As any startup veteran knows, gutting it out can be half the battle. "I can't tell you how many people tell us that they initially held back from joining Sonicbids because they weren't convinced we would make it," says Panos Panay, whose online marketplace to pair up musical performers and booking agents is now five years old. But Panay, a former booking agent for Isaac Hayes, did more than just survive. He targeted and won the rights to handle the online submissions to some of the music industry's most prestigious confabs, including the College Music Journal conference and the International Songwriting Competition. The events spread the word and added credibility. Thanks to Panay's persistence, Sonicbids more than tripled its membership base, while increasing revenue 350% and profits 700% in 2004.
Founder and CEO
Sonicbids Corp.
Boston, Massachusetts
Read Panos's original entry:
This has been a banner year for Sonicbids, the company that I founded in 2000 after leaving behind a lucrative career as a talent agent in pursuit of a vision. Our revenues increased by 350% and just as important, our profitability shot up 700%. Our real achievement though is reflected in the increase of our membership over the past 12 months: over 20,000 paid musician members are now using Sonicbids (up from 6,000 last year) and some 2,400 events, ranging from North America and Europe, to China and India, are active users, up from a just few hundred last year.
In marketing our online service, which enables musicians and people who book live music (e.g. festivals, clubs, etc.) to connect online through the use of a common internet-based platform, we chose to shun conventional advertising and focus entirely on word of mouth promotion and referral partnerships. This has kept our costs down and helped Sonicbids gather organic, grass roots momentum, rather than a manufactured, albeit unsustainable one. Internally, we have been steadfastly focused on four key things: 1) Hiring exceptional people even if this means that the hiring process takes twice as long; 2) Doing whatever it takes to cultivate and stay true to a winning, positive and rewarding company culture; 3) Focus like mad on our customers and constantly pay attention to what our members are really saying (active participation in message boards and member “Pizza Parties” at the company are becoming a stable); and 4) Fighting hard the urge to do too many things at the same time (despite getting pressure from all sides to do more and be more). Our rule has been: keep it simple and keep it focused.
Our company operates in an industry (live music) that is both amazingly techno-phobic, and at the same time cynical about anything new – and for a good reason. Dozens of music-related Internet companies have come and gone over the past five years promising all sorts of things but without any real products and with a lot of spectacular, multimillion dollar flameouts. So, on the one end, we had been charged with the mission of changing a fundamentally flawed, antiquated process that an industry had been using for decades, fully well knowing that we would face an uphill battle and a lot of skepticism. On the other end, the economic environment of the past year was not the friendliest either. As I made a decision early in the company’s life that we would not seek outside financing unless absolutely necessary, we were forced to rely purely on internal resources and cash flow for expansion which gave us a very slim margin of error in any initiatives that we undertook. It turned out that this was more of an opportunity than an obstacle.
In a very short period of time, Sonicbids has fundamentally changed the way that tens of thousands of musicians, club owners, music festival directors, songwriting competition organizers, corporate event planners, film music supervisors and radio station programmers go about their daily business. It’s an unbelievable feeling to meet people at music conferences and events who tell you that the service that you created has changed their lives! Over the past year, we have had literally thousands of members who have been able to play on stages, tour countries, and get breaks purely because they have been using our service. Just as importantly, this success has been reflected in our financials: our revenues have increased by some 350% and just as important, our profitability is up by 700%. In addition, users of Sonicbids now include household names such as Jeep, Rolling Rock Beer, Six Flags Amusement Parks, Jagermeister, Cabo Wabo Tequila, and Hard Rock Cafes around the US, all of who use our service to find talent for their music-related events, programs and marketing campaigns.
We aim high: we want to triple our sales, double our headcount, all the while ensuring that our profitability increases in tandem. In addition we want our musician membership to exceed the 60,000-paid member mark, as well as substantially increase our presence in overseas markets. We also want to expand in what we feel can be high-margin markets such as corporate marketing campaigns, video gaming and sports entertainment, all of which are currently actively seeking to program music either as entertainment or as a grass roots brand marketing tool. We want Sonicbids to be right in the middle of that!
Comments that readers have made about this submission:
Cool.
Jon Rich - Boston, MA, USAGreat company, provides excellent tools for both musicians and music buyers alike. Ambitious goals, significant market penetration.
Jim Schultz - Franklin, MA, USAPanos Panay and all behind the scenes at Sonicbids are creative, clever and inspirational on many levels!
Rich Vigdor - Boston, MA, USAI've never heard of another company doing this. Very innovative in terms of product and industry.
Rebecca Winik - Brookline, MAClearly innovative, entrepreneurial and smart in every way. This company is paving the way for a change in the music indstry benefiting everyone involved.
Michelle Schaufeld - Northborough, MAI love Sonicbids! An innovative, creative, cutting-edge company. And those involved, simply one of a kind!
alexia panayiotou - cambridge, massExcellent work. Keep it up!
Eleni Stavrou - Nicosia, Cyprusgreat initiative Panos, best of luck :-)
Myria Vassiliadou - Brussels, BelgiumTruly innovative!
S. Spyrou - Cypruspanos panay - and the sonic bids team - has the vision and wherewithall to integrate art & commerce in a way that truly supports music, and the business of getting it out there. very inspiring.
liz linder - brookline, maAbsolutely inspired! The idea to do away with expensive photos, demo CDs and biorgraphies send in numbers by musicians to venue holders and promoters by post is just revolutionary! Sonicbids is creating a much needed, simple and inexpensive link between talent and the music industry.
Greg Artemides - Nicosia, CyprusRemember in the 90's when you looked at a company like eBay making their own market? You're seeing Sonicbids doing the same thing, and the music industry is beginning to have a new standard in the process.
Matt Gillette - Somerville, MA, USARefreshing-- Sonicbids cuts through the bureaucratic, impersonal mess that too many companies fall into, and gets it right.
Ken Kantor - Evanston, IL, USAAs an observer of SonicBids I continue to be deeply impressed by the passion and commitment to execellence displayed by the employees and their founder Panos. Keep up the great work delivering opportunity to musicians and venues everywhere!!!
Thomas Cheatham - Swampscott MAA simple and yet so innovative idea....and it works!
Anastasia Constantinou - Athens, GreeceGreat concept and excellent implementation. Keep it up.
George Nishiotis - Green Bay, WI, USASimple idea but a smart and innovative application!! A big "BRAVO" to Panos and his team.
Costas Ioannou - Nicosia, CyprusFinally, an online business with relevance to the needs of forward thinking individuals. Thank you Sonicbids and good luck in'05.
Matt Donovan - West Roxbury, MAGreat concept and execution.
Nancy Lerner Kantor - Evanston IL USAWe LOVE Sonicbids! Panos and the rest of the team there have done such a great job!!
Andreas Panayiotou - Nicosia, CyprusSonicbids has taken a once stoggy, all paper submission process for all parties involved and turned it into an easy electronic model that makes managing a publicity kit something that you enjoy doing.
Jason - Stamford, CT USAOur industry touches everyone on a daily basis whether it be in stores while you shop, on the radio on your way to the work, in the elevator at the office, at your local pub or even at the last wedding you attended. When most people think of the music industry they likely think of big names like U2, Sting or Madonna – they don’t think of the hundreds of thousands of “indie” (independent) bands trying to eek out a living through their music. It’s an incredible feeling to know that your job is literally changing the lives of people - really making a difference. I’ve attended many, many conferences, music festivals and shows in general over the past few years and there’s no better feeling then a musician coming up and telling you that they are there performing because of you, well, your company. I joined the Sonicbids team in late 2002 to head up Online Operations and have witnessed the amazing growth of our company first hand in a time when most would agree that the music industry has seen better days... I believe our success is in part because we have embraced technology, streamlining the inefficiencies of communication for both sides of the industry (musicians and promoters/buyers) while creating a real “eBay” like community and in part because of strong leadership and passionate staff. Having successfully avoided the mistakes of most start-ups in the late 90’s and early 2000’s, Sonicbids is truly in a position to change the industry forever and I am extremely happy to be part of making history!
Kimberly Thompson - Boston, MA, USASonicbids has an amazing thing going. For artists as well as the rest of the industry.
Rachael - Somerville, MA, USAThe concept of Sonicbids originated from a first-hand view of the music industry - addressing the challenges it faces and finding possible solutions. The company continues to grow based on the same premise - meeting the needs of artists and talent buyers alike. Everything about this company - from the concept to the technology, from the Sonicbids team to the high quality of musician members and partners - is amazing, filled with passion and innovation - and is not only changing the industry but breaking new ground at the same time!
Heidi - Brookline, MA, USAGreat concept. Great company. A world of potential and just scratching the surface.
Ted Miller - Miami, FL, USAProbably the only company of its kind to survive, much less thrive.
Max Borges - Miami, FloridaSonicbids not just found a niche market, they created one and standardized the whole concept of internet submission for musicians interested in a wide range of events. Our own event has been greatly enhanced in terms of visibility and funding because of our partnership with Sonicbids. The team themselves are remarkably friendly, responsive, and most pleasant to work with.
Ben Ruth - ChicagoSonicbids is revolutionizing the Music Business one Electronic Press Kit at a time. They are one of our most valuable partners and their technology has transformed our company, making us nimble and efficient and incredibly more effective. If they ever go public, we will buy as much stock as we can. Panos Panay and his team are geniuses and the Sonicbids EPK is the best thing since sliced bread. They should be #1 on your Fast Company list hands down.
Danny Wilson & the Holy Hip Hop Family WorldWide!!! - Atlanta, GA, USASuper Fast!!! Sonicbids is #1 and is worth probably a Billion Dollars right now!!! An awesome revolution. I love Sonicbids!!!
Marco - Smyrna, GAgreat company, great idea!
Denise - Franklin, MA, USAOne of the best companies in our business!
Madalyn Sklar, GoGirlsMusic.com - Sugar Land, TXTens of thousands of musicians can't be wrong.
E. Tierce - Brookline, MA USARock on!!
Ryan O'Connell - Sperryville, VA USAGreat concept, energy and ambition, mixed with focused and reaching goals. Inspiring!
Brian Bergeron - Brooklyn, NYCool site. This is just what I've been looking for.
Paul Orvis - New Fairfield, CT USAI love this -- a totally original concept and a unique application of web technology to the music industry. As a music industry professional I appreciate the time and money savings that this service offers.
Andrea Kremer - Boston, MA, USASonicbids has continued to win my trust, confidence, enthusiasm, and amazement. Every time I've said, "You know it would be cool if you could do this," they've said, "Done." Both their tools and their client base are growing in amzing time - but doing so within their core competencies. Their tools are growing organically to the needs of both musicians and buyers. They've done an excellent job balancing those demands. Above all else, Sonicbids has done two things for me personally that I cannot praise them enough for - They've made my job easier, and they've endured in an industry that chews up new ideas. I not only consider them here to stay - I think they're changing the way we view our business. Good work, Sonicbids!
Michelle Conceison, Market Monkeys - Cambridge, MA, USAgood to see people aware of the pitfalls of the dot com boom and using the web for things which you really can't do off line and really need to do.
derek holding - fort lauderdale FL usaI have been a fan of this simple and affordable service since the day I discovered it. It's a very effective tool that we use constantly and I have enjoyed watching their growth. This is not some dot com "burn bright then burn out" story. Sonicbids is just a simple yet great concept that this smart team is decicated to improving and expanding.
Bruce Houghton Skyline Music - Los Angeles, CA USASonicbids CEO is a very intelligent and industrious individual. This company will flourish under his management.
Carl Thompson - Harrisonburg, VirginiaI have been a member of Sonicbids from close to the beginning, first as an artist and then as a buyer, and it's been my honor and pleasure to watch them grow every year. I'm constantly amazed by the innovative services they come up with while still maintaining their friendly "small company" vibe. Panos & crew are amazing and inspiring people and I wish them all that they dream of and more.
Mara Hitner - Music Connection Magazine - Los Angeles, CAFresh, fast and functional. Sonicbids provides accessibility and ease to the broad spectrum of the music industry. Solidly based, they are in it for the long haul.
Anne Bisenius - Kent, CTWhat a fantastic idea and dynamite company. Panos and the Sonicbids team with their tremendous work ethic, dynamics and creativity will go far and the musicians that use their services will most definately prosper with them. Keep up the great work!
Deborah Thompson - Cross Junction, VirginiaFresh, fast and functional. Sonicbids provides accessibility and ease to the broad spectrum of the music industry. Solidly based, they are in it for the long haul.
Anne Bisenius - Kent, CTFor three years I worked for a grassroots promoter of independent music in the Boston and New England area, and there is nothing like Sonicbids that really puts a high quality presentation directly in front of a talent buyers, event directors, and booking agents. Sonicbids has grown into being the new standard for the industry, and everyday I hear from artists extolling the virtues of the service and how it has led to their successes.
Benjy Kantor - Jamaica Plain, MA, USACongrats to SonicBids for creating something of value in the vast and often unimportant landscape of the internet. If they can continue to positively effect the way musicians and the industry they "play" in, then they've truly established themselves as a SERVICE. Now that's something you don't see everyday . . . anymore!
Alissa Gumprecht - North Stonington, CTAmazing, really!!
r underwood - yortown, ny, usA one of a kind online business, with the foresight of the furure for all avenues of the music industry!
Lisa Lindskog - Pepperell, MAA one of a kind online business, with the foresight of the furure for all avenues of the music industry!
Lisa Lindskog - Pepperell, MAA one of a kind online business, with the foresight of the furure for all avenues of the music industry!
Lisa Lindskog - Pepperell, MASonicbids has taken my music career from 0-60 in a matter of seconds when considered how long I had been trying to do things on my own. This company is on it's way to the top and will have recordbreaking success if they keep going on the way they started!
Joyce Licorish - Indianapolis, IN USIn knowing this team from their start,innovative,ahead of the game and wonderful people to work with any day,any time.Panos and Kimberley form an excellent company.The future bides well for them and those who use their service.
Randal W. Thompson - Cross Junction,Va.Sonicbids is fulfilling the promise of the internet by fundamentally changing the way artists go about booking. The company puts more responsibilty and opportunity in the hands of the people creating and promoting music. Their incredible attention to building relationships in the community they service is what sets Sonicbids apart from other companies.
Ford - Boston, Ma.Inspirational example for internet entrepreneurs!
Rich Scannell - Boston Ma
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