November 22, 2021

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

• Justin Mares (@jwmares) is an expert in direct-to-consumer businesses, founding three of his own including Kettle & Fire, Perfect Keto, and Surely Wines. Sam, Shaan, and Justin discuss successful side hustle strategies and some potential direct-to-consumer product ideas.
• Hosts: Sam Parr (@TheSamParr) and Shaan Puri (@ShaanVP)

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
      • SQL for Marketers course by Justin Mares, a great place to start
      • Fulfillment by Amazon (FBA) is another popular approach
  • 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
    • He created Surely Wines
  • 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
    • WearableChallenge.com – Try this challenge yourself!
• Stickk and GymPact are two other accountability & incentive focused challenges

My First Million : airbnb, entrepreneurship, google, phthalates, side hustle, startup, substack
Notes By Drew Waterstreet