This is a weird post, but i just had an idea. But I dont know if its great one yet...
I think i wanna start buying (promotional) call options on up-and-coming ATL rappers. Wait, hear me out here.
So im assuming yall know what traditional stock options are cause this is the 6fig section so i wont go further on that. The rapper portion is simple. A music artist's ability to promote consumer-products is valuable, especially if you have someone like lil baby, gunna, kevin gates (all from ATL). The issue is the price point for these acts is impractical. But what if you could get them before they became the next big thing?
Grabbing them early presents a challenge because you can never know which person will get signal boosted by a label. For example, Migos was making b-grade music since 2009, but they were largely ignored until 2013. Their success was hard to predict. Imagine if you had purchased future promotional activtity from them in 2010. Both the future promotional opportunity and the rights to it would be astronomical in 2021. But this value is hard to predict. So how do you solve this issue?
Easy. An options contract. We have a huge supply of rappers in ATL who havent blown up yet; and rather than sift through them to determine the next big act, I think it would be doable to have them sign a contract for future promotion of XYZ good, while they are unknown. You can make up for the tremendous field of music hopefuls by having multiple low ball deals with them. Im envisioning something like multiple deals with a standard option premium of $250 paid upfront to the music acts. A duration of 5-10 yrs on the contract; with a strike price of 5k-10k at a future date for the promotional activity.
The music acts benefit with an immediate profit on their activities. The option holder benefits from a steep discount on on future work. Rather than paying market value for 50k+ worth of promotion, one can pay the agreed strike price of 5-10k. The contract itself would have extrinsic value, cause an advertiser can pay the option owner to exercise the rights themselves. So what does theColi think? Is this viable? The ROI alone is mouth watering......
I think i wanna start buying (promotional) call options on up-and-coming ATL rappers. Wait, hear me out here.
So im assuming yall know what traditional stock options are cause this is the 6fig section so i wont go further on that. The rapper portion is simple. A music artist's ability to promote consumer-products is valuable, especially if you have someone like lil baby, gunna, kevin gates (all from ATL). The issue is the price point for these acts is impractical. But what if you could get them before they became the next big thing?
Grabbing them early presents a challenge because you can never know which person will get signal boosted by a label. For example, Migos was making b-grade music since 2009, but they were largely ignored until 2013. Their success was hard to predict. Imagine if you had purchased future promotional activtity from them in 2010. Both the future promotional opportunity and the rights to it would be astronomical in 2021. But this value is hard to predict. So how do you solve this issue?
Easy. An options contract. We have a huge supply of rappers in ATL who havent blown up yet; and rather than sift through them to determine the next big act, I think it would be doable to have them sign a contract for future promotion of XYZ good, while they are unknown. You can make up for the tremendous field of music hopefuls by having multiple low ball deals with them. Im envisioning something like multiple deals with a standard option premium of $250 paid upfront to the music acts. A duration of 5-10 yrs on the contract; with a strike price of 5k-10k at a future date for the promotional activity.
The music acts benefit with an immediate profit on their activities. The option holder benefits from a steep discount on on future work. Rather than paying market value for 50k+ worth of promotion, one can pay the agreed strike price of 5-10k. The contract itself would have extrinsic value, cause an advertiser can pay the option owner to exercise the rights themselves. So what does theColi think? Is this viable? The ROI alone is mouth watering......
