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November 21, 2024 • 47min
5 TikTok products that could print money for you
My First Million
In this episode, Shaan Puri and Sam Parr discuss the massive opportunity currently available on TikTok for building direct-to-consumer brands. They analyze how the platform enables rapid business growth through creator partnerships and organic reach, similar to Facebook's early days. The hosts break down specific business ideas and strategies for capitalizing on TikTok's current landscape.
5 TikTok products that could print money for you
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Key Takeaways
- TikTok represents a massive opportunity similar to Facebook's early days (2012-2014) for building direct-to-consumer brands
- Creator rewards programs are being used successfully by brands to incentivize TikTok creators with escalating rewards (iPads, Rolexes, cars, condos)
- Five promising TikTok business opportunities discussed:
- Botox face tape alternative
- Madison Reed-style hair color brand
- Self-help/shadow work journals
- Candy-themed candles
- DNA testing kit reboot
- Keys to success include:
- Focus on products with repeat purchase potential
- Leverage creator content vs traditional ads
- Build brand awareness through organic reach
- Target categories with established demand but room for new players
Introduction
In this episode, Shaan Puri and Sam Parr discuss the massive opportunity currently available on TikTok for building direct-to-consumer brands. They analyze how the platform enables rapid business growth through creator partnerships and organic reach, similar to Facebook's early days. The hosts break down specific business ideas and strategies for capitalizing on TikTok's current landscape.
Topics Discussed
The TikTok Opportunity (0:00)
Shaan opens by comparing the current TikTok opportunity to Facebook's golden era of 2012-2014, when companies like Native Deodorant were able to scale rapidly through the platform.
- Native Deodorant case study:
- Founded by Moiz Ali
- Scaled to $30-40M revenue in 18 months
- Sold to P&G for $100M in 24 months
- "There might be millions of dollars jammed in the app and it's a little bit stuck" - Shaan Puri on TikTok's current opportunity
Creator Rewards Programs (4:34)
The discussion examines how brands are using escalating reward programs to incentivize TikTok creators.
- Example rewards tiers:
- $1,500 GMV - iPad
- $4,000 GMV - iPhone
- $15,000 GMV - Aruba trip
- $50,000 GMV - Rolex
- $1M GMV - Miami condo
- Creator compensation:
- Top creators earning $10-30K monthly retainers
- Brands competing for best creative talent
Botox Face Tape Opportunity (12:19)
The hosts analyze the potential for a Botox alternative product targeting the beauty market on TikTok.
- Market opportunity:
- Large audience interested in beauty treatments
- Price point barrier for actual Botox ($thousands)
- Psychological barrier for medical procedures
- Potential: $50M revenue in 18-24 months with 15% margins
- "If you had told me 14 months ago that I would not be doing Botox and I would be taping my face instead, I would have said you're effing out of your mind" - Viral TikTok quote
Madison Reed Hair Color Clone (16:57)
Discussion of opportunity to create a TikTok-native hair color brand similar to Madison Reed.
- Madison Reed metrics:
- $150M annual revenue
- 20% YoY growth
- $500M+ valuation
- Differentiation angles:
- Easier application
- Less mess
- Gentler formulation
Self-Help Journal Opportunity (20:50)
Analysis of the Shadow Work Journal success and opportunity for similar products.
- Shadow Work Journal metrics:
- 100,000+ copies sold
- 5,000+ Amazon ratings
- Viral TikTok promotion
- Success factors:
- Taps into therapy/self-help trend
- Visual content potential
- Strong emotional hooks
Candy Candles Concept (32:10)
Discussion of opportunity in visually appealing candle products.
- Market attributes:
- High visual appeal for TikTok
- Strong repeat purchase potential
- Passionate customer base
- Success factors:
- Sensory overload appeal
- Oddly satisfying content potential
- MLM-proven category
DNA Testing Opportunity (34:42)
Analysis of opportunity to create a new DNA testing service.
- Market context:
- 23andMe doing $300M revenue but struggling
- Room for new entrant with fresh approach
- Potential for subscription model
- Opportunities:
- Food sensitivity testing
- Health insights
- Ancestry information
Success Factors and Considerations (37:41)
The hosts discuss key factors for success in TikTok-based businesses.
- Important elements:
- Focus on repeat purchase products
- Build genuine brand connection
- Leverage creator relationships
- Target established categories
- Challenges:
- Rapidly changing landscape
- High stress environment
- Inventory and supply chain risks
- Platform dependency risks
Conclusion
The episode highlights the significant opportunity currently available on TikTok for building direct-to-consumer brands, while acknowledging the challenges and risks involved. Success requires focusing on the right product categories, building strong creator relationships, and executing well on operations and customer experience. While the opportunity may not be right for everyone, those willing to embrace the platform's unique characteristics can potentially build significant businesses in a relatively short time frame.