Quote from: mikaeldice on May 02, 2014, 03:08:46 PM

This venture seems to suffer from a lack of detail. I'll try to list just a few items that I've thought up, though I'm certain there are many more. The lack of a business plan and the shifting approach to investment (and your IPO terms) raise red flags of concern that you might not be well prepared for this project.

You monetary needs have changed and expanded, but you haven't provided a very detailed projection for your expenses. You provided a list of things which could be expenses, but you didn't go into any detail on them. How much do you expect to spend on each category? What are the initial overhead and projected monthly expenses? Once the overhead is paid, what are the ongoing expenses on a per-model basis? What is the projected income? How were these figures arrived at? How many months of operation will these funds provide with no income if your targets are reached?

You mention building your own site, but you haven't provided any details about it. Is this a pay-for-membership site, or a token based tip and pay-per-view model? You mention that you have 'experience in web design', but this is very vague. 'Web design' typically speaks to one specific part of a whole stack of systems. Is this web design experience with building a user interface, or with actual web application development? Does the experience include server management? What technologies have you used in the past? What specific past accomplishments can you point to which lend credibility to your experience and ability for this undertaking?

You mention experience in the 'security sector', but again, this is very vague as security encompasses many domains and you did not provide specifics. Was this security experience in software development (which software), access control, network, disaster recovery, compliance/auditing, physical, etc? Specifically what experience do you have with security in regards to bitcoin, application development, and systems management?

What are the regulatory challenges to operating such a site in your jurisdiction? For example, laws regarding the appropriate age of models and the recordkeeping to prove this, STD testing, 'safe sex practices' (eg, required condom usage in filmmaking), etc.

Tell us about your site's competitors; what don't they understand about the industry that you do? How will you improve upon their business model? Since such a site suffers from the 'cold start' problem, where it won't be attractive to users until it already has a lot of users, tell us how you plan to solve this.

Quote from: MRKLYE on April 28, 2014, 11:11:11 AM

Basically the number game breaks down as such:

70% of the tips goes to the talent. (35%/35% split if 2 people on cam, 23.3%/23.3%/23.3% if 3 people on cam)
15% of the tips goes to the investors. (proportionately split up into % of shares owned by any given shareholder)
15% of the tips are kept by Klyemax Studio for costs related to running the business. (Space rental, electricity, etc etc)

I'm trying to understand how you will convince models to stay with you for any longevity.

Let's take MFC as an example, as you list it as one of the sites you will broadcast on and it is generally better for its models than the other sites. On MFC, the payout is $0.05 per token, on average 61% of the amount that the money they collect on token packages. The 70% of that which you will pay drops the payment rate down to 42.7% of what the people watching the models are paying for their time. It's very inefficient.

The draw to these sites for models is that they don't require a lot of setup. It can be done anywhere.. in their bedrooms or living room. Even a cheap webcam's broadcast quality is limited more by bandwidth than the webcam itself.

I can see you maybe locating and introducing new models to the industry who aren't aware that they're giving up a significant portion of their income. After a few weeks, though, they'll be very familiar with how the process works. With the models that you do convince to try out this industry, what is going to prevent them from signing up under their own accounts and possibly taking away part of your audience? Audience loyalty in such an industry is to the models themselves and not to the studios that employ them.

I have some concerns regarding the valuation here. The terms aren't clear. You're selling 250,000 now at 0.0001 for 25 BTC and will be selling 250,000 later at 0.001 for 250 BTC. Is that correct? What percentage of the company does this represent? What are the total number of shares and how many shares do you own?

Can you clarify exactly how you get paid in this? Are you collecting dividends on the remaining shares or paying out a management fee as part of the 15% 'for costs related to running the business'? If it is a fee, how much is it?

First off, thank you for your interest in Klyemax Studios.

Secondly, I appreciate you asking these questions and will answer them in this post.
I am well aware that the initial IPO post doesn't go into enough detail and I plan to add more detail in the upcoming hours/days.
Until then I will do my best to answer the questions and concerns you have mentioned above.

The phase 1 or initial investors IPO is to give investors an opportunity to help us acquire the necessary space and equipment needed to bring our live shows and videos up to professional standard. It also allows us to start development of our site (both front end and back end) as well as get domains registered, hosting in place etc etc. Our initial IPO was released with a market cap of 25BTC with no chance to acquire funds afterwords that would be used to rapidly expand the number of studios once we have proven ourselves a sustainable startup.
The second IPO is strictly for expansion of the company and it's outlets once we have proven ourselves profitable and able to maintain a happy customer base.

To further elaborate on this in this initial start up phase we plan to purchase HD 1080 webcams capable of servo driven PTZ movement. What this does is allows our talent to move their cameras via remote, But also our clients to be able to move the camera(s) as well. One of the main features that I want to bring to the forefront is the planned interaction between talent and client. Giving the user the ability to control a models cam not only takes the workload off the talent but also allows users a more custom tailored intimate experience.
We are currently looking at a number of different PTZ HD webcams as well as looking into Go-Pro cams as well for alternate angles and POV shots. Computers will need to be purchased or built and network infrastructure put in place to allow a truly HD video and sound experience. That being said the bandwidth needed to stream multiple HD cams to multiple sites is still being looked into and I will have a far better idea of monthly bandwidth and power expenses as I procure and set up the equipment.

As for talent pay and whatnot.. It is not up to myself to pay the talent. They are the ones that earn their money/tips by being charming/sexy online. Not all talent is created equal and it's hard for me to say exactly what any particular talent can bring in an hour until I can track revenue for a period of time and make predictions based off of that. As myself being someone who has done cam shows in the past on average depending on time of day and who is on cam with you performing I was easily netting $100-300 per a 2-4 hour session.
I expect with certain talent types you could easily double the tips/revenue. A large portion of adult cam based entertainment revenue comes from private shows as well. I plan to offer coaching to both male and female talents to maximize the tips they receive and in turn maximize the studio and investor's profit.

The website was initially planned to be built after we had thickened up the roster of talent available. After some thought I realized it would be best to start developing the website right away as the custom clients and server side things that need to be developed will take time and money to bring into reality. Our goal with the website is to provide the clearest picture and sound available to our clients while also giving the customer/client the ability to move the cameras to their liking (provided they have the right type of account subscription). The plan is to primarily run off of crypto currency for tipping and purchasing subscriptions as well as other extras the site will offer to allow users to stand out from one another. My own personal web design experience is primarily user interface as well as general layouts and themes. I've also experience with Flash based web apps but will probably look for a seasoned HTML5 developer over a Flash developer as it's more common across different platforms. The ability to purchase tokens in form of crypto has been discussed and will likely be implemented as well. As for my own web design endeavors very few stand these days, I believe my own personal site is in my profile but has not been updated for a while as I have been busy with other projects. I have done web design work for a few members on the forums here, Most notably the Drillbitsystem.com website around a year ago. As for backend / server side coding I have a few people in mind but do not yet have the capital to approach them with the offer. When the site first launches we plan to host it with a well known web host. But in time when we are ready to open up our first local studio the plan is to host our own website/servers. I myself have a small amount of experience running servers, But I have quite a few local IT guys that would come in and lend me a hand for next to nothing.

My security sector work includes building and designing wireless PTZ camera systems as well as management skills acquired through running the shops backend I worked at. I have also done security work for a few small towns as well as local hotels and events. Only in 1 instance have I ever had to call police and that was to report an alleged theft of money, which in the end turned out to have been hidden by the patron himself while he was black out drunk. I have also a notable amount of IT hands on work and would consider myself well versed in common operating systems and keeping them running securely.

I operate out of Canada, and as far as I know we have no regulation against this type of business in the province I live in.
All talents ID's are checked by myself personally and verified myself on the sites they will be using. All usernames and passwords for the account are kept in protected storage. At Klyemax Studios safe sex is the only sex, Although I do not enforce talent to wear protection as a general rule most talent gets tested every 3 months or more if they have promiscuous tendencies. With any close contact work with organisms the risk of infection is real and we will do everything we can to make sure no one gets hurt.

As for competitors, I cannot even call them that really.. I view them as stepping stones. As far as I know no site or group offers or plans to offer what I am trying to achieve with the Klyemax venture. Between the never before seen website functionality and the studios planned for larger population centers I believe we will establish ourselves as a go to brand in live adult entertainment for both talent and customers.

OK, As for keeping talent on board. I actually view that as one of the easier things. Sure, any person can take their $25 dollar webcam, hop online, show some skin and make some tips.. Everyone gets their start somewhere. The difference between your run of the mill cam girl and the girls (or guys) featured in the top 10 lists of popular sites is a simple matter of stage presence and being coached on proper cam etiquette. Lots of clients want nothing more than a pair of jugs to stare at for a few minutes while they do a quick rub and tuck. These clients aren't worth a whole hell of alot (or anything) tip wise generally. Where the real adult entertainment experience that I aim to provide and coach my talent to strive for is companionship. Your general cam watcher is a 18-40 year old single male who is watching the talent on cam because he is either horny or looking for companionship. Catering to both of the fundamental types of clients and having your talent be able to tell the difference is huge when it comes down to revenue and having your client maximize her earnings an hour. We may teach talent this and they may attempt to move onto greener pastures. The trick is to provide the talent the ability to broadcast better sound / video / lighting and experience through your studio to get them and their admirers to come back to do their shows with you.

As for the phase 1 IPO your numbers appear to be correct. I appologize my initial write up/proposal is vague at best and I will be going into further detail on it when I get the chance to edit it and compose my thoughts in a way that is easily understandable to potential investors.
250,000 x .0001 BTC = 25 BTC venture seeding fund. This is essentially the capital needed to get the things we need in place to make a business that generates revenue in a time frame acceptable to most investors.

The phase 2 IPO is planned to be offered once we have proven our start up profitable and will be used to expand and acquire more studio spaces and setups. Initially I only planned to try to spread across Canada, but it has come to my attention that branches of Kylemax Studio in other countries would be beneficial for the venture and for the clients. It is a matter of finding the right people to take on such a business abroad. The second IPO will be 250,000 x 0.001 BTC = 250 BTC. This will allow us more locations and more equipment. By time we are ready to launch phase 2 we will already be profiting on both the investor and studio side.

The initial write up of this IPO was flawed in the fact that it did not allow for investors to fund explosive growth after this venture is proved profitable. To fix that I spoke to a successful investor who frequents the forums and got me thinking. The only problem with a second round of shares is dilution of the first round shares..

To combat this. All sold shares in the initial phase 1 IPO will be turned into 10 of the phase 2 IPO shares.
Given the ask price of the second phase IPO being 0.001 it will be quite profitable for first round investors to stick around till phase 2.

Onto dividends. As it sits right now Klyemax is about 6 talents (including myself) who all pretty much started doing this hobbywise. I am actively recruiting talent locally and abroad. Many people do not know where to start. I do all the paperwork for them, coach them, GIve them a place to work if needed.

Primarily the tips from the talent as well as revenue made from private shows is taken in by the studio.

70% goes into the talents pocket, Regardless if they our using our equipment or theirs.
15% goes to investors. Which is then split by percentage of shares owned by any particular shareholder.
15% goes to Klyemax to pay the cost of running the studio. This also includes money for expansion. Also my wage.

I believe this to be fair to all parties, And for myself personally If I am on cam and making money for Klyemax I make a nice percentage. And I do plan to be on cam for a few more years until my boyish good looks fade. This started out as a hobby for me, Which I soon realized was a hobby that made money.. Which if done correctly on a large scale could get a very nice chunk of the Billion dollar porn industry.

An IPO clarification re-write is in order to help alleviate question load on myself and also to make my business plan easier understandable. I apologize for the vagueness of the initial write up and will try my best to take some of the fog this investments initial write up brought to investors.

I hope this has cleared up some of your questions. If I missed anything (and I'm sure I must have) please comment below or PM me.

Thank you for your interest in Klyemax Studios.

Cheers!

Kyle.T