Chapter 1: The Importance of Customer Relationships

In today’s competitive environment, a business cannot thrive without a solid customer base. This reality marks a significant shift from the past when simply capturing attention could translate into profit. Businesses could once rely on their ability to draw a crowd through various content channels, creating what was considered the golden era of advertising. However, that model has fundamentally changed.

The advertising landscape thirty years ago, prior to the rise of the internet, relied on a straightforward approach. Media outlets—be it television, radio, print, or magazines—could effectively attract specific audiences, allowing advertisers to connect with those demographics based on tangible factors like geographic location. Even if a customer moved, the likelihood of a similar individual occupying that space ensured continued patronage.

With the advent of the internet, however, this dynamic shifted dramatically. Businesses were inundated with pitches from digital services promising to revolutionize their customer interactions. Unfortunately, this led to intermediaries disrupting the direct connection between businesses and their clients. Platforms like Craigslist eliminated classified ads, Legacy.com took over obituaries, and Facebook overshadowed local news outlets.

This disruption wasn't limited to just the media sector; countless local businesses across America have fallen prey to the inability to maintain a direct relationship with their true customers. Subscription services emerged as a solution for media companies, complicating the cancellation process for users and further distancing them from their audience.

Local enterprises found it increasingly difficult to compete with national chains, leading them to explore alternative outreach strategies. Yet, many discovered that mere online engagement—such as followers or likes—does not equate to actual customers, especially when these individuals could be located anywhere around the globe.

The rise of influencers on social media has signaled a crisis for the business models of these platforms. As users resort to ad blockers, social networks find themselves in a futile battle to keep advertisements visible. Advertisers seek to understand their customers and yield tangible results from their investments, but instead of fostering relationships, platforms are locked in a conflict. This path does not bode well for anyone involved.

Returning to the core of business, the necessity for customers is paramount. A customer is defined as someone who purchases goods or services from a business. Therefore, the most valuable asset for any company is its customer list. If that list belongs to a third-party platform, the business owner faces significant challenges in directing their clientele to alternative purchasing avenues.

While this arrangement might work for one-off products or services, it does not support a sustainable business model. The popularity of trends—be it pet rocks, sporting events, or courses on dropshipping—will eventually fade.

Currently, the trend of subscription-based revenue presents its own risks. Over time, newsletters may go unread, streaming services might become stale, and apps can be discarded. There are still only 24 hours in a day, and time is a finite resource. If customers do not engage meaningfully with your offerings, they will eventually drift away, leaving no replacements in sight.

Life changes—new jobs, relocations, and shifting interests—often lead to customer attrition. If a business lacks insight into its clientele, it will be ill-prepared for these changes.

Investing in building a robust customer list and truly understanding those individuals is critical. If a platform makes it difficult to manage and export this information, it suggests that you are not truly in control of your business; rather, you are inadvertently constructing a business for someone else. In the early days of big tech, a common saying was, "If you aren't paying for the service, you are the product." Today, a more relevant perspective is that if you cannot take your customer list with you, you are merely creating value for another company without any return.

The first video, "Don't Fall For It," explores these themes in greater depth, providing insights into the pitfalls of modern business practices.

Chapter 2: The Dangers of Subscription Models

A subscription model can seem appealing, but it poses inherent risks. As mentioned, interest in certain products or services can be fleeting. Users may find themselves losing interest, leaving behind a once-engaged audience.

The second video, titled "SATURDAY NIGHT LIVE SALE WITH BETH-CAROLINA'S SWEET TREATS & PRETTIES," illustrates the importance of maintaining customer engagement and the challenges faced in a subscription-heavy market.

This video sheds light on how businesses can navigate these challenges effectively.