Rented vs. Owned Audience

What To Focus On When Building Online Business

Author

Miroslav Novohradsky
July 13, 2024

Picture this: You're a captain sailing stormy seas. Your social media ship? It's rented.

The landlord (aka Big Tech) can kick you off anytime. This is why you need to find your own island. Your safe harbor. Your home base.

Because in the end, it's not about how many people see your message. It's about how many people you can reach when it really counts.

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EXPLAINING THE BASICS

Rented vs. Owned Audience

What is better… 1,000 social media followers or 1,000 email subscribers?

The first option is called rented audience, while the second is owned.

The concept of rented versus owned audiences is crucial for all online businesses and content creators in this digital age.

So, let me help you understand it even better.

Rented Audiences

A rented audience is one that you access through third-party platforms like social media, search engines, or other digital advertising channels.

You do not own this audience; instead, you pay to reach them through the platform's algorithms and policies.

There are some benefits:

  • Easy Access: Rented audiences provide immediate access to a large number of potential customers.

  • Cost-Effective: Renting an audience can be less expensive than building your own audience, especially in the short term.

However, there are drawbacks too, and many of them.

  • Algorithm Changes: You are at the mercy of the platform's algorithms, which can change at any time, affecting your reach and engagement.

  • Deplatforming: Platforms can restrict or shut down your account, disrupting your marketing efforts.

  • Limited Control: You have limited control over the audience data and how it is used.

  • High Costs: While initially cheaper, rented audiences can become expensive if you need to continually pay for ads to maintain reach.

Owned Audiences

An owned audience, on the other hand, is one that you build and control directly through your own platforms, such as email newsletters, blogs, mobile apps, or podcasts.

You own the data and have complete control over how you interact with your audience.

Benefits to this type of audience are…

  • Stability: You are not subject to algorithm changes or deplatforming.

  • Control: You have complete control over the audience data and can use it to tailor your marketing efforts.

  • Cost Efficiency: Once built, owned audiences can be reached at a lower cost compared to rented audiences.

  • Long-Term Value: Owned audiences provide long-term value and can be leveraged for years to come.

  • Personalization: You can segment and personalize your content to better engage your audience.

And of course, also here are some drawbacks.

  • Initial Investment: Building an owned audience requires an initial investment of time and resources.

  • Technical Complexity: Some owned audience platforms, such as mobile apps, can be technically complex to build and maintain.

THE FUTURE-PROOF SYSTEM

Why Do You Need to Build Your Owned Audience?

In 2024 and beyond, you have to focus on building an owned audience rather than relying only on rented platforms.

This is a way to have a profitable business.

Because there is more than just having an audience; it is about having a stable audience.

Yes, with your own audience, you are getting stability and control.

  • Direct Communication: Owning your audience allows you to communicate directly with your followers without relying on third-party algorithms or platform policies. This ensures that your messages reach your audience consistently and reliably.

  • Audience Stability: Unlike rented platforms, owned audiences are not subject to de-platforming or algorithm changes, which can disrupt your marketing efforts.

  • Personalized Messaging: With an owned audience, you can segment your subscribers and deliver highly targeted content based on their interests and behaviors.

  • Higher Engagement and Retention: Owned audiences tend to be more engaged and loyal, leading to higher open/click-through rates and lower churn compared to rented platforms.

  • Increased Revenue Potential: An owned audience provides a reliable distribution channel to promote your products and services, leading to more sales and revenue opportunities.

HOW TO BUILD IT

Free and Paid Methods

If you are a beginner or don't have much money to invest upfront, there are still several ways to get started.

All the methods I describe below allow you to have more control over communication, reduce dependency on algorithms, and help you build better long-term relationships.

You can choose one of them, or you can try all three and connect them.

Email List

  • Building: Encourage visitors to your website, blog, or social media profiles to subscribe to your newsletter. Offer incentives like exclusive content, discounts, or free resources.

  • Maintaining: Send regular, valuable content to your subscribers. Personalize emails and segment your audience based on interests or behavior to increase engagement.

Website

  • Content Creation: Regularly update your site with niche-relevant content that attracts and retains visitors. This could be in the form of blog posts, articles, videos, or podcasts.

  • SEO: Optimize your content for search engines to improve visibility and attract organic traffic.

  • User Experience: Ensure your website is user-friendly, mobile-optimized, and fast-loading to provide a good experience for visitors.

Community Building

  • Forums and Groups: Create and manage forums or groups related to your niche. This can be on your own website or on platforms like Discord, Slack, or Facebook Groups.

  • Engagement: Build a sense of community by promoting discussions, hosting Q&A sessions, and being active in conversations. Make members feel valued and heard.

Content Marketing

  • Valuable Content: Produce and distribute content that addresses the needs and interests of your target audience. This can be through blogs, videos, podcasts, or social media posts.

  • Consistency: Regularly publish content to keep your audience engaged and coming back for more.

While the idea of owning your audience can be intimidating at first, when done correctly it can help you build a successful online business.

For a long, long time.

And have a nice day,

Miroslav from The Growtharo Alert

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