Hello and welcome to the 316 new subscribers of Creator’s Compass! I’m glad that you’ve joined the party 🥳
Most of you are probably here for the 50 AI content creation prompts I posted on LinkedIn. I’ll share that SNACK with you at the end of this newsletter.
Today’s topic is all about money.
More specifically, how to think about building revenue streams as a creator 😎
Let’s get into it.
Have an offer at every price point.
The best content creators have a clear funnel for how their content translates into revenue.
Their systems are built and refined over time, with different revenue streams created as they expand into products, courses, sponsorships and even businesses.
See your offers as “brand building blocks”. Instead of every block being limited to its own individual weight and value, every block you add compounds.
No empire was ever built on weak foundations.
Your foundations are your personal brand and the free educational content that you make for your audience.
Every offer that you create increases the total utility of your online brand.
When your audience interacts with your offers, it creates a natural choose-your-own-adventure situation. Your audience will independently select the option that matches their current level of commitment and purchasing power.
Here's a framework to consider when creating offers. It's important to note that the amount you can charge is directly linked to the probability of achieving the desired outcome.
How to price your offers
Following the timeless wisdom of 1000 True Fans, building a tribe who like, know and trust you comes from helping other people with no ask in return.
Gary Vaynerchuk’s book Jab, Jab, Jab, Right Hook is probably the bible for this, where “jabs” are your free content and “right hooks” are the times you ask people to buy from you.
With more content online than ever before, it’s probably closer to being “Jab, jab, jab, jab, jab, jab, jab, jab, right hook” - but I forgive Gary for wanting a shorter book title.
Daniel Ek, the CEO of Spotify, recommends that the majority of creators follow the Freemium model. In our above table, these are the stages of “FREE” and “$$$” where you have a high-ticket, premium offering and then everything else you offer is free.
The beauty of the Freemium model is that you create True Fans. Even if the majority don’t ever buy from you, you’ve sold a problem they had which leads to trust and credibility. This becomes a driving force of free word-of-mouth marketing and referrals that, in turn, increase your total audience size.
Inside that audience, a small minority will have the purchasing power to buy your premium offer. This allows you to create higher-quality content which produces a flywheel effect that gains momentum.
“What can you do now that you won’t be able to in the future?”
This was just one of my takeaways from listening to Die With Zero author Bill Perkins on the Modern Wisdom podcast. A fascinating conversation which really hit home to me that my 20s are for travel and taking more risks.
📖 Article - 1000 True Fans by Kevin Kelly
- Referenced throughout this newsletter, this timeless wisdom is a must-read if you want to grow an audience.
📚️ Book - $100M Offers by Alex Hormozi
- It’s hard to talk about offers without referencing the best book on the topic. I’ll be revisiting this very soon as I build out my own $ and $$ offers.
🎙️ Podcast - Acquired’s interview with Daniel Ek (CEO of Spotify)
- This is the episode where Daniel Ek mentions the Freemium model. I’m currently binge-listening to all of his interviews. The man is a genius.
“People who pay, pay attention.”
Eric Siu
That’s a wrap. I hope you found this newsletter valuable.
Thanks for reading, I’ll see you next week!
Joe
P.S. If you came from LinkedIn I promised you a Notion page with 50 AI Content Creation prompts. Grab your copy below. Rest assured, we’ll add this to a wider library of resources for you to level up your content 🚀
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