reTHiNKing
BUSINESS
MODELS
@ivanovitch
Ivan Askwith
linkedin.com/in/ivanaskwith

(wait, who is this guy?)
introductions.
@ivanovitch

independent
consultant & producer
@ivanovitch

@ivanovitch

graduate work at mit
…on pop culture & fandom.
@ivanovitch

@ivanovitch

three
biases
1. Fans and communities matter.
@ivanovitch

three
biases
1. Fans and communities matter.
2. Marketing isn’t about messaging.
@ivanovitch

three
biases
1. Fans and communities matter.
2. Marketing isn’t about messaging.
3. Technologies change. People don’t.
@ivanovitch

examining
business models
@ivanovitch

“How do we get consumers to understand CUs?”
“How do we get them to listen to us?”
“How do we get them to appreciate what we do?”
@ivanovitch

“How do we get consumers to understand CUs?”
“How do we get them to listen to us?”
“How do we get them to appreciate what we do?”
“What do CONSUMERS want and need?”
“What would THEY find most meaningful?”
“How, or why, ARE WE FAILING to provide it?”
@ivanovitch

It’s not about you.
It’s about them.
@ivanovitch

examining
business models
@ivanovitch

@ivanovitch

@ivanovitch

@ivanovitch

Not railroads.
Transportation.
Not petroleum.
Energy.
Not DVDs.
Entertainment.
@ivanovitch

Businesses will do better in the
end if they concentrate on
meeting customers’ needs,
rather than on selling products.
- Theodore Levitt, 1960
@ivanovitch

What business
do you think you’re in?
What do your customers
actually want and need?
What business
do consumers think you’re in?
What opportunities emerge
from giving them what they want?
@ivanovitch

@ivanovitch

one more
challenge.
what if no one
actually wants to
talk to you?
@ivanovitch

@ivanovitch

the
television
business
@ivanovitch

Television still thinks that
it is in the business of
BROADCASTING
CONTENT
in order to
so that it can
BUILD HUGE
AUDIENCES
MAKE $$$ FROM
ADVERTISERS.
@ivanovitch

an interesting
pattern
1. Networks focus on content for the
Lowest Common Denominator.
@ivanovitch

an interesting
pattern
1. Networks focus on content for the
Lowest Common Denominator.
2. The shows that inspire the most devotion
are often the first to get canceled.
@ivanovitch

an interesting
pattern
1. Networks focus on content for the
Lowest Common Denominator.
2. The shows that inspire the most devotion
are often the first to get canceled.
3. Fans of these “cult hits” have no recourse
except to protest the networks.
@ivanovitch

the traditional television
business model offers viewers a
take-it-or-leave-it
proposition.
@ivanovitch

wait! let’s talk
semantics.
@ivanovitch

fanatics.
cults.
@ivanovitch

customer
n. a person or organization that buys
goods or services from a store or business.
fan
n. an enthusiastic devotee, follower, or
admirer of a sport, pastime, celebrity, etc.
@ivanovitch

community
n. a group sharing common characteristics or
interests, perceived, or perceiving itself, as distinct
from the larger society within which it exists.
cult
n. a group or sect bound together by
commitment to the same thing, person, or ideal.
@ivanovitch

fans
networks
vs
@ivanovitch

they fight for it.
When fans love something,
@ivanovitch

pre-internet

internet

@ivanovitch

@ivanovitch

an in-depth example

@ivanovitch

@ivanovitch

didn’t pay the rent.
Passion was great, but it
@ivanovitch

didn’t pay the rent.
Passion was great, but it
But why not?
@ivanovitch

@ivanovitch

“…But NBC executives made clear on Tuesday
that the renewal came about mainly
because of an advertising partnership
that was suggested to Ben Silverman, a
chairman of NBC Entertainment, by
Subway executives, who were enthused
about the special marketing opportunities the
show afforded the company…”
@ivanovitch

@ivanovitch

Q: If Castle had its series finale
tomorrow and Fox said to you and
Joss: “We screwed up, let’s try doing
Firefly again.” Would you do it?
A: Yes. Yes. I would examine very closely
Fox’s reasoning — I’m a little gun-shy.
If I got $300 million from the California
Lottery, the first thing I would do is buy
the rights to Firefly, make it on my own,
and distribute it on the Internet.
@ivanovitch

@ivanovitch

contributed more than
$1 Million.
12,000 fans
No one even
had to ask.
@ivanovitch

“Shut up and take my money!”

hasn’t changed.
yet the core business model
@ivanovitch

@ivanovitch

@ivanovitch

Why not let fans influence
what gets made?
@ivanovitch

2005
2013
“You’re an idiot.”
- 2005
@ivanovitch

2005
2013
“You’re an idiot.”
- 2005
“No, wait. Come back.”
- 2013
@ivanovitch

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@ivanovitch

• Propose an idea.
• Set a minimum fundraising goal.
• Set a fundraising deadline.
• No financial ROI.
• Offer other incentives.
• It’s all or nothing.
How it works.
@ivanovitch

We had one month to get
$2,000,000.
@ivanovitch

We had one month to get
$2,000,000.
It took less than
ten hours.
@ivanovitch

Has‘VeronicaMars’hintedatthevalue
ofservingnicheaudiences?
Has‘VeronicaMars’suggestedthe
valueofcreator/fanrelationships?
Has‘VeronicaMars’revealedthatfans
aretiredofbeingignoredbynetworks?
@ivanovitch

case study.
the rest of the
@ivanovitch

Don’t just deliver a movie.
Create a year-long experience.
Don’t just keep the promise.
Overdeliver on it.
Don’t just market to fans.
Build a lasting relationship.
@ivanovitch

@ivanovitch

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interesting
a few
results.
@ivanovitch

RESULT 1
creator/fan relationship.
We saw the value of a direct
@ivanovitch

“This is the best money I’ve ever spent.”
“The movie was great, but this experience has
been even better. I feel so involved.”
“Can we do the next movie on Kickstarter too?”
“I’ll give 10 times as much next time!”
“This isn’t the studio’s movie, it’s ours.”
“I’m getting everyone I know to go see it.”
@ivanovitch

@ivanovitch

“Whatever anyone involved
does, for the rest of your careers:
I’ll be behind you.”
@ivanovitch

@ivanovitch

RESULT 2
focusing on our fans.
We were praised and criticized
for the same exact thing:
@ivanovitch

@ivanovitch

“Veronica Mars is far less interesting
(except, probably, to its fans) as a movie
than as a potential model for financing
the kind of smaller films that
major Hollywood studios aren’t
much interested in making anymore.”
@ivanovitch

1. Always consider what business you’re actually in.
2. There’s value in serving small, devoted communities.
3. Treat people like partners, not customers.
4. Focus on the relationship. Loyalty will follow.
5. What you’re selling isn’t what you’re selling.
Your brand isn’t your product, but what it means.
@ivanovitch
relevant
a few
lessons.

@ivanovitch
1. Could a credit union develop a cult following?
2. How do you turn your customers and members
into fans and collaborators?
3. Where are the national banks failing, and not
interested enough to fix the problems?
final
a few
questions.

Thanks!
@ivanovitch
Ivan Askwith
linkedin.com/in/ivanaskwith