How AG1 became a billion-dollar supplement company: premium pricing at three times the market rate, an auto-ship subscription model, and one Tim Ferriss partnership that opened everything up. Then Amazon and Shopify distribution pushed it to eight figures and a billion-dollar valuation.
Here's how AG1 became a billion-dollar brand with just one product. First, they charged 3 times the price as everybody else. Number 2, they put as many people as possible on auto-ship. Number 3, they partnered with one influencer, and that was Tim Ferriss, to get the word out. Then they started advertising on podcasts because they had proven that that was a way that they could get customers. Next, they launched on Amazon and Shopify, which took them to 8 figures, and at that point they raised raised capital at a billion-dollar valuation so that they could build an executive team and give them compensation to take it to a multi-billion-dollar business. Oftentimes we look at where companies are today and we try to reverse that strategy, but the way that this company became a billion-dollar business is having an expensive recurring consumable product with high margins and then building a few key relationships to get the word out and then doing appropriately well on Shopify, Amazon, and the big platforms. That's what took them to 8 figures and then they were able to build a team that took them to a billion-dollar company.
