From: myfirstmillionpod

The “Gold Rush” on TikTok

Current digital platforms, particularly TikTok, represent a significant “gold rush” for businesses and individuals seeking to generate revenue and build brands [00:00:01]. This phenomenon is comparable to the early opportunities seen on Amazon, which allowed a 30 million company [00:01:11]. These moments in time offer the chance to create substantial enterprise value without requiring extensive startup capital or fundraising [00:01:30].

Brands are projected to achieve over 50,000 for a creator [00:00:18].

Paradigm Shift in Information Consumption

A fundamental shift is occurring in how people, especially Gen Z, discover information and products [00:02:16]. TikTok is increasingly serving as a primary search engine and news source [00:02:54]. This contrasts with previous reliance on platforms like Google or Yelp for searches, or traditional media like TV and billboards for advertising [00:02:26], [00:05:01].

This shift presents a significant opportunity because the space is still relatively early [00:03:19]. The brands and artists of the future are emerging through this new means of distribution [00:03:27].

The TikTok Playbook: Creator Model

The core of the TikTok model revolves around views rather than traditional follower counts, unlike YouTube or Instagram [00:13:53]. A brand new TikTok account can get millions of views on a video [00:14:00].

Key Strategy: Army of Creators

Instead of relying on a single influencer, the strategy is to engage an “army” of individuals to create product-specific content [00:14:15]. The focus is on the content itself, with the goal that one piece of content “pops” and goes viral [00:14:34].

This model incentivizes creators directly through commissions, allowing the economics to feed themselves [00:16:25], [00:17:00]. Successful freelance creators can earn over $100,000 in a month [00:17:33]. These creators are not traditional influencers; they are individuals dedicated to the “craft of short-form content” [00:18:09], constantly experimenting with hooks and conversion optimization [00:18:04].

The aesthetic of content that performs well is often “raw” and “organic,” resembling something a regular person would share rather than a polished advertisement [00:20:03].

Examples of Success

  • Roose Research: A 27-year-old founder built a supplement brand focused on longevity. By pouring all resources into TikTok, the brand achieved over $15 million in monthly online sales within two years [00:12:40], [00:14:40].
  • Evil Goods: A beef tallow skincare brand that capitalized on the “holistic wellness” trend and fear-based marketing around “toxic skincare” [00:24:50]. Videos showing personal transformations, like hormonal acne improvement, went viral [00:45:36].
  • Top Shelf (Cologne): A luxury cologne brand aiming to be “Creed for Gen Z” [00:25:57]. It’s generating close to a million dollars a month [00:26:27] by tapping into self-improvement and dating angles [00:30:01].
  • Underbrush Gum: A small family business making gum that quickly scaled to millions a month by playing into the “TikTok is going away” narrative and showing raw, ASMR-style founder videos [00:35:05].
  • Connor Price (Musician): A rapper who achieved independent success with billions of Spotify streams through TikTok skits that incorporated his music as a punchline [00:56:51].

Finding Opportunities

A tool called Kalodata (kalodata.com) is directly plugged into TikTok’s API, allowing users to see top products and videos, and identify trending content [00:33:32].

Identifying Underserved Markets

Look for “exploding topics” and analyze Amazon data for search trends [00:41:43]. If others are already doing it, it often validates the idea, allowing for a focus on out-marketing competitors [00:41:52].

One strategy is to look for niche communities or behaviors that seem “weird” to the mainstream, but are undeniably growing [00:39:05].

  • Looks Maxing: A growing trend among young men hyper-focused on optimizing their appearance, similar to the early days of bodybuilding [00:36:16]. This creates an underserved market for male skincare and aesthetic enhancement products like “jaw size” gum [00:37:57], [00:41:11]. Marketing can use counter-positioning, suggesting that not working on a “feminine jaw” is undesirable [00:43:07].
  • Luxury Pet Products: People spend significant amounts on their pets, including supplements [00:46:42]. With luxury brands like Louis Vuitton launching expensive pet accessories, it validates the demand for high-end pet products [00:46:53]. The strategy can involve leveraging outrage over high prices to generate reach and visibility [00:49:13].

Business Model: Democratizing Luxury

A proven business model is to take what the wealthy have and find a way to democratize it, making it accessible to a broader audience [00:50:32]. Examples include:

  • Uber democratizing private drivers [00:50:37].
  • Airbnb democratizing vacation homes [00:51:02].
  • Marquee Jets (fractional jet ownership) democratizing private flights [00:51:16].
  • Duolingo democratizing language tutors [00:51:36].

This strategy focuses on dropping costs while maintaining the essence of the luxury experience.

Avoiding Pitfalls

The biggest mistake brands can make is how they treat their affiliates/creators [00:52:01]. In a market with high demand for creators, brand owners must be generous with commissions and rewards to attract and retain top talent [00:53:06]. Companies like Goalie Gummies set the standard by offering significant prizes like condos or Lamborghinis for top sales [00:52:23].

Key Takeaways

  • Be an Observer, Not a Consumer: Approach platforms with a mindset of observation, not judgment. Focus on factual trends rather than personal opinions about what seems “weird” or “stupid” [00:40:48].
  • Embrace Short-Form Content: Short-form content and its distribution are changing the world, driving popularity for personalities, music, and brands [00:54:29].
  • The Power of Narrative: Success often comes from the ability to form a mainstream narrative or gain massive visibility, especially during “gold rush” windows when multinational marketing budgets aren’t strictly necessary [00:57:56].
  • Send It Attitude: Don’t be bashful about marketing or promoting your product if you believe in it [01:06:14]. The more you “send it,” the more confidence it instills in others to pursue their own ventures [01:00:11].
  • Life Maxing: A personal philosophy of aggressively pursuing what you thoroughly enjoy, filling your finite time with meaningful endeavors, and pushing personal boundaries [01:01:31]. This involves being “ignorant of the past, realistic about the present, and delusional about the future” [01:02:15].
  • Character Design: The ability to consciously design the type of person you want to be [01:04:09]. This includes being intentional about one’s public persona and adapting it as personal values evolve [01:15:57].

In essence, current digital platforms offer unparalleled opportunities in content creator partnerships to build significant brands and generate substantial revenue, even for those starting with limited capital [00:00:01]. Success lies in understanding the new rules of engagement, particularly the creator-driven model and the emphasis on virality, and embracing a proactive approach to marketing and brand building.