This weeks Hussle Topic is all about the different types of capital you need to succeed in the creative industry.
A well known phrase is numbers dont lie. And where this is true, numbers can actually lie. You have some people who have 100ks followers who are struggling to make ends meet but then have creatives business who have small followings relatively but are able to generate 100 thousands on a yearly basis. One has mastered the art of business mectrics/capital and the other has mastered the art of perception mectics/cultural capital. Which one is better? Neither but to truly succeed as a creative think you need a little bit of both.
What Are Perception Metrics?
Perception metrics are actions you take to influence how people view you and your work. These don't directly put money in your pocket but can determine your status within your community. In the industry, these includ things like:
Social Media Influence: High follower counts, lots of likes, and frequent reposts.
Endorsements and Collaborations: Working with well-known individuals or brands, receiving co-signs from influencers.
Media Presence: Interviews with major publications, appearances on popular podcasts, and coverage by reputable media outlets.
Community Engagement: Building a loyal community that supports and amplifies your work.
Perception metrics are similar to the things stars do that make them look like stars. There’s a psychological aspect where people tend to support those who seem to have the backing of others. You might be in a position right now where you feel like people should be supporting you more, but you might not be in the position yet where it's cool to support you. Quite harsh but it's true. It’s just how people’s brain works. Less talented individuals may get more opportunities simply because they've branded themselves well.
For us, it took five years to make real money. We focused on building a community and enhancing our brand's perception. By the time we started working with brands, we brought significant value through our alignment with cultural moments and our respected status in the community. This didn't directly boost our finances initially, but it set the stage for future business success. Our first client was Nike when we only had 3000 followers, but we had a trusted community. This was a win-win, showing the indirect yet powerful impact of perception metrics.
What Are Business Metrics?
Business metrics are the tangible, financial aspects of your creative business. These are the factors that directly impact your bottom line. They are crucial because if you don’t keep track of your numbers, you risk losing your business. Key things include:
Revenue and Profit: Your income from sales, services, or other revenue streams minus your expenses.
Customer Acquisition Cost (CAC): The cost of acquiring a new customer. Lowering CAC improves profitability.
Lifetime Value (LTV): The total revenue you can expect from a single customer over their relationship with your business.
Conversion Rates: The percentage of visitors or leads who take a desired action, such as making a purchase or signing up for a newsletter.
Operational Efficiency: How efficiently you manage your resources and processes, from production costs to time management.
Financial Projections: Forecasting your future revenue, expenses, and profitability to plan for growth and secure funding.
Balancing Both Metrics
To succeed as a creative, balance both perception and business metrics. To do this do things like::
Investing in Both Areas: Put time and resources to build your brand and community (perception metrics) while also focusing on the financial health and growth of your business (business metrics).
Set Clear Goals: Define what success looks like for you in both areas. Set measurable targets and track your progress.
Adapt and Evolve: Be ready to adjust your strategies based on what’s working and what’s not. The creative industry is dynamic, and flexibility is key.
Leverage Your Strengths: Use your perception metrics to boost your business metrics. For example, a strong social media following can drive sales, while solid revenue can fund more visibility projects.
Numbers might not lie, but they don’t tell the whole story either. Balancing business and perception metrics is essential for long-term success in the creative industry. By focusing on both, you can build a sustainable, impactful career.
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CREATIVE RESOURCES
CURIOSITY CORNER
I’ve found that curiosity is one of the keys to growing in this industry. The moment you stop learning, is the moment you stop growing so every week in Curiosity Corner. l share a bunch of random books, youtube videos, music I listen to and more that have and still help me develop both personally and professionally. Have a look and let me know your thoughts!
