EMC x HMU Deal Memo
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A studio turnaround partnership

Turn a bleeding studio into recurring, passive income.

EMC has operated through months of losses. Chance proposes a strategic partnership and structured client-growth system designed to make the studio pay for itself, and generate profit for both partners.

Problem

EMC's monthly revenue remains below its operating expenses.

Solution

Promotion lead client-growth system

End of Year

Self-sustainable and profitable

Customer acquisition offer

$60 for a two-hour introductory recording session.

The promotion creates a low-friction reason for artists to try EMC. The real goal is converting those artists into recurring monthly clients.

Posts per day
$60Introductory price
2 hrsSession duration
FollowupFirst time discount for 3 additional sessions
Followup2Every 5th and 10th session additional discounts
28Recurring customers
Clear ownership

Panama drives the studio. Chance builds the growth system.

Panama

  • Operate and maintain the studio
  • Fund normal studio operating expenses
  • Post promotional content three times daily
  • Manage any advertising budget
  • Support scheduling, service, and client communication

Chance

  • Design and oversee the growth strategy
  • Recruit, train, and oversee engineers
  • Provide templates, standards, and workflows
  • Track conversion, retention, and performance
  • Guide quarterly growth toward the targets
Recurring clients + revenue projections

28 recurring clients by the end of 2026. 100 by the end of 2027.

The client base grows incrementally each quarter, creating a measured path from monthly losses to sustainable recurring revenue.

2026 Year-End
28
Recurring clients
$35,700Projected revenue
2027 Q1
46
Recurring clients
$54,000Projected revenue
2027 Q2
64
Recurring clients
$72,000Projected revenue
2027 Q3
82
Recurring clients
$90,000Projected revenue
2027 Q4
100
Recurring clients
$30,000/moMonthly target
Shared upside

First, the studio pays its bills. Then, profits are shared equally.

All normal and approved studio operating expenses are paid before profit is calculated. Remaining net operating profit is divided 50/50.

50%Panama
50%Chance

The partnership is designed to replace EMC's ongoing monthly losses with a system that can eventually produce recurring, increasingly passive income for both sides.

What scale could unlock

A profitable EMC can become a platform for much larger growth.

Scale a New Studio

Use the proven promotion, engineer system, and operating data to launch, acquire, or partner on a larger studio.

Explore a Suno Partnership

Pursue a potential relationship around artist tools, programming, co-marketing, or other strategic opportunities.

Activate the Client Base

Turn the growing community into showcases, listening events, workshops, memberships, and other live experiences.

Leverage a $250K+ Business

Use a quarter-million-dollar revenue engine as proof, cash flow, and leverage for larger partnerships, financing, and expansion.

These paths are exploratory. The immediate priority is proving the core studio model and reaching the agreed operating targets.