Business Plan Writer for Companies Raising Capital

Making $1 Million Annually With Super Fans

Making $1 Million Annually With Super Fans

Did you know that you can make $100,000, $250,000 or $1 million a year with a few thousand “super fans”? What’s a super fan? Someone who really loves you and/or your product. A great example of super fans are Beyonce’s “beyhive” or people who enjoy every Grateful Dead concert that comes to their town.  These super fans purchase every item of clothing, video game, concert ticket, and movie ticket that their favorite artists participate in.

Super fans are not just for entertainment or sports. Your business can…and should…have super fans too. Within my business plans, I always like to feature the number of super fans needed to reach the business’ goals. For example, a restaurant may define a super fan as someone who comes and eats at least once per week. If 1,000 super fans ate at the restaurant on a weekly basis and spent $20 every time they visited, the restaurant makes over $1 million per year.

Next, we ask if this is a reasonable thing that someone would do. In this example, the answer is YES. The average American eats out three to four times a week so we’re able to justify our assumption within our business plan.

Restaurants aren’t the only ones that can have super fans. I spoke with a successful video game designer a couple of weeks ago. He told me that his company measured daily usage. Another client of mine – a primary care physician – considers patients that visit her twice per year as active patients. (I can’t call doctor’s patients super fans so frequent visitors is the next best thing).

Other professionals such as realtors may have to adjust their definition of super fans. Because the average homeowner moves every 7 years, a realtor may consider a super fan as someone who refers them to a prospective buyer/seller a few times per year. Once again…defining a super fan changes based on the type of business you are in.

It’s essential that you do the math. If you have 10,000 super fans who pay $100 per year for your products/services, then you generate $1 million. Or you could have a service that costs $500 per year catering to 2000 super fans. Or you could have a $1200 per year (or $100 a month) that’s purchased by 833 people. The math breaks down very simply.

So…..how do we use this information? You set a goal for the number of super fans you want and create a marketing plan. I’m not talking about a 50 page traditional marketing plan that analyzes color palettes and other sophisticated metrics.

Here’s my greatest piece of marketing advice – focus on a few marketing activities that you do well and do them consistently…even when it gets boring. Find things that attract the highest number of super fans and implement them.

Some individuals should use social media to find and engage super fans. Not all platforms are the same. If you don’t have a team, I suggest you select ONE platform to focus on and dominate it. For example, I know a successful person who does her Youtube shows every Monday and Wednesday at 9PM. She has a great show with a strong following of more than 50,000 people. Within 24 hours, she’ll usually have more than 25,000 views. And her messages are starting to get mainstream attention.  Having a schedule and being able to engage with your super fans is a powerful way to grow your business.

Rigid schedules aren’t the only way to be successful on social media. Another entrepreneur does car videos as she’s traveling from one real estate project to another. She doesn’t have a rigid filming schedule but still has a very engaged audience. She shows people her real estate projects and other entrepreneurial endeavors. Her super fans love to see her latest projects. When she needs money for one of her projects, her super fans fund them. (NOTE: She built trust for several years before asking her super fans for a dime so this is a long term strategy).

Not every business is social media friendly. Some businesses require a good old fashioned telephone and shoe leather. I was speaking with a prospect who owns a commercial cleaning company. She needs to select about 200 commercial locations that would be ideal clients and call them EVERY SINGLE MONTH WITHOUT FAIL. When the current commercial cleaner messes up, the prospect will remember her company and give her a chance. That’s the nature of prospecting in that business.

Last week, I met a gentleman who did human resources and benefits for small businesses. His primary marketing method – networking. Based on the conversations I had with multiple people at the event, the entrepreneur was at 2-3 networking events per day. It was essential for his business’ growth to be out and about all the time.

Here’s my question to you. Do you have enough tenacity to win? Whether you need to persist on social media, go to hundreds of networking events, or call the same multi-million dollar prospect for 2 years, are you prepared to do the hard work.

Calculating the numbers and coming up with a plan is the easy part. Implementation is where the rubber meets the road. Richelle Shaw, author of The Million Dollar Equation, says we should implement like we’re broke. It’s the only way to get to a million dollar status.

Here are a few tips additional tips to reaching your goals:

  1. If you are a crafts person, entertainer, or musician, it’s important for you to be visible. That’s why authentic entrepreneurs like Sara Blakely are so beloved.
  2. Are you selling a high ticket item? The more clients pay for your products or services, the more you need a personal relationship with them.
  3. Nurture your current fans while marketing to new ones. Many people are so busy reaching new fans that they forget about the current ones. I suggest a 60-40 split. Spend 60% of the time focusing on current fans and 40% of the time focused on new fans.

Super fans can help you in more ways than one. Great businesses have super fans that will crowdfund new products or projects. Super fans want to see your business grow and thrive. Filmmakers are getting projects made. Artists are having super fans fund new albums. Clothing designers are having new product lines funded. Nonprofits are engaging their super fans to do big things. And when you’re able to raise money from super fans, you may not need to raise money from investors. Or your investors may be more likely to invest in you because you have super fans already.

If you need a business plan, please contact me at wewritebusinessplans.com.