Overview

Creator-centric businesses thrive on the synergy between a creator's vision and their audience's desires. By either creating or acquiring a business that closely aligns with a creator's platform—be it Instagram, YouTube, podcasts, or other mediums—these ventures tap into existing communities and resonate deeply with their interests. This strategic alignment not only enhances authenticity but also facilitates organic growth, as the business seamlessly integrates with the creator's content and resonates with their loyal followers.

In this newsletter, we delve into the intricacies of this unique business model, exploring how it leverages the power of personal branding and audience connection to drive profitability and foster sustainable success

How-to

Sales & Marketing

• Who is your content partner?

  • Sales & Marketing: Once you find a product that you can align to your content partner, B2C marketing & sales is handsfree.

  • The difficult part of this is forming a partnership with a creator.

  • Approaches:

    • Smaller niche “longtail” creators that you follow (~100k YouTube Subscribers)

      • Be personal, build a small MVP or business plan and share it with the creator. Don’t worry about creators stealing / building your business idea. They would rather invest their time into their core business model of content creation then learning to build a business.

    •  Larger creators that don’t have a proprietary offering yet (>1M Subscribers)

      • To catch their attention, build a 1 day minimum viable product (MVP) based on an idea that aligns with their image & include the MVP in your cold email/outreach

Product

• The product needs to align with the creators image and audience. Is there a product you can create a website around then import, brand, and fulfill?

  (Ex: Emma Chamberlain’s Coffee Company) Present the idea, build the website, find supplier & logistics company. Collaborate on branding.

• A SaaS product

  (Ex: YouTube Creator Teaching Entrepreneurship & Overseas Talent Hub. Shawn Puri partnered with Shepherd.) Creating this product will require more coordination but will ultimately produce a more fruitful venture. Pitch a creator on the idea, and work backwards.

Profitability

A few things to keep in mind when partnering with a creator:

1. Partnership Structure: Depending on the creator's audience, a standard partnership might entail granting the creator 20 - 50% equity in the business you establish. While this may initially appear substantial, it offsets the need for extensive marketing and distribution expenses, leaving you primarily responsible for product development and management

2. Revenue & Profit: With sales and distribution already addressed, prioritizing the creation of an exceptional product (service, functionality, quality) becomes crucial. Profitability projections can be made by assessing the target audience and estimating a reasonable conversion rate. For instance, if a product aligns perfectly with a creator, achieving a 5-10% conversion rate might be feasible. Utilize this data to evaluate the viability of the business for both you and your creator partner.

   (Ex: YouTube Channel with 1M Subscriber (Viewership closer to 3M). Over several months/years the creator promotes your partnered product, converting 5% of the audience to purchasers. A product at just a $25 net margin would produce $3.75M in profit (1M Subscriber @ 33% subscriber rate = 3M Audience. 5% Conversion of Audience by a $25 product.) As the creator gets more subscribers the product will gain a bigger audience and benefit from the natural traction the creator produced.)

tldr

Pros

1. Sales & Distribution of the product become a competitive advantage

2.  It enables founders to concentrate on developing the infrastructure and technology behind the business

3. Rinse & repeat: Successfully building a profitable business with one founder sets the stage for replicating the process

Cons

1. Discovering and securing a partnership with a creator demands dedicated time for brainstorming and reaching out to numerous creators

Demographic (Who is this for?)

• Someone who understands (or will learn to understand) how to build the infrastructure (i.e. technology, website, supply chain, logistics) but faces challenges in B2C marketing

Technology

• Website Builder

  • Check Technology Stack Recommendations @ www.thepolycorn.com

• Additional YouTube Video Explaining Business Model

  He's Launching A New $1M Business Every Month