eCommerce Evolution

Hosted ByBrett Curry

eCommerce Evolution is hosted by Brett Curry, CEO of OMG Commerce. Tune in for fresh interviews with the merchants, vendors, and experts shaping the eCommerce industry. We take an in-depth look at what's new and what's next in eCommerce.

eCommerce Evolution | 322: From Zero to Viral: Your TikTok Shop’s 0-$100.000 per Month Playbook

eCommerce Evolution Podcast
eCommerce Evolution Podcast
eCommerce Evolution | 322: From Zero to Viral: Your TikTok Shop's 0-$100.000 per Month Playbook
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TikTok Shop right now is bigger than Amazon or Shopify was from launch. That is what TikTok Shop is right now.” Bold statement? Maybe. But Jordan West, founder and CEO of Social Commerce Club, has the data to back it up. With CPMs dropping 26% last year while ad spend increases, and creators with under 10K followers generating $250K in monthly sales, we’re witnessing the early stages of what could be the biggest disruption in e-commerce since Amazon itself. In this explosive episode, Jordan breaks down his exact three-phase playbook for scaling from zero to $100K per month on TikTok Shop, reveals why big brands like Estée Lauder are struggling to adapt, and shares the underground strategies that are creating millionaire creators overnight.

Sponsored by OMG Commerce – go to (https://www.omgcommerce.com/contact) and request your FREE strategy session today!

Chapters:

(00:00) Introducting Jordan West

(05:18) The Exponential Growth of TikTok Shops

(10:48) Understanding the TikTok Shops Ecosystem

(14:12) The Power of Social Search

(16:16) Understanding Social Commerce

(19:34) Misconceptions about TikTok Shops

(24:33) The 80/20 Rule for Viral Content

(26:16) Best Practices

(31:36) Making It From Zero to Viral

(33:20) The Tiktok Shop Playbook: Phase One

(38:18) The Tiktok Shop Playbook: Phase Two

(42:44) The Tiktok Shop Playbook: Phase Three

(46:21) Exploring YouTube’s Potential in Social Commerce

Connect With Brett:

Relevant Links:

Past guests on eCommerce Evolution include Ezra Firestone, Steve Chou, Drew Sanocki, Jacques Spitzer, Jeremy Horowitz, Ryan Moran, Sean Frank, Andrew Youderian, Ryan McKenzie, Joseph Wilkins, Cody Wittick, Miki Agrawal, Justin Brooke, Nish Samantray, Kurt Elster, John Parkes, Chris Mercer, Rabah Rahil, Bear Handlon, JC Hite, Frederick Vallaeys, Preston Rutherford, Anthony Mink, Bill D’Allessandro, Stephane Colleu, Jeff Oxford, Bryan Porter and more

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TikTok shop right now is bigger.

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The exponential curve that we see right
now is bigger than Amazon or Shopify

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was from launch.

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00:00:22,320 –> 00:00:26,520
Well, hello and welcome to another edition
of the E-Commerce Evolution Podcast.

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I’m your host, Brett
Curry, CEO of OMG Commerce,

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and today we’ve got a returning guest.
We’ve got a long time friend on the pod,

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and we’re talking about one
of the hottest of hot topics

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TikTok shops. What do you need to
know? What are some misconceptions?

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What’s the growth playbook?

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And we’re going to zoom out beyond that
as well and look at social commerce as a

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whole. What’s YouTube up to and
what’s going to happen in this space?

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And so my guest is Jordan West.

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He’s the founder and CEO
of Social Commerce Club.

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He’s also the host of a fabulous podcast,

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scaling your E-Commerce brand.
And so we’re going to get into it,

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but with that, Jordan, welcome to
the show and how’s it going, man?

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Brett, so nice to be on here. Last
time you and I met a couple months ago,

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you came on my podcast. It was good. It
was actually very, very well received.

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I looked at the download numbers and I
was like, oh, people really like brand.

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They like YouTube. People like talking
about this kind of stuff. Yeah.

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Yeah.

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I should put some money behind that one.

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So secrets to Scaling your
e-Commerce brand. We’ve been around,

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it’s like 650 episodes now.

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Whoa.

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I’ll tell you, if there’s
one thing that I am good at,

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it is finding something and then
just doubling down, doubling down,

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doubling down, which is
why TikTok, TikTok Shop,

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I am telling you I haven’t been this
excited about something in a long,

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long time.

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And with good reason,
there’s merit behind it.

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We’re going to talk about the data. We’re
going to talk about the case studies.

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We’re going to talk about the stories
that’ll motivate you to go hard into

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TikTok shops. But first, I
got to hit the pause button.

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650 episodes, is that what
you said? 600 episodes?

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Yes, yes, yes. Holy, how so?

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There’s a couple of things that
I do every single week I take,

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and just so you know,
it’s very, very selfish.

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I just take all of the different things
that I’m learning in our different

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businesses. And all I do is I
consolidate the learning in a podcast.

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And in LinkedIn, if you
guys follow me on LinkedIn,

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I’ll post multiple times a day
and it’s just selfish, everyone,

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just so you know.

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I’m just taking what I’m learning
and then putting it out there.

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That’s the only reason that I do this.
And then it just happens to help people.

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And I kind of forget when I’m on this
side. I forget that there’s, for us,

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it’s like we’re in the thousands of
downloads per episode. I’m like, oh yeah,

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that’s right. I was at
Shop Talk recently and you,

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I’m walking down and people like, Jordan,
I listen to your podcast all the time.

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I watch your podcast. I’m like, oh
yeah, I forget. I do it. Honestly,

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I just forget that I do it because it’s
just a matter of consolidating all the

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learning that I have. That’s why I do it.

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Such a great way to look at
it. What do you want to learn?

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What do you want to add to your business?

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What expert do you need to get
to know? Do a podcast on that.

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And now you’re creating media that
your marketplace is going to enjoy.

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It’s going to attract people into
your network and your learning,

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and you can share the learnings with
your team. And same with LinkedIn.

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I love that approach. Super,
super smart. And yeah,

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quick funny story that’s related.

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So we’re about 300 episodes
in on e-commerce evolution.

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I’m not as prolific as Jordan
West. Now you set the bar up here.

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I got to see what I can do to up my game.

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Maybe there’s been a few
times where this is a grind.

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It’s also a grind to do a podcast when
you’re running a company and hiring

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people and running marketing
and all this stuff.

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And so there’s been one time
in particular where I was like,

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I got to quit the podcast. It’s just too
much of a grind, too much of a hassle.

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I go to a trade show and three
or four people stop me and say,

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I love the podcast, man. Keep up the good
work. It’s so good. And I’m like, oh,

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okay. No, this is part of why I do it.
And so I’ve been doing it ever since.

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And.

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I also have to say,

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so last week I had Curtis
Matz on my podcast.

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Curtis is the founder and CEO at Portland
Leather Goods big company. Awesome.

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I met him in Austin just a
couple weeks ago. Great guy.

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Yeah, Curtis is awesome. So I had
him on when they were little too,

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and he came back on and they were going
to do two or 300 million this year.

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Pretty good company. But.

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Think maybe pushing four, I think I heard
pushing four. But either way insane.

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To me, once you’re over a
couple hundred million, I mean,

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what’s another a hundred?

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Here’s the thing that Curtis and I
talked about that I think is really

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interesting for everybody
who’s listening to this,

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especially if you’re a brand owner.

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Curtis has been absolutely grinding at
building a personal brand this year.

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And.

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I asked him, I said, what’s the number
one reason you do it? And he said people.

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He said,

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the reason why I’m doing this is for the
people and the kind of people that come

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in when I post on LinkedIn and I
say, Hey, I’ve got an open position.

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A players that come through are just
phenomenal. And yes, I have to S through,

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but those people that are the learners,
that’s who I’m always going for.

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I’m like, if you are listening
to all of this new stuff,

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you’re probably my kind of people.

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Totally. It’s a great call out.
Great call out. Okay, awesome.

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So now everyone’s motivated to start
their own podcast or it is a grind,

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but we love it and we do endorse it. So
with that, let’s dive into TikTok shops.

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And so Jordan Dazzle
us. Wow us, motivate us.

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Why should we consider TikTok shops?

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What are you seeing with
your agency clients and the
brands you’re investing in?

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What’s going on with
TikTok shops right now?

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Alright, here’s your soundbite.

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Brett TikTok shop right now is bigger.

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The exponential curve that we see
right now is bigger than Amazon or

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Shopify was from launch. Wow. That
is what TikTok shop is right now.

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People will make fun of it on some of
the bigger brands will make fun of it.

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So from a.

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Wait, unpack that a little bit
or define that a little bit.

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So TikTok Shops is bigger
now than Amazon was

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after launch, or what do
you mean specifically?

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Exactly.

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So it is bigger than
Amazon or Shopify was when

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they launched, and it’s not even
close the exponential curve.

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None of us understand what an
exponential curve looks like.

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It’s really difficult for us
to wrap our brains around.

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All we know is we see it afterwards
and we know we’re like, oh,

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that’s what exponential growth is, right?

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AI is one of those things right now that
we’re like, everyone’s like, oh yeah,

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I was sitting in my backyard of
a different house that I have,

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and I was sitting back there with my
brother-in-law and we have to redo the

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roof, right? Oh, great, we have
to redo the roof. I’m like,

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I’ll bet you in three years that there’s
going to be a robot that goes and does

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that. And he’s like, oh,
no way. No way. I’m like,

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then you don’t understand an exponential
curve because if you look today,

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oh three PRO is released.
It is scary, intelligent,

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what oh three Pro does, and again, we’re
at the bottom of an exponential curve,

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the same thing right now with TikTok shop.

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So when you see that curve starting to
rise and you understand what that looks

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like for people who are not watching it,

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is this exponential hockey
when we understand that
we’re at the bottom of it on

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TikTok shopping.

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Social commerce. So you think we’re
about to hit that inflection point.

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Right now? Absolutely. I don’t even think
we’re even close to it on TikTok shop.

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I don’t think that people are getting
trained right now how to purchase, right?

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They’re getting trained
how to socially purchase.

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We’ve done it for a while with Facebook,

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but we haven’t really Facebook and sorry,

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meta never really cracked
the code on Social.

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Promise, right? They tried a
few years ago social shopping,

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and I think Zuck was just ahead of his
time a little bit there that it looked

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promising, it made sense, it didn’t work.

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But TikTok shops has kind cracked the
code. Now, I want to clarify a little bit.

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So you think we’re just getting started
with TikTok shops, is that because,

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I mean, it’s huge.

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So the number of users was hundred 30
million users in the US or whatever the

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users are there.

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It’s 180 million are on there
for 60 minutes or more a day.

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Holy cow. That’s insanity.

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So are you saying it’s really just
beginning to explode though TikTok shops

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because people are still not
buying mass on TikTok shops.

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So of that 180 million,

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there’s only a smaller percentage
that are actually buying.

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And so there’s all that upside there.

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Yes. Because the trust
factor is not there yet.

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And also the affiliates
aren’t quite there yet either.

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So I will tell you a leading indicator
that tells me that this is the biggest

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opportunity ever.

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CPMs dropped last year by 26% on TikTok.

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No way.

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So what does that tell you? To me,

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that doesn’t tell me that that’s a
demand issue with advertising because

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advertising dollars have only gone up.

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What it tells me is that it’s a
supply issue in a good way. Sorry,

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that there is more supply
that is driving CPMs down.

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What me? Super excited.

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I was on a webinar yesterday
with Triple Whale and Fin Loop,

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and they were going
over these stats. To me,

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I’m just a huge nerd when
it comes to this stuff.

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And I was looking at some of
these numbers just being like,

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nobody realizes right now
still 70 to 80% of all

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spend,

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and this is from Triple Whale who has
tons of stats out there out there.

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Hopefully you don’t have a triple oil
competitor as a sponsor of this or

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anything.

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I don’t. No, but I’m friends with a lot
of them and friends with Triple oil.

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Love those guys.

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Wonderful. So in the stats that they see,

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70 to 80% of all ads spend
is happening on meta.

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Just think about.

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The disruption and their purview is like
D two C brands. So D two C brands, 70,

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80% is on meta. Yeah.

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Totally. The amount of brands that
have tried TikTok and been like, well,

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I’m just not getting the
right attribution, right? Oh,

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attribution isn’t working. All of
that is going away. By the way,

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in the world of ai,

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mms are going to be so cheap and we’re
going to be able to measure all this

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stuff. Well, that brands
are going to realize, oh,

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there’s all of these 180 million people
that could be discovering my products

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00:10:01,320 –> 00:10:03,390
over on TikTok that aren’t yet.

191
00:10:05,010 –> 00:10:07,560
Yeah, it totally makes sense.
And it’s one of those things,

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00:10:08,160 –> 00:10:11,400
and we experienced this a lot
on the YouTube side of things,

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where billions of users
long engagement time is 40

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some minutes a day.

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Average session for YouTube users
are both behind TikTok, it seems.

196
00:10:24,240 –> 00:10:25,710
So there’s a ton of supply there.

197
00:10:25,710 –> 00:10:30,600
There’s really no reason that it shouldn’t
work other than if your approach is

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00:10:30,600 –> 00:10:33,960
wrong, your creative is wrong or something
like that. Same is true with TikTok.

199
00:10:34,200 –> 00:10:38,130
It has the users, people
are addicted to it.

200
00:10:38,340 –> 00:10:40,620
So if you can get the right
message there in the right way,

201
00:10:40,620 –> 00:10:42,630
there’s zero reason it shouldn’t work.

202
00:10:43,020 –> 00:10:46,350
And so if it hasn’t price some
fundamental reasons for that,

203
00:10:46,350 –> 00:10:49,320
which we can unpack. And so yeah,

204
00:10:49,320 –> 00:10:51,660
so it’s about to hockey stick,

205
00:10:51,660 –> 00:10:54,840
even though it’s been
growing rapidly so far.

206
00:10:56,190 –> 00:10:58,770
But really when you look
at it, you’re like, okay,

207
00:10:58,770 –> 00:11:03,690
so the top brand is doing 15 million
a month, right? That’s not that big.

208
00:11:03,690 –> 00:11:04,930
It’s not that big.

209
00:11:05,520 –> 00:11:08,760
That’s not that big when you
compare it to an Amazon or Shopify.

210
00:11:08,770 –> 00:11:09,960
Brands that’s on Amazon or whatever. Yeah.

211
00:11:11,040 –> 00:11:13,800
It’s not that big. And that’s why
brands are ignoring it. And I’m like,

212
00:11:14,040 –> 00:11:17,640
go ahead and ignore it at your own
peril if you want to ignore it.

213
00:11:17,640 –> 00:11:20,970
And especially big brands, look
at, I’m just going to name them.

214
00:11:20,970 –> 00:11:21,930
Look at Estee Lauder.

215
00:11:22,470 –> 00:11:27,180
They just laid off 6,000 people in q1,

216
00:11:27,540 –> 00:11:31,380
6,000 people. They laid
them off for a reason.

217
00:11:31,410 –> 00:11:34,500
They are having a hard time
penetrating that market.

218
00:11:35,430 –> 00:11:37,350
It is a very difficult
market to penetrate,

219
00:11:37,350 –> 00:11:38,640
and they are having a very difficult time.

220
00:11:38,640 –> 00:11:42,630
They own a ton of different brands
and they laid 6,000 people off.

221
00:11:43,020 –> 00:11:45,450
That is wild. And it continues to happen.

222
00:11:45,870 –> 00:11:49,560
It’s continuing to happen in the space
for brands that are not changing.

223
00:11:49,560 –> 00:11:52,620
P and g just happened to them too, and I
think it was around 6,000 as well. Now,

224
00:11:52,620 –> 00:11:54,520
AI I think is part of that, right?

225
00:11:54,730 –> 00:11:59,350
AI’s part of that, But I do think that
these old dinosaurs are having a very

226
00:11:59,350 –> 00:12:02,650
difficult time moving over and
thinking about social commerce.

227
00:12:03,010 –> 00:12:03,843
I’ll tell you why, Brett,

228
00:12:04,360 –> 00:12:08,920
the reason why they’re having such a hard
time with this is that they don’t get

229
00:12:08,920 –> 00:12:12,040
to say yes or no to the
content that comes out.

230
00:12:12,430 –> 00:12:16,450
I sat in a boardroom recently, TikTok
shop headquarters are in Seattle.

231
00:12:16,480 –> 00:12:20,920
I live just as Vancouver. And I went
down there and I went down for a coffee,

232
00:12:20,920 –> 00:12:23,530
by the way. That’s what I was
told, that it was a coffee.

233
00:12:23,830 –> 00:12:26,560
I get in and there’s a
boardroom of 30 or 35 people.

234
00:12:27,220 –> 00:12:28,360
I thought you went over to seven.

235
00:12:28,360 –> 00:12:29,800
Coffee. There’s your coffee. Sit.

236
00:12:29,800 –> 00:12:31,060
Down, we got questions for you. Yeah.

237
00:12:31,600 –> 00:12:35,710
Look, I didn’t have a presentation
or anything. I was just like, okay,

238
00:12:35,710 –> 00:12:38,920
so we’re just going to do q and a or
what’s it going to look like? Don’t worry,

239
00:12:38,920 –> 00:12:41,320
I’m really good on the
spot. So it was good.

240
00:12:41,320 –> 00:12:43,960
But I was with the
global key accounts team.

241
00:12:43,960 –> 00:12:46,570
So this is brands that
do 4 billion in a bus

242
00:12:48,490 –> 00:12:51,250
and they have to be across. They
can’t just do 4 billion in the states.

243
00:12:51,250 –> 00:12:55,720
It has to be in multiple markets,
right? Really big high-end team.

244
00:12:55,720 –> 00:12:58,360
And they said, what do
you do when a brand,

245
00:12:58,360 –> 00:13:01,510
one of the biggest pushbacks that we
get from the global key accounts team,

246
00:13:01,630 –> 00:13:03,700
from the, sorry, global
Key accounts. Brands,

247
00:13:04,000 –> 00:13:08,530
is that they want to say yes or
no to content. I’m like, okay.

248
00:13:08,530 –> 00:13:12,290
So the salesperson to me says, yes,
absolutely you can, but you can’t.

249
00:13:12,290 –> 00:13:13,720
You can’t. You can’t. I’m sorry.

250
00:13:13,720 –> 00:13:18,370
You just have to say yes to
all of it or no to all of it.

251
00:13:18,370 –> 00:13:22,000
And that’s why they’re losing. That’s
why the big brands are losing. Yeah.

252
00:13:22,060 –> 00:13:22,893
I mean, think about it this way.

253
00:13:23,440 –> 00:13:26,290
Are you going to say you want
to say yes or no to Amazon?

254
00:13:26,290 –> 00:13:29,950
Product reviews pretty limited there.
If it’s fraudulent or whatever,

255
00:13:30,280 –> 00:13:32,470
illegal or malicious, you can get
that removed. But other than that,

256
00:13:32,710 –> 00:13:36,040
those reviews are going to be
there. So that’s the way it works.

257
00:13:36,040 –> 00:13:38,830
And shoppers want those reviews and they
trust those reviews and they look at

258
00:13:38,830 –> 00:13:41,530
those reviews. And the
same is true on TikTok.

259
00:13:41,710 –> 00:13:43,270
People go there for
product recommendations.

260
00:13:43,510 –> 00:13:45,460
I was talking to my 17-year-old
daughter just the other day,

261
00:13:45,460 –> 00:13:49,000
and I was trying to convince her to
use TikTok less just for her own mental

262
00:13:49,000 –> 00:13:52,360
health. She’s very healthy, she’s an
amazing student, all these things.

263
00:13:52,360 –> 00:13:54,970
But I’m like, Hey, spend less
time there. And she’s like, well,

264
00:13:54,970 –> 00:13:58,720
but I search for stuff there and
that’s where I even crazy details,

265
00:13:58,720 –> 00:14:03,610
crazy stuff I want to find. I search
on TikTok. I’m like, okay, makes sense.

266
00:14:03,610 –> 00:14:06,010
And so that’s where people
want to consume content.

267
00:14:06,340 –> 00:14:09,550
That’s where they want to get product
recommendations. So you can avoid it,

268
00:14:09,730 –> 00:14:11,740
but you’re avoiding it
at your own app peril.

269
00:14:12,550 –> 00:14:16,150
So this is really interesting. Let’s go
into social search here for a second.

270
00:14:16,240 –> 00:14:18,520
This is really interesting. All of

271
00:14:20,200 –> 00:14:23,200
the stuff out there right now
is AI search is going to eat,

272
00:14:23,200 –> 00:14:26,920
Google AI search is going to eat
Google. It’s like, yeah, probably.

273
00:14:27,100 –> 00:14:29,110
I’d search for so many
things using CHA bt.

274
00:14:29,890 –> 00:14:30,723
But.

275
00:14:31,060 –> 00:14:32,980
For the upcoming generation,

276
00:14:33,430 –> 00:14:38,110
social search will crush Google. It
will absolutely crush Google. I mean,

277
00:14:38,350 –> 00:14:42,660
you see it on YouTube and I consider
that social search. Social search.

278
00:14:43,570 –> 00:14:46,120
I think that’s one of the
places that’s where I put money.

279
00:14:46,270 –> 00:14:51,010
I put money on my podcast on YouTube just
because it’s a great place for people

280
00:14:51,020 –> 00:14:52,400
to discover the podcast.

281
00:14:53,750 –> 00:14:56,840
And we get tons of subscribers just from
putting a little bit of money behind it

282
00:14:56,840 –> 00:15:00,380
because that’s where they’re right.
I’m talking about D two C here,

283
00:15:00,380 –> 00:15:04,700
but the same rules apply
and social search is

284
00:15:04,700 –> 00:15:09,590
massive. So a brand that we work with,
we started working with them last August.

285
00:15:10,640 –> 00:15:11,450
In August,

286
00:15:11,450 –> 00:15:15,740
we ran a study on TikTok because
they’re a global key account brand.

287
00:15:16,160 –> 00:15:20,330
And we ran a study to see how
many searches they had on TikTok.

288
00:15:20,840 –> 00:15:23,240
The answer was zero. They didn’t show up,

289
00:15:23,240 –> 00:15:26,360
nobody was searching for them
on social search on TikTok.

290
00:15:26,900 –> 00:15:31,850
We ran that same study after bringing
them to over 2 million a month on

291
00:15:32,120 –> 00:15:36,230
TikTok, and they had 880,000
searches in the previous two weeks.

292
00:15:36,230 –> 00:15:40,590
We ran this in December. Whoa. It’s
crazy. Crazy. Think about that.

293
00:15:40,760 –> 00:15:45,680
Think about all of, and then the
halo to everywhere from that,

294
00:15:46,400 –> 00:15:51,170
it is the discovery engine. It’s also,
I think about these big brands, p and g,

295
00:15:51,170 –> 00:15:52,580
Estee Lauder, all these big brands.

296
00:15:53,210 –> 00:15:57,620
Do you know how much money they spend
on product research and marketing

297
00:15:57,620 –> 00:16:00,230
research? It’s crazy.

298
00:16:00,620 –> 00:16:02,030
It’s a pretty meaningful line item.

299
00:16:02,030 –> 00:16:04,040
So we’re talking about tens of
millions of dollars a year. Yeah.

300
00:16:04,400 –> 00:16:05,233
Totally.

301
00:16:05,480 –> 00:16:10,160
And my bet is that a lot
of that is going to go

302
00:16:10,160 –> 00:16:15,110
away with social commerce because
you put the products out there.

303
00:16:15,230 –> 00:16:16,790
Now people, what they have to do,

304
00:16:16,790 –> 00:16:20,150
the reason why I love TikTok shop so
much is I own brands over the years.

305
00:16:20,360 –> 00:16:24,050
That’s the thing that we did. I
ran brands. I love building brands.

306
00:16:24,710 –> 00:16:26,960
One of the things I hated
was working with influencers.

307
00:16:27,140 –> 00:16:28,880
I despise working with influencers.

308
00:16:28,880 –> 00:16:31,460
The reason is because you never
know what you’re going to get.

309
00:16:31,460 –> 00:16:33,870
You can pay a thousand dollars
for a post and be like, oh,

310
00:16:33,870 –> 00:16:37,250
is this going to be good? At
least I like the CPM model.

311
00:16:37,250 –> 00:16:39,920
I think that there’s a really
interesting CCP M model like, well,

312
00:16:39,920 –> 00:16:42,890
because then you’re paying for reach. So
if the video works, I’m paying for it,

313
00:16:42,890 –> 00:16:43,640
no problem. Totally.

314
00:16:43,640 –> 00:16:46,670
But I’m not just randomly paying
for something to go out there.

315
00:16:46,970 –> 00:16:50,510
That’s the scary sort of part
of working with influencers.

316
00:16:50,510 –> 00:16:54,470
So when TikTok shop came, I
understood it immediately. I was like,

317
00:16:54,650 –> 00:16:56,870
this is the first time that
we’ve aligned incentives.

318
00:16:56,870 –> 00:17:01,310
And how many salespeople do you
hire? You’re always aligning comp,

319
00:17:01,790 –> 00:17:05,780
the incentives with what you want to
get out of them. That is always what you

320
00:17:05,780 –> 00:17:09,200
do. And it’s the same thing
with influencers. You want
to get sales out your.

321
00:17:09,200 –> 00:17:11,480
Influencers, show me the incentive,
I’ll show you the result.

322
00:17:11,480 –> 00:17:13,070
And it’s very true here as well.

323
00:17:13,490 –> 00:17:18,410
And so all of these creators on TikTok
shop are only incentivized to make

324
00:17:18,410 –> 00:17:22,640
money. Rarely are you paying out
big commissions, right? Sorry,

325
00:17:22,880 –> 00:17:25,340
big retainers. Very, very rarely.

326
00:17:25,820 –> 00:17:28,010
And so let’s think about this.

327
00:17:30,880 –> 00:17:34,130
You are completely incentivized. They
are just trying to sell your product.

328
00:17:34,130 –> 00:17:36,440
And so what they’re going to do is
they’re going to get really creative and

329
00:17:36,440 –> 00:17:38,810
they’re going to think about the different
ways to sell your product and what

330
00:17:38,810 –> 00:17:41,600
exactly is unique about
the product to sell.

331
00:17:41,600 –> 00:17:44,930
And so now you get all of this
market research, you’re like, oh,

332
00:17:45,350 –> 00:17:48,950
it was when they said, use
the eyeshadow under your eyes.

333
00:17:48,960 –> 00:17:51,540
And that’s a cool use case.
I dunno. I dunno makeup.

334
00:17:53,100 –> 00:17:56,400
But what I’m telling you is there’s
all of these different ways with a shoe

335
00:17:56,400 –> 00:17:59,760
brand that we work with. They
came up with catch phrases, Brett,

336
00:18:00,210 –> 00:18:02,940
there’s catchphrases
that the brand now uses.

337
00:18:03,120 –> 00:18:07,860
There was a product for with a shoe
brand that we work with, a very big,

338
00:18:07,860 –> 00:18:11,460
well-known shoe brand. It was a dog,
the product, nobody was buying it,

339
00:18:11,730 –> 00:18:12,563
absolutely no one.

340
00:18:13,470 –> 00:18:17,940
And then the crazy thing is that they

341
00:18:20,290 –> 00:18:25,050
from this product ended up
going absolutely viral on TikTok

342
00:18:26,070 –> 00:18:27,210
selling out completely.

343
00:18:27,720 –> 00:18:32,580
Now Sydney Sweeney is representing
that product and it’s now one of their

344
00:18:32,580 –> 00:18:37,200
core products, the ultimate influencer
of our day right now. What is.

345
00:18:37,200 –> 00:18:38,430
This product? Can you
mention this product?

346
00:18:39,480 –> 00:18:41,610
It’s shoes. I don’t dunno if
I can mention the brand, but.

347
00:18:43,140 –> 00:18:46,050
You can probably search on TikTok for
Sydney Sweeney and Shoes and you’ll see

348
00:18:46,050 –> 00:18:47,220
it. So there you go. Yeah, so check it.

349
00:18:47,220 –> 00:18:51,090
Out and you’ll be like, Sydney
Sweeney represented this shoe brand.

350
00:18:52,080 –> 00:18:55,590
It was incredible. Such
a great play. But guys,

351
00:18:55,740 –> 00:18:59,340
these shoes were sitting
doing nothing. They were dogs,

352
00:19:00,330 –> 00:19:05,100
absolutely. But this person came up
with a really unique hook for this shoe,

353
00:19:05,610 –> 00:19:08,460
and it just ended up going
absolutely viral. And again,

354
00:19:08,460 –> 00:19:10,050
then they got Sidney Sweeney on. Wow.

355
00:19:10,450 –> 00:19:10,950
Crazy, crazy.

356
00:19:10,950 –> 00:19:12,300
This would’ve never happened.

357
00:19:12,300 –> 00:19:15,480
They never in their wildest dreams
would’ve been able to do that through some

358
00:19:15,480 –> 00:19:16,260
kind of focus group,

359
00:19:16,260 –> 00:19:19,920
which is why I’m obsessed with talking
to the big brands and all the time,

360
00:19:21,090 –> 00:19:23,700
I cannot wait to tell people about some
of these huge brands that we’re working

361
00:19:23,700 –> 00:19:27,450
with because it’s really, really
fun. And you’ll be like, oh,

362
00:19:27,990 –> 00:19:32,430
this old chap is coming into
the social commerce space.

363
00:19:32,730 –> 00:19:33,430
Interesting.

364
00:19:33,430 –> 00:19:37,600
Yeah, yeah, I love it. But talk about
real time feedback, unvarnished truth.

365
00:19:38,100 –> 00:19:42,000
This is people taking action and voting
with their attention span and with their

366
00:19:42,000 –> 00:19:44,670
wallet on what they want to pay
attention to, what they care about.

367
00:19:45,060 –> 00:19:49,770
Focus groups are nice but misleading
and kind of old and old approach,

368
00:19:49,950 –> 00:19:53,700
so get real time feedback. You
can get that on TikTok for sure.

369
00:19:53,820 –> 00:19:57,360
So I love that. What
are some misconceptions,

370
00:19:57,360 –> 00:20:00,300
because I talk at a lot
of events as to you,

371
00:20:00,300 –> 00:20:04,290
I’m usually talking about YouTube or
Amazon, but TikTok comes up a lot.

372
00:20:04,440 –> 00:20:09,030
I hear all kinds of wild things sitting
over a lunch or dinner table or talking

373
00:20:09,030 –> 00:20:09,900
in hallways and stuff,

374
00:20:10,260 –> 00:20:14,730
but what are some misconceptions
about TikTok shops that we need to

375
00:20:14,730 –> 00:20:15,930
bust and clarify?

376
00:20:16,650 –> 00:20:21,210
The misconception is that any old
Amazon brand can come over and sell on

377
00:20:21,310 –> 00:20:22,143
TikTok.

378
00:20:23,010 –> 00:20:27,090
The biggest misconception that I see
with all brands is that they think it’s a

379
00:20:27,090 –> 00:20:30,150
demand capture channel.
It’s a demand gen channel.

380
00:20:30,150 –> 00:20:35,040
This is why so many agencies
don’t understand it because
they come from Amazon

381
00:20:35,040 –> 00:20:36,840
world. You and I have talked about this.

382
00:20:36,840 –> 00:20:40,680
A lot of them have been trying to acquire
us because they don’t understand how

383
00:20:40,680 –> 00:20:41,610
to demand gen.

384
00:20:41,970 –> 00:20:42,803
Right?

385
00:20:42,930 –> 00:20:45,990
When you come from direct to consumer,
and I have to say when for me,

386
00:20:45,990 –> 00:20:48,850
coming from direct to
consumer in apparel is,

387
00:20:49,180 –> 00:20:54,160
and not cheap apparel is
the most difficult thing
you can possibly do, right?

388
00:20:55,210 –> 00:20:58,300
Totally agree. Coming from there and
trying to sell on TikTok shop is like,

389
00:20:58,510 –> 00:21:00,190
awesome. This is so easy. So.

390
00:21:00,190 –> 00:21:00,880
Easy.

391
00:21:00,880 –> 00:21:03,220
Yeah, you’re just generating demand.

392
00:21:03,760 –> 00:21:04,120
But.

393
00:21:04,120 –> 00:21:07,990
I think that one of the
biggest misconceptions is
that it’s just easy and that

394
00:21:07,990 –> 00:21:11,710
it’s just going to work. It’s like, no,
it takes a long time. We tell people,

395
00:21:11,710 –> 00:21:15,340
when people come to us, we’re like,
are you willing to light 50 K on fire?

396
00:21:15,670 –> 00:21:17,860
It might not.
Are you willing to?

397
00:21:17,920 –> 00:21:19,450
Now one of your competitors
has done pretty well,

398
00:21:19,450 –> 00:21:23,770
but you need to be willing to light
$50,000 on fire or we can’t talk because

399
00:21:24,220 –> 00:21:25,540
this is one of those channels.

400
00:21:25,810 –> 00:21:29,800
I recently was with the top TikTok
shop agencies, the other ones,

401
00:21:30,130 –> 00:21:32,080
there was four of us in a room and
we were talking and we’re like,

402
00:21:32,080 –> 00:21:36,700
so how are things going? They’re
like, well, things are really,

403
00:21:36,700 –> 00:21:39,340
really good. And I’m like, well,
how good. They’re like, well,

404
00:21:39,340 –> 00:21:44,050
I would say we’re about as good as the
average all star baseball players batting

405
00:21:44,050 –> 00:21:46,960
average. Awesome. So about 400.

406
00:21:47,410 –> 00:21:51,880
So yeah, yeah, three, maybe 400. Yeah,
400 is like Ted Williams type stuff.

407
00:21:52,510 –> 00:21:52,660
So.

408
00:21:52,660 –> 00:21:56,530
Just remember that this is a brand
new channel that we just don’t

409
00:21:57,400 –> 00:22:00,670
know. Now what you get out of
this channel is phenomenal.

410
00:22:00,670 –> 00:22:04,330
I just got off of a workshop that I was
presenting on and I was talking about

411
00:22:04,330 –> 00:22:04,750
this,

412
00:22:04,750 –> 00:22:08,530
and I think that this might be the biggest
takeaway that people get from this,

413
00:22:08,530 –> 00:22:11,110
Brett, is that that content,

414
00:22:11,260 –> 00:22:14,710
even if you light $50,000 on
fire, let’s just say, right?

415
00:22:14,710 –> 00:22:16,270
I’m being hyperbolic here,

416
00:22:16,270 –> 00:22:20,530
but let’s just say that you light
$50,000 on fire and you get back

417
00:22:20,590 –> 00:22:22,930
$20,000 in sales or something like that.

418
00:22:23,530 –> 00:22:28,330
You still have all of this market research
and all of this content now that you

419
00:22:28,330 –> 00:22:32,680
can repurpose across other channels.
YouTube being one of the main ones.

420
00:22:33,310 –> 00:22:35,020
How much inventory is now on shorts?

421
00:22:35,830 –> 00:22:38,950
Think about all of this
incredible content.

422
00:22:38,950 –> 00:22:42,190
I think of TikTok Shop as the content.

423
00:22:42,220 –> 00:22:45,820
TikTok shop content particularly is
the content that moves across channels.

424
00:22:46,090 –> 00:22:50,020
TikTok is a Rubicon, so a Rubicon
being a door that you can enter,

425
00:22:50,200 –> 00:22:53,140
but you cannot leave. It’s a one way door.

426
00:22:53,710 –> 00:22:58,450
TikTok content is a Rubicon. It can
travel wherever you wanted to travel.

427
00:22:58,570 –> 00:22:59,590
You want to travel to Meta?

428
00:22:59,620 –> 00:23:00,010
Yeah.

429
00:23:00,010 –> 00:23:01,450
Awesome. We’re obsessed right now.

430
00:23:01,450 –> 00:23:04,420
So one of the things I didn’t tell
you before at Social Commerce Club,

431
00:23:04,420 –> 00:23:05,830
which is the agency that I run,

432
00:23:06,910 –> 00:23:10,420
unless they’re a huge brand that’s working
with a performance agency that they

433
00:23:10,420 –> 00:23:11,620
just can’t get out of the contract,

434
00:23:11,620 –> 00:23:15,370
we’re actually not taking on anyone that
doesn’t work with us across channels.

435
00:23:15,880 –> 00:23:16,660
Wow. Yeah, I.

436
00:23:16,660 –> 00:23:16,990
Know.

437
00:23:16,990 –> 00:23:18,430
Crazy because that’s smart. I mean,

438
00:23:18,430 –> 00:23:21,970
you’ve got the greatest opportunity to
influence real growth if you do it that

439
00:23:21,970 –> 00:23:22,450
way.

440
00:23:22,450 –> 00:23:22,990
Totally.

441
00:23:22,990 –> 00:23:26,650
And all of the brands that are working
with us are crushing where they’re seeing

442
00:23:26,800 –> 00:23:28,960
all of their channels up here.

443
00:23:28,960 –> 00:23:31,660
And you and I know this consolidation
play in the agency world.

444
00:23:31,810 –> 00:23:36,460
The reason why we’re doing it is so that
we can actually help brands with their

445
00:23:36,460 –> 00:23:41,350
entire business. This is the reason why
you and me and people like us are doing

446
00:23:41,350 –> 00:23:45,980
this sort of thing because it’s
so important for all of the areas.

447
00:23:46,160 –> 00:23:49,250
And so I picture these
creators. First of all,

448
00:23:50,450 –> 00:23:51,890
a year from now or two years from now,

449
00:23:52,010 –> 00:23:54,980
every single brand is going to have a
creator community. And if they don’t,

450
00:23:55,340 –> 00:23:56,270
they’re not going to be around.

451
00:23:57,020 –> 00:23:59,750
They’re going to have a creator community
and they’re going to be leveraging

452
00:23:59,750 –> 00:24:01,850
that creator community. I
tweeted about this yesterday.

453
00:24:02,570 –> 00:24:05,240
I had a UGC creator quote me,

454
00:24:05,240 –> 00:24:10,130
$450 for one post and
$50 a hook. I’m like,

455
00:24:11,240 –> 00:24:14,480
no. In the world of TikTok,
that will not happen.

456
00:24:14,660 –> 00:24:16,400
It just will not happen
because TikTok shop,

457
00:24:16,400 –> 00:24:19,520
they’re just going to do it for free
and they’re going to probably make five

458
00:24:19,520 –> 00:24:20,990
videos. We try it. Social commerce club.

459
00:24:20,990 –> 00:24:25,670
We try and get five videos out of every
single TikTok shop creator. Interesting.

460
00:24:25,880 –> 00:24:28,220
Sorry. Out of every sample we
send out, that is our goal.

461
00:24:28,610 –> 00:24:32,030
That is one of the big
metrics we do that we.

462
00:24:32,030 –> 00:24:35,330
Run every week. Why is
that? So why five pieces,

463
00:24:35,330 –> 00:24:38,480
and then what are you doing to
ensure that? I love this angle. Okay.

464
00:24:39,410 –> 00:24:41,720
So let me walk you through the numbers.

465
00:24:41,780 –> 00:24:46,310
So we know that we must live
in some sort of mathematical,

466
00:24:47,060 –> 00:24:49,370
whatever this world is that we live in,

467
00:24:49,370 –> 00:24:51,530
but there’s weird things
that happen with numbers,

468
00:24:51,530 –> 00:24:53,210
and the Pareto principle
is just one of them.

469
00:24:53,870 –> 00:24:58,190
We know that 80 20 works all the
time. You can just look at an end.

470
00:24:58,190 –> 00:25:02,480
You can continue to go down on
80 20. So the more videos we get,

471
00:25:02,480 –> 00:25:07,190
so let’s say that we seed
to 200 influencers and we
get five videos from each of

472
00:25:07,190 –> 00:25:09,800
them. We’re getting a
thousand work at that point.

473
00:25:11,300 –> 00:25:14,900
We’re getting a thousand
videos from them from there,

474
00:25:15,290 –> 00:25:18,410
200 of those videos are
going to be pretty good.

475
00:25:20,720 –> 00:25:24,830
So 200 of those videos are going to be
good. Now take the 80 20 of those 200.

476
00:25:25,280 –> 00:25:28,580
So now we’re looking at 40 videos
of those will probably go viral.

477
00:25:28,790 –> 00:25:32,240
The more videos we get, the
more chance we have to go viral.

478
00:25:32,300 –> 00:25:33,620
That’s just how it works.

479
00:25:33,890 –> 00:25:34,070
Makes.

480
00:25:34,070 –> 00:25:36,560
Sense. It’s just the
numbers of what works and.

481
00:25:36,650 –> 00:25:40,850
Why the PA principle works. The 20 rule
is so one out of five might work at all.

482
00:25:40,850 –> 00:25:42,590
So if a creator only creates four,

483
00:25:43,190 –> 00:25:45,260
they might not have gotten to
the one that actually works yet.

484
00:25:45,260 –> 00:25:48,410
And so those all four
are a bust at that point.

485
00:25:48,950 –> 00:25:51,500
So the numbers are really
important. Putting in the numbers,

486
00:25:51,500 –> 00:25:55,550
the 650 podcast episodes, this is where
this comes in handy, right? You’re like,

487
00:25:56,210 –> 00:25:57,650
I’m just going to put in the reps.

488
00:25:58,100 –> 00:26:00,500
Most brands will send out a
hundred samples and be like,

489
00:26:00,500 –> 00:26:04,700
TikTok shop doesn’t work.
I’m like, you’re right.

490
00:26:05,030 –> 00:26:08,150
You’re right with that attitude.
You’re absolutely right.

491
00:26:09,410 –> 00:26:10,280
That’s where I get fatherly.

492
00:26:11,150 –> 00:26:15,170
Yeah, exactly. Not with
that attitude. It won’t.

493
00:26:15,890 –> 00:26:19,340
Yeah. So that’s amazing. Let’s
talk about this for a second then.

494
00:26:19,490 –> 00:26:23,120
I want to get into some X factors in a
minute of what really moves the needle in

495
00:26:23,120 –> 00:26:25,250
results. I’m sure it’s a
numbers game, of course,

496
00:26:25,760 –> 00:26:29,600
but what product categories,
what product offers,

497
00:26:30,140 –> 00:26:35,030
what tends to work well on TikTok
and what tends not to work as well

498
00:26:35,420 –> 00:26:36,740
on TikTok? What’s your experience there?

499
00:26:37,220 –> 00:26:40,460
So in general, now there
are exceptions to this rule.

500
00:26:40,460 –> 00:26:45,360
High A OV does not work high,
high A OV does not work. Now,

501
00:26:45,390 –> 00:26:47,520
mind you, I cannot tell
you which brand this is,

502
00:26:47,520 –> 00:26:52,110
but we are working with one of the high
A OV electronics brand that I think is

503
00:26:52,110 –> 00:26:56,880
going to crush their A OV is
going to be around 400 bucks,

504
00:26:57,360 –> 00:27:00,300
but really fun product that you
want to buy on TikTok shop. Now,

505
00:27:00,300 –> 00:27:02,070
I’ve seen Dyson. I wish
that we worked at Dyson.

506
00:27:02,370 –> 00:27:06,330
It’d be a sweet logo and just very
fun to work with because I love their

507
00:27:06,330 –> 00:27:08,940
products. I’ve seen Dyson
starting to crush on TikTok shop.

508
00:27:09,660 –> 00:27:11,010
Think about how Spencer
Dyson are. So there.

509
00:27:11,010 –> 00:27:11,910
Are exceptions to every rule.

510
00:27:12,390 –> 00:27:13,260
Exceptions to every rule.

511
00:27:13,260 –> 00:27:15,420
Couch, oovs, like AOV is over a hundred,

512
00:27:15,420 –> 00:27:17,340
or what are you considering high OV here?

513
00:27:17,730 –> 00:27:21,630
I would say anything over 200, I
wouldn’t touch Ninja’s. Done really well.

514
00:27:23,220 –> 00:27:25,140
So Ninja has sold their creamy,

515
00:27:25,140 –> 00:27:29,040
which is round the $200 mark and
done a really, really good job.

516
00:27:29,220 –> 00:27:31,770
Bunch of the influencers at
Social Commerce Club, sorry,

517
00:27:31,770 –> 00:27:34,890
creators at Social Commerce Club work
for Ninja as well, and have done really,

518
00:27:34,890 –> 00:27:39,480
really well. So they’re in this
multimillions of dollars a month in sales,

519
00:27:39,780 –> 00:27:44,640
so it can work, but I wouldn’t go
there first if I was a big Got it.

520
00:27:45,210 –> 00:27:46,043
Totally makes sense.

521
00:27:46,530 –> 00:27:49,320
Yeah. I would work with TikTok,
shop creators to create content.

522
00:27:49,320 –> 00:27:51,510
So we do that at Social
Commerce Club and be like, Hey,

523
00:27:51,780 –> 00:27:54,870
let’s not go all in because we have
to send these massive samples too.

524
00:27:57,540 –> 00:28:00,690
Really big backpack company came to
us recently wanting to work with us,

525
00:28:00,690 –> 00:28:04,680
and their cost of goods is like a hundred
bucks per backpack. And I was like,

526
00:28:04,680 –> 00:28:04,980
eh.

527
00:28:04,980 –> 00:28:05,813
Tough man.

528
00:28:06,180 –> 00:28:08,910
I don’t want to send that many out
because your post rate is only going to be

529
00:28:08,910 –> 00:28:11,820
about 80%. So 20% of those
aren’t even going to post.

530
00:28:12,240 –> 00:28:16,320
So that just happens. That’s just
part of TikTok shop, unfortunately.

531
00:28:16,350 –> 00:28:20,190
Yep. Yep. Great. So hi ov, avoid that.

532
00:28:20,520 –> 00:28:24,330
Any particular categories
or impulse purchases,

533
00:28:24,330 –> 00:28:25,800
which that’s lower A
OV and stuff like that,

534
00:28:25,800 –> 00:28:29,010
but what categories work versus
don’t work, generally speaking?

535
00:28:29,490 –> 00:28:33,720
So supplements is an interesting
one. If you are a supplement brand,

536
00:28:35,100 –> 00:28:37,110
you’re going to have a hard
time working with an agency,

537
00:28:37,710 –> 00:28:42,300
because I actually saw recently
on the TikTok shop chat,

538
00:28:43,680 –> 00:28:46,530
somebody’s like, Hey, I’ve
got 20 supplement brands.

539
00:28:46,620 –> 00:28:48,720
Don’t want to work with them
anymore. Anybody want them?

540
00:28:48,720 –> 00:28:50,400
Because it’s just a grind.

541
00:28:50,880 –> 00:28:54,450
It is a grind because let’s be honest,

542
00:28:55,050 –> 00:28:57,690
90% of supplements are bs. Right?

543
00:28:58,350 –> 00:28:58,770
Right. That’s.

544
00:28:58,770 –> 00:29:00,270
True. And so you’re.

545
00:29:00,270 –> 00:29:04,110
Trying to, I take a lot of supplements,
but most of them are garbage. Yeah.

546
00:29:04,620 –> 00:29:04,920
Totally.

547
00:29:04,920 –> 00:29:07,890
And so you have to wade through and
figure out what is a good supplement?

548
00:29:08,160 –> 00:29:10,170
What do I actually want to stand behind?

549
00:29:10,170 –> 00:29:13,140
And creators are kind of getting sick
of working with supplements. Now,

550
00:29:13,140 –> 00:29:15,930
another reason why supplements are
so tough is because there’s so many

551
00:29:15,930 –> 00:29:19,050
guidelines that will get your account
shut down if you’re a creator and you talk

552
00:29:19,050 –> 00:29:21,780
about the supplement. So they’re
just like, I don’t want to touch it.

553
00:29:22,110 –> 00:29:24,870
That’s why it’s getting difficult
to sell supplements there. Now,

554
00:29:24,870 –> 00:29:28,260
can you Absolutely. Some of the biggest
brands out there are supplement brands.

555
00:29:28,500 –> 00:29:32,460
Goalie is still one of the top ones,
right? They’ve done an awesome job,

556
00:29:32,790 –> 00:29:35,730
but also they sell great stuff, goalie.

557
00:29:36,690 –> 00:29:40,680
We all know and trust Goalie already.
So there’s already that factor.

558
00:29:41,200 –> 00:29:43,210
So supplements, I’m sorry,

559
00:29:43,870 –> 00:29:47,080
you’re just going to have a more
difficult time doing that, right?

560
00:29:49,390 –> 00:29:53,080
Yeah, you can try. You can try, but it’s
just going to be a lot more difficult.

561
00:29:53,080 –> 00:29:54,970
So just so you are aware.

562
00:29:56,140 –> 00:30:00,370
Right? But things like beauty,
fashion, maybe food and Bev,

563
00:30:00,370 –> 00:30:03,160
some of those categories
tend to work well, right?

564
00:30:03,190 –> 00:30:06,940
Yeah. We have a new beauty brand,
fairly well known who came to us.

565
00:30:06,940 –> 00:30:08,590
They were doing 6,000 a month.

566
00:30:08,590 –> 00:30:13,360
We’ve gotten them this month they’ll
probably do 200 K profitably. So again,

567
00:30:14,020 –> 00:30:16,540
people are like, oh, those aren’t
big numbers. It’s like, well,

568
00:30:16,780 –> 00:30:20,380
actually they’ll have 30 million views.

569
00:30:20,740 –> 00:30:24,940
Do you know how much in media value
that is? Crazy. Amounts insane.

570
00:30:24,940 –> 00:30:25,540
And every other.

571
00:30:25,540 –> 00:30:27,700
Channel is popping. It’s low cpm.
That’s an insane amount of money.

572
00:30:28,090 –> 00:30:28,210
Yeah.

573
00:30:28,210 –> 00:30:28,690
Totally.

574
00:30:28,690 –> 00:30:30,040
Yeah. And you’ve got now,

575
00:30:30,310 –> 00:30:33,070
if you’re selling on Amazon or on
your own Shopify store or whatever,

576
00:30:33,730 –> 00:30:38,560
to buy those 30 million views
on YouTube or on Meta or on

577
00:30:38,560 –> 00:30:41,590
tv, forget about that. It’s a
massive, massive budget. Massive.

578
00:30:41,590 –> 00:30:43,720
Probably had a $30 CPM to buy those views.

579
00:30:44,380 –> 00:30:46,210
Depending on where you’re
buying. Yeah, yeah. I mean,

580
00:30:46,210 –> 00:30:49,630
maybe you get it down into the single
digits if you’re buying certain YouTube

581
00:30:49,630 –> 00:30:51,820
areas or like Amazon DSP or something.

582
00:30:51,820 –> 00:30:55,750
But if you’re buying premium stuff
like YouTube Select or Hulu or Netflix,

583
00:30:55,750 –> 00:30:56,950
$30 CPM for sure.

584
00:30:56,950 –> 00:31:00,130
So people don’t get this, Brett,
these are premium placements.

585
00:31:00,130 –> 00:31:04,600
These are in the feed.
This is all premium inventory and it’s

586
00:31:04,600 –> 00:31:05,620
organic inventory.

587
00:31:07,030 –> 00:31:10,150
The thing that we didn’t talk about
before was the ability then to take that

588
00:31:10,180 –> 00:31:11,290
content use.

589
00:31:11,380 –> 00:31:14,530
There’s a tool that I like called
Funnel that identifies the content.

590
00:31:14,560 –> 00:31:17,470
Then you can whitelist that
content right in there.

591
00:31:17,470 –> 00:31:20,590
So you just ask for whitelisting
one click over into meta, right?

592
00:31:20,590 –> 00:31:21,940
And then there’s awesome. I mean,

593
00:31:21,970 –> 00:31:24,370
you’d be able to speak more
into whitelisting on YouTube,

594
00:31:24,460 –> 00:31:28,660
but there’s very simple ways to
whitelist on YouTube as well, right?

595
00:31:28,660 –> 00:31:32,920
This content, and this
is the way of the future,

596
00:31:32,920 –> 00:31:34,750
and this is how brands
are going to succeed.

597
00:31:35,680 –> 00:31:38,740
Totally makes sense. Walk me through
some, what are some of the X factors?

598
00:31:38,830 –> 00:31:41,440
What are some of the things that
need to be true about your brand,

599
00:31:41,440 –> 00:31:45,430
about your product? Is it feature
driven? Is it something new and novel?

600
00:31:45,430 –> 00:31:46,780
Is it something that’s just really visual?

601
00:31:47,050 –> 00:31:50,830
What are some of the X factors that can
help determine whether this is going to

602
00:31:50,830 –> 00:31:52,090
be a success or not?

603
00:31:52,600 –> 00:31:55,270
So that’s the crazy thing.

604
00:31:55,510 –> 00:31:59,350
You can sell boring products
on TikTok shop, right?

605
00:31:59,350 –> 00:32:02,800
I made a whole YouTube video on this.
Here’s how you position boring products,

606
00:32:02,800 –> 00:32:06,610
and actually boring products do really
well. It’s what the creators do with it.

607
00:32:06,610 –> 00:32:11,230
It’s the little bit of the value that
you give to the creators and the little

608
00:32:11,230 –> 00:32:15,730
bit of direction that you give to them
that really make your product go and it

609
00:32:15,730 –> 00:32:19,870
doesn’t need products, don’t need X
factors, they just don’t. That’s great.

610
00:32:20,020 –> 00:32:23,470
I could probably sell a pencil on TikTok
shop. I’ve often thought I’m like,

611
00:32:23,560 –> 00:32:26,650
I want to become a TikTok shop
creator. Just I can show people, Hey,

612
00:32:26,650 –> 00:32:31,090
here’s how you do it. Here’s how
you’re going to go about this.

613
00:32:31,390 –> 00:32:35,110
Storytelling is a really big one.
People who tell really good stories,

614
00:32:35,110 –> 00:32:35,980
they crush.

615
00:32:38,020 –> 00:32:38,890
Nobody thinks they’re selling,

616
00:32:38,990 –> 00:32:42,380
telling that story that lands it’s
benefit oriented, and then yeah,

617
00:32:42,380 –> 00:32:47,360
it can be something simple every day
and can still work. So it’s amazing.

618
00:32:47,360 –> 00:32:48,193
So.

619
00:32:48,290 –> 00:32:53,120
No X factor. I hate to tell everyone
the X factor is your creativity.

620
00:32:53,120 –> 00:32:57,710
Good. That’s good. Yep, yep. So your
creativity, the creative’s, creativity,

621
00:32:57,720 –> 00:33:01,100
creativity, totally makes sense.
So walk us through high level.

622
00:33:01,820 –> 00:33:05,570
What does the TikTok
Shops playbook look like?

623
00:33:05,630 –> 00:33:07,820
So how am I starting,

624
00:33:07,820 –> 00:33:11,690
how am I hopefully not completely
burning my 50 K or whatever,

625
00:33:11,690 –> 00:33:14,450
but how am I starting? How am I finding
influencers? How am I seeding products?

626
00:33:14,870 –> 00:33:16,190
How am I testing, iterating, learning,

627
00:33:16,190 –> 00:33:19,400
and then how am I eventually
getting to viral success?

628
00:33:19,640 –> 00:33:22,280
Totally. So let me walk through
the zero to a hundred K playbook.

629
00:33:22,280 –> 00:33:24,950
There’s three phases
to this playbook, okay?

630
00:33:25,010 –> 00:33:29,750
So number one is make sure your
products are set up correctly,

631
00:33:30,170 –> 00:33:32,360
right? This is a massive part of this.

632
00:33:32,360 –> 00:33:35,210
So make sure that your products
are set up very similar to Amazon,

633
00:33:35,780 –> 00:33:39,830
where you want to make sure that you
have the ability to use to sample.

634
00:33:39,830 –> 00:33:42,830
So if you were using a bundle, sorry,
you’re trying to sell a bundle,

635
00:33:42,830 –> 00:33:45,920
which I highly recommend that you do,
don’t just try and sell $15 products.

636
00:33:45,920 –> 00:33:49,310
Try and bundle those products. You don’t
want to send your bundle out to them.

637
00:33:49,310 –> 00:33:52,460
You want to the creator, you want to
send out one product to the creator,

638
00:33:52,460 –> 00:33:53,690
and then they talk about your bundle.

639
00:33:53,960 –> 00:33:56,150
So making sure that stuff
like that is set up correctly.

640
00:33:56,540 –> 00:33:58,850
Making sure that your listings,

641
00:33:59,000 –> 00:34:03,050
your TikTok shop listings are
pretty and are going to convert.

642
00:34:03,050 –> 00:34:05,540
So there’s a bunch of stuff.
I won’t get into all of that,

643
00:34:05,540 –> 00:34:08,780
but making sure that all of that is
set up correctly is really important.

644
00:34:09,560 –> 00:34:10,490
Then using,

645
00:34:10,490 –> 00:34:15,380
I do not recommend this movement out there
right now of people manually reaching

646
00:34:15,380 –> 00:34:18,380
out to people. I’m like, there’s
no value in manually reaching out,

647
00:34:18,380 –> 00:34:20,900
use a bot.
So I recommend reacher.

648
00:34:20,960 –> 00:34:24,680
I’ve been an advisor to theirs for
quite a while. They’re awesome guys.

649
00:34:24,680 –> 00:34:27,320
They’re really building some cool
stuff. I recommend using them,

650
00:34:28,070 –> 00:34:29,720
or Yuca is the other one that’s out there.

651
00:34:30,710 –> 00:34:35,270
Reach out to as many influencers as
you or creators as you possibly can.

652
00:34:35,390 –> 00:34:37,880
So again, two different
things. Creators, influencers.

653
00:34:38,900 –> 00:34:41,630
So you’re reaching out to
them, offering them product,

654
00:34:41,720 –> 00:34:45,470
seeing if they’re interested. What
does that outreach message look like?

655
00:34:45,830 –> 00:34:47,600
Totally. So sorry, before that,

656
00:34:47,690 –> 00:34:50,930
one thing that I want to make sure
that people understand is that you can

657
00:34:50,930 –> 00:34:54,830
syndicate your reviews from D
two C over into TikTok shop.

658
00:34:54,830 –> 00:34:56,360
Really important that you do that,

659
00:34:57,140 –> 00:35:00,890
because what you’re trying to do at first
is build up all of this social proof

660
00:35:00,890 –> 00:35:03,650
that you don’t have yet. So
if people know, oh, good,

661
00:35:03,650 –> 00:35:07,130
there’s 7,000 reviews that they have from
D two C that you move over there with.

662
00:35:07,580 –> 00:35:10,550
Awesome. Judge Me is a really good
one. It’s like 15 bucks a month.

663
00:35:10,640 –> 00:35:13,850
It actually will scrape all of your
Amazon reviews and move them over again.

664
00:35:14,210 –> 00:35:15,950
Nice. I did not give you that advice.

665
00:35:16,040 –> 00:35:18,500
I think it’s somewhere
grayish in terms of service.

666
00:35:19,400 –> 00:35:20,840
Just know that you can do that.

667
00:35:20,840 –> 00:35:22,040
One, but you need the
social proof there for the.

668
00:35:22,040 –> 00:35:24,860
Influencers and for the shoppers. Exactly.

669
00:35:24,860 –> 00:35:27,530
So the biggest thing that you’re actually
trying to do is you’re trying to sell

670
00:35:27,530 –> 00:35:31,550
to the influencers at first. So what
you’re trying to do is be like, Hey,

671
00:35:31,730 –> 00:35:32,563
by the way,

672
00:35:32,810 –> 00:35:37,070
we’ve sold X number of millions of these

673
00:35:38,960 –> 00:35:42,990
over on Amazon, over on Shopify.
We’re new to TikTok shop.

674
00:35:43,290 –> 00:35:44,100
We would love you.

675
00:35:44,100 –> 00:35:46,890
Look like you’ve got some great content
and that you can really help us out

676
00:35:46,890 –> 00:35:51,000
here. We’d love to offer you X
percentage to be able to do this. Now,

677
00:35:51,300 –> 00:35:53,430
be as generous as possible at first.

678
00:35:53,640 –> 00:35:57,510
So offer whatever your even
is without running ads.

679
00:35:57,870 –> 00:36:02,130
See what that is and offer that. If
you can offer 40% commission at first,

680
00:36:02,250 –> 00:36:04,980
do it like, Hey, look, I’m going
to offer you 40% commission,

681
00:36:05,850 –> 00:36:08,670
and if your videos also let them
know if your videos do well.

682
00:36:08,670 –> 00:36:13,110
We’re going to put ad spend behind
your videos right now. So greater.

683
00:36:13,110 –> 00:36:16,620
Visibility, greater audience growth
for you potentially as an influencer.

684
00:36:16,620 –> 00:36:19,590
Is that kind of part of the
benefit there or the pitch to them?

685
00:36:20,040 –> 00:36:24,780
Totally. And get in on the
ground floor, all of the things,

686
00:36:25,200 –> 00:36:29,040
all the messages that you would use in
multi-level marketing, just use here.

687
00:36:30,690 –> 00:36:33,390
Get on the ground floor, get
your friends involved. I.

688
00:36:35,040 –> 00:36:35,910
Love that. Love that. It’s hilarious.

689
00:36:37,080 –> 00:36:40,830
So one of the things that you’re going
to want to do though at first is make

690
00:36:40,830 –> 00:36:44,640
sure that you have two different
levels of commission set up.

691
00:36:44,670 –> 00:36:48,000
One for organic and one for ads.
Really important that you do that.

692
00:36:48,000 –> 00:36:50,310
You do not want to also give them 40%.

693
00:36:50,310 –> 00:36:51,990
On ads because ads, you’re
funding a lot of that reach.

694
00:36:51,990 –> 00:36:53,460
So that needs to be a lower commission.

695
00:36:54,000 –> 00:36:54,390
Totally.

696
00:36:54,390 –> 00:36:58,110
And as more and more creators get on
there and more people create content on

697
00:36:58,110 –> 00:37:00,750
TikTok, it’s just harder
and harder to go viral.

698
00:37:00,750 –> 00:37:03,600
And so you’ll want to spend a
decent amount of money on ads.

699
00:37:03,600 –> 00:37:04,950
Now when you get to a certain point,

700
00:37:05,280 –> 00:37:07,050
there’s a screenshot that
I shared this morning.

701
00:37:07,050 –> 00:37:11,760
It was like $3,500 worth of ads spend
for like $55,000 worth of sales.

702
00:37:12,060 –> 00:37:12,990
That’s crazy. Crazy.

703
00:37:13,470 –> 00:37:16,080
That is what happens when you
start getting this flywheel going.

704
00:37:16,080 –> 00:37:20,190
That’s like a 14 return on ad
spend. Just wild numbers doesn’t.

705
00:37:20,670 –> 00:37:21,480
Anywhere else.

706
00:37:21,480 –> 00:37:25,110
They’re not crazy numbers, but it
takes a while. You need to be patient.

707
00:37:26,310 –> 00:37:31,260
These things take a while to
be able to happen and snowball.

708
00:37:31,530 –> 00:37:33,660
So just know that this takes a while.

709
00:37:33,660 –> 00:37:38,640
So that’s all part of phase one is
getting those Got it messages out there.

710
00:37:39,300 –> 00:37:40,350
You want to be on it.

711
00:37:40,470 –> 00:37:43,860
So as soon as they say yes and
make sure at this point too,

712
00:37:43,860 –> 00:37:45,750
I don’t know how detailed
we can exactly get here,

713
00:37:45,750 –> 00:37:48,210
but I’ll try and get
into some of the gotchas.

714
00:37:48,510 –> 00:37:51,720
So one of them is making sure that
you don’t auto approve samples.

715
00:37:51,750 –> 00:37:56,010
Make sure you want to, when
have a cast a pretty wide net,

716
00:37:56,040 –> 00:37:59,210
there’s going to be people that say
yes that you don’t want, right? Right.

717
00:37:59,700 –> 00:38:00,533
Cast a wide net.

718
00:38:00,720 –> 00:38:03,570
See who wants to take the sample and
then approve them from there, right?

719
00:38:03,570 –> 00:38:06,840
But don’t be too picky.
Definitely not too picky at first.

720
00:38:07,230 –> 00:38:10,560
I don’t ever go after any creators
that don’t already have GMV.

721
00:38:10,860 –> 00:38:12,090
They have to have GMV.

722
00:38:12,090 –> 00:38:15,300
They have to have produced some revenue
for somebody before I’m going to go

723
00:38:15,300 –> 00:38:16,133
after. Makes sense?

724
00:38:16,350 –> 00:38:17,183
Yep. Yep.

725
00:38:18,600 –> 00:38:18,970
So that’s the first phase.

726
00:38:18,970 –> 00:38:19,803
That’s all phase one.

727
00:38:19,890 –> 00:38:20,850
So yeah, what’s phase two?

728
00:38:21,540 –> 00:38:26,280
So phase two now is seeing what
works and pouring gasoline on that

729
00:38:26,280 –> 00:38:30,270
fire. So now you’ve gotten to your
first thousand sales in phase one,

730
00:38:31,050 –> 00:38:34,770
and now you’re looking and seeing,
okay, who do I now want to recruit for?

731
00:38:34,770 –> 00:38:39,580
A couple different things. One is
brand owned content is awesome,

732
00:38:39,580 –> 00:38:42,100
and what you can do is you can actually
work with some of these creators,

733
00:38:42,160 –> 00:38:46,780
give them a retainer and a percentage
of sales to start posting on your brand

734
00:38:46,780 –> 00:38:47,440
handle.

735
00:38:47,440 –> 00:38:52,030
So that’s one that TikTok is going
to be pushing a lot in Q3 this year.

736
00:38:52,300 –> 00:38:55,150
From what we’ve heard, they’re going to
be pushing brand owned handles a lot,

737
00:38:55,150 –> 00:38:58,630
and so this is where you can start
to hire a creator to do that for you,

738
00:38:59,560 –> 00:39:02,650
for your brand handle. So start
identifying some of those creators now.

739
00:39:02,650 –> 00:39:06,640
Start putting money behind creators that
are doing well and let them know. By

740
00:39:06,640 –> 00:39:09,310
the way, if you do 10 videos for me,

741
00:39:09,310 –> 00:39:12,010
I’m going to put minimum a
thousand dollars behind your ads,

742
00:39:13,000 –> 00:39:17,260
behind your content. That’s where
you start to get this flywheel going.

743
00:39:17,260 –> 00:39:20,500
Start to then take those
people and put them

744
00:39:23,230 –> 00:39:25,300
into a brand owned community. Like I said,

745
00:39:25,360 –> 00:39:28,210
every single brand is going to have a
brand owned community in the future.

746
00:39:28,210 –> 00:39:29,980
We have a massive, really

747
00:39:31,670 –> 00:39:35,470
high GMV creator community at Social
Commerce Club that we have curated and is

748
00:39:35,470 –> 00:39:36,303
incredible.

749
00:39:37,090 –> 00:39:41,800
Start to take those people and put
them into your own brand community.

750
00:39:41,800 –> 00:39:45,130
You can use Discord, you can use
WhatsApp. I like WhatsApp personally.

751
00:39:45,280 –> 00:39:47,560
I think it’s the millennial
in me that likes it.

752
00:39:47,830 –> 00:39:49,420
Discords a great option as well though.

753
00:39:49,870 –> 00:39:53,800
It’s just the engagement on Discord
isn’t quite as high to be totally honest.

754
00:39:53,800 –> 00:39:54,880
People have a million discord. Discord.

755
00:39:54,880 –> 00:39:57,220
Is kind of messy. I don’t really
enjoy being on there personally.

756
00:39:57,220 –> 00:40:00,430
But it’s like being in another
Slack group. You’re just like, oh,

757
00:40:00,430 –> 00:40:04,510
another Slack group. I just can’t
keep up with all these. Oh my gosh,

758
00:40:06,070 –> 00:40:09,850
yes. So this is something
to do at this point,

759
00:40:09,850 –> 00:40:13,000
and then this is where you’re
going to identify. So at first,

760
00:40:13,000 –> 00:40:17,920
I forgot to mention in phase one, you’re
going to pick your top three skews.

761
00:40:18,400 –> 00:40:19,233
After this,

762
00:40:19,270 –> 00:40:22,240
your top three products after this is
where you’re going to start to pour

763
00:40:22,240 –> 00:40:26,520
gasoline on one of them. Go after
one of them as your Heroku, right?

764
00:40:26,710 –> 00:40:28,420
You’ll find out which
one works really well,

765
00:40:28,690 –> 00:40:29,920
and then you’re going to go after that.

766
00:40:30,040 –> 00:40:31,180
This is where you’re
going to start scaling.

767
00:40:31,180 –> 00:40:34,210
But I like that versus just testing
one because you may be wrong.

768
00:40:34,210 –> 00:40:38,140
That may not be the one that takes off
or catches fire on TikTok. So try three,

769
00:40:38,140 –> 00:40:40,150
then zero in on your hero product.

770
00:40:40,150 –> 00:40:43,330
Totally. And if you’re a huge
brand listening to this, try 10.

771
00:40:43,930 –> 00:40:45,160
Just try again.

772
00:40:45,220 –> 00:40:48,640
Try some of your products that might not
be working because people might not be

773
00:40:48,640 –> 00:40:52,030
searching them on Amazon or caring
about them on D two C. Just try.

774
00:40:53,770 –> 00:40:56,680
The worst thing that you can do is you
sent out a bunch of products that weren’t

775
00:40:56,680 –> 00:40:58,810
moving anyway, and you got
some good content out of them.

776
00:40:59,350 –> 00:41:01,660
This is where you’re going to want
to start to build your relationships,

777
00:41:01,660 –> 00:41:04,480
and you’re going to want to start to
ask about whitelisting across other

778
00:41:04,480 –> 00:41:08,200
platforms. So again, this is why I am so
obsessed with this where I’m like, no,

779
00:41:08,200 –> 00:41:09,370
you’re not brands.

780
00:41:09,430 –> 00:41:13,000
You may not work with us on TikTok
shop unless we have the whole thing,

781
00:41:13,000 –> 00:41:17,260
because otherwise you are wasting
all of this incredible content.

782
00:41:18,490 –> 00:41:21,820
That’s the only content you should be
using is all of this creator content

783
00:41:22,060 –> 00:41:23,680
listed. The studies.

784
00:41:24,130 –> 00:41:26,860
Are you’re only get a fraction of the
benefit. You’re creating all this content.

785
00:41:26,860 –> 00:41:29,110
You got all this gold
that’s being created here,

786
00:41:29,110 –> 00:41:31,750
you got to redeploy it or else
you’re not getting max value.

787
00:41:31,780 –> 00:41:36,740
Well, meta just put out a study,
and there’s actually five of them,

788
00:41:36,740 –> 00:41:38,180
five different case studies.

789
00:41:39,110 –> 00:41:42,410
The sort of average across the case
studies is that whitelisted ads,

790
00:41:42,410 –> 00:41:46,310
the CPA is 50% lower than brand ads

791
00:41:47,450 –> 00:41:48,283
would you not do?

792
00:41:48,740 –> 00:41:52,550
Why would you not stop literally
everything you’re doing right now and go

793
00:41:52,550 –> 00:41:54,590
whitelist every single ad that you have

794
00:41:56,090 –> 00:41:59,180
because people buy from other people
that they like know and trust,

795
00:41:59,240 –> 00:42:02,150
not from your brand. Nobody
wants to buy from your brand.

796
00:42:04,430 –> 00:42:05,263
Maybe they do,

797
00:42:06,080 –> 00:42:09,620
but they would much rather buy from
somebody they like know and trust and a

798
00:42:09,620 –> 00:42:11,030
third party that is talking about Totally.

799
00:42:11,030 –> 00:42:15,890
It’s the same principle in everything.
This is the way that SEO works, right?

800
00:42:15,890 –> 00:42:20,240
This is why still the number one
signal in SEO is backlinks because.

801
00:42:20,240 –> 00:42:22,550
It backlinks, even when Google
denies it, it’s still backlink.

802
00:42:22,550 –> 00:42:26,030
It is a vote of confidence from the rest
of the internet right there. Social.

803
00:42:26,570 –> 00:42:30,230
Proof, social proof. There’s no
better way than for you to do that.

804
00:42:30,230 –> 00:42:33,830
That’s why people like Brett and I go
on each other’s podcast to say, Brett,

805
00:42:33,830 –> 00:42:34,850
you are an awesome guy.

806
00:42:34,850 –> 00:42:39,010
I just gave you some of my social proof
over and I’m hoping you’re going to do

807
00:42:39,010 –> 00:42:39,633
the same, Brett.

808
00:42:40,220 –> 00:42:44,720
Yes, exactly, exactly. But it makes a
huge, huge difference. So I love that.

809
00:42:44,720 –> 00:42:47,090
Okay, I think we’re ready
for phase three then.

810
00:42:47,330 –> 00:42:51,350
So phase three is where we get a lot
of brands into, which is really fun.

811
00:42:51,350 –> 00:42:53,300
So this is a hundred thousand
dollars a month plus.

812
00:42:54,650 –> 00:42:58,700
This is where you are going
to now go out to an even

813
00:42:59,000 –> 00:43:02,990
bigger creator community. So this is
where I like to start sending out.

814
00:43:02,990 –> 00:43:05,210
So if you had a hundred
thousand dollars a month,

815
00:43:05,270 –> 00:43:09,710
this is where I want you to start
sending out 500 samples a month to

816
00:43:09,710 –> 00:43:14,360
only the highest SGMV creators
because they can see how much money

817
00:43:14,780 –> 00:43:18,050
people have done on your
particular skew, right?

818
00:43:18,050 –> 00:43:22,430
Or on your particular product id. PID
is as people internally always call it,

819
00:43:22,430 –> 00:43:24,320
I’m like, can you just call it
product id? I hate the word pi. Pi,

820
00:43:27,170 –> 00:43:31,880
but PID is also where you house multiple.
You can house multiple skews in a pi.

821
00:43:32,150 –> 00:43:37,010
So anyway, there’s all that
boring. You can cut that part out.

822
00:43:38,420 –> 00:43:42,290
No, let’s leave it in. The occasional
touch of nerdiness is great.

823
00:43:43,310 –> 00:43:44,143
We want that.

824
00:43:44,550 –> 00:43:49,310
So this is where you’re going to start
to go after a lot of high GMV creators

825
00:43:50,660 –> 00:43:54,260
and then pour gasoline on the other
ones. So now throughout all of this,

826
00:43:54,260 –> 00:43:57,890
we’re using different kinds of ads
throughout. So at first, during phase one,

827
00:43:58,340 –> 00:44:01,010
we’re using product shopping
ads and video shopping ads.

828
00:44:01,010 –> 00:44:03,500
Product shopping ads are
essentially Google Shopping ads.

829
00:44:03,890 –> 00:44:06,050
So if you think about them like
that, they happen on search. Again,

830
00:44:06,440 –> 00:44:09,890
social search is massive. So
they’re happening over there

831
00:44:11,510 –> 00:44:14,090
and we’re just leaving it wide open.
We’re doing video shopping ads,

832
00:44:14,090 –> 00:44:17,750
which are basically spark ads,
whitelisted ads from these creators.

833
00:44:17,750 –> 00:44:20,870
We’re just getting permission to use
them and we’re doing those in phase one.

834
00:44:20,870 –> 00:44:21,703
In phase two,

835
00:44:21,950 –> 00:44:25,970
we’re going to start to set some target
return on ad spends and see how much

836
00:44:25,970 –> 00:44:30,380
better we can get as far as the amount of

837
00:44:30,960 –> 00:44:34,560
efficacy that we’re getting from those
ads during phase one. Don’t care.

838
00:44:34,860 –> 00:44:36,030
Just don’t care.

839
00:44:36,030 –> 00:44:38,730
You’re just trying to get to a certain
level where other creators want to work

840
00:44:38,730 –> 00:44:39,240
with you.

841
00:44:39,240 –> 00:44:43,530
During phase three is where we’re going
to transition into GM v max and GMV Max

842
00:44:43,530 –> 00:44:44,940
is like, it’s

843
00:44:46,440 –> 00:44:50,460
their AI on steroids
that’s working for you.

844
00:44:51,210 –> 00:44:53,580
Once you get to that certain
level into phase three,

845
00:44:53,580 –> 00:44:55,650
that’s where I recommend
going into GMV Max. Now,

846
00:44:55,650 –> 00:45:00,360
the problem is you do not choose
where your ad spend goes with GMV Max.

847
00:45:00,360 –> 00:45:04,740
So I recommend using that at the end.
It’s like a very automated system.

848
00:45:05,070 –> 00:45:06,960
This is where during phase three,

849
00:45:07,110 –> 00:45:11,370
you now want to start identifying other
products that could potentially work and

850
00:45:11,370 –> 00:45:14,730
start seeding those products
as well. Interesting.

851
00:45:15,090 –> 00:45:18,060
That’s the really high
level playbook for you.

852
00:45:19,230 –> 00:45:22,050
So I love that. It was really
a very clear breakdown,

853
00:45:22,050 –> 00:45:23,820
and it’ll be all be in the
show notes. We can see it,

854
00:45:23,820 –> 00:45:28,140
but it sounds like ads are actually a
pretty important component of this, right?

855
00:45:28,140 –> 00:45:32,640
Did you ever see someone excel with
TikTok shops without the ad component?

856
00:45:32,670 –> 00:45:34,900
Nope. Nope, nope. Ads have to be a.

857
00:45:34,900 –> 00:45:36,090
Part of that You use at every stage,

858
00:45:36,090 –> 00:45:39,510
or mostly like stage two and stage
three or phase two and three.

859
00:45:40,290 –> 00:45:43,890
No ads need to be a part of it the
entire way through the entire time,

860
00:45:44,250 –> 00:45:45,570
the entire way through. Unfortunately,

861
00:45:46,050 –> 00:45:48,810
you just cannot just send product
out and hope it goes viral.

862
00:45:49,650 –> 00:45:50,850
Totally makes sense. Totally
makes sense. Love it.

863
00:45:50,850 –> 00:45:53,940
Once you pour ads onto it,
creators want to work with you,

864
00:45:54,330 –> 00:45:56,640
you’re going to get into
the algorithm a lot more,

865
00:45:56,640 –> 00:46:00,270
and it’s just the way that it works. It’s
unfortunate too, for organic YouTube,

866
00:46:00,540 –> 00:46:03,960
it’s the same thing, right?
There was a heyday and maybe,

867
00:46:03,960 –> 00:46:08,580
and also if you hit the algo absolutely
perfectly right on organic YouTube,

868
00:46:08,580 –> 00:46:10,260
you can do this. For the most part,

869
00:46:10,260 –> 00:46:14,460
you need to promote that with ads to get
it into the algo and start working for

870
00:46:14,460 –> 00:46:19,080
you. It’s just the way, I hate that
that’s the game, but that’s just the game.

871
00:46:19,770 –> 00:46:22,110
It’s the game. It’s the game.
Totally makes sense there. Totally.

872
00:46:22,110 –> 00:46:23,850
It makes sense. Well, let’s step
back a little bit. First of all,

873
00:46:23,850 –> 00:46:26,790
this has been fantastic. Thank you,
Jordan. We’re about out of time,

874
00:46:26,940 –> 00:46:29,820
but I want to talk about one
final topic here as we wrap up,

875
00:46:29,820 –> 00:46:33,450
or one big topic and then a
subset. So social commerce,

876
00:46:33,510 –> 00:46:36,540
you and I are both very
bullish on this, obviously.

877
00:46:36,540 –> 00:46:40,740
I think we’re really in the early
innings. It’s going to take off.

878
00:46:40,740 –> 00:46:42,990
I think meta is going to solve it.
I think Google’s going to solve it,

879
00:46:43,170 –> 00:46:43,920
or YouTube rather,

880
00:46:43,920 –> 00:46:46,500
with YouTube affiliate and YouTube
shopping and things like that.

881
00:46:47,220 –> 00:46:49,800
But what are you guys doing
right now with YouTube?

882
00:46:49,800 –> 00:46:51,900
So I know your focus
is mostly TikTok shops,

883
00:46:51,990 –> 00:46:54,660
but you guys are doing some
cool stuff on YouTube as well.

884
00:46:54,660 –> 00:46:55,500
So tell us about that.

885
00:46:55,860 –> 00:46:56,190
Totally.

886
00:46:56,190 –> 00:46:59,550
So we’re beta testing something right
now with a few really big brands that I,

887
00:46:59,550 –> 00:47:04,230
I’m so excited about, and these
are creator ad reads, right?

888
00:47:04,230 –> 00:47:05,640
Within YouTube videos.

889
00:47:06,660 –> 00:47:10,710
The big issue as everybody knows is
trying to actually get ahold of these

890
00:47:10,710 –> 00:47:13,320
creators and then negotiate with them.

891
00:47:13,350 –> 00:47:18,090
So we found an awesome partner that
we are working with right now that

892
00:47:18,090 –> 00:47:22,710
does this using ai, and also there’s
all of the brand safety issues,

893
00:47:22,770 –> 00:47:25,560
all of this kind of stuff.
We are seeing some insane,

894
00:47:25,650 –> 00:47:29,530
insane results with this right
now. Nothing. You guys have seen.

895
00:47:29,530 –> 00:47:32,020
You paying them those
creators on a CPM basis.

896
00:47:32,020 –> 00:47:33,790
So you’re using this AI tool to find them.

897
00:47:34,150 –> 00:47:36,310
Then you’re paying them on
a CCP M basis or commission.

898
00:47:36,310 –> 00:47:38,440
Them on the CCP M basis. Exactly.

899
00:47:38,440 –> 00:47:41,740
And the AI is taking care of all of
the measurement and everything in the

900
00:47:41,740 –> 00:47:44,140
background. Wow. The cool thing is,

901
00:47:44,140 –> 00:47:48,160
is that you’re actually only paying for
the first 30 days of CPMs. Interesting.

902
00:47:48,520 –> 00:47:50,740
And YouTube gets better over
time or the right videos.

903
00:47:50,740 –> 00:47:52,010
Do the right videos get better over time?

904
00:47:52,010 –> 00:47:55,450
They get the long tail on those videos,
massive long tail on those videos.

905
00:47:57,040 –> 00:47:58,240
So it ends up being,

906
00:47:58,240 –> 00:48:02,140
so let’s say you’re paying
like a $50 CPM at first,

907
00:48:02,320 –> 00:48:05,770
your CCP M ends up usually
coming in at about half of that.

908
00:48:05,770 –> 00:48:10,060
The actual effect of ccpm plus,
these are incredible reads,

909
00:48:10,300 –> 00:48:13,270
and they don’t show up as ads.
They’re not skippable, right?

910
00:48:13,450 –> 00:48:16,810
Yep. It’s in the content,
the creator, it’s Mr. Beast.

911
00:48:16,810 –> 00:48:19,120
I don’t know that he does that,
but other creators being like, Hey,

912
00:48:19,120 –> 00:48:22,900
this is the thing I use and this
is why I love it, Ridge wallets.

913
00:48:22,930 –> 00:48:26,110
It’s how Ridge Wallets really
initially got their hockey sick growth,

914
00:48:26,110 –> 00:48:28,870
and now they do a ton of stuff, biggest
spinner on meta stuff like that,

915
00:48:28,870 –> 00:48:33,730
but they did live Nvidia
reads with influencers or with

916
00:48:33,730 –> 00:48:36,010
creators on YouTube. That’s
kind how they took off.

917
00:48:36,370 –> 00:48:37,730
So to me,

918
00:48:37,930 –> 00:48:42,340
this is our foray at Social
Commerce Club into YouTube until

919
00:48:42,730 –> 00:48:43,600
the YouTube,

920
00:48:43,660 –> 00:48:47,860
until YouTube figures out how to
replicate what TikTok Shop has done.

921
00:48:47,860 –> 00:48:50,470
I just want to talk to that. They’re
working on it. They’re working on it.

922
00:48:50,470 –> 00:48:52,870
I think they’ll get there, but
they’re not there yet. For sure.

923
00:48:53,260 –> 00:48:58,090
I’ll tell you why I’m scared about it

924
00:48:58,750 –> 00:49:00,490
is because their platform,

925
00:49:01,030 –> 00:49:05,440
YouTube’s platform is not built
for virality in the same way that

926
00:49:05,440 –> 00:49:06,370
TikTok is.

927
00:49:07,780 –> 00:49:12,460
We have a TikTok shop creator that
has less than 10,000 followers who

928
00:49:12,460 –> 00:49:15,730
produce $250,000 of GMV last month,

929
00:49:16,630 –> 00:49:20,980
less than 10,000 followers. That’s
not the way that YouTube works, right?

930
00:49:21,610 –> 00:49:23,470
Think the algorithm not that aggressive.
You don’t go that viral that quick.

931
00:49:23,470 –> 00:49:23,920
Yeah.

932
00:49:23,920 –> 00:49:24,670
Last time I checked,

933
00:49:24,670 –> 00:49:27,460
you have to have 10,000 followers
to even be in the affiliate program

934
00:49:30,280 –> 00:49:33,490
versus TikTok. It’s like anyone
can go be a TikTok shop creator,

935
00:49:33,700 –> 00:49:37,150
and it’s incredible the amount of people
that are making careers out of this and

936
00:49:37,720 –> 00:49:40,390
literally paying their
house off. It’s wild.

937
00:49:40,450 –> 00:49:43,750
The people that are doing this
YouTube has not yet figured that out,

938
00:49:43,750 –> 00:49:47,080
and I have talked to ’em
many times and told them,

939
00:49:47,080 –> 00:49:49,180
here’s your issues that
you’re having right now,

940
00:49:49,180 –> 00:49:52,480
is that not anyone can just go
on there and do this. Right?

941
00:49:54,160 –> 00:49:57,010
And maybe that’s on purpose.
I don’t know. I don’t know.

942
00:49:57,010 –> 00:49:58,660
I think that it’s going to
be a really cool channel.

943
00:49:58,720 –> 00:50:01,450
I’m bullish on anything Google
does. They do, right? So I.

944
00:50:02,230 –> 00:50:04,240
Think they’ll figure it out. I
mean, the creators are there,

945
00:50:04,240 –> 00:50:08,050
the viewers are there, the watch time
is there, all the components are there.

946
00:50:08,050 –> 00:50:11,560
So unless YouTube just completely
screws it up again and again,

947
00:50:11,590 –> 00:50:14,620
I think they’re going to eventually
nail it. But you’re right,

948
00:50:15,190 –> 00:50:17,170
and content doesn’t go viral as quickly.

949
00:50:17,290 –> 00:50:20,350
Back to my 17-year-old who I’m trying to
convince to spend less time on TikTok,

950
00:50:21,100 –> 00:50:25,810
she’s like, YouTube shorts. I think this
is going to sound real professional,

951
00:50:25,810 –> 00:50:29,510
but I think the work she used was
it’s booty cheeks compared to TikTok.

952
00:50:30,230 –> 00:50:31,580
I’ve never heard that term before.

953
00:50:31,850 –> 00:50:34,100
Isn’t it funny? She’s like, okay,
that’s a weird way to say it, but okay.

954
00:50:34,550 –> 00:50:35,383
She’s like, no,

955
00:50:36,290 –> 00:50:40,850
TikTok learns you so quickly and the
content is all really valuable and what I

956
00:50:40,850 –> 00:50:43,730
want, I don’t get the same thing
on YouTube shorts is what she said.

957
00:50:43,790 –> 00:50:46,400
So I think YouTube’s got some
things to figure out there,

958
00:50:46,400 –> 00:50:50,270
but I am bullish on it. I
think they will figure it out.

959
00:50:50,360 –> 00:50:55,310
And so man, I love what you’re
doing within Nvidia live reads.

960
00:50:55,790 –> 00:50:57,590
Is that something you
can share that source?

961
00:50:57,590 –> 00:51:00,050
So that’s probably a little
bit proprietary there,

962
00:51:00,050 –> 00:51:04,850
the AI tool and what you’re
using to manage all of that.

963
00:51:06,020 –> 00:51:08,540
As of right now, I’m going
to keep that one between.

964
00:51:08,540 –> 00:51:13,190
Totally get it totally between you and
me. So the interesting thing actually,

965
00:51:13,190 –> 00:51:14,023
we were actually,

966
00:51:14,510 –> 00:51:17,300
I was doing some sponsorship kind
of stuff with them and I realized,

967
00:51:17,660 –> 00:51:19,250
and they came to me and they said, Hey,

968
00:51:19,250 –> 00:51:23,420
we have all these giant brands coming in
and we thought that this tool could be

969
00:51:23,420 –> 00:51:26,180
used without an agency and
actually it needs an agency.

970
00:51:26,810 –> 00:51:27,950
Interesting, interesting.

971
00:51:28,910 –> 00:51:33,320
It needs somebody monitoring
it and the AI cannot yet say

972
00:51:33,560 –> 00:51:36,830
approve these things and the
brand safety is really important.

973
00:51:36,830 –> 00:51:38,780
So there has to be someone in the middle.

974
00:51:38,780 –> 00:51:42,320
So it’s either a full-time person on
your team or an agency. Right. Doing it.

975
00:51:42,330 –> 00:51:42,730
Totally makes.

976
00:51:42,730 –> 00:51:43,570
Sense. Totally.

977
00:51:43,570 –> 00:51:44,403
Makes sense.

978
00:51:44,480 –> 00:51:47,240
Awesome. Well Jordan, this
has been fantastic, man.

979
00:51:47,240 –> 00:51:50,390
I absolutely love what you guys are
up to. Love watching your journey,

980
00:51:50,390 –> 00:51:53,270
love doing the podcast
swap with you. Super fun.

981
00:51:53,270 –> 00:51:55,610
And so if there are brands
out there that are like, man,

982
00:51:55,640 –> 00:51:57,620
I need to get on this TikTok shop train,

983
00:51:57,680 –> 00:52:01,040
but I need someone who knows what they’re
doing to guide me through those three

984
00:52:01,040 –> 00:52:05,090
phases, how can they get in touch with
you? Who should get in touch with you?

985
00:52:05,090 –> 00:52:09,650
And then how else can we get
our daily fill of Jordan?

986
00:52:10,760 –> 00:52:13,880
Let’s go to LinkedIn. I am very
active on LinkedIn and Twitter,

987
00:52:14,270 –> 00:52:18,470
so you can go there and just search for
Jordan West marketer over there. But

988
00:52:20,090 –> 00:52:22,040
we work with two levels of brands.

989
00:52:22,220 –> 00:52:25,010
So we work with the bigger brands
on a full service sort of basis.

990
00:52:25,010 –> 00:52:28,550
You can go to social commerce club.com.
That’s the classic agency offering.

991
00:52:28,730 –> 00:52:32,660
There’s something actually recently that
we just launched right now that is in

992
00:52:32,660 –> 00:52:34,730
beta. It’s called Tick
TikTok Shop os Plus.

993
00:52:35,240 –> 00:52:39,140
The idea is that we actually walk
smaller brands through who should not be

994
00:52:39,140 –> 00:52:42,710
hiring an agency who need to be
doing this stuff on their own, right?

995
00:52:42,710 –> 00:52:45,290
These are brands under
5 million ish generally,

996
00:52:46,220 –> 00:52:49,490
and this walks them through their first
six months of scaling from zero to a

997
00:52:49,490 –> 00:52:51,230
hundred thousand. We
meet every single week.

998
00:52:51,620 –> 00:52:54,710
You can tap into all the resources
that we have as an agency,

999
00:52:55,490 –> 00:52:58,490
but it’s more of a done with you
type of program. We are like,

1000
00:52:59,270 –> 00:53:02,780
every single brand we talk to about
this is like yes, yes, yes, yes, yes.

1001
00:53:02,780 –> 00:53:04,940
Because they want to learn the muscle.

1002
00:53:04,940 –> 00:53:09,800
They just don’t have the strategy or the
expertise to do it, and we do. So very.

1003
00:53:09,800 –> 00:53:10,560
Excited about that.

1004
00:53:10,560 –> 00:53:11,393
Love that.

1005
00:53:11,750 –> 00:53:13,490
Love that. And what’s
that called One more time?

1006
00:53:13,490 –> 00:53:15,530
And that’s all@socialcommerceclub.com.

1007
00:53:15,710 –> 00:53:17,990
That’s all@socialcommerceclub.com.
That’s called TikTok.

1008
00:53:17,990 –> 00:53:22,730
Shop OS Plus. Amazing. Love it. Jordan,

1009
00:53:22,790 –> 00:53:27,120
Wes, ladies and gentlemen, Jordan,
really appreciate it, man. Ton of fun.

1010
00:53:27,120 –> 00:53:28,950
Can’t wait for round three or four,

1011
00:53:28,950 –> 00:53:30,690
whatever it’s going to
be when we do this again.

1012
00:53:30,870 –> 00:53:34,230
Absolutely. We not nearly as much time
in between this time, Brett. Okay.

1013
00:53:34,290 –> 00:53:38,190
Yes, yes, yes, yes. Let’s make it a
regular segment. That’s what we got to do.

1014
00:53:38,550 –> 00:53:42,600
Love it. Awesome brother so much,
Brett. Absolutely. And as always,

1015
00:53:42,600 –> 00:53:45,180
thank you for tuning in.
We’d love to hear from you.

1016
00:53:45,180 –> 00:53:48,690
What would you like to hear more of on
the show? And if you’ve not done so,

1017
00:53:48,690 –> 00:53:52,920
we’d love that review on iTunes. Makes
my day, helps other people find the pod.

1018
00:53:52,920 –> 00:53:55,170
And with that, until next
time, thank you for listening.