Making a Million With 1000 True Fans: Big-Ticket VIP Access for a Few
Crystal posted this on April 25, 2008
This series starts with an introduction to the 1000 True Fans concept and solopreneur Alexandria Brown. The first part demonstrates that mastermind-style groups can yield over $600,000 each year with as few as 311 member subscribers, and lists other profitable, manageable online income streams. You may want to read these earlier posts for context on today’s topic. And nope, this is not a sponsored case study.
cc JOE MAD, courtesy of Flickr
Since the previous post, I’ve found much more income than the $387,088 needed to reach the million dollar goal. I revisited the 1000 True Fans post and Ali’s seminar audio to see what should count as True Fan earnings. Kevin Kelly’s full definition of a True Fan is—
…someone who will purchase anything and everything you produce. They will drive 200 miles to see you sing. They will buy the super deluxe re-issued hi-res box set of your stuff even though they have the low-res version. They have a Google Alert set for your name. They bookmark the eBay page where your out-of-print editions show up. They come to your openings. They have you sign their copies. They buy the t-shirt, and the mug, and the hat. They can’t wait till you issue your next work. They are true fans.
Re-listening to the last portion of Ali’s teleseminar, I found she has her own term and definition for customers she can count on: Exceptional Buyers.
She quantified these folks as her top 5% (based on dollars spent, I expect), and went on to define them as:
…people who buy everything you have. When you come out with something new, they’re the ones with their hands raised first…they’re in line. I had people at my [Online Success Blueprint ??] workshop asking for Platinum Mastermind applications before we even mentioned the program. Those are the people who are ready. Those are my 5%—my exceptional buyers.
How would you determine your business’ True Fans?
Do those Exceptional Buyers sound like an information marketer’s image of Kelly’s True Fans to you? They sure do sound like ‘em to me. So I’m counting all the income from these top buyers. And from the products and services Ali offers, I see three easy-to-implement keys to satisfying the truest of True Fans.
The Keys to VIP Treatment
With its $15,000 price tag, tiny membership (only 17 people), and executive club format, Ali’s Platinum Mastermind program can safely be described as “big-ticket” and embodies what I see as the three keys to VIP earnings:
- Exclusivity
- Personalized answers
- Access and proximity to expertise
If you doubt the value of cost-based exclusivity, try flying First or Business class. There are hundreds of seats on a 747, and only a relative handful of high-end seats. Those passengers get: 1) priority check-in and seating, 2) a closed-door lounge to wait for their flight, 3) better meals and drinks, 4) larger seats and generous legroom, 5) easy access to the stewardesses and pilots, and so on. There aren’t any special requirements for having a First of Business class seat, you just have to pay for it.
Compare that to Ali’s Platinum Mastermind membership, which has high-ticket exclusivity paired with an application approval process. Going beyond that in exclusivity, access and personalization is her $12,000 Private VIP Consulting Day package in Marina Del Ray, California, where you and your business questions get Ali’s undivided attention on her home turf. This costs a few thousand less than her Platinum program, but remember the Platinum membership lasts an entire year, while the VIP consultation is just one day.
Topping both of those across the board is Ali’s One-on-One Diamond Mentoring Program, which includes 3 VIP Days and regular access to Ali year-round for strategy sessions, decision-making, etc. Check out the barriers to entry: Participants have to: 1) be female, 2) make it through both an application and an interview process, 3) hand over at least $1,000,000. A True Fan, indeed!
Note: When I told Dan about that, he commented that I could’ve saved a lot of time by listing this first. “Alexandria Brown Case study: Diamond Mentoring Program…$1,000,000 with one True Fan. The End.” LoL!
I don’t have numbers for how many people (if any) participated in Ali’s Private VIP days or her Diamond program. So while it was critical to see the potential in VIP packages, and I do consider VIP folks as True Fans, with no income figures these high price tag opportunities can’t count toward our goal.
Intermission
Rollin’ on up our toll road from Ali’s $47/month Silver Mastermind group, larger fees have led to smaller and smaller groups, longer and more frequent opportunities to have specific questions answered, and closer, more frequent access to Ali’s expertise, culminating at a $1 million coaching relationship. It was an increasingly expensive road from “come one, come all” to applications and interviews.
Before we get to the last bit, please do simmer on the possibilities for yourself in this solopreneur business strategy/model:
Effectively demonstrate mastery in a niche
and offer higher levels of exclusivity, attention, and access
to your expertise in a tiered package structure
with proportionately increased fees and hurdles
Please keep this in mind while you’re simmering: Ali started started online sales in 2002 with a $49 ebook [thanks Wayback Machine!].
Events for VIPs-to-Be (and VIP Wannabes)
At $2,997 for a three-day event, it’s difficult to classify Ali’s annual Online Success Blueprint Workshop among the coaching services, so it stands alone. Held only once a year, the workshop is too short-term to be considered a membership. According to the sales letter for the boxed version of the event, there were “almost” 200 attendees…so it’s not exclusive enough to be VIP. The workshop doesn’t even have its own pricing tier—it’s priced the same as the Marketing Mastery program.
But I can’t find any reason not to consider it True Fan income. There’s a True Fan-style commitment involved in slapping down three grand, traveling to LA, and pausing Life for three days and two nights to follow Ali’s program in person—particularly when there’s a boxed version with the same information for half the price. To me, it’s like attending a live concert when you can just as easily buy the CD.
190 Online Success Blueprint Workshop tickets @ $2,997 = $569,430
If you don’t like the assumed 190 attendees, be comforted that as few as 130 attendees would have exceeded the $387,088 we needed to meet the $1 million goal. And notably, even with that lesser attendance, the final result would be:
$1,002,522 per year with 441 True Fans
Bzz bzz bzzzzz…
I hope reviewing the many income streams and their revenue has your brain buzzing as much as mine is. I feel sure there is something I know or think or do that would be valuable to 1000 avid followers, and I believe the same is true for you. Finding those folks is a challenge, convincing them to buy is another. Keeping their attention will be tricky, and so will cultivating that wee collection of Exclusive Buyers.
What do you see as the biggest challenge to this business model?
And I can’t help thinking: What if I had helped my business ideas take root when I bought Ali’s first eBook back in 2002? What if I had fought my inertia, instead of slipping into a four year job coma and letting myself be overworked, underchallenged, undervalued, and underpaid?
What will it take to get—and keep—you moving?
If I had worked my way up Ali’s tiered program structure, what would I have now? Would we have a roomier apartment? Would I have paid off my student loans? Would we have a second car? Would we spend a week in Montreal for the July jazz festival?
What would you do with 50% more income next year?
I’m not striving for a massive house, fancy cars, and a neck full of bling. More money does indeed bring “mo’ problems” [shout to the Notorious B.I.G. for clarifying that], and I’m dedicated to a drama-free Life. I would be ecstatic with Kevin Kelly’s proposed $100,000 True Fan annual earnings. Even though it’s just 5% of what Ali earned last year, it would be more than twice the highest salary I’ve ever earned.
How little would it take to change your lifestyle?
So…How does she do it?
Next week I’ll touch on the tactics of Ali’s Big Machine: how she runs it with only a handful of helpers (and no employees), the likely expenses, the mountain of work I suspect is involved, and what I feel are the key benefits to the whole kit-and-kaboodle.
Next in series » Part 3: Get a Life With Automation and Delegation
If next week is looking busy for you, subscribe to my full feed or sign up for my email service to stay in the loop…
Tagged with: 1000 True Fans · entrepreneur · solopreneur
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25 Responses to “Making a Million With 1000 True Fans: Big-Ticket VIP Access for a Few”
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I have been waiting for this….
Thanks. I’m not going to post an opinion yet on one read-through because I am in a hurry to go…I’ll be back.
But I have a question. Do you know if she is certified life or business coach, is it even necessary, and/or what-if any prof. coaching credentials has she brought to the table other than saying “Hey, I did this, so can you!
I think that somehow, we get it in our head that we aren’t *qualified* and I wonder how true it is.
ok, got to run, and I will be back…good stuff!
Recent blog post from Wendi Kelly: Having Faith
Hi,
Ditto on Wendi’s question. How much of what establishes the “authority” here. In need to do second read through, too. ANd catch up on the series. Thanks.
All best, Jan
(Found you through Kelly Erickson BTW )
Recent blog post from Janice Cartier: The Essence of Cakeness
Crystal,
Still listening. Still love the 1,000 True Fans concept. Still have an eyebrow raised.
Hey, look! I sent a reader back (hi, Janice)! Nice to return the favor after that delightful letter this week. Here’s to many more.
Regards,
Kelly
Recent blog post from Kelly: Chapter the Next, Wherein the Author Gets Fan Mail
Wendi and Janice — GREAT question(s), let’s hope my response gives you two direction, if not answers.
Where Ali’s “authority” comes from: her experiences, her followers, her former clients, the newspapers who write about her (including the New York Times), her success, and initially, herself. Read her About pagefor the details, and note how thoroughly she validates each of those with proof.
Also important to note: while I don’t recall her ever saying that she’s a coach—only offering “Coaching Programs”—it doesn’t look like it would matter if she did. I checked in with my coach, Chris Dawson just now and she emphasized “there is no single governing body for coaches and coaching”.
She went on to say there are coaching organizations such as ICF, IAC, et. al. with similar codes of ethics, certificates, and certifications, but with no set standard for accreditation each organization evaluates by their own criteria.
Bypassing orgs who based certification on hours of paid coaching calls, Chris attended a 10 week coaching course where she was evaluated on the quality of her execution via recorded sessions, rather than if she had billed X number of hours.
As examples of regulating governing bodies, she offered doctors and the AMA, and attorneys and the bar assoc. I added architects and the AIA—because with (or without) my professional architecture degree, I could call myself an “architectural designer”, it would be unlawful to call myself an Architect because I am not state board certified.
Equally important in addressing y’all’s question is while I have a suitable degree, I would not be the best choice as a house designer. I’m interested in it, but I don’t have paid experience at it, and I wasn’t a dedicated student. Far better to pay me to design a website, or a database, which I have years of work experience at, proof of, and am keenly dedicated to, though I have no degree or certifications to reflect that (yet).
So maybe it comes down to: Which better confirms expertise? Certs and degrees, or proof of experience?
That’s why I think “Where does she get the right to say that she’s a ____?” is an excellent question. She answers it here:Appoint Yourself the Expert. So I’m not doling out circular references, check out Dr. Valerie Young’s take on Imposter Syndrome. Also, Google “feel like a fraud” and “imposter syndrome” for a wide range of perspectives.
Whew! I see other comments are coming in, so I’ll leave that there. It’s worth reading about, and apparently worth posting about. Maybe even worth a conference call one morning or afternoon, so we can hash it out.
And welcome, Janice!
LoL Kelly! Keep ‘em raised, hon!
Skepticism is a good thing. It makes us dig and wonder, assess and ponder in a way we wouldn’t if we were Easy-to-Believers.
The reality check of Tuesday’s “How” is a fun write so far, I hope it will be a fun read. I think your eyebrows will get a rest once we view the mechanics of keeping this particular pie way up in the sky. It’s real work, and a lot of it.
The key appears to be she only touches what she must, everything else is automated and executed by others. There are only so many (wo)man hours in a day, after all, so she spends her time on the stuff no one else can do for her: strategizing, keeping company with other folks in the same place as her, getting coached by folks more advanced than her, and lots and lots and LOTS of writing.
She has articles all over the Web. Here’s a start: http://ezinearticles.com/?expert=Alexandria_K._Brown
Crystal,
BTW, in a comment on the last post you said, “observation and analysis will have to do.”
I want to say that all eyebrow-silliness aside, that is what I am loving about this series. The way you are picking her process apart is so insightful. I always enjoy your thought process.
Regards,
Kelly
Recent blog post from Kelly: Chapter the Next, Wherein the Author Gets Fan Mail
Perhaps authority is relative? If I have a little knowledge, more than you do, and you need that knowledge, and I can convince you to pay me for it (and then hopefully it helps you), that is good enough?
Just a thought.
Certification is nice to have. The outgoing Senior Vice President of my company (a nuclear company) never went to college.
Bill Gates, Michael Dell, Steve Jobs, Richard Branson. None finished college.
These are all guys who have a lot less education than many of us do, but they believed in themselves and took a chance. Fortune was required, for sure. You can be the luckiest person in the world, but without hard work and guts, your only chance for fortune is Powerball…
Recent blog post from Brett Legree: why blogging for profit is like collecting underpants.
Howdy Kelly!
I tell ya, I started picking the new Marketing Mastery program apart at the start of the year and stopped with that one. It wasn’t until she rebranded that I went back to her site and saw it all clearly. I kinda flew through the numbers and couldn’t believe it. I had Dan work the calculator for me in case I missed something, but I was right and then he couldn’t believe it
So seriously, I’m not surprised that y’all don’t fully believe it. I’m just already there because I’ve been doing the digging and hanging around her awhile. I’m glad for the extra push to dig some more, and that you’re liking the insight into what’s cooking over there in Ali-land.
One thing for sure, she’s got it cookin’. Someone who bought Blueprint in a Box emailed to confirm that she DOES get 50% commission from her guest speakers’ product sales AND she upsells to customers/students (sometimes with discount) to the next tier at every reasonable point. She also says the Online Success Blueprint Workshop in a Box is no joke. 22 CDs worth of info. Tonya’s following through and it’s rocket launched her small business information adventure. One thing for certain, if her programs work for you, it’s easy to afford the next bit.
And I hope you guys are up for another business model or two, neither as extensive as this one. Y’all get so fiesty about ‘em, I’m dying to share!
Brett: So right (again)! I know folks with fewer technical skills, lesser writing skills, whatever. But they’ve got better focus than I do, more stamina, and more balls, so I get left in their dust, ya know?
I’m working to remedy that. You guys are helping more than I can say.
And yup, I’m also surprised to find that authority IS relative. It was either Ali or Sean D’Souza (or both) who said if your target market knows more about your topic than you, then they’re not your target market.
It’s easy to get caught in the trap of “I need to know more before I take the next step”, the trap being there’s always more to know so the next step never gets taken
Crystal,
I am working to remedy this as well. Starting a blog was an important step for me, as I hemmed and hawed about it for a year or so.
I have a few business ideas that have stagnated for too long. I have a couple of good friends kicking me in the butt to get going, and all of you as well. So I know what you mean when you say “you guys are helping me more than I can say”, as that goes for me too.
I don’t know, it’s like you need to hear it from a friend sometimes. I’m living proof that we can be our own worst enemy. I told my best friend about one of my ideas, and he said, “that’s *great*, what the hell are you waiting for?”
Other personal experience that is encouraging me to go for it comes from my day job. And I say this not out of jealousy, but out of maturity and respect. I’ve seen plenty of people with less experience than myself (and possibly less know-how) leapfrog past me to management positions.
Why? Because they believe in themselves, and they made other people believers.
Now, that isn’t the path I choose. I’m not interested in being a BlackBerry carrying middle manager.
I have my other ideas. And I can take inspiration from all of these people.
I’ve been caught in endless planning cycles before. Nope, not anymore.
It’s not “ready, aim, fire” (and it was really, “ready, aim, aim, aim, aim…”).
Now it is “ready, fire fire fire fire fire, aim, fire fire fire” until I hit the target.
Recent blog post from Brett Legree: why blogging for profit is like collecting underpants.
Brett–Oh golly, YES! Exactly like that. Same habit, same great ideas, same friends saying ‘why wait’. Exactly like that.
Now I’m ready to commit, and am tracking down something to commit to
Ali took on a topic that doesn’t age, so an annual retouch is all her stuff needs. If I follow with my technology interests, I’ll never have that luxury.
So implementation isn’t the problem, we’ve seen this week how that can roll. Picking a topic, tho. Something that can sustain and grow, a process that can be a product…and something I can establish expertise on.
Not asking much, am I? LOL!
fire, fire, fire, aim
Crystal,
Perhaps with technology, the thing is to pick a target market that won’t move so rapidly. For instance, wealthy baby boomers who are busy and pretty technology agnostic. I know people where I live who still run Windows 95, so you could probably make a lot of money from them with recycled concepts
I always liked the business that transfers music from CD’s to iPod or fills people’s iPods via iTunes - this business is for busy professionals who “don’t have time” to do this themselves.
And this business will go and interview the clients to find out what kind of music they like, then set up playlists.
Genius! They also offer an archiving service and iPod repairs, I believe…
Damn. Why didn’t I think of that?
-Brett
Really good series so far Crystal - you are being very thorough and also breaking something down that not many people do (unless they are charging for it (”how to do blah in 10 days…”)
I like that you yourself examined this, out of your desire - and have chosen to share it because it’s helpful for others (and something that hasn’t been done - which I hope can bring more readers to you).
@Brett - I’ve hummed and hawwed about what blog I should start and how targeted should I have it and all of that. I feel like I’d pigeon hole myself if I decided to just focus on simple video production, or Joint Ventures for Small Business. But really - I need to make up my mind and move forward on it - instead of just moving from idea to idea which is what I keep doing.
And Crystal - I so agree that the topic isn’t the issue as much as the fact that you implement it and go forward from there. It’s amazing how a Shoe company slogan can be so universal - maybe that’s why it’s so good.
Just Do It.
@Shawn,
We all do it, to some extent. So what I did was to start a “fun blog” to learn as I go. It will always be here for me, and I’ll be starting up another one in a little while with a business flavour. I figured since I’d never blogged before, the way to do it was have the fun blog to make mistakes (”fail early, fail often”), and then I’d be ready for the business one once things were nailed down.
Things are almost nailed down… then watch out, world!
And as you (and Nike) say, “just do it”. We can figure it out as we go.
-Brett
Recent blog post from Brett Legree: do what you love, and the underpants will follow.
Alexandria is doing something else which is great to see. I seems that she has picked a specific target, women, and focused on them. Not only is this a large and lucrative market but it is an under served market. Very smart.
Recent blog post from James Hipkin: Really Bad Ads #2 - Don’t Let Your Strategy Show
@Brett—Your wealthy baby boomers have all the right demographics: funded, plentiful, and not tech savvy. You’ve got a great idea, and I hope someone reads it and runs all the way to bank with it! But golly…I’d have flashbacks to my tech support days and wind up in a twitching fetal position under my desk within a week
And that CD -> iPod service ROCKS. Definitely something I wish I’d thought of, like a Netflix-like book exchange website/business…I studied their model with the idea that I would do the same thing, but offer an incomparable collection within a niche, like mystery- thrillers. Problem is, no matter how I crunch the numbers, I don’t see much profit: http://www.booksfree.com/ Even with the shipping and storage dramas, I’d be tempted to do it if I could find the money.
Howdy Shawn,
Thanks for the tweets about this last week, that bit of brainstorming got me going on something fun. Will share later in a post!
And I’m really glad you’re liking the series! I don’t have a How To, but I did enjoy sharing a Here’s What
I finished up today, so if you’ve got any more thoughts on it, I’ll meet ya over there in the comments 
@James — Specific, underserved, and also easy to locate and identify! Ali doesn’t miss much, but then she’s involved with some incredible mastermind groups and follows effective coaches, too. Thanks for your comment
@Crystal,
I hear you - it is bad enough giving tech support to young people. Tough customers they would be…
Recent blog post from Brett Legree: my hero.
@Brett, Yup, tech support can be a horror, but @jhipkin reminded me of the value of Flash video tutorials. A fab way to provide helpful support/training without the painful bits… more on that later.
@Crystal,
Wow. What a great idea. That makes me think too. Holy cow, brainstorm idea!
Thanks for letting me know about that!
-Brett
Recent blog post from Brett Legree: my hero.
@Brett—Happy to help! Maybe these links will help too? For making the Flash video tutorials, I’m using Captivate
http://www.adobe.com/captivate
but think I would prefer to be using Camtasia
http://www.camtasia.com
It’s the perfect solution isn’t it? And isn’t James as clever as heck? When he tweets it’s like those old E. F. Hutton commercials: “When jhipkin tweets…people listen.”
[...] [The answer is available now at Part 2: Big-Ticket VIP Access for a Few] [...]
[...] of thousands of dollars that can come from a handful of manageable online income streams. The second part highlights three keys to attractive big-ticket VIP memberships and events and finds us exceeding [...]
[...] Part 2: Big-Ticket VIP Access for a Few [...]