MOEMENTUM

This is a Newsletter to boost yours.

Intro

I’m starting to feel really good as I write these emails.

Good as in euphoric, bullish, and inspired.

I get to sit here and reflect on my week and share it with all 10,000 of you.

Yesterday I caught up with my good friend Faiz

The beauty about having him in my circle is that he also runs a very successful e-commerce brand called Sweet Dreams

We got to catch up on problems we’re both facing within our businesses, wins we’re both having and plans we both have to continue growing.

I share this to say, it’s crucial to surround yourself with people who not only inspire you but actually do the same things you do.

Why? Because it naturally gives you both accountability and competition to want to win together.

Now enough rara, this email is a little different.

I’m launching some new products in the next 2 weeks and I was doing research for a new roll-out strategy

I came across a great story on how another e-commerce brand turned $2,500 into $1,000,000

So let’s break it down and take the learnings I found.

A Couple With A Dream

Craig Mount and Erika Peterson started a business and found themselves in an enviable position.

Nerdy Nuts an ecom-based peanut butter company— went viral on TikTok. In the span of a few days and watched their sales multiply by 20x.

But it wasn’t glamorous. They had a backlog of $500k+ worth of orders, an inventory dry-out, and thousands of cranky customers

Let’s use this as a case study and talk about

• The underutilized side of TikTok

• The Power Of Scarcity

• The ultimate product feedback loop

The brand is called Nerdy Nuts which only cost them ~$2.5k upfront total.

What made them pick this niche? Craig, the founder learned that nearly 60% of the $1.9B US peanut butter market is controlled by 2 companies: the J.M. Smucker Company (which owns Jif) and Hormel Foods (Skippy).

Talk about a monopoly.

Then he noticed 127 smaller e-commerce brands selling an alternate version of Peanut butter but marketing them as “healthy” or “keto-friendly.” (ew)

Soo lightbulb moment.

Let’s keep peanut butter flavorful and fun.

The Underutilized side of TikTok

In June 2020, the brand decided to test out peanut butter “product drops.”

Kinda like Supreme clothing, or Adidas Yeezy sneakers. Once a month limited edition peanut butter drops

Nerdy Nuts dropped 3 new flavors — Monster Cookie, Oreo Cookie, and Circus Cookie — and turned to social media to market them.

Decided to use TikTokers as influencers so they came across Ali Grace Morsell and Hailey Peters 

Sent them a free product in return for a video and boom.

The videos go viral and generate 5000+ sales on one of their first drops

They weren’t expecting it and couldn’t handle it either so that’s when..

The Power of Scarcity Kicks in:

People naturally want things they can’t have.

That psychological trigger can be really powerful when used right.

Nerdy nuts used scarcity to their advantage.

When the company unintentionally faced a scarcity of peanut butter due to overwhelming demand, it changed its business model.

People rushed to purchase and but couldn’t.

Giving the business overwhelming buzz and a long list of customers waiting in line.

The Ultimate Product Feedback Loop:

Nerdy Nuts' business exploded.

Next big decision: It closed its site and only opened up sales one day per week.

“From a logistics standpoint, selling out was the worst thing that could’ve happened,” says Mount. “But from a marketing standpoint, it was the best thing ever.”

The lesson was, that selling out created a lucrative “feedback loop”:

1. It created an illusion of scarcity for those who didn’t get a jar.

2. It made people who did get a jar feel exceptionally special.

From there the business model was proven and the next time they did a drop, they made $80k in sales and had to shut it down again after just 2 minutes.

That my friend is the way to turn a problem into a solution and a Cinderella e-commerce story.

Click here if you want to read the full thing.

And as always if you’re looking to start a brand or need help growing yours book a 1 on 1 and get all the sauce you need here.

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How Can I Help?

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1. Promote your business to 10,000+ marketers and techies by sponsoring this newsletter.

2. Work with me 1 on 1 and get all the sauce you need here.

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