How to Build a Brand People Actually Trust — Transcript

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1. 0:00What you're lacking is a brand.
2. 0:02Like you developing more products does
3. 0:04not make a brand.
4. 0:06You developing associations that are
5. 0:07premium is what makes the brand. And so
6. 0:09the AI influencers and all that stuff
7. 0:11that you're going to go do, that's fine,
8. 0:14but they don't have brands.
9. 0:16And so you have a lot of people, you're
10. 0:18basically just getting free clicks.
11. 0:20That's what this is.
12. 0:22But if you want the the value of the
13. 0:24association, that's where there's
14. 0:25probably one or two, three, maybe big
15. 0:30Mexican female influencers that you need
16. 0:33to recruit, give tiny tiny slivers of
17. 0:36the company or not at all, pay them to
18. 0:38be the face of the company to get the
19. 0:41associations in place.
20. 0:44That's what has to happen.
21. 0:46So said differently,
22. 0:49if School were to have just gotten a
23. 0:51bunch of AI affiliates to go make
24. 0:54content about School, that does not do
25. 0:56the same thing for School as me
26. 1:00investing in School and then talking
27. 1:02about School.
28. 1:03Because I have trust, the AI avatar
29. 1:04doesn't.
30. 1:07And so that that's the problem you're
31. 1:08trying to solve.
32. 1:09As you're trying to solve a trust issue
33. 1:11with more products, which is just
34. 1:12irrelevant. It doesn't it doesn't
35. 1:13actually translate.
36. 1:15Now the product itself has to be
37. 1:16exceptional that reinforces the brand
38. 1:17that's good. If the product sucks, it
39. 1:19doesn't matter what happens after that,
40. 1:20right? You'll get the first purchase and
41. 1:21that's it. And you won't get a good
42. 1:23person to go promote it because they
43. 1:24know the product sucks, it's going to
44. 1:25hurt their brand, right? And so people
45. 1:27will then say, "Okay, well, there's a
46. 1:28zillion lotions and potions on the
47. 1:30internet. I trust her cuz I've consumed
48. 1:32her stuff and I know she wouldn't
49. 1:33sacrifice her reputation just to make a
50. 1:34quick buck."
51. 1:35And that's what reinforces and elevates
52. 1:37the brand.
53. 1:38Okay? Okay? So I'm fine with the AI
54. 1:41thing. I think it's cheap clicks.
55. 1:51I think that if you want to solve the
56. 1:52brand thing, you need two to three
57. 1:53premium associations.
58. 1:59And here's what's going to get Here's
59. 2:00where it gets really interesting.
60. 2:01If you get those two to three premium
61. 2:03associations, guess who else will want
62. 2:05to promote your [ __ ] The people who are
63. 2:07not as cool as them, but wish they were
64. 2:08as cool as them.
65. 2:13What you're trying to do is capture the
66. 2:14cool.
67. 2:16>> Yeah.
68. 2:17>> And you don't get that with AI slop.
69. 2:20You'll get impressions. People have
70. 2:21heard of you, but they will not have
71. 2:23positive association. They will have
72. 2:25heard of you.
73. 2:26>> Mhm.
74. 2:27>> So it's a reach play, not an influence
75. 2:28play. You want influence.
76. 2:31So like the real real the real real is
77. 2:34that you have an arbitrage business.
78. 2:36>> Yes.
79. 2:37>> And it's very difficult to turn an
80. 2:40arbitrage business into a strong brand
81. 2:42because the arbitrage stuff, all the
82. 2:44huge amounts of content that you're
83. 2:45coming out, typically are not cool.
84. 2:48And so cool people don't want to
85. 2:49associate with it.
86. 2:51So they don't.
87. 2:52And so the harder the harder way to grow
88. 2:54this into a true brand, which is what
89. 2:55you want, I think, right? Is to build
90. 2:56like we want to be the number one thing.
91. 2:59Like
92. 3:01name a single skin care brand
93. 3:04that is big
94. 3:05that has grown the way you've grown.
95. 3:09>> That's grown the way I've grown?
96. 3:10>> Mhm.
97. 3:10>> Kylie I don't know. Rodan + Fields?
98. 3:13>> What is it?
99. 3:13>> Rodan Rodan?
100. 3:15>> They have like how many big They have
101. 3:16like you would know better than me. But
102. 3:18they It's not a
103. 3:19>> Rodan + Fields?
104. 3:21>> Yeah, it's Yeah. Oh yeah, I mean it's
105. 3:22the same thing minus Hailey [ __ ]
106. 3:24Bieber. But like
107. 3:25>> [laughter]
108. 3:26>> It's her brand.
109. 3:27>> Yeah, I know. I know.
110. 3:30>> The point is that you probably if you
111. 3:31were to name a bunch of skin care lines
112. 3:33you would literally just go down the
113. 3:34line and start just be like, "Well,
114. 3:35there's Kylie Cosmetics. There's
115. 3:37Hailey Bieber's. There's You just start
116. 3:39naming people. There's Fenty. There's
117. 3:43Like you just start naming the people
118. 3:44who represent the brands.
119. 3:47That's what you're missing.
120. 3:50And so what's difficult is I think you
121. 3:52can actually over I think you I think
122. 3:54with a couple of premium brand
123. 3:55associations, you can cover it.
124. 3:58You can't be discount-driven.
125. 4:03I know.
126. 4:04>> I don't think I don't think our product
127. 4:05is that good. I mean, it's
128. 4:06>> Right. No, no, no. This is this No, this
129. 4:08is important cuz like
130. 4:11This is actually almost the same
131. 4:12conversation I was having with Matej,
132. 4:13but you're just selling a product.
133. 4:15Right now, you have the e-commerce
134. 4:17equivalent of an info business.
135. 4:20It's more scalable. There's There's
136. 4:22numbers that goes up and down.
137. 4:24It's all arbitrage. It's just buy clicks
138. 4:26for X, sell them for Y, make the spread,
139. 4:29and that's it. That's the game you're
140. 4:30in.
141. 4:31If you want to build a brand, you have
142. 4:32to build it differently.
143. 4:34You don't need to necessarily do that
144. 4:35though. I'm not I'm not telling you
145. 4:36that's the the answer, but I'm saying if
146. 4:38that's what you want to build, you have
147. 4:39to play it differently.
148. 4:41So, it means you have to get two to
149. 4:42three premium brand associations. The
150. 4:44content that you're putting out, it's
151. 4:45not like, oh, we should make as much
152. 4:46content as possible, you know, featuring
153. 4:47the product. It's like,
154. 4:49are the people in the in the in the ads
155. 4:53representative of the avatar and the
156. 4:56values that we want this company to
157. 4:58stand for.
158. 5:01And so, then it starts to rein- cuz like
159. 5:02if you think about it this
160. 5:04If you're like, "I want to have 100
161. 5:06different avatars for 100 different
162. 5:08demographics so I can cover every single
163. 5:09type of person." You just communicate to
164. 5:11the market that you are for everyone,
165. 5:13which means you are for no one.
166. 5:15And so, no one knows what you stand for,
167. 5:16which is why you have no brand.
168. 5:18And so, you have to You have to kind of
169. 5:20like the focus thing. You have to And
170. 5:22then with a concerted effort saying no
171. 5:24to all of this like we have no men,
172. 5:26we're not doing men, we're not doing
173. 5:28young women, we're only doing women that
174. 5:29are older, and they have these three
175. 5:31problems. And every single video is
176. 5:33going to hit on one of these three
177. 5:34problems over and over and over again.
178. 5:36And we're going to get the aspirational
179. 5:37hero to those ladies to say that we're
180. 5:40the best. And then in order to get that
181. 5:41ladies say we're the best, we have to be
182. 5:43cool. In order to be cool, we have to
183. 5:44make sure the The good. So, right now
184. 5:46you're like, the product's It's like you
185. 5:47own the [ __ ] product." Like you
186. 5:48should be the biggest like
187. 5:50>> [laughter]
188. 5:50>> the product's amazing, right? Um but the
189. 5:53product has to be exceptional. Like you
190. 5:54have to be
191. 5:56you have to look at the Miss Universe
192. 5:58and she has to get it and be like, "This
193. 5:59is amazing."
194. 6:01And if it's not amazing, she's not going
195. 6:02to rep it. And if she's not going to rep
196. 6:03it long-term, there's no brand.
197. 6:08That's the reality of it. I'm not saying
198. 6:10you have to do that. If you want to
199. 6:11build the brand, that's what it takes.
200. 6:13And it will take longer.
201. 6:15And that is why brands are valuable.
202. 6:18And arbitrage businesses are not.
203. 6:20Yeah. It's just that there's going to be
204. 6:22a trade that's going to happen with
205. 6:23short-term cash.
206. 6:28I have a friend who has a $300 million a
207. 6:29year business that does weight loss
208. 6:30related stuff.
209. 6:32No one will touch it with a 10-ft pole
210. 6:34because there's no brand. It's just pure
211. 6:36media performance-driven marketing the
212. 6:37whole way through.
213. 6:39All they have is just gurus online
214. 6:41saying that it's a [ __ ] scam and it's
215. 6:42and it's horse [ __ ]
216. 6:44That's all that the all the videos
217. 6:45online are just that. There's no one
218. 6:46saying it's good.
219. 6:47>> [laughter]
220. 6:48>> But that's all it is because they just
221. 6:49make so much money, but they have no
222. 6:51margins because the cost of acquisition
223. 6:52is super high. Their months and no one
224. 6:54will buy them because the months are
225. 6:55like you go 14 million, 8 million, 30
226. 6:57million, 22 million like it's it's all
227. 6:59over the place because it's all driven
228. 7:00by what your cost per click is.
229. 7:05And so the the the metric that becomes
230. 7:07your North Star has to be revenue
231. 7:09retention.
232. 7:12And not subscription arbitrage, which is
233. 7:14different.
234. 7:16Yeah, so like a subscription arbitrage
235. 7:17is just like, "How do I get someone like
236. 7:19if I have like a buy one lotion and then
237. 7:21it says buy three lotions, buy six
238. 7:22lotions, buy 12 lotions and I have
239. 7:24enough like, you know, CRO around it I
240. 7:26can I can get the average order to be
241. 7:27four lotions or whatever."
242. 7:29That's not getting people to That's
243. 7:30getting people to buy more [ __ ] not
244. 7:32more times.
245. 7:34At the end of the way at the end of the
246. 7:35day we can't The thing that makes the
247. 7:36brand valuable is that that you build a
248. 7:38distribution base of customers who trust
249. 7:39you and come back to buy. That is what
250. 7:41builds the brand. And so, to your point
251. 7:43of like
252. 7:44when you build a brand, the person who
253. 7:46buys it is happy to buy it cuz they can
254. 7:48launch more more products because
255. 7:49there's trust in that distribution base.
256. 7:51So, the distribution is what the brand
257. 7:53builds.
258. 7:54My brand is meaningless without all the
259. 7:56business owners who follow my stuff. The
260. 7:57distribution is the value of the brand.
261. 8:00So, you have no distribution.
262. 8:03You don't have a huge base of customers
263. 8:05that are always willing to buy whatever
264. 8:06you whatever you do next. You have a
265. 8:08small base of customers. You have a huge
266. 8:10base of new customers every month. A
267. 8:11very small base of recurring customers.
268. 8:14You need that base to grow.
269. 8:15>> [snorts]
270. 8:15>> And it's not just recurring cuz you're
271. 8:16billing them, but people who trust you
272. 8:18and are willing to take a shot on your
273. 8:19next product.
274. 8:21If you're not getting as many leads as
275. 8:22you want and your business is demand
276. 8:24constrained, meaning you could service
277. 8:26more customers than you currently have,
278. 8:27[music] then this is for you. So,
279. 8:29marketing is changing and I think ACQ
280. 8:31tends to be on the bleeding edge of the
281. 8:32stuff. We certainly spend the money
282. 8:34to do it, but we also build custom
283. 8:36software and we pay amazing vendors and
284. 8:38very expensive people to figure out the
285. 8:39system that we have right now and I want
286. 8:40to share it with you kind of open kimono
287. 8:42style. If you're not getting as many
288. 8:43leads as you want,
289. 8:44boy do I have the thing for you. Click
290. 8:46below, book call, and
291. 8:48hopefully I'll see you in Vegas.