I was just chatting with @contrabourdon about financial independence and he wrote a post about recurring forms of revenue:
https://steemit.com/@contrabourdon/the-subscription-model-sustainable-income-yntqabwf
He is starting his Patreon page where he is going to create organ videos for his subscribers.
This got me thinking about the concept of 1000 True Fans. It was created by a visionary blogger Kevin Kelly about a couple of decades ago.
It's a complex theory but the summary goes like this:
If one person spends on your products or services say, 10 USD a month, then they will spend more than 100 USD a year.
100 USD every year from one person...
That's a sizable sum of money but in a month it's not very much in the developed world. It's like a price of one decent lunch. That's about how much we would spend for a Netflix subcsription or a phone service, right?
But what if you have 10 such people paying you 10 USD a month?
Then your early income is 1000 USD. Now we are getting somewhere... Because if you have 100 people paying you 10 USD a month, your yearly income is 10000 USD.
In a developed world it's not enough to live on but there are some developing countries where 1000 USD a month or 10000 a year would certainly be enough.
Can we add just one more zero? Sure!
Imagine you have 1000 people paying you 10 USD a month... Then you have 100k USD yearly revenue.
That's enough to live comfortably in any country in the world.
And of course you can have entire range of subscribers paying you from 1 USD or 5 USD to 1000 USD a month.
It's just depends on how much value they receive from you and how indispensible you are for them.
If you have subscribers paying you 100 USD a month, you only need 100 of them to make 100k a year.
The flipside of this (and there's always a flipside) is that if one subcriber who pays you 100 USD a month cancels their subscription, then you would have just lost 1000 USD of yearly income...
The more they pay you, the more you are dependent on each of them. Because it's not for life. Everybody quits after some time. Cancelations is a normal part of business. You just have to constantly find new subscribers.
And the less every subscriber pays you, the less painful every cancelation is.
In other words, it's a more diversified form of income if you are not dependend on a small number of subscribers.
It all relates to Steem, doesn't it?
On the website Steem Friends (https://steemfriends.org) you can find how much each of your followers on Steem are upvoting you and vice versa - how much you are supporting them too...
It turns out that Steem can work similarly with the concept of 1000 True Fans.
Posted using [Partiko Android](https://partiko.app/referral/organduo)