The marketing genius that made $510k in 1 hour
The power behind this will blow your mind
Hello friend!
Happy Monday to you and the other 2430 people reading this with you
We’re going to be making changes to make this focused more towards product & growth (after feedback from many of you)
The format we’re trying out:
🔥Product/Growth Knowledge concept for you
🔥Product/Growth Tip of the week
🔥SLC of a validated business
So with that said…llllllleeeeeeeeeeeeetts goooooo!
The power of influence
David Dobrik, one of the most famous influencers on Youtube launched 100kpuzzle.com. Concepts simple, buy it for $30, finish the puzzle and get the chance of winning $100k or at least something
He sold 17,000 Units within the hour, and will easily bring in north of $2M-$3M
Let’s assume he sells
Units: 67,000
Rev: ~$2M
Payout to participants (most will get 25c): 0.25 * 67000 = $16,750
Payout to the main winner: $100,000
Puzzle COGS: $5 * 67,000 = $335,000
Total profit = $2M - (100k + 335k + 16.75k) = ~$1.6M
(Inspired by @Tzhongg)
This is why we speak about distribution so much, yes he’s an odd one out as he’s ridiculously famous. But this could be done on any scale. The principles he applied are simple:
- FOMO (curiosity/lottery is built into the product)
- Guarantee (winning is winning $0.25 is still “winning”, its the same concept behind arcades charging you $50 for a pencil, you feel like you “won” it)
- Community (you’re part of a tribe of people doing this challenge, and it’s family/friends activity, so you/mates chipping in $5 for the puzzle is not much)
Using Robert Cialdini’s Influential tactics strategically
The 7 Psychological Principles of Persuasion according to Cialdini
Reciprocity
Commitment and Consistency
Liking
Authority
Social Proof
Scarcity
Unity
Let’s look at how you’d use 3 of these to grow your SaaS / eCommerce business
Reciprocity:
SaaS:
Content writing and newsletter tips. Get your customers onto a newsletter you can share value on, or create top of the funnel educative content which will build a layer of trust with you. The newsletter can hold same value where they’re borrowing knowledge
Another thing you can do is share a free PDF
eCommerce:
Attach a free guide to whatever product you’re selling as a PDF, the customer goes to checkout and sees something for free, boom - they’re inclined to buy (shopify has apps for this)
Social Proof:
SaaS:
People are influenced by people. There’s a reason GSquared, Capterra, Glassdoor or even Yelp are such influential products in the product purchase process.
People look to others to get social proof that this service/product actually works and the more familiar they are with the social proof the higher the chance of success
eCommerce:
Influencer marketing is one of the biggest reasons Gymshark is a billion-dollar business. The same can be said about hismile teeth or snowteethwhitening, leveraging social proof is one of the core ways people can grow their eComm brand
Scarcity:
SaaS:
We want what we can’t get and we want more what there’s fewer off out there. Setting up a scarcity limited order launch deal is a great way to set up emergency tactics to get people to purchase your product as it drives on FOMO
eCommerce:
The 5th watches did watch drops on the 5th of each month and each month the watch would be unique, i.e that watch would never be created again. This created huge scarcity triggers and lead to $1M sales days for the company
Validated Million $ business ideas for you to build, TODAY!
We’re looking at LaunchNotes they are a “customer update tool”
Competition:
Launchnotes
Getbeamer
Annoucekit
Webengage
Productmap
Headway
Noticable
Thesis:
One of the easiest ways to improve activation and retention of users is to tell your users whats the latest your product, i.e what have you launched. This makes them feel like their subscription fees are actually being put to good use
Problem:
It’s hard to manually upload product updates, track who’s seen it and who hasn’t and you’d need to divert your engineers focus on building a product that really isn’t your core problem solution
SLC (Simple Lovable Complete) Solution:
My SLC for this product would be simple. Admin page to add new release notes, UI to show new features, trigger feature releases based on pages being visited, upvotes/downvotes on feature release
UBP (unique bragging proposition):
Create cohorts of users who are engaging with new features, integrate with stripe to see revenue fluctuations as co-relations to features tiered down to a user-specific basis. Draw patterns for customers to understand which cohort of users prefer which type of features
Why I chose this:
✅ In-built distribution
✅ SLC Launch in 3 weeks
✅ VC-backed product (tackle them on price)
✅ Not invisible (every new customer brings other customers)
✅ Revenue generating (customers will see an active increase in revenue after using your product, offsetting your subscription)
✅ Existing channel utilization (launch on Slack, Jira, Trello - when a ticket is moved to done, auto-add feature to release notes)
Thats all for this one.
Please do let me know if you’re liking this new format or not. Just reply back here - it really helps me serve you better!
Feel free to ping me on twitter if you’ve got any questions!