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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Of course, we all want a very, very, very
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big audience, but I went to a concert, and I'll
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explain why you don't always need one.
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My brother called me up and said, hey. I'd like you to
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go to a concert with me. My wife can't make it. She's not
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feeling well. And, of course, I said, well, who's the
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concert who's playing to which he said, pure
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Prairie league. Now, if you're like me, you probably win
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who and they are known kind of as the
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band that Vince Gill, who's a very famous country
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singer. Now Vince Gill was in this band before he was Vince
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Gill, and they had a song that I
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thought was really popular and it did crack the top
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20. So it was like, it was number 1. It was number 19,
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on the Canada pop music charts. It was number 20 on
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adult contemporary and number 27 on the
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Billboard hot 100. Now their big claim to fame is
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that that song was called Amy.
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Amy, what you wanna do? And that song has been
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covered by Garth Brooks, Counting Crows, Travis Tritt,
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Lone Star, bunch of people. And so I go with my
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brother to this concert, and they they were okay. They were great. I
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mean, the guitar player was amazing and they had great harmonies,
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etcetera. But we saw them in a venue that holds
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maybe 600. And I would say there were
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500 people there. Now tickets were about $40. So you're
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looking at $20,000 Now the venue's gonna take half of
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that. And so that means there's $10,000 and there are 5
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guys on stage. That's $2,000 to play for an hour and a half. But
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here's the other thing. Right? We always say that if you're trying to
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make money with your podcasting have multiple streams of income,
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and so they did. They had t shirts. This was
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their 50 year anniversary. They've been around since like 72.
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They've been around forever. Hence the who? Yeah, exactly.
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But they had t shirts in the and hats
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and things like that. So multiple streams of income. They're making money from
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playing the music, but also it's an event. And what did they say
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as they got done? They played their big hit time to go home and they're
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like, hey, give us a few minutes and we'll meet you at the merch table,
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and we will sign anything. So now you have multiple
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streams of income. And by getting the band to sign it,
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you can get a one of a kind, not only experience
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because you get to meet the band, but a one of a kind piece of
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merchandise. And, of course, as you're walking out the door
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to go home, what are you passing by? The merch booth.
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So you have to let you know, it's an old Disney trick. You have
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to exit through the gift shop. And that's a really great
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way to have people that thought about it. They're like,
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I'm right here. I might as well buy a t shirt. Now when I
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was in a band many, many, many, many moons ago, and we only bought
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200 at a time, the t shirts were $6.
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Now I'm sure inflation, they're probably 10, something like that. But they were
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selling for $30. So you're you're making $20 in
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pure profit. Now, again, the venue probably takes half of that depending on
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your contract. But But, nonetheless, he was a band
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that had more or less one hit. My brother said they had
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2, and I'm like, we have to talk about what we define
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as a hit. But, nonetheless, they had 500 people that
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showed up. Now here's the other thing we have to keep in mind. If 500
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people showed up I know it's time for fun with math.
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Typically, the people that show up are the
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3% of your total audience that you
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have, which is about just for easy numbers, 16,500
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people would be their fans if we go by the rule of 3%.
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And I hate that rule, by the way. But the more I dive into
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numbers and I talk to people who are making money with their podcasting, when I
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did my research for my book, Profit From Your Podcast,
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it was about 3%. There's a really popular science show
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called Radiolab, and they were doing a fundraiser trying to get up
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to 1%. And I was like, wait. Radiolab
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is I they're super popular, and they're trying to get up to
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1%, which is why you need multiple streams of income.
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But the point I wanted to make here, here's a band that'd been around
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since 1972. Everybody that I said, hey. I went and
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saw pure Prairie league, said, who? And yet they're
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able to make a living because they
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played probably 3 or 4 nights a week. And if you're making
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2,000 on the music and probably another, maybe,
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2,000 with t shirts, depending on how many you have, etcetera,
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etcetera, You're making an okay living for
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a few hours of work. Now when we say a few hours of work, let's
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not forget they've been around for 50 years.
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So as always, the good ones make it look easy
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and it's not and it's not overnight, etcetera, etcetera. But I
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want to point this out that you don't always need the
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100,000 downloads. It it you need that if you wanna do
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ads. But, again, the most profitable way to make money
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with your podcast is to sell your own stuff, which is what they
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were doing. And the other thing I thought I would point out, I'll put a
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link to it in the show notes, is there is an article called
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1,000 true fans. And the author explains
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that you can actually make a living if you had a
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1,000 true fans. And over a year span,
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you had products to where they gave you a
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$100, you would make a $100,000 a
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year. Sounds easy. Right? But it is one of those
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things that, yeah, if you had a 1,000
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true fans, If we bust out the calculator, that would
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mean we would have an a complete audience of 33,333
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people. And then, again, you times that by
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point 3, and you get the 1,000 true
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fans, the die hard fans. So it does take
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a decent audience to get to a 1,000 true fans.
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But as we look at Pure Prairie League, again, everyone together,
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who they've been doing it for 50 years. Why? Because they
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love it. They love to play music. They love to help
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people kind of escape whatever the 9 to 5 job is, have
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a good time, hear some harmonies, make a little chuckle with
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their their witty banter in between songs, and
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off they go to the next city. So it only took that
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one hit to get them to a level
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where they are now able to tour around and make a
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living playing music. Now if you need
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help with your podcast, whether it's getting it up and going,
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growing, I've gotten the school of podcasting, and I always say we
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have step by step courses. And if you're ever wondering, like, well, what kind of
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courses? Well, here's your answer. When you hear me talk about
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courses at the school of podcasting, you may be thinking, like,
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what kind of courses, Dave? Well, how about planning your podcast?
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Content is king. Your podcast gear, recording people
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across the planet, all things interviews, recording
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your podcast with Audacity or Hindenburg, understanding
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media host, publishing your podcast with Libsyn, Captivate,
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or Buzzsprout, learn podpage, podcast
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syndication, submitting your shows to Apple, Spotify, and more,
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growing your podcast, and making money with your podcast.
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And, of course, you have me along the way to guide you through
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all those along with our awesome community. Go to school of
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podcasting.com/listener, and remember, there's a
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30 day money back guarantee so you can join worry
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free. Go to school of podcasting.com/listener.
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I'm Dave Jackson. I help podcasters, and I wanna
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be your podcast consultant. Thanks so much for
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listening. If you know somebody who would appreciate this episode, do
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me a favor. Please share it with them. I deeply appreciate it, and I look
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forward to working with you.
