Thinking in concentric circles
Heyo, I've spent all week searching for the most interesting resources to help you live better and build a thriving internet business.
This is the 100th edition of The Sunday Filter and I just wanted to say I appreciate everyone who reads and replies to the newsletter. Here's to the next milestone of hitting the 1000th edition (with the current cadence we're on track to hit that in 17 years 👀🚀).
Anyway, a couple of updates this week:
Notion template — a few weeks back I mentioned sharing the template we use for project management at WiseStudio. I'll be sending that out on Monday, if you're interested (and you haven't already registered) just hit this link and you'll be added to the list.
Hiring — we're currently working on a rebrand of WiseStudio and as we ramp up we're looking to work with more A-players. If you know any great designers, Webflow developers, SEO experts or automation specialists then let me know :)
Alrighty, let's get into the Filter!
Thinking in concentric circles
I recently started using the framework of concentric circles for thinking about customers and audience and it’s been a game changer.
So this approach divides your customers/audience into a few different groups based on their characteristics, engagement, and current connection with your brand.
Think of your concentric circles like an archery target. At the center you have your ideal customers/audience, these are the people you specifically set out to serve, they consistently buy from you and refer others to your business. Let’s call these people your super fans.
Then you have one layer out. These people may be interested in a part of what you’re offering or maybe they are heading in the direction of being your ideal customer/audience but they are not quite there yet. These people are your interested fans.
The next layer you have your onlookers, they’re familiar with what you do and some of it applies to them but currently, they’re not fully bought into what you’re doing.
Finally, you have the general public, the people who may come into your concentric circles through the magic of the internet but currently, they don’t know who you are and frankly don’t care.
Using this concept of concentric circles is a useful way to build a business or an audience because it outlines the path to success simply.
1) First, you just need to focus on finding that core group of people. This stage is finding product market fit, or, in the creator world, finding your niche.
2) Once you’ve found that core you then focus on serving those people with content and a product or a service.
3) Over time you start to expand into your outer circles. Maybe you start offering a few products or expand into another niche.
I.
Bad decisions are made when your emotions take the lead.
To avoid this, identify the cues, take a deep breath, and let the impulse pass.
II.
Entrepreneurship requires a healthy dose of delusion.
Conquer envy: The world is not driven my greed or fear, it’s driven by envy. Even though we’re way better off now than at any time in history, seeing what other people have always leaves us wanting more. This short video of Charlie Munger is incredibly insightful.
Everything is a funnel: Viewing everything as a funnel is a mental model every business owner and creator should use. When you start to view attention, marketing and services/products in terms of funnels it becomes obvious what your most important next steps are.
Inequality and Risk: This essay from Paul Graham got me thinking. He argues that if you try deal with economic inequality by attacking wealth, you then reduce peoples capacity for taking risk which ultimately stalls growth.
And that the best way to make the world a fairer place is to focus on tackling the area where wealth turns into power (essentially the privileges + unfair head start wealth gives you).
**BONUS FIND**
How to keep customers for life: This pet company send flowers and a card when a customers pet dies. They also reimburse unopened food, suggest you donate it to a shelter and offer the option to talk to someone about the grief of losing a pet.
Decisions like this will eat into the companies profit margin, but what it does is create a customer for life who will tell all their friends + family about using their company.
Often a small gesture from a company can have a huge impact on an individual.
END NOTE
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Have a fantastic week!
- Stephen