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Eric Siu explores whether chasing a massive audience actually helps your business. The conversation weighs building reach against conversion rates, how VCs evaluate market size, and the real trade-offs between personal brand growth and revenue.
Eric Siu explores whether chasing a massive audience actually helps your business. The conversation weighs building reach against conversion rates, how VCs evaluate market size, and the real trade-offs between personal brand growth and revenue.
I think it's important to understand when it's time to build reach versus when it's time to convert. As long as you understand that dichotomy, you're going to be in a better spot. When you have venture capitalists, they're looking to invest in a company, they're often looking at the total addressable market, which is why when they invest in a company like Facebook, for example, because it's a very, very large audience, the market caps of these companies are more likely to be a lot higher.
There's nothing wrong with massive audience TAMs. Those are great. If your goal is to get more brand awareness, build up your personal brand, etc., the bigger the audience TAM, the better off you are. In business, if you're just trying to generate revenue from something specific, you don't have to worry about audience TAM, you have to worry about revenue TAM. In social media marketing, you're trying to build up a personal brand, you want a massive audience TAM.
If you just keep doing audience TAM forever, sure, you can do that, but does it lead to business outcomes if that's what you're actually looking for? And if it doesn't, then the audience TAM thing might actually be a distraction.
