Writing a MEMO
Write a memo directly to the band advising them on the revenue projections for the two proposed methods- an exclusive release via iTunes or the self-release via their website “pay what you want” method. Your task is to produce a logical/evidence-driven projection for each of the proposed methods of release and then communicate those projections to them in an digestible manner by walking them through the logic and argument for each component of the projection.
Success is when you have made logically sound and accurate projections for each release method being considered AND have communicated it in a way that conveys understanding of the projections and leaves them feeling comfortable with their grasp on the how each option could impact their finances.
• Every element of your argument should be supported by strong reasoning and/or factual evidence (that is in part what makes for a complete argument).
You may include information found outside of the case, but only if it is fairly basic/widely known. You should not engage in substantial outside research. The case is far richer in detail than it seems at first glance and it is quite possible to make a complete argument while relying exclusively on information found in the case combined with information you can derive from the information found in the case (that last part is a very important component of developing strong problem solving skills).
• How you structure the memo is a key component of its clarity.
• Remember we are making this a hypothetical scenario for the purpose of making the argument manageable in the 1000 word count. The hypothetical is as
• The only distribution methods are the two above: Selling exclusively via iTunes with a 14% share to the band or selling the album via their own website using the pay what you want method
• There is only digital sales in the form of full albums, no physical sales and no singles. You may treat any data on singles from the case as 1/10th of an album. Don’t overthink this element of the assignment- it is purely intended to limit the complexity of the task of forecasting revenue.
• The self-release plan would be permanent, meaning not a temporary period of the first 6 or so weeks as the case mentions.
• The 0.9 service fee on the self release method goes to the band as revenue. provide a chart or an xcel equation than shows the numbers discussed