How Starter Story ditched recurring payments and built a $1.5 million information product
Aug 22, 2023
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Patrick Walls, founder of Starter Story, discusses his transition from selling advertising to offering one-time payments for permanent access to his content archives, helping him achieve $1.5 million in annual revenue. Bradley Hope shares insights on funding and adapting narrative projects across multiple formats. The podcast explores Starter Story's evolution, revenue diversification, and the success of mid-roll ads. It also delves into the costs of producing a narrative podcast and the challenges of optioning intellectual property in the film industry.
Shifting focus from advertising to a paid product can lead to significant revenue growth in media companies.
Vertical integration and retaining control over intellectual property can maximize future revenue opportunities for media production studios.
Offering a one-time payment for permanent access to content archives can generate higher conversion rates and create more committed customers for online businesses.
Deep dives
Starter Story's Evolution and Revenue Growth
Starter Story, founded by Patrick Walls, initially focused on publishing case studies of successful entrepreneurs. However, it has now transformed into a comprehensive media company covering various aspects of entrepreneurship and online businesses. The company generates revenue through its paid product, offering two pricing tiers: $695 for access to case studies, investigative reports, and a founder community, and $1,095 for additional access to courses. By shifting its focus from advertising to its paid product, Starter Story has experienced significant revenue growth, with projections of reaching $1.5 million in annual revenue.
Project Braisin's Approach to Narrative Projects
Project Braisin, co-founded by Bradley Hope, produces narrative nonfiction across multiple formats, including podcasts, books, newsletters, TV, and film. The company carefully selects projects that have the potential to be adapted into various mediums. They prioritize projects with distinctive storytelling elements and exclusive access to key audio or information. Additionally, Project Braisin aims for vertical integration, involving experts from different fields in the development process to maximize future revenue opportunities. By vertically integrating and retaining control over the intellectual property, they can monetize the projects in diverse ways, such as selling unscripted or scripted rights, resulting in greater value and impact.
The Advantages of Starter Story's One-Time Payment and Project Adaptation
Starter Story's decision to offer a one-time payment for permanent access to their content archives has proven successful. This pricing model benefits customers who view starting a business as an aspiration rather than a continuous service. By making a one-time purchase, customers assign more value to the product and feel they are investing in themselves. Moreover, it allows Starter Story to avoid the challenges of recurring subscriptions and focus on building a product-driven business. While other companies in the industry might prioritize recurring revenue, Starter Story found that the one-time payment model generates higher conversion rates and creates happier, more committed customers. Additionally, Project Braisin's strategy of vertically integrating projects and retaining control of intellectual property enables them to explore multiple mediums, including podcasts, documentaries, books, and TV shows. By adapting their projects into various formats, they can further monetize the intellectual property and leverage different revenue streams.
Utilizing YouTube for Business Growth
The podcast episode discusses the significant value of YouTube as an audience-building platform. The host explains how YouTube offers a valuable and engaged audience, with vast potential for business growth. They mention the success they've had with highly produced videos featuring entrepreneurs and the financial gains they've seen from YouTube through their paid product sales. The podcast emphasizes the importance of finding and leveraging YouTube as a platform to build a thriving business.
Navigating the Challenges of IP Development and Monetization
The podcast episode delves into the complexities and challenges of developing and monetizing intellectual property (IP). The host talks about their experience in the content creation industry and the importance of finding experienced writers with a track record of success. They discuss the long process involved in getting IP projects off the ground, highlighting the difficulties in building an audience and generating revenue. The podcast also explores cross-promotion, network building, and the need for strategic marketing efforts to ensure the success of narrative-based projects and maximize the IP's value.
Patrick Walls is the founder of Starter Story, an outlet that’s published thousands of case studies on how entrepreneurs built successful businesses. At one point, he was selling upward of $50k a month in sponsorships.
But earlier this year, he not only stopped selling advertising, he also switched from recurring subscriptions to a one-time payment that gave customers permanent access to his content archives. The move helped him grow to $1.5 million in annual revenue.
In a recent interview, he talked about why he got tired of chasing sponsors and his motivations for switching from subscriptions to one-time payments.
I also spoke to Bradley Hope, a former Wall Street Journal reporter and co-author of the New York Times bestselling book Billion Dollar Whale. In 2021, he co-founded Project Brazen, a production studio that creates narrative nonfiction across podcasts, books, newsletters, TV, and film.
He answered questions about how he chooses narrative projects to fund and the process for adapting a single piece of IP into multiple formats.
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