4 ms·
This reminds me of the concept of "Pareto distributions"... >In the early 1900s, an Italian engineer, sociologist, economist, political scientist, and philosop
by stanrivers 6y ago
This reminds me of the concept of "Pareto distributions"...
>In the early 1900s, an Italian engineer, sociologist, economist, political scientist, and philosopher (but he was probably no fun at parties, so you got him there) named Vilfredo Pareto became fascinated by the ideas of wealth and power – namely, how is wealth distributed across society? (Interestingly, he did not start this work until his forties, so it is never to late to make a difference.)
>Ever diligent, he pulled data from the 1400s through his modern times and found the same pattern everywhere. Whereas people had previously assumed that wealth would be distributed in a flat, upward-sloping line from poor to rich, what Pareto found was in fact a hockey stick – a small percentage of the population holds a majority of the wealth.[1]
So basically, a small number of all the "individuals" account for a large portion of the overall pool... the same would be true for fans... there is a universe of potential fans out there... millions of them. You need to find the ones at the edge of the chart that are willing to pay - those are true fans.
Other examples:
>The majority of scientific papers are published by a very small group of scientists. A tiny proportion of musicians produces almost all the recorded commercial music. Just a handful of authors sell all the books. A million and a half separately titled books (!) sell each year in the US. However, only five hundred of these sell more than a hundred thousand copies. Similarly, just four classical composers (Bach, Beethoven, Mozart, and Tchaikovsky) wrote almost all the music played by modern orchestras.
So I think the takeaway is, focus on making those people that truly care happy. Don't try to make the 90%+ that are not going to pay you much happy. Make the smaller percentage that are going to be with you for years with large money happy... it is easy to chase short term profits or short term incentives... invest in the long term for those rare ones that find value in what you are doing AND are willing to pay for it.
[1] Chart here: https://www.butwhatfor.com/stand-up-straight-with-your-shoulders-back/ https://www.butwhatfor.com/stand-up-straight-with-your-shoul...