This guest post was written by Dan Runcie, the founder of Trapital. Below, Runcie breaks down Beyoncé’s content and commerce strategy that’s turned her into a business powerhouse.

—

Hey there!

I'm Dan Runcie, the founder of Trapital, a media company that breaks down the business of hip-hop. Today's artists are some of our most impactful business leaders. They are changing the game in music, fashion, Hollywood, sports, tech, e-commerce, and more.

Each Monday, I send readers a free weekly memo to gain insights from the latest moves from hip-hop's biggest players. One of the artists I've written most about is Beyoncé. The Queen Bey has a fascinating business to study. Most parts of her game are relevant to anyone creating content and gaining valuable customers.

3 Lessons We Can Learn From Beyoncé's Content Strategy

If you subscribe to any streaming service, it won't take long to find Beyoncé. She's had exclusives on Netflix, Disney+, HBO, Tidal, and more. Her music is on all the major music streaming services. Even if you're on Peloton, the "Drunk In Love" singer will show up soon enough.

The Houston singer and her Parkwood Entertainment team have developed a successful content and commerce strategy that strengthens every part of her business.

Here are three of her best lessons.

1. Find win-win partnerships.

In 2018, Beyoncé headlined Coachella (aka Beychella). It was one of the most memorable performances of the past decade. Tons of platforms would have loved to acquire the rights to air the show's documentary. Her previous visual album was on HBO. Tidal, the service that had exclusive access to Lemonade, had recently launched video streaming too.

But Beyoncé chose to drop it on Netflix. The streaming titan has over 200 million subscribers worldwide. It was one of the largest distribution channels to reach the most people. It was also one of the most lucrative. Netflix spends tens of billions of dollars on content each year to acquire and retain subscribers. This was a chance to land one of the most popular public figures and attract her passionate fanbase. And after Netflix's pay discrimination lawsuit with Mo'Nique, the last thing it wanted to be known for is short-changing another Black woman entertainer. Beyoncé signed a reported $60 million deal for Homecoming and two forthcoming projects.

Even though Beyoncé could have driven more traffic and subscribers to Tidal, Netflix's reach was too valuable to miss out on. It was an opportunity to further boost exposure. This is a question many content creators face: should my work be available for everyone, or only paid customers? It's different for every situation. But Netflix was an opportunity to get paid top dollar and still reach the masses.

2. Extend her projects with derivative content.

It's been nearly five years since Beyoncé's last solo album. Albums like Beyoncé and Lemonade are her cornerstones, but they take tremendous time and effort. In the meantime, she found ways to release projects that are derivatives of her existing work.

In 2018, Bey and her husband Jay Z released Everything Is Love, a nine-track collaboration. The joint album was a natural extension of the themes discussed on both Lemonade and Jay Z's 4:44. The following year, Beyoncé starred in the computer-animated remake of The Lion King. She was featured on The Lion King soundtrack. She also curated and produced an album called The Lion King: The Gift, which featured original songs from her and several other artists. In 2020, she released a visual album of The Gift called Black Is King. It's a Disney+ exclusive.

In a sense, Beyoncé's strategy isn't too different from Disney's itself. They both have reliable IP, Lemonade and The Lion King respectively, and found smart ways to extend its life. It was also a great way for Beyoncé to get exposure on Disney+, which now boasts over 100 million subscribers.

3. Create a funnel.

The business of Beyoncé is expansive. Each piece of content created, live concert, or product sold has to fit in her funnel. The Beyhive is known for its devoted fandom (sometimes to a fault), but there are levels to this.

Here's a visual I made on Beyoncé's sales funnel:

The top of the funnel is for Beyoncé to attract casual fans. These are her award show performances, Netflix specials, hit singles, social media posts, and interviews. They increase her awareness and exposure.

The casual Beyhive is a mix of her deep album cuts, her content on smaller distributors, her concerts, and more. These folks are proud members of the hive. They show out and support with their time and money.

The final group is the diehard Beyhive. They don't mess around. These are the fans who still have Tidal subscriptions just to support Beyoncé. They purchase VIP concert tickets and IVY PARK merchandise. There are fewer of these fans than the other groups, but they're extremely valuable to any base. They are the target demo for her highest-priced goods and services. This is especially relevant for Beyoncé, who is a borderline Veblen good at the point!

Every content creator should have a funnel. It's a living document that changes over time. In today's content landscape, there are plenty of tools to segment your audience to do the same. For many folks starting, social media is their best opportunity to reach the masses. But over time, it will grow.

Tweet This Article

This guest post was written by Dan Runcie from Trapital, a weekly newsletter where you'll gain insights from the latest moves in the business of hip-hop. Sign up here and I’ll send it to you next week’s memo.

Get Trapital's free weekly memo

—

THE PROFILE DOSSIER: On Wednesday, premium members received The Profile Dossier, a comprehensive deep-dive on a prominent individual. It featured Frank Abagnale, the con man who got a second chance. Become a premium member, and check it out here.

VIRTUAL EVENT: On Tuesday, March 23, I'm speaking at Teachable's Women Create 2021 Summit about growing and building an engaged online community! Reserve your spot here.

GOOD READ: Want to break free from your echo chamber? There's an app for that. Ground News is a news source comparison platform that empowers you to compare how outlets from the left, center, and right are covering any story. Adopt a balanced news diet and Download the Ground News App for free today.

A WORD FROM OUR PARTNER: On Deck Catalyst is a 10-week remote program for young leaders who want to solve the world’s most pressing problems and take an unconventional path to building their career. Their curriculum includes: 1) Deep dives on how startups work; 2) Learning the intimate details of founding & investing in companies; 3) Speaker sessions from Keith Rabois, Aileen Lee, Jack Altman, & more; and 4) Figuring out how to create opportunities. Their next cohort kicks off June 5. You can apply here before May 4th. (Applications will be reviewed on a rolling basis.)

—

PROFILES.

— The CEO tasked with vaccinating America [**HIGHLY RECOMMEND**]
— The influencer whisperer
— The angry cousins at the center of the COVID swab supply
— The horse meat vigilante
— The suburban dad with 75 million books in print
— The resilient pop star
— The NBA's virtual marketplace
— The world's hottest air-purifier
— The investment giant annoyed with its boss

PEOPLE TO KNOW.

The CEO tasked with vaccinating America: Karen Lynch has a job that comes with massive responsibility: Vaccinate America. On Feb. 1, she took over as president and CEO of CVS Health, which is in the midst of an effort to transform itself from retailer to healthcare company. There's a lot that rests on her shoulders: As the leader of this $269 billion behemoth, she must show that CVS is capable and ready to meet one of the biggest health challenges of the century. (Fortune)

“For her, it’s been a game of stamina—and she has great endurance."

The influencer whisperer: Amber Venz Box is an expert at telling you whether your life on social media looks "aspirational, commercial or shoppable." She’s the founder and president of the influencer marketing platform RewardStyle, which connects social media influencers with brands so that they can monetize the content they create. Here's how her ‘Harvard of Influencing’ taught social media stars how to monetize their brands. (Town & Country)

“There is a playbook for success as an influencer and I believe it is a skill that can be taught."

The angry cousins at the center of the COVID swab supply: When America needed COVID swabs, a tiny Maine company called Puritan Medical Products became an unlikely hero. But the two cousins who own the business are total enemies. A years-long feud between the two owners, Timothy Templet and his cousin John Cartwright, had left the business in a management crisis. But the government desperately needed swabs. So it invoked the Defense Production Act, invested a quarter of a billion dollars into Puritan to boost production tenfold, and hoped that it would make it a good, stable company, at least for the duration of the pandemic. Here's what happened. (Bloomberg)

“The world is still exquisitely dependent on Puritan."

The horse meat vigilante: In many parts of the world, horse meat is considered a delicacy. You can eat horse tartare in Montreal, horse salami in Italy, and horse sashimi in Japan. But in the U.S., its consumption has been essentially banned since 2007. Enter the Dark Knight of Florida's animal-slaughter underworld. From his secret compound, Richard Couto stages undercover buys to bring down unlicensed slaughterhouses. Police say they’d be happy to work with him, if only he’d follow the rules. (Bloomberg)

“He’s super intense. I’ve gotta tell him to calm down a lot.”

The suburban dad with 75 million books in print: Thriller writer Harlan Coben has published 32 books with an estimated 75 million copies in print worldwide. The prolific author says his "routine is not to have a routine." He struggles to write at home, so he's gone to great lengths to finish a book. Coben once spent six months writing at a Stop & Shop deli counter. Another time, he spent three weeks taking Ubers everywhere he went because he found he was writing well in the back seat. This is a delightful profile. (The New York Times)

The resilient pop star: Demi Lovato has been famous since she was 6 years old. She got her start on kids’ TV and made the tricky leap to adult stardom, releasing six albums, serving as a judge on “The X Factor,” acting on “Glee” and “Will & Grace” and amassing 100 million Instagram followers — all while managing an eating disorder, a drug addiction that started in her teens, coming out as queer and the constant pressure of being an exceptionally famous person. In this profile, she opens up about the 2018 drug overdose that almost killed her. (The New York Times)

“No one can live up to the expectation of perfection.”

COMPANIES TO WATCH.

The NBA's virtual marketplace: This is a deep dive into the NBA Top Shot, the platform that allows you to buy, sell and collect officially licensed video highlights. If you're scratching your head wondering why people are paying thousands of dollars for virtual trading cards, this longform feature has answers for you. Check out the brave new world of NFTs. (Sports Illustrated)

“I think it's only natural that people are moving into these digital marketplaces with equal force and trying to find value there—a place to store their money.”

The world's hottest air-purifier: Molekule, a company started by a family of scientists in Florida, now sells the most hyped purifier on the market. Backed by venture capital and an Instagram-friendly brand, Molekule promises revolutionary air-purification technology tucked into a sleek metallic package ($799 for the flagship Air; $1,119 for the Air Pro; $499 for the Air Mini+). You may be thinking: My goodness, how much should clean air cost?! And Molekule would ask you: "Well, just how much is your next breath worth?" (New York Magazine)

"I think people feel psychologically better when they see it. It’s that false sense of security.”

The investment giant annoyed with its boss: In many ways, things should be sunny at Goldman Sachs: Its Wall Street businesses are booming, the stock is on a tear and the bank finally put to rest the 1MDB scandal that dogged it for six years. Instead, the firm is riveted by palace intrigue over executive defections, bristling over the use of company jets for personal trips and debating how flexible the workplace will be after COVID subsides. (Bloomberg)

This installment of The Profile is free for everyone. If you would like to get full access to all of the recommendations, including today’s audio and video sections, sign up below.

AUDIO TO HEAR.

Andrew Huberman on the power of the mind: How can you get deep, restful sleep? In what situations can anger be as powerful as love? Is it possible to get into a more creative state? Neuroscientist Andrew Huberman answers these questions in ways that will make you think and question prior beliefs. I really enjoyed this one, and it's worth listening to the entire episode. (Link available to premium members.)

The whales of the creator economy: Facebook CEO Mark Zuckerberg, Spotify CEO Daniel Ek, and Shopify CEO Tobi Lütke power some of the most important engines of the creator economy. In this podcast, the trio explains why they're hyper-focusing on independent workers and their super-fans. "Whether it's creators or small businesses, I think this is super important for prosperity around the world," Zuckerberg says. (Link available to premium members.)

Keanu Reeves on finding calm: Even though he may appear calm, Keanu Reeves's internal state is anything but. "No, I'm not zen about anything," Reeves says. "I'm a fretter. I'm a concern-er." The creative act, he says, is inherently reserved for those who are a tad bit anxious because it's passion. How does he get out of his own head? "Nowadays, I just go for a motorcycle ride, breathe, drive kind of fast," he says. (Link available to premium members.)

VIDEOS TO SEE.

Amber Venz Box on teaching influencers to monetize their brands: After you read her profile above, take some time to watch this talk by Venz Box. She gets into the nitty gritty of how she got into the influencer ecosystem by asking bloggers, "Do you make money off your passion project?" It turned out that the answer was a resounding 'no.' Here's how she helped pioneer influencer marketing with her platform and agency RewardStyle. (Link available to premium members.)

Kat Cole on the secret to leadership: One of the biggest lessons former Focus Brands President Kat Cole learned after years of business experience is to put your ego aside and learn from criticism. She once received the following advice: “Anytime you’re criticized, assume first that it’s correct.” The act of simply considering that a fraction of the criticism may be accurate will keep you learning, unlearning, fixing, and ultimately, gaining respect. This episode is full of unforgettable insights. (Link available to premium members.)

👉 Members receive the best longform article, audio, and video recommendations every Sunday. Join the club by signing up below: