Albert Einstein reportedly said it.
“Compound interest is the eighth wonder of the world.”
What in the HECK is good old Al talking about — and what in the HECK does it have to do with podcasting? I’m gonna’ splain it to you – on this episode of Podcastification!
You’ll benefit from listening to this episode if you…
- You want to know how to compound the impact of your podcast over time
- Need help devising a strategy for your show that will work
- Are looking for motivation and method to your madness
Play the Espisode Here
Reach out to Carey
A term that has to do with money and investing. It’s the idea that when you invest money in something, and then it gains money through the accumulation of interest, you now have MORE money to gain interest from.
Illustration of Compound Interest at work
Invest $500.00, one-time, and never add anything else to it.
For the sake of easy numbers, let’s just assume you can and make 10% interest on it the first month and every month following. Granted, it seldom happens that way but we’re just trying to illustrate how compound interest works.
If you can do it again every month for a year, you have $1,563.00.
Do you see what’s happening? Every month your starting point is bigger than it was before. You have more “principle” on which to gain that 10% interest.
If you continue doing the math on this illustration, assuming 10% interest per month, in just FOUR YEARS your $500 has become $48,173.
Wow! Just WOW! It’s an amazing example of the principle behind coRmpound interest that I mentioned at the beginning. But compound interest is a bit different… because it’s not quite this dramatic.
Creating truly helpful podcast content is the same – sort of
Producing great content that’s valuable to your target audience, consistently over time, you’ll see a similar result.
To understand how it works (in my mind, anyway) think of the very first episode as the initial deposit you make into your podcasting fund. But you’re not going to stop with that one investment, you’re going to add more to the pot.
Every following episode is another deposit you make into your podcast investing account.
As you do so, the value you’re providing to listeners continues to grow, and just like interest, the volume of content and increasing value creates benefits to you in…
- Increasing listenership & subscriptions
- Community building and engagement
- Response to your calls to action
- Influence & notoriety
- Join-venture and partnership opportunities
- Possible sponsor opportunities (but don’t hold your breath)
The formula to make it happen: A+VC+C over T
Audience (the right one) + Valuable content + Consistency OVER Time
AUDIENCE: speaking to the EXACT people who need what you have to offer (shotgun VS rifle)
VALUABLE CONTENT: The truly VALUABLE, HELPFUL, CAN’T-GET-ANYWHERE-ELSE-IN-THE-WAY-THEY-GET-IT-FROM-YOU thing you offer.
- Be generous (firehose strategy)
- Builds trust and demonstrates commitment (to your subject-area and to your audience)
- Positions you up as an expert/influencer/go-to person on your subject
- This is the BIGGEST variable here
- You get to PICK your audience and target your message to them
- You get to craft the most impacting, valuable content possible
- You get to churn out content on your chosen schedule
- But how LONG it takes to build the compounding impact will depend on things outside your control (your audience, your niche or industry, societal issues, world events)
- BUT Like water carving the channel of a creek bed deeper and deeper over time, you wear away at your audiences “resistance” to you and your offer