How entrepreneur changed her business model
Sarah Figueroa had worked for several years to build acompany, calledGeojam, thatwould connect fans at concertsandgive sponsors a look at what was working and what wasn’t.
“The dream was to connect people throughmusic, in real life,” Figueroa said. “I’m at a concert. You’re also a fan. Let’s link up.”
Geojam, started last year, was going to meld her interests in social media, marketing, live events and music. The company planned a 50-college tour at the start of this year to test the idea.
“We had artists at every single school,” she said. “Collegeswere competing to win a free concert. Our investors were so excited.”
Then, of course, the pandemic happened.
Yet forGeojam, thatwasn’t the end of the story. While thepandemicvastlycurtailed live events — which, like the hospitality, restaurant and travel industry, ground to a near-halt — the company and the artists found a way to come together.
In March, Figueroa decided to use her company’s technology to directly connect artists with their fans, with a similar engagement model. More social media interactions around a particular artist equated to greater reward points for fans, who could exchange themfor interactions with an artist, like one-on-one FaceTime calls, Zoom cooking classes or even an appearance in an advertising campaign.
What Figueroa, her two co-founders and investors were able to do isn’t going to work for everyone. But their pivot may offer useful lessons to other entrepreneurs regardless of their wealth and experience. And those lessons may come in handy as coronavirus cases rise again and small businesses that havemade it this far struggle to get through a tough winter.
Have multiple lines within a business
Geojamwasnot Figueroa’s first venture. At age 26, she already had a hit (Undorm, which she started while in college to advertise apartmentsto collegestudentsand social organizations), amiss (Lenzjam, which she called a too-early version of TikTok) and one so-so venture (One BoxAgency, amusic marketing agency that gave her the idea for Geojam).
She was eager to test the concept of rewarding fans for their enthusiasm while compensating artists and turning a profit. In the liveevent model, there would have been plenty of sponsor cash to supportGeojam’s planned data mining of fans’ reactions to sponsors’ marketing efforts. It was the kind of microtargeting that sponsors are eager to have.
When the pandemic derailed that model, Geojambegantrackinghowoften fanswere streaming particular artists, for example, and rewarding them with the points. At the same time, it paid artists for their time — money that came fromoutside investors.
“We’re still trackingwhat
events people are attending, through livestreams on the Geojam platform,” Figueroa said. “We can also see what things they’re viewing and purchasing in the jam shop.”
That’s useful data she would not have had otherwise. She learned, for example, that fans of electronic music would rather get unique merchandise than have adirect experience with an artist. As a result, Geojam asked Dylan Matthew, an electronic musician, to create a custom jean jacket to promote his new EP.
Have artists at different points in their careers
WhenGeojam pivotedto a new model, itmeant different things for artists at differ
ent points in their careers.
Geojam enabled Yung Pinch, a young hip-hop artist with a following within California beach culture, to connect with fans through FaceTime and earn money for each video call he did.
“I’ve always been superinteractive with my fans,” he said. “A DMnow and again. But this is definitely new.”
A more established artist like rapperMachine Gun Kelly used Geojam to introduce his new album, “Tickets toMy Downfall.” Before the pandemic, Machine Gun Kelly was doing hundreds of concerts a year, said his manager, Andre Cisco.
“We’re usually one of the top five touring artists in the world,” Cisco said. “Oncethe reality of the pandemic hit, we realized we had to keep the boat moving.”
There are now two billboards up in Los Angeles with an image of Machine Gun Kelly from his album and fans, shot separately, next to him. “It just seemed like something that would appeal to our fans,” Cisco said. “With limited shows, we want to keep as much energy in the fan base aswe can and give them the incentive to listen to records and get once-in-a-lifetime opportunities.”
Figueroawas then able to show his record label that they could get significant fan support for a fraction of the cost of a normal marketing campaign. “The billboards are an80% reduction ofwhat MGKwould normally cost to promote on social media,” she said. “We’re investing in his promotion so we can build case studies of how these experienceswork and charge for these experiences going forward.”
Keep asking for money
While the products and experiences are free to fans, they’re not free to do. The company needs money to pay the artists and the companies it works with.
Figueroa was raising the company’s initial round of investments when the pandemic struck. She ended up raising $350,000 in the worst of the lockdown and closed the funding round at $1.65 million.
“I think the investors analyzed the deck more” before Zoom calls, she said. “There was a little less emotion in themeeting. Wewereinbeta, so theywere looking atwhat we had. It was also helpful that we only had $350,000 left in our round.”
Jeffrey D’Alessio, an independent investorwhomade the last investment of the round six weeks ago, said he had gotten to know the company in the pandemic and had not met any of the principals in person. But he made the investment after several Zoom calls because hewas impressed with how they had adapted the platform.
“They had the knowledge, themarketing ability and the strategy to go one way,” he said. “Considering the pandemic, they went another way. That did not dilute all the other things they did. They already had strong relationships with top artists.”
Bring in an advisory board
Going it alone is never easy. Figueroa had an advisory board in place long before the pandemic hit. And she was able to lean on its members when the pandemic changed herbusiness.
OnewasMarcie Allen, who has arranged sponsorships for live events like South by Southwest and Billy Joel’s extended residency atMadison Square Garden.
“I’ve worked for her for several years and knewthat shewould be able to pivot,” said Allen, who also teaches at New York University. “They’re in essence a tool provided to artists and their managers to create unique experiences. Now they’re providing revenue streams for artists and a promotional opportunity.”