The $100 MBA Show: Extended Interview with Tom Ross - How to Build a Thriving Online Community
Release Date: March 27, 2023
Introduction
In this extended interview episode of The $100 MBA Show, host Omar Zenhom engages in an insightful conversation with Tom Ross, the founder of Design Cuts and learn.community. Drawing from over two decades of entrepreneurship, Tom shares his expertise on building and sustaining vibrant online communities. This detailed summary encapsulates their discussion, highlighting key strategies, personal experiences, and actionable insights for entrepreneurs aiming to foster engaged and supportive online spaces.
**1. Early Beginnings and the Importance of Community
Omar and Tom reminisce about their early days in the entrepreneurial landscape, particularly their involvement in the Fizzle community around 2012-2013. Both founders emphasize the foundational role that community played in their growth.
Notable Quote:
Tom Ross (05:40): "I have a soft spot for old school forums. Some of my best times growing up were making friends in these spaces."
They highlight how communities like Fizzle provided invaluable mentorship, collaboration opportunities, and a platform for sharing successes and challenges. This environment not only nurtured their businesses but also forged lasting friendships.
**2. Defining Community versus Audience
A significant portion of the conversation distinguishes between a mere audience and a genuine community. Tom articulates that while an audience resembles a one-way broadcast system, a community thrives on multi-directional interactions and relationships.
Notable Quote:
Tom Ross (25:31): "An audience is one speaking to many. A community is many speaking amongst themselves."
This distinction underscores the essence of building a community where members engage, support each other, and foster a sense of belonging, unlike passive audience members.
**3. Challenges in Building a Sustainable Community
Tom candidly shares the hurdles he faced while scaling Design Cuts, particularly the risk of burnout from intense work hours. He underscores the importance of maintaining core values, especially community, to navigate these challenges.
Notable Quote:
Tom Ross (15:01): "I worked 18-hour days, seven days a week for a year and a half... I felt like the poster boy of 'don't be an idiot and burn out.'"
Despite initial challenges, Tom emphasizes that staying true to community-centric values helped Design Cuts evolve into a robust organization with a dedicated team.
**4. Strategies for Effective Community Building
Both Omar and Tom delve into actionable strategies for cultivating thriving communities:
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Empower Members: Encourage active participation by spotlighting members' contributions and facilitating their involvement.
Notable Quote:
Tom Ross (30:40): "Take the spotlight off of yourself and shine it on your members and empower them."
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Achieve Critical Mass: Reaching a foundational number of active members (around 200) is pivotal for fostering autonomy and sustained engagement.
Notable Quote:
Tom Ross (28:23): "Once we hit 200 active, that was really enough for people to start feeling like this is their community and it's kind of autonomous."
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Manual Engagement in Early Stages: Active facilitation through one-on-one conversations and guided interactions helps seed meaningful discussions.
Notable Quote:
Tom Ross (35:27): "Have one-on-one conversations in DM with members... start opening up and you'd be like, that's amazing."
Omar adds that creating anticipation before launch and ensuring an exciting debut can significantly impact community growth and member retention.
**5. Asynchronous vs. Synchronous Communities
The discussion contrasts asynchronous (e.g., forums) and synchronous (e.g., live chats) community models. Tom expresses a preference for asynchronous communities, noting their lower pressure and better organization of content.
Notable Quote:
Tom Ross (38:04): "With asynchronous, you can organize content better... it's a lower pressure model."
Omar complements this by highlighting the archival benefits of asynchronous communities, making resources easily accessible for members.
**6. Monetizing Communities and Long-Term Value
Tom introduces the concept of paid communities as sustainable revenue streams. He shares his success with learn.community, which generates significant annual recurring revenue with minimal overhead.
Notable Quote:
Tom Ross (41:14): "It's making $50,000 annual recurring revenue and it's growing about 5% now month on month."
He emphasizes that communities not only enhance customer loyalty but also act as valuable assets that can boost company valuations. Omar echoes this sentiment, noting that communities can significantly reduce churn rates and provide continuous engagement.
**7. Transforming Online Communities into In-Person Events
Both entrepreneurs acknowledge the symbiotic relationship between online communities and in-person events. Tom recounts memorable experiences from conferences where online connections translated into real-life friendships.
Notable Quote:
Tom Ross (43:51): "It's like connection and friendship on steroids just packed into a few days."
Omar shares his experience with organizing business retreats, emphasizing the ease and demand for curated in-person networking opportunities. They agree that facilitating such events can strengthen community bonds and offer additional value to members.
**8. Leadership and Facilitation in Communities
The conversation underscores the role of leaders as facilitators rather than authoritative figures. Tom advises community leaders to organize, connect, and empower members, ensuring that the community thrives organically.
Notable Quote:
Tom Ross (44:52): "You should really just be a facilitator... organizing and connecting and making things happen."
Omar adds the importance of balancing leadership involvement, ensuring members feel connected to the leader while also fostering peer-to-peer interactions.
Conclusion
Omar Zenhom and Tom Ross provide a comprehensive exploration of building and maintaining successful online communities. Their combined experiences highlight the significance of member empowerment, active facilitation, and strategic planning. For entrepreneurs seeking to enhance their business through community engagement, this interview offers invaluable guidance and proven strategies to cultivate thriving, supportive, and sustainable online spaces.
How to Connect with Tom Ross
- Website: DesignCuts.com | learn.community
- Twitter: @tomrossmedia
- Email: tom@designcuts.com
Final Thoughts from Omar Zenhom
Omar concludes the episode by emphasizing the irreplaceable value of friendships and support systems in entrepreneurship. He encourages listeners to either join or start communities to foster connections, enhance personal growth, and drive business success.
Notable Quote:
Omar Zenhom (48:07): "Find yourself a good dozen Tom Ross's so that you can be able to make your life a little easier."
Key Takeaways:
- Community vs. Audience: A true community fosters multi-directional engagement, unlike a passive audience.
- Member Empowerment: Highlight and empower members to drive interactions and sustain community growth.
- Critical Mass: Reaching a foundational number of active members (around 200) is crucial for autonomous and vibrant communities.
- Asynchronous Engagement: Favoring asynchronous models can lead to better content organization and lower pressure for members.
- Monetization Potential: Paid communities can serve as sustainable revenue streams and valuable business assets.
- Leadership as Facilitation: Community leaders should act as facilitators, organizing and connecting members without dominating conversations.
By implementing these strategies and insights, entrepreneurs can build thriving online communities that not only support their business objectives but also create meaningful connections and enduring value for their members.