6min chapter

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Greg Isenberg: How to Successfully Build a Portfolio of Companies

The HeyCreator Show

CHAPTER

Communities as a Brand-Building Mechanism

Exploring the concept of communities as a foundational aspect of human nature and how software has made it easier to create and monetize paid communities. Discussing the experiences of building a software product for a community and the challenges and benefits that come with it.

00:00
Speaker 2
Forse magnetic mushroom tea is definitely my go to that shit knocks me out. And it's all natural, which I really like as well. I think man, I think you and I have like a whole lot in common. It seems like you're viewing this landscape much in the same way that I am. We're kind of running out of time and I'm going to bring up one last little topic, which could probably be a podcast within itself. But I'm interested to see your viewpoint about it. This idea about communities. Are you looking at communities as a product within themselves? Are you looking at communities is more just like a brand building mechanism so that people share your ideas for you? I think this work communities has gotten like a lot of buzz around it. Like it's it's cool all of a sudden to have a community, but it's no different than it always was. Like communities are foundational to who we are as people. I think the difference is now software has come around, which make it a whole lot easier to create paid communities. And so I'm just curious, is that a model that you're playing in with with paid communities or is it more so that just community building will build a brand and idea and a business for you?
Speaker 1
So it's it's both. So like first of all, I define community based products as either community itself is the product or the community enhances the product. So either you're building a product that the community enhances. So for example, like the example I like using is so house. Like if the membership of so house gets poor, not good, like you're you're going to on your way out, you're going to cancel your membership. But if it's really cool and interesting and you meet high quality people, you know, you might show up more often and get more value out of it. And community is the product could be something like a paid community. So what's cool about paid communities as a business model is it's got that same. Software as a service like revenue model monthly membership, but you don't have to build any software. So for example, I have a paid community. I run almost as like. A way to meet people interesting, interesting building community based products. I use a platform called school to run it and school. Yeah, and people join it and I just launch it and I have 200 people paying 100 bucks a month. 99 dollars a month. And so it's bringing in $20,000 a month of revenue. And the truth is like I'm not doing it for the revenue. We actually pay for like when you buy when you when you buy when you buy it, you actually get free admin to create. You get a free $99 a month school subscription. So we partnered with them. So it's like I'm not making really any money. But if I wanted to, I could charge $300 and make it. People would still pay it because they're getting so much value learning on how to build their own community based businesses. And my point here is being is that I think what you're going to see is a lot more people setting these like memberships. $99, $199, $300, $500. And they're going to, you're going to start to see them make like 20, 50, 100 grand a month. And all of a sudden you're making a million dollars a year. And it's like 98% profit. Yeah, it's crazy. So I think as what as software has now matured and there's platforms like net, like school and stuff like that where you can just set it easily. They handle the payments. It's a pretty interesting time to be building paid communities right now.
Speaker 2
I agree totally. I think one when I created Copy Blogger Academy. I was surprised on how important the actual software product was. I first built it on Member Press, just because I was a WordPress guy. Didn't really like it. And then I went to Mighty Networks. I know some people like Mighty Networks. I did not like it at all because the landing page is like static. You can't customize your landing pages. So it was like difficult to figure it out. But I landed on Circle. I think Circle is like really awesome. It's a perfect fit. Schools to school is cool as well. That's the consulting.com guy. Right? Isn't that? Yeah. He went out and built that thing. And man, like it takes a bit. It's kind of like pushing a boulder down at Hill because it's hard to get a community going that doesn't have a lot of action on the inside. But then once it's going, the whole thing just takes off and your monthly expense never changes. And so once you get your not covered, all of the charges that come through are just all profit. And I think communities are cool as well because they are really great. The people inside them love being there. You get conversations going. There's something to it where you're making money by also providing a thing that everybody is getting a lot of value from. And so I totally agree with you. I think it's like a perfect business model for most people.
Speaker 1
Yeah. And it's interesting. Like in that personal community that I run, like. I've run it before and you know, I've invested in in some of the people, you know, you end up meeting people and investing in them, hiring them. So there's also these other benefits besides just like the cash flow from from paid communities, which is like you're at the center of the community. And because of that, you get some really interesting opportunities.

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