3 Themes To Take Away From The 1000 Fans Concept
Almost 10 years down, the concept is still pretty prevalent with books/guides such as $100 Dollar Start Up, 7 Day Start Up and so on. I thought it will be useful to give a brief summary of what are the main themes that I've noticed after reading several articles, hundreds of comments and books about this idea.
The Math Behind 1000 Fans.
Assuming that the aim is to make $100,000 per year, the hypothesis is that if we are able to find 1000 fans who on average provides creators of 100 bucks of profit, creators will be able to make a sustainable living with an annual income of about $100,000 per year.
This follows that:
- If you are making 1 buck worth of profit per fan, you will need 100,000 true fans
- If you are making 10 bucks worth of profit per fan, you will need 10,000 true fans
- If you are making 100 bucks worth of profit per fan, you will need 1000 true fans
- If you are making 1000 bucks worth of profit per fan, you will need 100 true fans
- If you are making 10,000 bucks worth of profit per fan, you will need 10 fans
Niches Are The Name of The Game
The examples given are typically based off artists, musicians. Upon investigation into other industries, it seems that many successful creators ( or even companies ) most probably started off finding their first customers via well-defined niches. More importantly, these creators are often Purple Cows; people either love them or hate them for what they do within the niche they have carved on their own.
Real World Application of 1000 True Fans
As mentioned above, the 1000 True Fans concept can be applied in many industries. Some examples include:
- Ramit Sethi, a self-help, self-improvement expert, mentions in this post that his top 1000 customers generated about USD8.6 million dollars in revenue
- Product People Club - apparently employs a lifetime subscription model to achieve his 1000 True Fans model
- Rob Walling, a software developer turned entrepreneur, talks about how he launched Drip via niching down.