March 2nd, 2009 in Featured, Management, Resource

In Praise of Small Success

In Praise of Small Success

Everyone these days is chasing after the billion-dollar idea. We look at the giants in the technology industry – Google, Yahoo, eBay, even Microsoft – and see companies that only a few years ago (or a couple decades ago in Microsoft’s case) were tiny startups struggling to get by. When they hit, they hit big, and made their owners more money than anyone on Earth had ever dreamed of having.

Good for them. But their success has radically distorted the way most people look at their own lives, businesses, and prospects. The Google model of success is great – hooray them! – but frankly, it’s a little irrelevant.

Most of us won’t have a billion-dollar idea. And even if we do, we’ll have it at the wrong time without the resources to make it a billion-dollar company. And you know what? That’s fine.

Oh, business books don’t think so. Peruse the shelves of your local bookstore’s business section and you’ll see book after book analysing, studying, describing, and generally fawning over the huge success stories. They all claim the same thing: follow the example of Apple, Starbucks, GM, Warren Buffett, or whomever and you, too, can be successful. Don’t follow their example, and you’re… well, doomed to failure.

What a crock.

First of all, visit a thrift store sometime and have a look at all the business books of yesteryear, and all the companies they held up as success stories. Compaq, Enron, Digital Equipment, Chrysler, AOL. Models to follow?

But more importantly, it’s a false vision of success. Few companies ever operate at the scale the business gurus plot “success” at. And few of us need the kind of validation that building a billion-dollar business – or even a million-dollar business – provides.

I’m speaking out in praise of small success. The band that sells 50,000 copies of its album. The local dry cleaner who runs 6 branches citywide. The family with the chain of fast-food franchises. The couple that runs a popular pre-school and daycare. The painter voted Best Local Artist three years in a row by the city’s alternative weekly paper. The independent spirit who runs the city’s alternative weekly paper. The high school band teacher whose students win music scholarships year after year.

I know it’s not flashy. But it’s good, damn good.

1000 True Fans and the Stallman Model

My thinking here derives from two sources. The first is Kevin Kelly’s notion of 1000 true fans. Kelly’s suggestion is simple: to survive as an artist doesn’t necessarily require a major label distribution deal, a wealthy patron, a contract with a multi-national publishing house, or an appearance on Oprah. All it takes is the cultivation – by whatever means necessary and possible – of 1000 loyal, devoted fans. People who will buy your books, records, t-shirts, paintings, or whatever else; who will travel hundreds of miles and line up for hours or days to see you speak, play, or perform; people who will spread the word, give your products (whatever hey are) as gifts, and talk you up to local business owners, media outlets, and other artists.

If a thousand true fans are willing to spend just $100 a year on whatever it is that you do, that’s a healthy $100,000 a year income. Just from that core – others might well buy an album here and there, ask a library to carry your book, or purchase a print of your painting. But that core of true fan support is what sustains the artist, year in and year out.

Richard Stallman advocates something similar in his crusade for free (as in freedom) software. Again and again he’s asked how people can make money if they don’t charge for their software, and again and again he responds: by providing services related to their software. Support. Training, Customization. Made-to-order programs.

Doing the right thing, Stallman admits, is not the fast-track to riches. Instead, he says, it’s a way for people who love coding to bring in a healthy income year in and year out. Coding for the software equivalent of 1000 true fans.

Making a Living vs. Making a Killing

What both Kelly and Stallman are advocating is making a living – a good, solid, stable living – doing something you love. It’s a living built on community-mindedness, social spirit, and a solid relationship with the people who buy or use your work. Yes, it means giving up the ability to “monetize” every interaction between a potential customer and whatever it is you make. But in return you gain the ability to focus on the thing you love, and the value it brings to other people’s lives, instead of the bottom line.

Most of the business books on the shelves, and most of the businesses functioning  in our contemporary society, don’t have that luxury. They’re not focused on making a living but on making a killing – bringing in the big bucks, milking whatever they’ve got for whatever it’s worth, and making sure that not a single person derives value from their products without first ponying up some cash.

Of course, this hasn’t been without its successes. I’m not going to say there is no use for the kinds of innovations that some corporations have brought about – although it’s notable that very few corporations last more than a couple decades, and even fewer stay at the forefront of their field for even half that long. Microsoft is positively ancient by the standard of market leadership time (and there are plenty of folks who see their crown slipping); Apple is getting pretty ripe as well (they’ve been at the top of their game for about a decade now, in a rare corporate second  chance). Far more often the leaders of the pack give way to upstarts – remember Altavista?

More importantly, the “making a killing” approach really is killing. Big corporations, especially publicly held ones, can’t afford community-mindedness, unless it yields a positive return for their public relations department. They can’t afford to build personal relationships with the people who buy, use, and live by their products – especially when, as so often happens, they are hiding information about health, environmental, and other risks from their customers. And let’s not forget that it was a handful of corporate leaders and financial players out to make a killing who brought the current economic crisis on us all.

But it’s not to speak out against corporate greed that I am writing this piece. It is to celebrate the little successes, and to suggest that for most of us, they are more than enough to lead us to happy, healthy, and in the end regret-free lives. Because not a lot of people are willing to say it – certainly the folks who write business books aren’t. And it deserves to be said.

Share

WRITER'S BIOGRAPHY

Dustin Wax

Dustin M. Wax is a freelance writer and project manager at Stepcase Lifehack. He can be reached though his freelancing site at DustinWax.comDon't Be Stupid: A Guide to Learning, Studying, and Succeeding at College.

Follow him on Twitter: @dwax.

ARTICLES BY THIS WRITER »
Don't want to miss any related posts like there? Subscribe to our feed!

18 Responses

Trackbacks/Pings (Trackback URL)

Comments

  • Shanel Yang says on March 2nd, 2009 at 10:31 am

    $100,000 a year is definitely enough if you’re business so you get the tax benefits and you live very frugally. Sounds good to me! : )

  • Alison Harrison says on March 2nd, 2009 at 10:49 am

    I love this post – thank you!

    Years ago when working for a huge corporation, I met a freelance writer. I made a remark about how having such a big client must be useful (I guess it was a recession at the time!) because there was a pretty much unlimited supply of work for her there.

    She explained that she was in partnership with 3 other writers and their philosophy was to only take on enough work to pay the 4 of them a reasonable amount and meet their business expenses. They had deliberately created a business that would not grow so much that it prevented them meeting family commitments, taking vacations etc – and had written this into their partnership agreement.
    This felt so right, and so sane, to me I’ve never forgotten it.

  • David at Animal-Kingdom-Workouts says on March 2nd, 2009 at 10:50 am

    Interesting article. It’s so true that some of the biggest business successes of 10 years ago are now ready for the scrap heap. I also love the idea of cultivating a 1000 loyal fans. Makes sense to me!

    - Dave

  • Catherine Cantieri, Sorted says on March 2nd, 2009 at 12:01 pm

    Love this. The idea of building 1,000 fans seems like a big goal right now (I’m not sure I even have 1 fan), but it also seems do-able. Certainly much easier than building a worldwide fan base!

  • Avrum says on March 2nd, 2009 at 4:21 pm

    Heard a story:

    An Orthodox Jew in New York owned a very successful jewelery store. The story goes that each day he set a ceiling for himself vis-a-vis how much income his family needed for this and that. When he reached that #, he would hang a sign on his door stating that he was closed for the day, and provide a list of his competitors with their contact info.

    Love that story.

  • Renée says on March 2nd, 2009 at 6:04 pm

    This article is very timely. Just spent an hour talking to a business-owner in my community that has closed up shop after 2 years of trying to “make a killing.” Too big too fast left him bankrupt. My business, on the other hand, is growing slowly, steadily… taking the 1,000 fans approach, though I never knew there was a “theory” behind it before now. Great piece, thank you.

  • Tumblemoose says on March 2nd, 2009 at 8:42 pm

    I do love this post, this idea, the whole concept.

    Thanks for the gentle reminder about realism.

    George

  • Stephen Nolen says on March 2nd, 2009 at 9:38 pm

    Good article. If one concentrates on this mindset you might make it “big” after all.

    Now I’m off to add up my $2.50 of revenue so far this month from my online websites. :-)

    -Stephen

  • Jessica says on March 3rd, 2009 at 3:03 am

    I just Dugg this article. I hope more people digg this and the message can be spread. It’s a fantastic model and approach to building your client/fan base and also teaches us not to be greedy and take too much too quickly. I know people always want more but I would hope no-one would complain if they were earning 100,000 a year from a model like this. Great post.

  • Alex Fayle | Someday Syndrome says on March 3rd, 2009 at 3:11 am

    My business goals are to provide me with enough income and enough free-time to write fiction. I’m always amazed at the number of people who think that’s a self-limiting viewpoint.

    I personally think it’s rather freeing.

  • Ellen says on March 3rd, 2009 at 6:03 am

    Love this post. I think the community-mindedness you mention also relates to why I personally have prefered the jobs I’ve had in small companies to the ones in large organisations.

  • Vincent says on March 3rd, 2009 at 10:58 am

    Hi Dustin,

    Success does not mean that we need to start a corporation like Google or BerkshireHathaway. If we are able to earn enough money for us to live comfortably and have enough time to pursue our own passion, that is also considered as a success. Great article Dustin.

    Cheers
    Vincent
    Personal Development Blogger

  • FrugalNYC says on March 3rd, 2009 at 5:11 pm

    Love the positivity of this post. Its been a while since I read a post here, I think I need to come back a little more often again.

  • raidbet says on March 10th, 2009 at 3:43 am

    “An Orthodox Jew in New York owned a very successful jewelery store. The story goes that each day he set a ceiling for himself vis-a-vis how much income his family needed for this and that. When he reached that #, he would hang a sign on his door stating that he was closed for the day, and provide a list of his competitors with their contact info.“

    good article and good story!

  • Night Runner says on March 13th, 2009 at 6:06 pm

    You had me at “damn good.” The “1,000 true fans” theory is a crock – just another proof that economists and marketing “geniuses” don’t understand how the world works. Here is the elaborate critique by Johgn Scalzi, a sci-fi writer: http://whatever.scalzi.com/200.....true-fans/

  • Dustin Wax says on March 17th, 2009 at 4:00 am

    Night Runner: I disagree with Scialzi, though he makes an important point — 1,000 “true fans” might well mean finding 50,000 or more “kinda fans” too. But the principle is sound: aim for strong connections with a graspable number of people, rather than super-mega-stardom and the adoration of hundreds of thousands or millions of nameless, faceless fans. Aim to make a living serving a small number of people for whom your work, whatever it is, provides real meaning, rather than feeding the latest trend for a minute and being forgotten — or worse, becoming a slave to the market you’ve created.

    THe number is unimportant — for a writer who makes only a few dollars royalties per book sold, 1,000 fans no matter how avid aren’t going to provide much of a living; 50,000 might not be enough if you’re not particularly prolific. But there is an audience worth cultivating, and if you can relate to that audience, you can make a pretty solid life for yourself without feeling like a sell-out.

  • Denise Dougherty says on April 30th, 2009 at 8:43 am

    Dustin: Thank you for another well written gentle reminder of how the rest operates below the hoopla line. This weekend I took an important step in my new enterprise and, after reading your article, amviewing it in a more positive light.

    Always enjoy your gentle touch and well written articles.

Post your comment

Continue your discussions at Lifehack Community.

Get your own Avatars at Gravatars.
Three FREE Audiobooks RISK-FREE from Audible
Recent Writers SEE MORE
Latest Poll

Do you like the new design?

View Results

Loading ... Loading ...