How to build a community business that does $400k+/yr
May 7, 2024
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Daniel Vassallo, cofounder of Small Bets, shares his innovative approach to building a thriving community with over 5,000 paying members. He discusses the unique model of paying guest speakers $1,000 per class to ensure quality content and engagement. Vassallo reveals the benefits of a one-time membership fee, emphasizing its role in reducing churn and enhancing member value. He also explores effective strategies for re-engaging inactive members and the creation of Smallbot, a playful AI to boost community interaction. Tune in for insightful takes on community dynamics!
Adopting a lifetime membership model fosters long-term engagement and enhances both member satisfaction and positive referrals.
Paying guest speakers for live classes attracts top-tier expertise, enriching member experience and maintaining high community engagement.
Creating genuine connections through shared experiences, like attending classes together, significantly boosts overall member participation and community culture.
Deep dives
The Power of Lifetime Memberships
Lifetime membership models can lead to higher average revenue per member while fostering long-term engagement. By charging a one-time fee for access, members feel a lasting connection to the community, enabling them to return whenever they can. This model not only enhances member satisfaction but also encourages positive word-of-mouth referrals. The speaker believes that a subscription model could risk losing members and negatively impact the community's culture.
Engagement Through High-Quality Classes
Offering live classes with guest speakers paid well for their expertise helps maintain high engagement levels in the community. High payouts, such as $1,000 per class, attract skilled professionals who provide valuable content, ultimately enriching the member experience. Engaging attendees via interactive formats like Zoom chat allows for real-time questions and discussions, creating an atmosphere similar to a live podcast. This model fosters enthusiasm and participation, encouraging attendees to return for future classes.
Creating Community Connections
Building genuine connections within a community often starts from shared experiences, such as attending courses together. The speaker noticed that initial active members significantly impacted overall engagement, creating a ripple effect that encouraged newcomers to participate. Establishing consistent events or classes has proven successful in maintaining member interest and activity. By consistently generating opportunities for members to interact, a sense of belonging naturally develops.
Over-Delivering as a Marketing Strategy
Over-delivering value has shown to be a successful marketing strategy, enhancing member satisfaction and retention. By focusing on providing ample resources and reaching out regularly with updates and invitations to classes, members remain engaged and appreciative of the offering. As members interact and find value, they are more likely to recommend the community to others, driving growth organically. This creates a virtuous cycle of retention and referral that strengthens the community.
Exploring Coaching Programs for Growth
Introducing high-touch coaching programs can further enhance community interaction and member satisfaction. By offering small groups focused on specific interests, such as info products or audience building, members receive personalized guidance and support. This approach allows for deeper connections while encouraging accountability, helping members achieve their goals. Experiments with these structured programs may lead to stronger community bonds and expanded opportunities for collaboration.
Daniel Vassallo is the cofounder of Small Bets - a private community membership for indie hackers, solopreneurs and wanna-preneurs.
This community recently crossed 5000+ paying members and has been doing $400k+ in annual revenue every year since its inception ~2 yrs ago.
Daniel is a guy filled with hot original takes. He does things differently in this community and it works. Things like charging a one-time fee for a lifetime access or paying guests to do live classes in the community. Or, even the existence of this community itself, which is more than 5,000 members strong, but still very engaged.
Needless to say, Daniel has been a dream guest of mine and this is one of my personal favourite interviews.
Resources:
• Beginner Maps free crash course on building a community business - https://beginnermaps.com/
• Curated Connections, the community engagement app - https://curatedconnections.io/
