#232: Dan Andrews – Secrets of building a 1300-member, international community (with in-person events)

Podcast Summary: Creator Science #232: Dan Andrews – Secrets of Building a 1300-Member International Community (with In-Person Events)

Introduction

In episode #232 of Creator Science, host Jay Clouse engages in an insightful conversation with Dan Andrews, the visionary founder of Dynamite Circle and Dynamite Jobs, and his partner Ian. This episode delves deep into the strategies behind building a thriving, international community of over 1,300 members, emphasizing the pivotal role of in-person events. Dan, a repeat guest since episode #32 in November 2020, brings a wealth of experience from his long-running podcast, Tropical MBA, which has evolved into a robust global community for location-independent entrepreneurs.

Overview of Dynamite Circle

At the heart of the discussion is the Dynamite Circle, a paid membership community born from the success of the Tropical MBA podcast. Dan and Ian share how they transformed their podcast listeners into an engaged community through strategic initiatives:

Membership Structure: The Dynamite Circle offers various membership tiers, catering to different needs and levels of engagement.
Services Offered: Beyond community, they provide a remote job board and a recruiting service, with about 50% of their recruiting clients drawn from their membership base.
Global Meetups: Monthly meetups across different cities worldwide, varying in size from small groups of three to larger gatherings of thirty members.

In-Person Events as Community Pillars

A significant focus of the episode is on the role of in-person events in fostering community loyalty and growth.

Event Structure: Ian explains that they host multiple types of events, including smaller chapter events, adventurous trips like Antarctica and Kilimanjaro, city-specific gatherings (e.g., Austin's two-day event), and five major annual events in destinations like Phuket, Barcelona, New York, Bangkok, and Playa del Carmen.
Member-Led Events: Members are encouraged to host their own events, exemplified by the London chapter's annual 100-person event. This model, inspired by TED DCx, relies on a vetting process to ensure quality and alignment with the community's values.
Operational Logistics: Managing these events requires a dedicated approach. Ian introduces Greg Crabtree’s LER (Labor Efficiency Ratio) concept, stating, “LER is simple, right? It's gross profit divided by direct labor. It helps us decide when to hire full-time staff versus contracting for events” ([06:35]).

Hiring and Team Building with LER

Dan and Ian dive into their unique hiring philosophy centered around the LER metric to maintain operational efficiency.

LER Application: By maintaining a LER of 2.0, they ensure that their labor costs are sustainable relative to the profit generated. Ian emphasizes, “It’s like, if you're gonna host an event, Jay. I don't want Jay working on that event. I want you to model that event like a professional event organizer is doing it” ([11:22]).
Flexible Hiring: They leverage platforms like The Mom Project to find talented, contract-based event planners, allowing flexibility and scalability without the overhead of full-time staff until necessary.

Pricing Strategies and Membership Tiers

The discussion shifts to the delicate balance of pricing events to maximize community engagement without compromising profitability.

Membership vs. Event Pricing: Ian shares, “For our premium customers, we’re pricing our events right now anywhere from $1,500 to $2,500. And then for our standard membership, a typical event will be around $1,000” ([22:48]). This tiered approach ensures that events remain accessible while providing value aligned with membership levels.
Value Proposition: Events are not just revenue streams but essential for community retention. Dan highlights, “I look at the events as a retention and like love-inducing aspect of membership” ([26:04]).

Speaker Selection and Enhancing Event Content

A critical element of their successful events is the quality and authenticity of their speakers.

Member-Driven Content: Instead of bringing in external gurus, Dynamite Circle taps into their membership for speakers. Ian explains, “We are highlighting member stories and they’re going to open up the hoods, you know, and share openly with each other from the stage about what worked for them” ([28:03]).
Speaker Coaching: To ensure high-quality presentations, they employ speaker coaches who work with members to refine their talks. This approach not only enhances the event content but also empowers members to share their expertise effectively.

Sustaining Community Engagement

The longevity of a community hinges on meaningful interactions and continuous value delivery.

Community Over Algorithms: Ian argues, “I think people overvalue the algorithm and views and likes and general popularity… It matters who’s in your audience” ([41:46]). Emphasizing quality over quantity, they focus on nurturing a community where members can make significant, actionable connections.
Interactive Event Formats: To deepen connections, Ian suggests interactive formats such as rotating discussion tables on specific topics. “Imagine you have eight podcasters sitting there talking about their challenges… That’s what you want to hear because they’re like two years ahead with their strategies” ([37:40]).

Key Insights and Conclusions

Dan and Ian offer valuable takeaways for creators seeking to build and sustain vibrant communities:

Prioritize Community Over Metrics: Focus on cultivating a community with engaged, high-value members rather than chasing vanity metrics like views and likes.
Strategic Hiring: Utilize metrics like LER to make informed decisions about expanding your team, ensuring sustainability and efficiency.
Event-Driven Engagement: Use in-person events as a cornerstone for community retention and growth, ensuring they deliver genuine value and foster deep connections.
Leverage Member Expertise: Empower your community by utilizing members as speakers, which enhances authenticity and relatability.
Flexible Pricing Models: Balance event pricing with membership tiers to maintain accessibility while providing premium experiences for higher-tier members.
Continuous Iteration: Regularly assess and refine your strategies based on community feedback and emerging needs, ensuring long-term sustainability.

Notable Quotes

Ian on LER Concept: “LER is simple, right? It's gross profit divided by direct labor. It helps us decide when to hire full-time staff versus contracting for events” ([06:35]).
Dan on Event Pricing: “I look at the events as a retention and like love-inducing aspect of membership” ([26:04]).
Ian on Community Over Algorithms: “I think people overvalue the algorithm and views and likes and general popularity… It matters who’s in your audience” ([41:46]).
Ian on Speaker Selection: “We are highlighting member stories and they’re going to open up the hoods, you know, and share openly with each other from the stage about what worked for them” ([28:03]).

Conclusion

Episode #232 of Creator Science offers a masterclass in community building and management through the lens of Dan Andrews and Ian’s experience with Dynamite Circle. Their thoughtful approach to membership, event organization, and operational efficiency provides invaluable lessons for creators aiming to cultivate engaged, sustainable communities. By prioritizing genuine connections and strategic planning, they demonstrate that thriving communities are not only possible but can be scaled effectively on an international level.