Thursday, February 6, 2014

The $274.00 day.

There is a theory called 1,000 True Fans, and while I believe in it especially as the rise of kickstarter has made getting 1,000 true fans easier, I think there is a mistake in it where it dismisses the long tail model as not being useful to creatives.

But in my day to day business model, I deal in Print on Demand and Ebook formats (both DrivethruRpg and have great Print on Demand and Ebook options), I don't have major issues with inventory or distribution costs.  So a sale of 0.99 cent product 5 years ago, has the same profit margin per sale now as it did then. My electronic sales for PoD and ebook sales are open 365 days a year. The products never go out of stock, in the 6 years of doing bussiness we have created over over 300 revenue generating products that range in price from 0.99 cents up to $39.99 (and our best selling product is $19.99), for me the long tail turns into a kind of Mobius Strip.

So here is what was knocking around my brain today the 1,000 True Fans has a goal of $100,000 a year, (me I would easily be happy with half that, but lets stick with their numbers for now.) That's just shoot for under $274.00 a day (you get a bonus on leap year).   r.  How many products a day do you have to sell to maintain that amount? If you charge $0.99 cents and get $0.65 cents of that you need 421 products sold. If you sell it for $4.99 and get $3.24 you need 85 a day.

So after looking at Q4 of 2013, I can see where I am at on my goal of $274.00 a day. Where are you at?  (Note:  Your goal might be only $100.00 a day that is still $36,500 a year.)

So when you making stuff don't just think about your true fans think about the quality of your work in the very long run because that is what is going to make that long tail stretch out till it becomes a Mobius Strip.


  1. Excellent post, thanks, Steve!

  2. If you focus on 250 units per day at $1.10 ($1.68) will get you to that number also. But you need to increase your product inventory to roughly 900 products so all you need to sell is 101 of each product (8 each month). OR you could get your average sale price per product up to $4.99 and have to do 1/3 of that and still get the same results.