Leveraging Your True Fans for Podcast Revenue Growth
I want to explore why you don't need a massive audience to find success with your podcast. I'll share a personal story about attending a concert—a band you might recognize for their hit song "Aimee" (but probably don't). Despite performing to a...
Finding Value in Quality Over Quantity
Of course, we all want a very, very, very big audience, but I went to a concert, and I'll explain why you don't always need one. In this episode, I talk about an eye-opening experience that changed how I view audience size and success. Let me take you through the story and share some insights to help you, my fellow podcasters, rethink what success means.
The Concert That Changed My Perspective
My brother called me up and said, “Hey, I’d like you to go to a concert with me. My wife can’t make it, she’s not feeling well.” Naturally, I asked, “Who’s playing?” He said, “Pure Prairie League.” I admit, my first reaction was, “Who?” They are best known for their song “Aimee,” which, although it cracked the top 20, most people today might not recognize. Despite this, my brother and I went to their concert.
The venue held about 600 people, but only around 500 showed up. Tickets were about $40, so they grossed $20,000 that night. After the venue took its cut, the band members walked away with around $2,000 each for a 90-minute performance. Not bad for a night's work, right?
Multiple Streams of Income: The Secret Sauce
One of the things that struck me was how they weren't just relying on ticket sales. They had multiple streams of income. They sold T-shirts, hats, and other merchandise. After their performance, they invited fans to the merch table where they’d sign sold items, adding a personal touch. This reminded me so much of what we podcasters need to do: diversify our income streams. Whether selling merch, offering exclusive content, or even consulting services, multiple income channels can make a huge difference.
Understanding the Rule of 3%
Here’s something we often overlook—the rule of 3%. Typically, only about 3% of your audience will take action or engage deeply with your product. If 500 people showed up for the concert, by this rule, Pure Prairie League could have around 16,666 fans. Though I wish the rule of 3% were the rule of 10%, I have found through my research for my book, *Profit From Your Podcast*, that the 3% rule often holds true.
Even popular shows like Radiolab struggle to convert just 1% of their audience during fundraisers. This highlights the importance of having multiple streams of income.
The Value of True Fans
I also want to mention an article titled “1,000 True Fans,” which argues that you only need 1,000 die-hard supporters to make a sustainable living. If each of those fans contributes $100 a year, that's $100,000 in revenue. To gain those 1,000 true fans, you might need a broader audience of about 33,333 people. While this might sound challenging, it's far more achievable than aiming for hundreds of thousands of casual listeners.
The Pure Prairie League Formula: Longevity and Passion
Pure Prairie League has been performing since 1972. They’ve taken a single hit song and turned it into a lifelong career, thanks to their passion for music and their fans. They genuinely love what they do, which keeps their audience coming back. For us podcasters, the lesson is clear: passion and consistency can sustain you in the long run, even if you don’t have a massive audience.
Applying These Lessons to Podcasting
What can we learn from this? You don’t need a colossal audience to be financially successful. Focus on building a dedicated community and diversify your revenue streams. Consider selling merchandise, offering premium content, or even consulting services to monetize your podcast effectively.
Educational Resources for Podcasters
If you’re looking to start or grow your podcast, I offer a range of resources at the School of Podcasting. From planning your podcast to advanced techniques in recording and monetization, these step-by-step courses are designed to help you succeed. These courses cover every aspect of podcasting, ensuring you have the knowledge and support necessary to thrive.
It's About the Connection
While it’s tempting to think that a massive audience is the key to success, both Pure Prairie League’s experience and my own insights reveal that a focused, engaged audience can be just as rewarding. Remember, it’s not always about the numbers; it’s about the connection and value you provide to your listeners.
For more advice and resources, visit the School of Podcasting at https://schoolofpodcasting.com/consultant. With a 30-day money-back guarantee, there’s nothing to lose and everything to gain.
Mentioned In This Episode
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