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A somewhat exhaustive overview of the features found at app.musicfox.io. |
We're changing this music business game and that means you'll need to reacquaint some of your management skills.
Read the concepts below and you'll manage your book of business like Warren Buffett runs Berkshire Hathaway.
At the core of Musicfox sits risk. It's a funny concept, and one most of us deeply understand and misunderstand, at once. Risk can be defined in many different ways; here, we'll see it in two lights, quantitatively:
- volatility, or how much something moves around, over time, and,
- loss-aversion, or a tangible dollar amount beneficial parties are willing to lose in order to gain some tangible dollar amount.
{% hint style="info" %}
Volatility: we typically define this as the square-root of a time-series' variance. This is synonymous with
Loss-aversion: on average, how much is the average professional for your average artist type willing to lose, in order to continue operations? {% endhint %}
As you may have guessed, the risk concept we dove into above has little meaning without its complement, return or reward.
This is the one we all understand: stay away from the cookie jar and mom gives you another cookie. Get involved early and she puts you in time-out.