 Wow, what's up everybody once again it's Brandon man Sean and today we got to go over the 1000 fan theory and what you can learn from Netflix as a rapper, as a singer, as a manager, as an entertainer in general. But before I get into the three things that I got to say, first I got to explain what the 1000 fan theory is for those of you who do not know the 1000 fan theory is essentially this. You have 1000 people who are true fans, not 1000 people who know you are true fans of you and they spend $100 with you over the course of a year because they're true fans, true fans will support you and spend money with you then that will be $100,000. That's a nice little bit of cash and the inspiring part about that is so many people think I need a million views, I need millions of people who know who I am versus just having 1000 people who really rock with you and that's the theory in a nutshell and I'll get to a little bit more of that at the end but first let's talk about how Netflix can relate to this situation. Now if you look at Netflix they have about three price points $7.99, about $10.99 and $13.99 so let's just say $10. This is a subscription method so what's so important about this subscription method is they're exactly built on this type of concept. That means if I have however many subscribers that I have to Netflix and they're paying $10 a month that means I have a whole bunch of people paying $120 a month. You get what I'm saying so let's just say Netflix has 1000 people who are spending $10 a month then of course they have $120,000 in that year. Now of course Netflix is looking for more than their 1000 true fans. They keep growing and growing as a business but that leads me to number two. It's something called predictable revenue. So many software companies these days are a industry called SaaS, software as a service and what they're essentially doing is subscription based models. Why? Because there's this thing called predictable revenue. When you know that you have 100 customers and those 100 customers are spending $10 a month that means that you know that from each person you're going to get $1,200 over the course of a year and you multiply that by 10 then that's $12,000 over the course of a year because you have 100 people signed up. I think I got those numbers right. That was right off the top of the head. What's so important about that is one it allows you to plan. You know that you're going to have a certain amount of money coming in and you can reinvest in yourself. You can be more stable and in turn investors love this model because there's a predictable system as opposed to each day I have to wake up find somebody completely new and hope they can make some money for me and then once I'm done with that person I have to find another new person because there's no constant relationship being built. These companies are looking to build their fans. If you want to dig deep into this model there's a book called predictable revenue by Aaron Ross and trust me if you don't read the book you can at least look up a summary for it as many of you guys know I don't just do things within music or help with knowledge and marketing with music. I also do stuff in tech and it's a staple for pretty much so many tech companies particularly in that size industry that I mentioned now but this brings me to number three fans should be your measuring stick. If fans are your measuring stick and you have one product that you can offer to your fans at least then you can then start to build your own version of predictable revenue. It doesn't necessarily mean that you have them tied in to a subscription and you know that they're going to be coming back to you every single month because they're paying a monthly fee. However a lot of you are familiar with those platforms that allow you to just charge your fans or allow fans to donate for your content and they can do that at monthly rates. They can do it for like $1 and then $5 and $100 and that's great that is essentially this model exactly but even if you don't do something like that I can't even remember the name of that platform so somebody put it in the comments below if you can remember but the whole thing is if you look at having 50 fans and focus on having 50 fans versus trying to even have a hundred or a thousand fans you can then start to build your own predictable system because predictable revenue is really about building systems. If I figure out how to have 10 fans then now I know how to repeat that and have 50 fans and then 60 fans and then 100 200 then once I understand how to build those fans then I can also say hey how do I offer them something and how do I offer them something of value that they'll actually like and then how do I then repeat that and do that again and again and again so it's a two-part system you need product and you need marketing to create fans then filter through to see which fans will actually pay and we're gonna call the people who are actually paying the truest of true fans or those supporters that you're looking for and that's pretty much it. People talk about the 1000 fan base theory a lot 1000 true fans is great but to get to that point you got to start smaller than that and let's figure out this one step at a time so you could really build a system as opposed to trying to wait for the reverse and say hey let's get big as possible and get millions of views and maybe I'll be left with 1000 fans because we know that the process of creating a fan is a little bit more specific than just getting awareness there's a lot of people that we are aware of that we aren't fans of. Now I would love to know you guys's thoughts as always but that stuff in the comments I need to hear it we want to have some conversation and let's say if you've learned something and you've already started a fan-based building strategy and you say you have 50 fans put that in the comments below I want to know other than that if you like this video go ahead and hit that like button if you like it you might as well share it and if you're not subscribed you know what to do hit that subscribe