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Power Laws

December 11, 2021

Power Laws: Why Vampr is a Magnet for Top Talent

Hey everybody,

We put together the below report to study the influence of Vampr and to see what we could learn about our business model. It’s admittedly a little bit dry, but heck, the findings are super insightful!

You can find the original publication of this study over at our Wefunder campaign page, where there is still time to invest!

Josh

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Let’s start with an analogy: just as in the real world where movers and shakers emerge who create success and wealth which benefit others, so too are we seeing a similar phenomena inside the Vampr community.

We wanted to understand the number of people with star power who are shifting the needle inside the Vampr userbase and what that means – namely, the “power laws”. This kind of study is more commonly understood in the investment community.

VC funds follow a power law curve. When a small % of firms capture a large % of industry returns.

Power Laws

In our case, a power law study informs how we might iterate on our business model.

If we knew with certainty that success in the Vampr community was distributed along a textbook power law curve then we could make better informed decisions when it came to designing future products and services.

To do this we looked at the total Soundcloud streams from a random sample of 6% of our community. And we were right on the money. Our study of the Vampr community revealed that:

  1. 0.1% of our users were highly-successful;
  2. 1% had a respectable audience generating some income;
  3. 3% were investing in themselves, and;
  4. 97% were on a journey to upwardly mobilize into these more lucrative categories

Vampr Talent

What does this mean? Why is it important?

Number One, it shows that Vampr, a genuine grassroots community without any celebrity figurehead thus far, attracts top talent, with 0.1% of our users receiving tens of millions of streams each. In the industry, this is enough to get an artist signed to a major label deal.

Secondly, it shows us that these various community segments – 0.1%, 1%, 3%, 97% – each have unique needs and requirements from a networking service like Vampr. Our existing business model is suited to capture value from each of these segments however our future model is being designed with these insights front of mind.

Take our recent announcement offering distribution for free to the 97% – this is just the first step in using these insights to inform future decision making. And we have some incredibly exciting announcements to make shortly on how we will better serve each segment of our userbase.

Stay tuned ✌️

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