chapter 6 Get Ready to Reinvent Yourself
3. Redraw your own model
Rememb
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19 4
name
key point:
profi le:
Following a successful television appearance at age 17, Amsterdam-based singer Hind was signed by German music giant BMG, sold 40,000 copies of her debut album, and received an Edison Award for best upcoming artist. After that, though, she became overshadowed by bigger BMG stars and struggled to promote her own material.
At the same time, the exploding popularity of downloadable songs weakened the traditional music industry business model: Record labels no longer dominated the channels for promoting and delivering music.
Hind realized that coping with the rapidly evolving music industry — and winning the freedom to pursue her own vision — meant she needed to reinvent her personal business model. Hind started asking tough questions about the Channels building block. How did fans fi nd out about her? Was her music purchased and delivered in ways fans preferred?
What follow-up efforts ensured listener satisfaction?
Answering these questions lead to a clear decision: Hind and manager Eddie Tjon Fo would create their own label, B-Hind, a new model that would ensure full control over creating, promoting, and distributing Hind’s music.
Choose your channels
The Musician
Hind
fr m fa W
A w cr
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What you give (Costs) Who helps you (Key Partners)
Who you are &
what you have (Key Resources)
How they know you and how you deliver (Channels) What you do
(Key Activities)
How you help
(Value Provided) How you interact (Customer Relationships)
Who you help (Customers)
What you get (Revenue and Benefits)
Hind’s New Model vs. Traditional Record Label Model
connect musicians, fans
H ( (
record, promote, (
deliver music
fans
promote, deliver through traditional
channels/media
advertising, merchandising
fees help advertisers
reach desirable audience inspire, entertain
fans
promote, deliver online
product buyers fa musicians
advertisers ad music fans r
find new artists
recording facilities, knowhow musicians under re
contract
distribution , legal, financial
expertise handle legal,
financial issues
music
write, record, perform nancial issues
per
seek advertising opportunities Radio Stations
Radio Stations
singing/writing ability, business
sense co
passion for music
legal, distribution
costs
a appeal, charm
sincerity
Risk
air play royalties
concert admissions dis
artist advances a salaries overhead
R Time,
Energy, money iTunes, others
deliver sellaband helps
finance Radio Stations manager helps with
business, logistics communicate
directly with fans
Traditional Model New Model
y g (
air play CD music sales
c a Digital
Music Sales
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196
name
key point:
profi le:
“For years, I was a compulsive spender,” says J.D. Roth. “But when my wife and I bought a century-old farmhouse, I fi nally hit rock bottom. I’d run out of money.” J.D., who sold custom-built cardboard boxes, had always been interested in self-improvement and writing.
Now, broke and in debt, he decided to reinvent himself.
He read everything he could about personal fi nance and summarized his fi ndings in a blog post titled Get Rich Slowly! The online essay — and J.D.’s personal commitment to abide by its message — resonated with readers. A year later he launched a personal fi nance blog, also called Get Rich Slowly. “It never occurred to me that a person could make a living by blogging,” he recalls. “I just thought I was helping people.”
But his online income grew, and before long Get Rich Slowly earnings rivaled J.D.’s box company salary. That’s when he applied his new personal business model as a professional blogger — and quit his day job. “It was the best decision of my life,” says J.D. “I repaid my debt, saved for the future, and helped other people.”
But a seven-day-a-week posting schedule and constant interaction with more than 60,000 readers caused J.D. to start burning out. Get Rich Slowly’s quality began to suffer. J.D.
recognized that his personal business model had to evolve again. He found a business partner and hired staff writers so that he could “guide the boat without being the only crew member.” The move increased dollar costs, but dramatically reduced J.D’s stress and time commitment. That freed him to write for print publications, which boosted both revenue and satisfaction. In the meantime, Get Rich Slowly’s subscribership continued to grow. Now, J.D. enjoys more time for friends and family, and has achieved long-cherished travel goals, taking extended trips to Africa, Europe, and elsewhere.
“The personal Business Model Canvas helps me, because we all have fl eeting thoughts about what we want to do, but we fail to record them,” he says. “When you write them down, they become permanent. The Canvas helps you be intentional about what you want to do.”
Help others, help yourself
The Blogger
J.D. Roth h
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What you give (Costs) Who helps you (Key Partners)
Who you are &
what you have (Key Resources)
How they know you and how you deliver (Channels) What you do
(Key Activities)
How you help
(Value Provided) How you interact (Customer Relationships)
Who you help (Customers)
What you get (Revenue and Benefits)
J.D.’s Model v. 1.0: Box Salesman
salary time and
energy
stress
dissatisfaction
benefits poor match
helping some people, not helping
himself visit prospects,
clients
write estimates, proposals
acquire new customers,
keep old customers happy
box buyers box makers
interest in self-improvement
ho a e
t in
writing skill
artistic/
enterprising personality
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What you give (Costs) Who helps you (Key Partners)
How they know you and how you deliver (Channels) How you help
(Value Provided) How you interact (Customer Relationships)
Who you help (Customers)
What you get (Revenue and Benefits)
J.D.’s Model v. 2.0: Blogger
advertising fees more time
and energy than ever!
unchanged!
helping many people, and helping himself
fulfillment as writer satisfaction,
recognition great match
Who you are &
what you have (Key Resources)
60,000 blog readers
advertisers
What you do (Key Activities)
maintain site write
blog posts
respond to readers, other blogs
inspire others to build
wealth
help advertisers reach prospects interest in
self-improvement
ho a e
t in
writing skill
artistic/
enterprising personality Section 3 page 198
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What you give (Costs) Who helps you (Key Partners)
Who you are &
what you have (Key Resources)
How they know you and how you deliver (Channels) What you do
(Key Activities)
How you help
(Value Provided) How you interact (Customer Relationships)
Who you help (Customers)
What you get (Revenue and Benefits)
J.D.’s Model v. 2.1: Super-blogger
partner expenses
less time, energy spent
lower stress article
fees
magazine, book readers unchanged!
unchanged!
business partner staff writers
supervise, edit
respond to readers, other blogs
fulfillment as writer advertising
fees
venue and BeBeBenenenefififitstt )
e book royalties
satisfaction, recognition
advertisers
traditional publishers 90,000 + blog readers
inspire others to build
wealth
help advertisers reach prospects interest in
self-improvement
ho a e
t in
writing skill
artistic/
enterprising personality
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