Building a $15M+ Community - with Pavilion's Sam Jacobs
Dec 4, 2023
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Entrepreneur Sam Jacobs, who built a $15 million community learning business, discusses leveraging LinkedIn for organic growth, creating sub-communities, and mistakes made after raising VC money. Key moments: Describing the company, issues with e-learning, cutting back, growing communities, advice for founders, and lessons learned.
Creating sub-communities within larger communities promotes engagement, empowerment, and helps maintain intimacy while scaling and growing.
Multi-level marketing approaches, leveraging platforms like LinkedIn, and adapting to changing circumstances are key lessons in building a successful community.
Deep dives
Scaling and Growing Communities Through Sub-Communities
One key insight from the podcast is the importance of creating sub-communities within larger communities to enable scaling and growth. This concept is exemplified by Weight Watchers and CrossFit, where local gyms allow members to feel connected to a broader community while also having their smaller, more intimate group. By giving recognition and status to sub-community members, such as Weight Watchers ambassadors, a sense of belonging and loyalty is fostered. This strategy of sub-communities empowers members, promotes engagement, and helps communities maintain their intimacy even as they grow larger.
Lessons from Building a Successful Community
The podcast highlights important lessons learned from building a successful community. One pivotal insight is the value of multi-level marketing approaches in community growth. By creating chapters and generously sharing revenue with chapter heads and their teams, the community was able to foster a strong field sales organization that drove growth. Additionally, leveraging platforms like LinkedIn and encouraging members to showcase their membership in their profiles helped establish the community as a badge of honor, driving further growth. Another lesson is the importance of adapting to changing circumstances. The community successfully pivoted from in-person to digital events during the COVID-19 pandemic, leveraging platforms like Slack to maintain a vibrant online presence. Continual adaptation and focus on member needs are key elements of building a thriving community.
The Power of Focus and Retention in Community Building
The podcast emphasizes the significance of focus and retention in community building. It highlights how experienced leaders understand that retention plays an outsized role in bottom-line growth. While customer acquisition can boost bottom-line by around 3%, improving retention can lead to a nearly 7% increase. By emphasizing the value proposition and offering structured content, such as curriculum and courses, communities provide tangible outcomes and increase member accountability. Utilizing data-driven approaches and understanding the member journey, including identifying behaviors that lead to renewal, can optimize retention. Lastly, the importance of maintaining focus and avoiding dilution is emphasized, encouraging businesses to specialize in their core customer offerings and avoid spreading efforts too thin.
This week on How To Win: Sam Jacobs of Pavilion, who built a $15 million community learning business from scratch. You’ll hear how he leveraged LinkedIn for organic growth, the importance of creating sub-communities, and key mistakes he made after raising VC money that took the focus away from his core customers.
Key moments:
00:50 - Describing what the company does 06:20 - Describing the issues with e-learning 11:30 - Issues with raising money 14:20 - Cutting back 17:40 - Explaining how to grow communities 22:30 - Advice for founders 24:30 - Lessons learned