The 4 Types of Side Hustles and how to launch a $100M DTC brand | Justin Mares on My First Million with Sam Parr & Shaan Puri

Check out the My First Million episode page

Key Takeaways

  • Strategy 1: Buy an existing asset
    • You need the most upfront money here but there can be an incredible value to capture by simply owning and upgrading an asset better than the current holder
  • Strategy 2: Provide supply to a marketplace with existing demand
    • Find deviations of keywords on google search that lack supply to fulfill the demanded and desired search
    • If you understand what makes supply marketable and what the marketplace algorithms prioritize, you can drive more demand
  • Strategy 3: Launch a unique product where you can buy customers through paid acquisition
    • Buy the top Google-searched word in a unique product category
    • Google search is a magic lamp and you can be the genie, give them what they want
  • Strategy 4: They didn’t discuss a 4th but Justin has an awesome blog/substack where he gives the latest knowledge on side hustles, D2C businesses, market opportunities, and more
  • Other awesome D2C Ideas discussed:
    • AirBnB camping properties: more affordable and less maintenance
    • Non-alcoholic wine: booming product category with limited options
    • Phthalate-free products: health > price & convenience
    • And more….

Intro

Intro to Side Hustles

  • Side hustles are much easier to start if you have a primary income stream to cover your costs of living
    • Remember: you’re not trying to create the next great startup; you’re trying to create another revenue stream
    • “For most people, entrepreneurship is a useful means to an end towards a lifestyle of financial freedom” Justin Mares
      • BUT – if you do think you are the next Mark Zuckerberg, raise capital and make it happen

Side Hustle Strategies

  • Strategy 1: Buy an existing asset
    • Buy an existing asset, upgrade it, and resell it for the value captured
      • The upgrading process can simply come from your skills, do it better than the existing owners
      • Buy a product and simply raise the price, many companies don’t realize or optimize their demand
    • For this strategy, you often have to have up-front money but can be executed through financing as well
  • Strategy 2: Provide supply to a marketplace with existing demand
    • Figure out the things that make the supply marketable and how marketplace algorithms work
      • Example: optimize your AirBnB rental to have more pictures/info, faster response rate, and better 5-star reviews so the algorithm considers your property part of its premium supply
    • Focus on marketplaces where the supply side isn’t crazy competitive yet
      • Selling a product with existing demand on a new platform can be effective
      • Study Google search and AdWords – you find deviations in demand for products and platforms that don’t have a supply yet
  • Strategy 3: Launch a unique product where you can buy customers through paid acquisition
    • Google search is a magic lamp and you can be the genie, give them what they want
    • “There are almost infinite niches on the internet where you can make the product, buy some rough keywords, and sell through a category where you’re the first to market well” – Justin Mares
      • Find search results that suck and be the best result in that search
        • Example: Vests for dogs that have spikes to protect them from coyotes (CoyoteVest)
      • Ahrefs is a good tool for doing keyword research
  • Strategy 4: They didn’t discuss a 4th but Justin has an awesome blog/substack where he gives the latest knowledge on side hustles, D2C businesses, market opportunities

Side Hustle Think Tank

  • AirBnB Camping
    • Platforms for camping (Hipcamp) are exploding, they need more supply for growing demand – RVs, Campers, or campsites
    • Could be a great cash flow asset with minimal maintenance and management as compared to a traditional indoor AirBnB
  • Non-Alcoholic Wine
    • The non-alcoholic beer space has had a growing interest
      • Bud Light bought 3 Super Bowl ads – Seltzer, Bud Light, and Bud Zero
    • Justin identified there hadn’t been a breakthrough in the non-alcoholic wine space yet
    • The younger generation is becoming much less interested in drinking
      • N/A drinks provide comfort in a social setting while not drinking
      • “There are just better drugs, people are opting for different types of compounds to give them the experience they want” – Justin Mares
  • Alternate products to avoid exposure to phthalates
    • Phthalates – a group of chemicals that make plastic more durable
      • Recent studies show that continuous exposure can result in reduced testosterone levels
      • As people learn more about this, alternative products will be in demand regardless of price or convenience. Health is the number one priority.
  • Dating apps based on credit card usage
    • Purchase history and how an individual handles their credits and debits says a lot about a person
    • Not intended to define wealth, but more so how your money influences your lifestyle
  • No code automation officer
    • Companies could be 30% more productive if they used their virtual assistants and tools more effectively, could be offered as a service

Health Accountability as a Business Model

  • CGM – Continuous Glucose Monitoring
    • Justin ran a 15 person group trial testing their glucose levels every day, the participant would gain or owe money based on if they hit their targets or not
      • The $25 daily incentive really encouraged people to stick to the plan
      • This is a project that turned into a side hustle where Justin outsourced management and will still make $20k+/yr
    • The greatest hack in health isn’t knowledge, it’s accountability
  • Stickk and GymPact are two other accountability & incentive focused challenges
My First Million : , , , , , ,
Notes By Drew Waterstreet

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