THE HANNAIAN ENTERTAINMENT PUBLISHER
Now that we understand what a perfect business should be, lets talk about a business which we feel is truly the perfect business. The Hannaian Publishing business fulfills all of the criteria previously detailed as necessary for the perfect business. At this time there are two Hannaian Publishing Companies, Hannaian U.S.A. Corp which handles publishing in the U.S.A. and Hannaian International which handles international or non U.S.A. publishing. Publishing is a somewhat confusing term. Many people think of it as printing up a book and selling it in bookstores. While there is some truth to this picture, in a generic sense, publishing really is simply the acquisition, preparation and introduction of a product to the public. The Hannaian Companies are involved with Entertainment publishing, meaning that we publish such entertainment products as musical recordings, books, videos, multimedia software, and photographic and visual art collectibles. But even more importantly our ultimate goal in business is the acquisition and licensing of Intellectual Properties. We will talk more about this later.
As an Entertainment Publishing Company we do four things...number one, we sell directly to the end point consumer our physical products.... the music, the books etc.,...Secondly, we acquire and license the intellectual properties associated with the physical products...Thirdly we administer the rights and collect and distribute the royalties associated with the licensing of the intellectual properties.....And finally we co-publish with our artists and other publishers these physical and intellectual properties.
As a business the Hannaian companies have two other important functions. The first is that we train individuals in the establishment and operation of their own independent entertainment publishing companies. Secondly, we provide support mechanisms which allow these independent entertainment publishers to operate their businesses efficiently, affordably and hopefully, successfully.
The Hannaian Independent Publisher is the business opportunity we offer to individuals and companies looking for the perfect business in which to become involved.
Now some important notes:...If you are looking for a job, this is not for you....We want individuals who are interested in being in business for themselves and in developing a long term real business where they and their children will not have to work for someone else for the rest of their lives. If you are looking for a get rich quick scheme... then again this is not for you. People who are looking for get rich quick schemes do not live in reality. They are looking for something that does not exist and they usually do not have the qualities to be successful in a real business..... If you are not ready to develop a great deal of knowledge and understanding of the details of this business then it is not for you....All successful business people must thoroughly understand their business and must be prepared to learn it......If you are a procrastinator then this is not for you.....Individuals who are procrastinators and can not get off the mark.. never go anywhere.......Many of them are really afraid to take even a little chance which costs them essentially no money, even when they are the major beneficiary of their actions....... If you are not ready to do some work to further your own interests then again this is not for you.....Successful business people are self motivated and ready to move and work. These are the people we are looking for and these are the qualities you must have, otherwise you are wasting your time thinking about being in business for your self. These are the cold hard facts and reality of business. This is the challenge and it is why not everyone can be a successful business person...Take a long hard look at yourself before you think about being in business...You may really be the kind of individual better suited at looking for a job and working for someone else.
People with comfortable jobs have an additional problem. The job keeps them so comfortable they do not look elsewhere or prepare themselves for downsizing or potential change in their companies posture. Usually these people are in the best position to start a business but they often wait too late and only do it out of necessity when for whatever reason their comfortable job becomes uncomfortable. Or, as is the case many times in our modern society, their job is lost due to layoffs, downsizing and other corporate cost saving strategies. The fact is that many people are not ready to be in business for themselves even though it is the most important step they can take in securing their families future. Owning some type of business no matter what it is, is better than not a having one.
Hannaian Publishers do four things......
First they co-publish with the Hannaian companies, the physical and intellectual
entertainment properties as an independent contractor......
Second, at their discretion they build a network of other Independent
Publishers.......
Third, and again at their discretion they participate in various traditional
business and artistic activities within the entertainment industry, such
as, being an artist, author, producer, manager, promoter etc. This is a unique
aspect of the business because it allows individuals intrinsically interested
in the entertainment business to do what they like to do, and to make money
while doing it.
Finally the Independent Hannaian Publisher builds a real business with all of the attributes of the perfect business previously outlined.
We have been talking about something called Intellectual Property and since this is at the very heart of our business I want to explain the concept briefly. Intellectual properties typically are the rights attained through legal concepts such as patents, trademarks and copyrights. Although patents and trademarks are important to our business I am going to reserve comment on these concepts in order to explain a little about the most important of the three to our business, the copyright. The copyright is a somewhat confusing concept and can be very technical. I had one gentleman tell me that copyright meant that if you are trying to steal someone else's work, and if you do it the right way, then you did okay, you copied it right, but if you do it the wrong way......now... you get in trouble. Now as strange as it may seem there maybe some truth to his interpretation. However Copyright is really a bundle of exclusive rights which only the creator of a copyrightable work acquires at the time of creation of the work. For our purposes these rights include the following four principles......
1. The right to reproduce or copy the work
2. The right to publicly perform or display the work...For example if it is a song, only the creator can perform it publicly
3. The right to distribute copies of the work.....and
4. The right to sell, license or otherwise make money from the work
It is important to remember that these rights are not a physically touchable product, yet they may be much more valuable an asset than the physical products they support.
For example lets look at what we call the Microsoft experience. Most people know who Bill Gates is.....They know that he is the richest man in America and has been so for some time now...What they may not know is that he became the richest man in America in a relatively short time, maybe 10 to fifteen years. Prior to that time he was much like you or me.....They may also not realize that his meteoric rise to fame and fortune came as the result of his control of one little piece of software...one little piece of intellectual property...called MS DOS...which provides the basis for operating the vast majority of computers in the world today....What they may also not realize is that he didn't even have to sell this piece of property... he just licensed it... or made money from letting other people simply just use his intellectual property... The next time you buy a piece of software look closely at the information that comes with it and you will discover you really didn't buy it and you really don't own it all you did was purchased a license or the right to use it under certain restrictions. What you may also not know about Bill gates and His Company Microsoft is that he is not the only billionaire affiliated with the company and in fact that there are really hundreds of millionaires who have ridden with him to the glorious heights of financial security and success from this one little piece of intellectual property. In fact some now call Microsoft "The Billionaires Club"
There are several lessons to be learned from the Microsoft experience.....The first is that the acquisition and licensing of just one valuable bit of intellectual property may be all you ever need....Second, the many millionaires who now ride the train of financial success with Bill Gates didn't just get on the train... they were probably with him at the start. A review of the 21 principles of the perfect business would demonstrate that they probably got on the train to success at the station before it left. They probably were the ones who recognized the opportunity that beginners luck provided them... Needless to say, there are probably even more individuals who had their chance to catch that train and now they can only look back with regret at having missed one of the greatest opportunities and train rides in history. The picture of those individuals standing at the station as that train pulled away with its little cargo of intellectual property should never leave your mind ......if you want to be in the perfect business.....and as you listen to the rest of the story you are about to hear.....
Another example of the value of intellectual property can be gleaned from the success that Elvis Presley has attained since his death, that is if he is really dead. Today his estate continues to generate tremendous income, a clear example of the power of valuable intellectual property. Years after his death his survivors are probably more wealthy now than they have ever been.
Several years ago Michael Jackson reportedly purchased the intellectual property rights in the Beetles catalog of songs for a figure rumored to be somewhere around $48 million in 1985 and sold it in 1995 for $95 million. These figures tells you where the money really is in the entertainment industry. In fact another measure of the value of these properties can be more easily understood when you consider that the last time I checked, some 10 years ago the Beetles song "Yesterday" had at that time been rerecorded approximately 33,000 times. If you understand the various types of royalty payments which may result from such use, you quickly realize the importance of Intellectual Properties in modern finance.
What these examples really demonstrate is the power of Intellectual Properties for generating true residual income, income which stays with you long after you have done the initial work and even after you die. This is the type of residual income we spoke of earlier in identifying the 21 elements of the perfect business. This is real residual income.
Now lets talk a little more about why the Hannaian Companies exist. We mentioned in the 21 principles of the perfect business that a perfect business should fill an unmet need. If it does, it makes it easier to succeed. The Hannaian Companies were established to do exactly this. The Companies developed out of a need to assist talented artists to obtain the proper exposure, recognition and income for their independent productions. In fact this is the companies official mission statement. Today in the entertainment world the means to distribute and publish entertainment products are controlled almost entirely by a very small number of companies, particularly in the music and book businesses. These companies have continued to consolidate their positions with purchases of other companies and so their control of the nation wide distribution channels is such that independent producers cannot effectively acquire shelf space, and even if they are lucky enough to get their product into mass retail outlets, the burdens, economies and idiosyncrasies of the revenue generation associated with the process effectively precludes their participation in any meaningful way.
In fact my years in the independent music production industry taught me this painful lesson and as a music and entertainment lawyer I became even more disillusioned by the number of artists who would seek my service just to get their productions reviewed by the major record companies and publishers. For those of you who may be new to the business I am making reference to the well known practice in the industry of returning tapes, records and books sent for review unopened and labeled with the notice "Unsolicited Material, Returned Unopened To Sender". This is the most likely response any artist not represented by a reputable agent or entertainment lawyer will receive if he attempts to market his material directly to such companies. In other words otherwise talented artists cannot even get an initial review of their material by most major companies in the business.
In addition, today, due to the low cost of computerized technology, the production capabilities for artists and authors have tremendously increased. A musical artist or an author can effectively set up high quality production facilities very inexpensively and produce products of tremendous quality right in their bedrooms or garages. This has led to a huge amount of quality material being available from many many more talented artists. These situations have led to a tremendous bottleneck in the ability of independent productions to reach the general public. When you add other constraints such as broadcast airplay it becomes patently clear that the vast majority of independent productions never even see the light of day, despite the quality of their merits.
The development of the Hannaian Way of distributing and publishing entertainment products was directly designed to get around this bottleneck in traditional entertainment distribution and publishing.
In addition, Hannaian's Mission includes the important goal of providing economic empowerment, and pleasurable opportunities for many people.
Hannaian accomplishes its mission by distributing and publishing entertainment products in a unique way we call the Hannaian Way.
Through careful research and development we have developed a first of its kind distribution and publishing system. We know of no other company in the entertainment industry which does what we do, or like we do it.
Hannaian uses a direct sales network which sells and licenses entertainment products directly to the endpoint consumer. A person to person approach which removes the inefficiencies, inherent limitations and tremendous costs of the traditional systems. In addition, Hannaian combines this direct sales network approach with eleven royalty based programs. This allows its publishers to participate directly in traditional entertainment activities, allowing them to make money while doing the true artistic, entertainment and business activities which they enjoy, or in which they would like to be involved.
We call this unique system "Integrated Personal Marketing" or I.P.M. because it combines these two powerful aspects to produce a potent and effective force in the distribution and publishing business.
Now let's talk about the income potential of being an Independent Hannaian Publisher. Perhaps the most important feature of the Compensation Plan is that it is structured to provide three levels of sophistication of business operations, or three types of business operations. This simply means that a publisher may operate his independent business at any one of the three levels or any combination of the three. Publishers may operate at the first level which we identify as the profits business, the second level of business sophistication which is the network business, or the highest level of operations which is the royalties business. Individuals who decide to operate at the profits level receive income only from the profits from their personal sales, and bonuses from their extra sales activity. Those who decide to be a little more sophisticated in their business operations can get involved with direct network marketing, which increases their income potential through commissions made from their downline sponsorees. Finally, those who want to take their business to the highest level of sophistication can participate in what we call the royalties business or our eleven royalty programs. Many individuals, for example may not want to be too involved with sales or network building and these individuals can build their businesses and income totally through the royalties based programs. This is primarily what differentiates the Hannaian Publishing business from many of the pseudo business opportunities around today, and qualifies it as a real business opportunity.
The profits business provides significant cash flow opportunities. Individuals who sell the products may make up to 100% profits immediately upon the sale, and without any real overhead costs such as stocking inventory and other typical business costs.
Those individuals who choose to participate in the network building business become the beneficiaries of something we call the 10/100 principle, and their income potential is powerfully enhanced if they follow this principle in their network building activities.
The 10/100 principle states that you can be quite successful if after achieving the required publisher rank qualifications, everyone in your network averages a minimum of $100 a month in sales, and, each of them also builds a network in which they sponsor at least 10 individuals directly in to the business, and, each of these 10 in turn sponsors 10 individuals into their respective networks, so that throughout the network this becomes the average sponsorship and sales formula. A review of this demonstration will show that the Hannaian compensation plan was specifically designed to produce tremendous income potential if this simple rule can be followed on average throughout your network. Obviously the larger the network or the sales or sponsorship figures, the larger the income potential. We call it being successful on $100 dollars a month. The system was specifically designed to allow success with only this modest sales requirement.
Obviously any individual who cannot generate at least a $100 dollars a month in revenue should not even be thinking of being in business for himself. Where else can you be in business and be successful on a $100 a month. Such individuals should resign themselves to looking for a secure job that requires absolutely no sales, and look forward to working for someone else for the rest of their lives.
Hannaian Publishers will be successful if they use this balanced approach of some sales combined with network building. Creating the balance is the key. The system will do the rest. It is important to note at this point that the tremendous income potential possible through use of the 10/100 principle does not include income from the many other sources within the system such as bonuses, royalties, royalty bonuses, royalty commissions and incentives. In fact the Hannaian Compensation plan provides its publishers with over thirty real ways to make money. The 10/100 principle deals primarily with only one of these, commissions from your network of publishers.
These additional income opportunities, particularly from the eleven royalty programs add a significant potential for increased income for a publisher. They range from royalties paid for activity as an artist, producer, controller, manager, promoter, developer, licensor and more. A typical example is the development royalty where certain publishers who simply introduce an artist or product to the company obtain the right to receive royalty payments. Therefore a publisher may share in the royalty income from a product which he introduces to the system, or she may qualify for a royalty from promoting concerts at her and other churches for a Hannaian gospel artist, or a Publisher who serves as a manager of a Hannaian artist may participate in royalties produced from the sale of the artist's productions.
Now, a bit more about the Hannaian products. The physical products such as musical recordings, books, multimedia software & other entertainment items must possess potentially valuable intellectual property.
In addition, these physical products are specially packaged to make them more attractive as collector's items and specialty & gift items. For example, record albums are packaged with a booklet about the artist, producer, history of the project and other interesting information. The songs on the album may be preceded by an introductory snipet by the artist or producer introducing the song, explaining its significance and its parts or other interesting and revealing information about its meaning or production. Wouldn't you like to know what Aretha Franklin meant when she sang "Just give me some respect", and wouldn't you like to hear her explain it right on the album just before she sings the song.
The intellectual property products are promoted and licensed to other potential users of these properties. These licences produce income from the various mechanical, synchronization, public performance and other royalties associated with their use. Publishers who promote the use and licensure of these products share in these royalties and their sponsor and others upline from them within the network also receive income in the form of royalty commissions from the licensing.
At the beginning of this presentation we identified 21 principles of the perfect business, and stated that you should strive to put your time, effort and resources into a business that satisfies all of these principles. The Hannaian publisher opportunity was specifically designed to comply with these requirements. Not many businesses have the necessary or inherent qualities, or deal with the type of products which would allow them to meet these requirements. Entertainment publishing has certain inherent attributes as a business that makes it qualify, particularly when it is combined with the unique Integrated Personal Marketing System which typifies only the Hannaian way of entertainment publishing. The real problem however is that despite it being the perfect business you must still take some action to benefit from the business. No one else will take this opportunity for you. You must take action yourself if you do not want to stay in the same situation you are in today. Remember, you can never get to the top rung of the ladder of success until you take that first step. That first step is really the step to success. It is the most important of all the steps. You must do something. Success is not going to fall into your lap, and certainly it will not do so overnight. You must not continue to procrastinate and let opportunity after opportunity pass you by. Don't constantly look back with regret and wonder where you could have been by now, or enviously look at what a friend of yours has accomplished while you have been procrastinating. Don't let beginners luck pass you by. Remember the Microsoft example, with the train at the station and the contrast between those currently in the "billionaires club" and those who stood by and let that historic train leave the station without them. You need to be on the train, not standing around procrastinating.
Do something. Get busy with productive activity. You are the greatest beneficiary of your actions, and unfortunately, you can also be the greatest loser for your lack of action. Take action now and jump on some train. Just remember to make sure the train you get on has the cargo necessary for the perfect business. Hannaian Entertainment Publishing is the perfect business.
Again, Intellectual Properties are the rights attained through legal concepts such as patents, trademarks, and copyrights. They are the backbone, integrity, and engine of modern business. The acquisition and licensing of valuable Intellectual Properties is also the business of the future ........
Let me read to you a couple excerpts from a presentation made by Russell F. Parrs to a 1994 joint conference of the American Law Institute and the American Bar Association in Washington D.C.. Mr. Parrs is a noted expert on the value of intellectual properties in the future of modern business. He has written several books on the subject. If you are thinking of making money in business in our modern and global economy I encourage you to read what he has to say. In his 1994 address he states in part........
...... "It is intellectual property that establishes markets, dominates industries, assures national security, captures the loyalty of customers, and allows the generation of superior profits. It is intellectual property that keeps companies from becoming moribund commodity producers. Curiously, these powerful investment properties are difficult to define, sometimes impossible to touch, (and) born of the law"...............
"Recognition of intangible assets and intellectual property as keystones in the structure of business enterprise is rather a new concept but is fast becoming the dominant force behind strategic planning. In fact, intellectual property is often the ante required to enter into strategic alliances with others. Don't bring cash, because nobody wants it. Proprietary keystone intellectual property is the entrance fee. We are accustomed to thinking of a business in terms of its physical property. Our minds fasten on images of train loads of coal, oil rigs, blast furnaces, and production lines. We tend to equate the profits of a business with the successful employment of capital and labor but overlook that the catalyst in the capital-labor reaction is intellectual property. It is the inventions, designs, trademarks, copyrights, distribution networks, know-how and other intangibles that make the reaction successful."
"Corporations that properly manage intellectual property and intangible assets will be in commanding positions of economic power. The business world is splitting up into two types of companies: those who have intellectual property and those who do not. The have-nots will surely fade away unless they can gain access to patented technology and well regarded trademarks. The mere possession of industrial capacity is not enough to assure continued growth and profitability. Lacking unique intellectual property, all that remains for a corporation is the ability to mass produce a commodity or to manufacture for others as a job-shop. Either fate usually means slow growth and slim profits. Only a proprietary technological advantage or a well regarded trademark can save a corporate investment from mediocrity.".... He then quotes from George Glider in "Microcosm: The Quantum Revolution in Economics and Technology" who states " Today, the ascendant nations and corporations are masters not of land and material resources but of ideas and technologies."
In demonstrating the market value of some intellectual properties Mr. Parr goes on to state that......
".....an entirely new form of international commerce is evolving around transactions that are based upon the transfer of intellectual property separate and distinct from the products or services that the property supports. Licensing, joint ventures, and outright sale are the primary means by which intellectual property is exploited............. We have witnessed in the last decade corporate acquisitions and takeovers of enormous magnitude. Philip Morris purchased Kraft, Inc. For $13 billion and with it acquired one of the best collections of consumer product trademarks in the United States. Maxwell Communications purchased Macmillan, Inc. And received an irreplaceable collection of active book copyrights. The RJR Nabisco takeover required $25 billion; 80% of which was attributed to the acquisition of trademarks and other intangible assests...Jim Beam, a division of American Brands, purchased a collection of well known liquor brands from Seagram. The price was $372.5 million."
I encourage you to get a copy of Mr. Parr's books particularly if you want to prepare for doing real business in the 21 century....You may purchase them from the publisher John Wiley & Sons, New York, NY., or you may obtain the full text of his 1994 presentation from the ALI-ABA Committee on Continuing Education, Philadelphia, PA.
Perhaps it bears repeating. You need to get started now. Don't procrastinate ......I hope that you will come along with us on the Hannaian train and begin to provide financial security for yourself and your family. Thank you for your interest and hopefully we will see you soon on the Hannaian Way.
The 21 Principles of a Perfect Business