SM: Do you have segmentation and preferences when you choose which clubs to work with and the programming to get behind? How do you decide whom to get behind?
AF: Today we pretty much cover the gamut. We work with everything from a food and wine festival to a nightclub. We are a company that focuses on nightlife. When we talk to people we talk about how big the planet is, we are really more of a planet nightlife than a club nightlife. As we influence more consumers’ habits and more advertiser habits, it is more about this wonderful existence in nightlife.
SM: Do you have more draw to certain types of venues?
AF: Today it is really a very wide net. It started with dance music, but it is now every genre of music. We do not discriminate. In the old days we did not have all the genres, but we can do that now with our scale. We prefer to cover as much nightlife as possible. We want to be the Zagat of nightlife, not just for rock clubs and bars.
SM: Do you have reviews and ratings on the site?
AF: Absolutely. We have photos as well as editorial content. Bloggers from around the world are included. We also have e-commerce engines as well. There are not too many nightlife websites that generate more than $30 million a year in revenue.
SM: How is that $30 million in revenue spread among your business?
AF: We have three buckets of revenue. Tickets sales represent e-commerce. We also have local advertising that is hyper-local in market focus, as well as national advertising. Our third bucket is actual events. We will do close to 1,000 events this year. On any given week we have close to 20 events going on across the country. Those are events that might be for a corporate sponsor who bought an ad on our website, or it might be a 4th of July event that we just really like.
If you look at the concentration of revenue, e-commerce is the leader. Four years ago it was not. Each year the ecommerce business keeps booming. This year it is up 30%, accounting for over 70% of total revenue.
SM: Can you explain your events model in more detail? Are you doing event management?
AF: It is not really event management. We are going in a market where there is a pre-existing event and bringing additional content to that event on behalf of a corporate sponsor. We also host some proprietary events that we think we can do well on financially.
SM: And I am assuming you can overlay your e-commerce capabilities on top of the event?
AF: Correct. We bring additional content, and we bring our e-commerce platform, which also drives attendance.