• Evan Ryan

The Cost of Content

Seconds and Cents Episode 17. Today we're going to talk about something that popped into my mind yesterday, today's Monday. We're gonna talk about something that popped in my mind yesterday. It's because I spent a good portion of this weekend watching the Imagineering story on Disney Plus, it's all about how Disney's Imagineers kind of have helped Disney develop over time from particularly parks perspective. But it was really interesting that I started to do some research after I finished the last episode, I spent too much time watching it. And I finished the last episode I'm looking through Well, what did the critics say about this? How was it received? I thought it was brilliant. I told probably 10 or 15 different people about this show that I thought they would absolutely love this show. They should absolutely watch it on as the sidebar. I just think Disney plus is gonna make so much money. So I'm telling a whole bunch of people about this show. I'm curious, well, what was a critical response, the critical response was pretty good. And then I saw on the Wikipedia page that it launched.

Right? Or for Spotify to create the infrastructure of Spotify. But for every new user of zoom, it doesn't cost him that much for every new user of Spotify, or of iOS, right? It doesn't cost that much. Apple builds iOS one time, then they distribute it to lots of different people. And so it costs a lot of money for the one time and if Apple only has one person using iOS, that's an extraordinarily expensive user, right. But if they have a billion users using iOS, now they get to take the full cost of building iOS divided by a billion. And that's how much it costs per user. And I'm kind of thinking about content in a similar way, and that if it cost you just making up numbers, if it cost you $100 to make a piece of content, but 1000 people see it.

Well, then now it was only 10 cents, it costs you 10 cents per person who saw your content, or if it costs you $100 to make a podcast, but 1000 people listen to it. It wasn't the only cost To 10 cents per listener. And so the question is as well as the value of a listener worth 10 cents? And can a listener turn into a customer who is worth more than 10 cents? And so, today, I am really excited to talk about content as this evergreen asset because I think that content is just

it's so underrated, and how long it can be used for and what its useful life is. So first, let's define an asset. What's my hope? What's my hope is that you, as the listener, can start to think about, well, how can content be an evergreen asset for you? How can content be something that puts money in your pocket as you sleep? Even if it takes quite a bit of investment upfront, or even if it's uncomfortable at first, how can you utilize content to actually give your business a platform to grow into? So let's define an asset First of all, an asset is something that puts money into your pocket is the Rich Dad, Poor Dad. I think that's where he came up with it. I think that's where that definition came from. But it puts money into your pocket. It's something that makes you money while you're asleep. It's not, it's not something that makes you money because you earned the money. It's something that makes you money while you sleep. And so let's talk about kind of what's the value of content as a whole. We're going to talk about this not in like a Netflix or a Disney situation where content is the product, right? We're going to talk about utilizing content to sell a product, we're going to talk about utilizing content to give yourself your business, give yourself something to grow into, to build an audience to attract more people towards. And really, it's about the pre sell. So it gives your audience it gives this new individual, someone who gets who can get to know you, it gives them content so they can really understand well, who are you and what are you about? And what's really interesting about it is they get to know you on their time and on their terms before you sell to them. Now, the fascinating thing is normally When you think well, I'm going to do it on my time on my terms, that you think that that means it's going to be a very slow process, right? I'm going to do it when I want to, I'm going to drag my feet on it, I'll get to it when I get to it, but in reality, what we see is that somebody who finds a podcast or a television show or a YouTube channel, or something that they really like, they binge it, they want to get to know everything about it really, really fast. And then they move on, and they either make a buying decision or they don't make a buying decision.

So you actually by creating a ton of content by creating just a plethora of content, allow somebody to get to know you get to understand you and binge, everything that you've said and done. Right. So that they can determine and make a really conscious decision on if they want to buy your product or if they want to buy your service. Most importantly, it allows you to showcase who you are and even more importantly, what you're about what do you stand for? What are the things that you believe in? Who do you serve? What do you hope for those people, I found that there are a lot of people where I'll find a two or three minute clip, I'll be really engaged in a two or three minute clip. But when I go find their longer form content, now all of a sudden, I realized how self serving the content is where I realized that they don't actually correspond with my values. They shouldn't be somebody that I'm necessarily doing business with. That doesn't mean that that they're not right. For some people, they're just maybe not right for me. Or maybe their niche is just a little bit different than what I'm trying to serve or whatever. But I find that a two to three minute clip does one thing it brings a lot of people into the funnel, right? And then your longer form content is what separates the wheat from the chaff. Your longer form content is what allows somebody to really understand who are you and where and what do you stand for. And now so we've talked about what's the value of content at pre sells allows somebody to really get to know you, it builds your brand equity, your brand equity is what does your pre sell for you, you speaking about brand equity, especially as it relates to content Right, you know, the apple brand equity, you know that when you buy an Apple product, or when you buy a Samsung product, it's gonna be really good. You know, when you buy an HP product or Windows prize, this is only talking about tech, I guess, you know, it's gonna be really, really good, right? But if you as a startup, you as an entrepreneur, don't have 50 years worth of brand equity, you may need to create a ton of content upfront, you may need to create a more personal connection with with the audience with your prospective customer, what's your prospective buyer, right? And so ultimately, all the content is just doing the pre selling, it's just building the brand equity, it's building that unspoken trust. That is you're not just somebody trying to make a buck, you're actually somebody trying to make my life better or trying to impact other people's lives or make the world a better place. So now how is that evergreen? How is the content evergreen and this is because when I was watching the Imagineering story on Disney Plus, it launched in November, and I I was just watching it now in July. And I think a lot about the office and how the office on Netflix, it, it was on TV, I don't know 2007 2008 2009 now it's 2020. It's still one of the most watched shows on Netflix. And it's continuing to keep Netflix's subscription base, right, the office has figured out how to become evergreen, but for my podcasts for your podcasts for whatever YouTube channel you have, somebody can discover. Somebody can discover all of this content in 10 years, they could discover it and 2030 right, but they're hearing it for the first time. And so really, the content as long as who you are and what you stand for and what you believe in doesn't change. That content that you recorded once in 2020 is still living as still existing is still creating value for you in 2031 of the really interesting situations or things that I'm seeing right now is Gary Vaynerchuk talking or doing These kind of side by side videos Gary Vee doing these side by side videos where he's talking about something that he said 10 years ago. And now what he's saying now, and it's basically the same thing over and over again. When Instagram was getting really, really big just a couple of years ago, he did a side by side on him going on to I think piers Morgan's show, and saying that I think Facebook stole Instagram for a billion dollars when Instagram had zero dollars in revenue, but they had a bunch of users. And so he said, I think Facebook stole Instagram. This is going to be one of the acquisitions of the decade, Piers Morgan is saying, I can't even believe that you're saying this on television right now. And now eight years later, Gary Vee is able to take that piece of content, stitch it into a new Instagram video and show Yep, I was right. And here's how right I was. And so really, your evergreen content as long as your fundamentals as long as your core beliefs as long as what you believe in and who you're serving, stay similar, right, as long as they stay the same. You're calm. content will also be evergreen your content isn't necessarily time dated by you're talking about Tick Tock being possibly banned in the United States, right? Because ultimately, it's not about Tick Tock being banned. It's about well, who are you? And what do you believe? And why do you think about Tick Tock? How do you think about these problems? That's actually what's evergreen, that's also the thing that's gonna build the trust, that's the thing that's gonna build the equity equity. So

talking about kind of the cost basis of content, and because a lot of people don't want to pay, they don't want to pay content agency to make content because content agencies charge a lot of money. They don't want to pay a lot of money for content in general, because they could just take a photo or video on their iPhone. I am Exhibit A of that. I love recording these podcasts as videos on my iPhone, right? But how do you account for content? When you do pay for content and you do pay for great editing you do pay for whatever you're going to pay for right great production value. How do you account for that? Well, again, since you pay once, so You pay once for the piece of content, every time somebody watches it, your cost per viewer declines or every time someone listens, your cost per listener declines, right? And so over a decade, if it cost you $1,000, to make a great piece of content, but you have 10,000 people, or you have 100,000 people over the course of 10 years, watch that piece of content or listen to that piece of content, well, then it cost you 10 cents, or one cent respectively, per viewer per listener, right, versus if you cost you $1,000 make a piece of content, but you only have 500 people, it cost you $2. Well, now all the sudden, if you just stretch out the amount of time that you allow somebody to watch this piece of content, you say you can watch this content for as long as you want to watch it. Or you can discover this content in 2030, or in 2040 or 2050. While your cost per viewer your cost per listener goes down quite a bit. But your brand equity with that individual goes up, right so over the decade or over the two decades or the three decades. Did that piece of content convert enough new people to pay for