Understand how the Dench Music profit-sharing works, where our revenue comes from and for how long you will keep on receiving your share.

Dear readers,

we understand you may have questions. Particularly this is the one we have gotten the most: How is profit sharing legally possible? Doesn’t that make the token a security?

A team of experienced lawyers has been working for months on a framework to make sure everything is in compliance with the regulation laws. The exact framework and the Investment agreement document will be publicly published shortly before the second round of the ICO (the Whitelist round). Privately we will send the documents to the first round participants (Private round) before this date.

This was a tough decision to make because we want to be as transparent as possible but since this is a completely new (and we believe ground changing) way how to do ICOs, we want to keep the privilege of being the first ones and therefore prevent our competition to adapt the framework and run the ICO before us. Publishing the document shortly before the ICO (rather than right now) was the logical decision to make.

How does the Profit Sharing work?

As we said, the main component of our ICO is up to 30% profit sharing. Profits will be directly linked to the songs created as a result of the ICO. Profit sharing percentages and amount invested will be clearly stated in the Investment agreement which will be signed by every participant. The Investment Agreement will remain valid from the end of the ICO until December 2024. In the first year, revenue sharing is paid out quarterly and thereafter, annually.

Dench Music targets to generate on average, based on industry standards and on past experience, between 500% and 1000% profit (5x to 10x the invested amount) per project. We anticipate the videos will garner anywhere from 100 million to one billion views per video in its first five years online, supported by a comprehensive marketing strategy. We believe the majority of each project’s revenue will come in during the first eight months after the release of the song.

For investors, as we said, Dench Music will distribute 30% of any realized profits, provided the Hard Cap is met. The percentage of Hard Cap fulfillment will determine how much profit will be shared with investors.

For example, if the raised amount is 80% of all ETH, the percentage of profit sharing to investors will be 30% * 0,8 hard cap fulfillment = 24% of all profits are sharing among investors.

From what all do we generate profit?

Pay-per-view/stream revenue

Revenue from websites like YouTube and Spotify have in recent years become a significant part of revenue earned by artists of all audiences and genres. Placement of videos on these and other sites, concurrent with marketing through both our own channels and the A-list star’s channels, will allow us to earn a significant sharable revenue from every song and video.

For example, in our first project where Grammy Award winning artist Chris Brown, who averages 100 million views/streams per hit, will partner with a Dutch DJ to create their next hit song. If their hit song reaches that same level, the income from that source alone can be estimated at approximately 1 million EUR.

Download revenue

We will place the songs on iTunes and similar sites for purchase. For example, Chris Brown averages 100 million views or downloads per song in the first year, at a price of 0.02 EUR per view or download. The new song’s potential income can be 2.000.000 EUR through downloads alone.

Booking and performance revenue

We will actively promote our talented artists and book them on shows, performances, club events, concerts and more.

Performing Rights Organizations

PRO’s are located in almost every country in the world and they ensure that the music right owners get paid every time their music is played on the radio, in clubs, public places, etc. (in their country). All songs will be registered with PRO’s worldwide and shareable revenue will be paid to Dench Music every time the song or video is played anywhere in the world.

Platform revenue

One of our primary goals is to create a community that offers new and exciting ways to interact with the artists and the music industry in ways that were previously unattainable. We will host events, launch parties, VIP parties, meet and greets, and even lifestyle opportunities like star auctions, wardrobe and video props sales, attend a video shoot, backstage passes, video cameo appearance, etc. These experiences will be offered through the Ethereum Blockchain powered Dench Music retail Platform and can be obtained with MIC Tokens.

The Dench Music ICO Team