Ryan Daniel Moran (speaking on Capitalism.com) argues that new entrepreneurs with audiences can and should build physical-product brands to scale and legitimize their businesses. He offers student success stories (e.g., Jeremiah, Brendan, and a supplement-company founder) with multimillion-dollar exits or LOIs, and points to market signals and acquisitions—Amazon's Whole Foods purchase and Kellogg's acquisition of RXBar—as evidence that niche brands can rapidly grow into large, sellable consumer businesses. He also cites Bulletproof (Dave Asprey) as an example of a niche content creator turning into a large physical-products brand.
Questions this video answers
20 years old; sold a company for $4 million.
One of Brendan's companies sold for more than $9 million.
An LOI for over $30 million.
$13 billion.
Four years old.
Chapters
Now, over the last few years, I have been teaching.
I've been teaching a lot of new entrepreneurs how to develop a physical products brand and get the snowball rolling. And we've seen some pretty amazing success stories. I have one team.
The main partner's name is Jeremiah. Jeremiah is 20 years old and just sold a company for $4 million. And it was just running bands, running gear. I have one student, his name is Brendan, has sold a couple of companies, one of them for more than $9 million. I have one student who had a supplement company and just I believe the transaction is done. Last I heard he had an LOI for over $30 million. And these are all businesses that were built in the last three years. But.
Here'S the weird part that I don't get. All of these entrepreneurs are new entrepreneurs who know nothing about Internet marketing. And if you have this much of an audience, if you have this much of a following, if you have buyers, there is a physical products brand waiting to be built, launched, given to your existing customers, that not only gives you a more sellable and scalable business, it legitimizes your info business. It legitimizes all of the content that you've been putting out into the world.
It actually enhances the loyalty and the responsiveness of your customers. But for example.
Actually, let's talk about this. There were two major events that happened in the last two years that if you didn't see the trend of where things are going, this will point it out to you. The first, I don't know if you heard, but Amazon made a major acquisition about a year and a half ago. Does anybody remember what they bought? Whole Foods. Whole Foods, right. They paid $13 billion for it. That was the first part. The second part, the second acquisition that happened was Kellogg's bought a little boutique CrossFit company, a CrossFit food company. Does anybody remember who it was? RXBar.
They bought RXBar, a company that was 4 years old, started in the founder's basement, served the CrossFit community specifically. That's why it's called the RX bar.
And there is some debate over what they sold for. It puts it between 400 and 600 million dollars. Four year old company.
Now the interesting thing about that transaction was that they started by serving a very, very small audience. Most of the people who have eaten an RX bar don't know what Rx means. They don't realize that it's a reference to the CrossFit community. They're serving a very, very narrow audience that ends up taking the brand much bigger. The same is true if you go into any Whole Foods now which is owned by Amazon. You might see a particular company has big banners all over the place. They've created a strategic partnership with Whole Foods. Does anybody know the company I'm talking about? It's bulletproof. Walk into any Whole Foods and you'll see bulletproof signage and you'll see dedicated retail space to bulletproof all over the place. This is interesting because most of us remember when Dave Asprey was just a blogger and a podcaster who sold a couple of books. His first book was a pregnancy book and they had the early phases of bulletproof diet.
And all of a sudden he has a physical products brand that is doing hundreds of millions of dollars.
Now how did this happen? This happened because Dave had a very, very narrow and a very passionate audience who was able to serve directly what they wanted and make their journey, make their hero's journey a little bit easier. SA.
