant experience for viewers. With the proposed setup, the club can effectively reach a global audience, offering immersive live performances and exclusive content. StormBorn Productions is committed to ensuring a seamless and profitable implementation.
This proposal includes detailed steps for setup, necessary equipment, and cost breakdowns to ensure clarity and feasibility. By leveraging cutting-edge technology and strategic marketing, Rick’s Cabaret can become a leader in the online adult entertainment industry.
For further discussions and to move forward with this proposal, please contact StormBorn Productions at your earliest convenience. We look forward to the opportunity to collaborate on this innovative project.
Prepared by:
StormBorn Productions LLC
1815 Desire St
New Orleans, LA 70117
(504) 478-3077
Please call with any questions or concerns if you are interested in proceeding.
Date: 11/04/2024