
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
- Buy an existing asset, upgrade it, and resell it for the value captured
- 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
- 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
- Figure out the things that make the supply marketable and how marketplace algorithms work
- 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
- Find search results that suck and be the best result in that search
- 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
- The non-alcoholic beer space has had a growing interest
- 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.
- Phthalates – a group of chemicals that make plastic more durable
- 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!
- 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
- Stickk and GymPact are two other accountability & incentive focused challenges