Audience Building 101

Every company in the world is an audience company.

Whether it's a Media, VC, or DTC business, if you're not building audience Day 1, you're not prioritizing the right things.

Here's my framework for thinking about & building a killer audience ๐Ÿ‘‡

I call it the Audience Funnel.

The concept is simple, but it allows you to...

1) Think strategically about building your own audience

2) Analyze the relative strength of other companies' audiences

3) Understand the similarities & differences of different audience channels
The Audience Funnel is divided into three tiers, which include:

1) Rented Audience

2) Owned Audience

3) Monetized Audience
Tier 1: Rented Audience

๐—ช๐—ต๐—ฎ๐˜: This is your top of funnel. It allows you to build mass awareness & is key for developing a relationship with your audience.

๐—ฃ๐—ฟ๐—ผ๐˜€: High shareability, high discoverability

๐—–๐—ผ๐—ป๐˜€: You don't own your audience
Examples of Rented Audiences

- Social networks (IG, FB, Twitter, TikTok)
- Video platforms (Twitch, YouTube)
- Search engines (Web content)

Examples of Businesses with Big Rented Audiences

- @BuzzFeed (Instagram)
- @GoPro (YouTube)
- @charlidamelio (TikTok)
Tier 2: Owned Audience

๐—ช๐—ต๐—ฎ๐˜: This is your opt-in audience. It allows you to build a deeper, more intimate relationship.

๐—ฃ๐—ฟ๐—ผ๐˜€: You own the relationship with your audience.

๐—–๐—ผ๐—ป๐˜€: Low shareability, Low discoverability
Examples of Owned Audiences

- Free newsletters
- Free podcasts
- Virtual events

Examples of Businesses with Big Owned Audiences

- @MorningBrew (Newsletter)
- @tferriss (Podcast)
- @salesforce (Event)
Tier 3: Monetized Audience

๐—ช๐—ต๐—ฎ๐˜: This is your highest intent audience. This allows you to extract value from your audience directly.

๐—ฃ๐—ฟ๐—ผ๐˜€: Extends LTV of best customers

๐—–๐—ผ๐—ป๐˜€: Difficult to pull off, must be done with existing owned or rented audience
Examples of Monetized Audiences

- Paid newsletter
- Paid web subscription
- Membership
- Commerce

Examples of Businesses with Big Monetized Audiences

- @something_navy (Apparel)
- @nytimes (Subscription)
- @MrBeastYT (Burgers)
That's the Audience Funnel...

Now, here's how to think about it with your own audience:

1) Rented Audiences aren't inherently bad.

You must leverage them responsibly. Use the power of platforms (size, shareability, discovery) to kick-off a relationship with your audience.
2) But never put all your eggs in Rented Audiences.

Remember, you don't own the relationship. A platform, network, search engine does. You must become great at building large, rented audience & moving that audience down the funnel.
3) Owned Audiences take a while to grow, but when done properly they create immense value.

Just look at @MorningBrew. We built an owned audience from scratch.

2.6 million email addresses later, we have the privilege of building up audience elsewhere.
4) It's not just about Renting or Owning an audience.

It's about serving great content that solves a problem or fuels a passion.

While technically an Owned Audience, an email list with a 5% open rate will do little to help you achieve your ultimate business goals.
That's all for now!

I hope you've enjoyed my framework for understanding & building audiences on the internet.

For more threads related to business-building, media, and marketing, shoot me a follow!

More from Alex Lieberman โ˜•๏ธ

Introducing "The Balloon Effect"

Many businesses & creators have experienced a similar pattern of success.

From @MrBeastYT and @MorningBrew to @oatly and @Rovio.

Let's break down what "The Balloon Effect" is and examples of it in real life.

Keep reading ๐Ÿ‘‡


1/ What is "The Balloon Effect"?

It is a particular pattern of growth.

It is not Instagram's growth trajectory.

It is not
https://t.co/5axsTUKek6's growth trajectory.

"The Balloon Effect" is defined by several years of hard work & grit complemented by slow, linear growth.

2/ And then one day, one month, or one quarter...everything changes.

A business hits a tipping point and its trajectory shifts entirely.

Gradual growth turns to exponential growth & your brand and your size explode.

Like a step function.

3/ Now, you're probably wondering.

Why is it called "The Balloon Effect"?

Because filling/popping a water balloon follows the exact pattern I just described (and so many businesses experience).

Long unsexy slog ๐Ÿ‘‰ Exponential tipping point.

4/ Initially, you turn on the faucet & water takes up space in the empty balloon.

Through effort you open the faucet, yet the results are unexciting.

But it's what must be done for water (or growth) to happen at all.

It's not sexy, but it's necessary.

More from Business

My top 10 tweets of the year

A thread ๐Ÿ‘‡

https://t.co/xj4js6shhy


https://t.co/b81zoW6u1d


https://t.co/1147it02zs


https://t.co/A7XCU5fC2m

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