Economics — by definition — is a social science covering the production, distribution and consumption of goods & services. The subject matter examines how people and society — as a whole — choose to divide a limited amount of resources.
For content creators looking to build a fan base, it’s important to study the underlying factors concerning economics. With the overlaying question being: How can you become more efficient and increase productivity to equate a certain outcome?
Just like an artist can use data to create content and book shows. The study of economics can provide some key insights to help you build a loyal fan base of supporters. Economics is based around a number of actions, including human behavior and key assumptions.
For example, artists can assume that:
- People consume content.
- People attend concerts.
- People buy merchandise.
These indicators can help you craft your brand around a target market and audience. Economics and studying consumer behavior can help you to create a process around your brand. This also speaks to the recent rise of formulas and schemes concerning the consumption of content.
Overall, how can content creators use consumer behavior to boost revenue?
Consumer behavior is mostly about needs/wants and being able to present customers with an opportunity to fulfill those needs and wants. This factor should raise a number of questions:
- Is your brand affinity strong enough to get people to repeatedly buy in?
- What factors influence your target market and audience?
- Is your consumer and customer the same person or different?
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The three factors that lead to segmentation and influence consumer behavior are:
Psychological factors: How does a person respond to your content? What is the messaging behind your content? Are you providing insight, inspiration, validation, etc.
Social factors: Education level, income, social media interests, family, friends, associates, etc.
Personal factors: Demographics influenced by age, gender and culture that determine an individual’s level of interests and shape opinions.
With the rise of digital distribution, more and more artists have access to a Worldwide audience. This has placed an importance back on artist development and infrastructure.
We have moved past a capitalist society and into an economy where formulas hold the most promise. A society where success is not solely determined by being in position — in comparison — to real estate and strategic investments.
We live in a world today where anyone — with the means — can build a creative monopoly.
Some of the more notable artists who have used the principles and laws of economics to build fan bases are Nipsey Hussle, Ryan Leslie and Travis Scott. The one common factor involved in all of these situations are the use of marketing funnels.
The essential function of a marketing funnel is to create a path towards a target action with your content and social media. From this path you can develop a number schemes that fit into your overall goals.
Gaining a deeper understanding of how marketing funnels work can help you to create growth strategies, build a community of loyal fans and support sustainable growth.
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Marketing funnels begin with awareness and end with conversions. This is a process that can be repeated and products can be inserted to replicate the same end result. This is why consumer behavior and economics play a major role in building a out a fan base.
Most notably, we have seen this at play with Kanye West and Travis Scott. The two rappers continue to build out fan bases with a higher than average conversion rate. Travis Scott has executed a number of strategic partnerships that have included Fortnite and McDonalds.
Kanye West has even used these same tactics and transferred them over to politics with his “Vote Kanye 2020 Vision” campaign which grossed close to $1 million in less than 24 hours.
The key to growing a fan base using economics is to know your target audience and market. What are the factors that influences behavior and drive action? What is the perfect price point when it comes to purchasing your products?
Economics is simply about human nature, brand affinity and conversions. Who are the people that buy into what you provide as a service or good? Once you figure that out, continue to build an cultivate those relationships.
Ryan Leslie is a perfect example of someone who built a fan base using the laws of economics in conjunction with a one-to-one marketing model. By building awareness and identifying the consumers that are most likely to be repeat customers.
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The beauty behind economics and music is this: if a person buys an album, what is the likelihood that they will buy a concert ticket? Merchandise? Your next album?
Building a fan base is all about operating off of indicators and consumer behavior is a great way to help you execute with faith, effort and consistency.
“Duplicate the thoughts and actions of successful people and you too will become successful.”