Learn how to win on the internet in 28 min [tiktok shop, trends, building cult brands]
Greg Isenberg
Conversation Summary
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Our analysis suggests that the Conversation is not clickbait because most parts provide actionable strategies and insights on winning on the internet through TikTok, trends, and building cult brands.
1-Sentence-Summary
The conversation explores how to leverage TikTok for business success, focusing on creating engaging, valuable content, utilizing affiliate marketing, and tapping into niche markets and trends like cologne for Gen Z, all while navigating the logistics and compliance challenges of e-commerce platforms.
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if you can't find a way to be visible into the world that's happening around you and into the trends that are around you, you're literally just getting left behind.
💨 tl;dr
To win online, create unique, functional products that blend utility with collectibility. Leverage influencer marketing on TikTok, prioritize storytelling in content, and focus on SEO over ads for better engagement and sales. Embrace community learning via Discord and ensure compliance in logistics for e-commerce success.
💡 Key Ideas
- Unique Product Ideas: Focus on creating functional yet collectible items, like iPhone cases with integrated collectible elements, to enhance utility and shareability.
- Luxury Brand Strategy: Luxury products should blend quality, unique design, and storytelling; exclusive experiences like scent sharing can elevate the brand.
- Influencer Marketing: Gen Z is engaging with cologne brands on TikTok, leveraging influencer content for awareness and sales, as seen with 'Her Loss.'
- TikTok Shop Dynamics: The platform thrives on affiliate content creation, with brands paying creators for promotional videos, tapping into a vast market and diverse demographics.
- Creator Economy Growth: Young creators are learning video skills via Discord, monetizing their content through TikTok Shop, favoring community-driven learning over traditional methods.
- Operational Challenges: Brands face logistical hurdles in compliance and inventory management on TikTok, necessitating dedicated personnel and efficient software tools.
- Content Creation Strategy: Prioritize storytelling in short-form content for engagement; successful content types include value-driven, entertaining, and well-narrated stories.
- SEO Over Ads: SEO is more effective than social media ads for driving traffic; YouTube is less ideal for niche brands, with a preference for mainstream products.
🎓 Lessons Learnt
- Marry Collectibles with Utility: Combining collectible items with functional products increases consumer appeal and adds value.
- Focus on Utility Over Coolness: Practical products are more likely to be shared and saved than trendy items; prioritize functionality.
- Luxury Products Need Unique Utility: Even luxury items should integrate utility with cultural trends to enhance desirability.
- Craftsmanship is Key in Luxury: The quality and story behind luxury products significantly influence their appeal.
- Embrace Influencer Marketing: Collaborating with influencers can drive significant engagement and sales, especially in niche markets like cologne.
- Leverage TikTok's Algorithm: Engaging content on TikTok can lead to increased visibility and sales through its recommendation system.
- Utilize Discord for Learning and Networking: Discord channels offer community-based learning and connections with brands, enhancing opportunities for creators.
- Focus on Content Market Fit: Achieving content market fit is crucial; leverage multiple creators to diversify and enhance your content strategy.
- Importance of Compliance and Logistics: A dedicated individual is essential to manage logistics and compliance when scaling e-commerce on TikTok.
- Use Notion for Project Management: Notion is effective for tracking projects and supply chains, especially in a global context.
- Prioritize SEO Over Paid Ads: Investing in SEO can drive organic traffic and reduce reliance on paid advertising platforms.
- Create Content that Drives Value: Focus on producing savable and shareable content that resonates with audiences, rather than just brand storytelling.
🌚 Conclusion
Combining practicality with creativity is key to capturing consumer interest. Brands must adapt to the evolving digital landscape by utilizing platforms like TikTok effectively, engaging with influencers, and focusing on quality content that resonates with audiences.
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In-Depth
Worried about missing something? This section includes all the Key Ideas and Lessons Learnt from the Conversation. We've ensured nothing is skipped or missed.
All Key Ideas
iPhone Case Startup Ideas
- Orin Meets World is recognized for mastering TikTok and content creation that reaches millions.
- The conversation focuses on brainstorming a startup idea for a unique iPhone case that combines collectibles with functionality.
- The concept suggests making the iPhone case more interesting by incorporating a collectible element, like a holographic character.
- Utility is emphasized as a crucial factor for products to gain traction online, as people are more likely to share useful items than just cool ones.
- The discussion includes examples of how to enhance the iPhone case's utility, such as creating space for holding collectible cards or cologne.
Luxury Product Insights
- Luxury products are rooted in craft and quality, not just utility.
- Designer products can command a premium based on unique design.
- The pinnacle of luxury combines utility with craft and storytelling.
- There’s potential for exclusive cologne experiences that integrate social and utility aspects.
- The idea of launching a cologne case with testers and scent profiles for social sharing.
Trends in Cologne Marketing
- The trend of cologne and influencer marketing is gaining traction, especially among Gen Z.
- A specific TikTok shop is successfully selling a pheromone cologne named 'Her Loss,' capitalizing on the idea of chemical attraction.
- Revenue insights from TikTok shops can be accessed by viewing individual item sales data.
- There is a young demographic online discovering cologne through influencer videos, contrasting with past marketing methods.
- The TikTok algorithm promotes cologne-related content, increasing visibility for brands like 'Her Loss.'
TikTok Shop Insights
- TikTok shop is primarily a scale game and relies heavily on affiliates creating content for brands to drive sales.
- Brands use a monthly retainer model for creators, typically paying between $1,500 to $2,500 for multiple videos promoting products.
- There is a lucrative opportunity for young creators to earn significant commissions through affiliate sales on TikTok.
- Each TikTok account has a unique algorithm, leading to different follower bases and interests, which allows for a wide reach.
- The total addressable market (TAM) for TikTok shop brands is vast, as they can target diverse creators across demographics.
- TikTok and Amazon are merging for fulfillment, expanding the opportunity for brands on TikTok shop.
- Incentive packages for affiliates can be extremely attractive, with rewards that include luxury items for high sales performance.
- A community called 'Your First Dollar' exists for training aspiring creators and connecting them with brands for affiliate opportunities.
TikTok Shop and Creator Economy Insights
- Kids are making money on TikTok Shop by learning video creation skills through Discord channels, paying for training and access to brand opportunities.
- Brands recruit creators from these Discords to produce TikTok videos, often paying based on their experience and the revenue generated from TikTok Shop.
- The current landscape favors community-driven learning rather than traditional courses for aspiring creators.
- Content market fit is as crucial as product market fit in software, with many companies employing multiple creators to enhance their brand.
- There's a significant get-rich dynamic in TikTok Shop that can be quantified, contrasting with the more intangible nature of software.
- Communities are forming around content creation, allowing participants to gain substantial followings without widespread promotion.
- Entrepreneurs and CMOs risk being left behind if they can't tap into the emerging trends and communities in the creator economy.
- Starting a business on TikTok can be operationally challenging, particularly regarding inventory management and navigating TikTok Shop's rules.
TikTok and E-commerce Insights
- TikTok's automated logistics create a need for dedicated operational personnel to manage compliance and shipping challenges.
- There’s significant crossover between TikTok shop, Amazon, and traditional retail, especially for products like water that are typically consumed offline.
- The Canton Fair in China is a key venue for discovering factories and products, making it essential for product creation and supply chain understanding.
- Utilizing platforms like Alibaba allows for easy access to global factories, simplifying the product creation process.
- The importance of distribution and idea generation outweighs the complexity of product creation in the current market.
- Various software tools are available for competitive analysis, supply chain management, and e-commerce data insights.
Insights on Project Management and Content Creation
- Managing projects and supply chains using Notion, which allows for status updates and tracking production timelines.
- The creative workflow in teams is complex, lacking a dedicated platform for tracking content creation and briefs.
- Software opportunities exist for improving creative team collaboration amidst rapid content creation.
- A TikTok app helps evaluate creators' market value and facilitates outreach strategies for product promotion.
- SEO is preferred over reliance on social media ads for driving traffic to businesses.
- YouTube is seen as less effective for niche brands, with better opportunities for mainstream products.
- YouTube shorts favor mainstream content, while long-form content serves more as brand building.
Types and Characteristics of Content
- Short form content, especially on TikTok, is seen as more quantifiable, actionable, and scalable compared to YouTube, which is slower and more brand-focused.
- There are three types of content: content that provides value (savable/sharable), content that entertains (replaces traditional media), and content that fails (brand stories that don't engage).
- Successful content must be focused on storytelling and providing context, as people care more about facts presented in narrative form rather than standalone facts.
All Lessons Learnt
Product Development Strategies
- Marry Collectibles with Utility: Combining a collectible, like a Pokémon character, with a functional product, like an iPhone case, can create added value and appeal to consumers.
- Focus on Utility Over Coolness: Products that provide practical use are more likely to be saved and shared than those that are just cool, especially in a market flooded with trendy items.
- Incorporate Trends: Stay aware of current trends, like the popularity of cologne among young men, and find ways to integrate them into product designs to boost relevance and engagement.
Insights on Luxury Products
- Luxury products need a unique utility: It's important to find a way to combine utility with cultural trends, even in luxury items where traditional utility might not apply.
- Craftsmanship is key in luxury: Luxury is rooted in craft, meaning the quality and story behind a product significantly influence its desirability.
- Designer products can charge a premium for unique design: A distinctive and appealing design can justify a higher price point for products, even if they don’t have high utility.
- Combining utility with craft enhances luxury experience: The ideal luxury product marries utility with craftsmanship, offering a unique experience, like a fragrance that also provides social value.
- Subscription models can add value: Offering quarterly scent testers based on individual profiles can create ongoing engagement and value for customers.
Marketing Strategies for Cologne
- Embrace Influencer Marketing: Don't dismiss influencer collaborations, especially in niche markets like cologne; they can drive significant sales and engagement.
- Chemical Utility Matters: When marketing a product like cologne, focus on its unique qualities (like pheromones) to stand out, especially against well-established brands.
- Leverage TikTok's Algorithm: Once consumers start engaging with content about a product on platforms like TikTok, they’ll be shown more related content, which can boost sales for specific brands.
- Monitor Competitor Revenue: By checking a TikTok shop’s individual items, you can gauge their sales performance, which can help you understand market demand.
- Target Young Demographics: Recognize that younger audiences are discovering products through social media influencers, creating new buying habits and brand loyalty.
TikTok Shop Lessons
- TikTok shop is a game of affiliates.
- Engage multiple creators for a broader reach.
- Understand the size of your total addressable market (TAM).
- Offer attractive incentives to affiliates.
- Utilize platforms like Discord for recruitment and training.
Key Strategies for Brands in the Digital Landscape
- Utilize Discord for Learning and Networking: Kids are leveraging Discord channels to learn video creation skills and connect with brands for opportunities. This shows the value of community-based learning over traditional courses.
- Recruit Creators for Diverse Markets: Brands can find creators in specific regions and demographics through platforms like Discord, allowing for tailored content production that resonates with different audiences.
- Focus on Content Market Fit: Just like product market fit, achieving content market fit is crucial. Brands should utilize multiple creators to enhance their content strategy, as seen with software companies applying this theory.
- Leverage Get-Rich Dynamics: TikTok's structure allows for clear revenue generation and performance metrics, which can be more tangible than in other software markets. Understanding this can help brands strategize better.
- Join Creator Programs for Growth: Participating in programs like 'cut 30' can significantly boost one's visibility and follower count, demonstrating the effectiveness of structured learning and community support for aspiring creators.
- Stay Aware of Trends and Visibility: Entrepreneurs and CMOs need to remain informed about emerging trends and communities; otherwise, they risk being left behind in the fast-paced digital landscape.
- Prepare for Operational Challenges on TikTok: Starting a business on TikTok can be complicated, particularly regarding inventory management and platform regulations, indicating the need for strong operational strategies.
Key Strategies for E-commerce and Product Management
- Importance of Compliance and Logistics: You need a dedicated, process-driven person to manage the logistics, compliance, and customer service when scaling on platforms like TikTok.
- Leverage Demand in Retail Conversations: Showcasing strong demand on TikTok can influence retail discussions, even for products that are mainly consumed offline.
- Canton Fair for Product Creation: Attending the Canton Fair in China can provide direct access to factories and better rates for product manufacturing.
- Utilizing Alibaba for Product Sourcing: Alibaba makes it easy to connect with factories worldwide, simplifying the product creation process.
- Focus on Distribution Over Creation: The distribution of ideas is more crucial than the creation of products in today's market.
- Use of E-commerce Tools: Analyze Shopify and Amazon data to gain insights on promotions, sales patterns, and product performance.
Marketing and Project Management Strategies
- Use Notion for Project Management: Notion is effective for managing projects and tracking supply chains, especially since it works in China, allowing teams to update their statuses.
- Identify Software Opportunities in Creative Workflow: There's a lack of dedicated platforms to track the creative workflow, indicating a market opportunity for software that streamlines these processes.
- Leverage TikTok for Creator Outreach: Use tools to analyze creators' market value on TikTok to formulate strategies for outreach and building relationships, as this is currently a challenging aspect.
- Prioritize SEO Over Paid Ads: Focus on SEO to drive traffic rather than relying on ads. Investing in SEO services can help businesses rank higher in Google, reducing dependence on platforms like Facebook.
- Understand YouTube's Limitations for Niche Brands: YouTube might not be the best platform for niche products, as it favors mainstream content. If your product is not widely appealing, consider focusing efforts elsewhere.
- Use Long-Form Content for Brand Building: Long-form content on YouTube can help in brand building, even if it may not drive direct sales like other formats.
Content Creation Strategies
- Create content that drives value: Focus on producing content that is savable and sharable, rather than just talking about your brand story or product. This ensures your content resonates with audiences and encourages them to engage.
- Tell stories: Present facts within the context of stories. People care more about information that’s woven into engaging narratives, which helps them relate and remember the content.
- Entertain or replace traditional media: Your short-form content should either entertain viewers to the point they choose it over Netflix or provide substantial value, avoiding the pitfall of being ignored.