Jon Davids’ Post

Visa does it. So does Coke. And Nike too. All these companies are known for one thing. But actually do something else. Here's how it works. ➝ Coca-Cola is a drink company that doesn't make drinks. Or bottles. Or cans. They make syrup. Then they sell the syrup to others who turn it into fizzy fluid. Coke realized that syrup was a much better business than soda. Worth $45B last year. As long as it ends up in that famous red can. ➝ Visa is a credit card company that doesn’t do 'credit' or 'cards'. It's a payment network for banks. So they can send money to each other. But they all need one thing to keep the cash flowing: Trust. So they slap a Visa logo on a 3x2 piece of plastic. And we all trust it. Swiping that plastic 600M times a day. ➝ Nike is a clothing maker that doesn't make clothes. They never have. They figured something out early. Designing the stuff is a good business. But making it is a hassle. So they hire others do that. And it works. As long as they can stamp a swoosh on it. ____ You can make money selling drinks, loans, and clothes. But you can make a lot more money just owning the brand. #marketing #brand #growth P.S. Enjoy this? Grab my new book to make more money from your brand. https://lnkd.in/gtMKi_AN

Jessica Simpson flipped a mediocre music career into a $1 billion fashion empire. And she got knocked down every step of the way. It's a story of wild success, epic failure, and pure stamina. Here’s how it happened. 1/ Early days Rewind to 1997. Jessica's an aspiring singer, shooting her shot at stardom. She lands a record deal and makes an album. It sells 2 million copies. She's a bona fide pop star. For a minute. Album two flops. Her career hits a dead end. She's got tough competition. Jessica is everyone's third favorite. Right behind Britney and Xtina. And she can't seem to break out of C-list stardom. But that all changes in 2003. 2/ Reality hits Jessica goes from pop princess to reality royalty when her show "Newlyweds" premiers. It’s the MTV version of a daily vlog. Cameras are following her around, alongside then husband Nick Lachey. People love it. Newlyweds captures the culture. We watch Jessica decorating her house. Going camping. And of course, eating tuna. It's just enough for fans to fall in love with her all over again. Unfortunately, her on-screen love is fading. Nick and Jessica split and the show ends after 40 episodes. Jessica's career is done. Nah, I'm kidding. Here comes the best part. 3/ Fashion mogul In 2005, Jessica partners with footwear legend Vince Camuto to launch her own line of shoes. They sell out fast. The brand expands to clothes, fragrances, and more. By 2014, sales at Jessica Simpson Collection hit $1 billion. Things are looking bright. Just one problem. Jessica owns just a small slice of the business. The majority is owned by a company called Sequential Brands. And it gets worse. Sequential goes bust in 2021. It files for bankruptcy. And it's about to take down Jessica's namesake empire. But she won't let that happen. 4/ Saving her name Jessica scrounges up every dollar she can find. She mortgages her house and borrows money from her mom. After a gruelling 2-year negotiation, she acquires the 62.5% of the company owned by Sequential. The price tag: $65 million. Now she's in control of her empire. Her name. And her future. 5/ My take Jessica Simpson is a badass. While this whole story was happening, she was also dealing with a divorce, weight issues, and alcohol abuse. Handling it all under a glaring spotlight. And she still found time to nurture a billion dollar brand. Jessica super-served her fanbase. Then when times got tough, she forked up her own cash to save the company. At 44, she's still got a top selling fashion brand. Not bad for a 90's popstar. #marketing #brand #growth P.S. Like this stuff? Then you'll love my weekly newsletter. Hit the link at the top of my profile to subscribe. P.P.S. At Influicity, we help clients use their brands to drive real sales. I love spotlighting people like Jessica Simpson who do it so well.

I just read about a farmer who turned a bowl of macaroni into an $850M payday. I'm talking about Annie Withey. She's the woman behind Annie's Homegrown. It's mac & cheese fit for the Whole Foods crowd. But Annie didn't start in the dinner aisle. She actually started with snacks. Here how it happened. 1/ Early days Rewind to 1985. Annie's in the kitchen. Messing with recipes. She comes up with a white cheddar cheese powder. Then she sprinkles it on some popcorn. It's delicious. So she bags it up and slaps on a label. It's called "Smartfood". And it's a hit. Smartfood is a big seller at fairs, farmers markets, and health food stores. Within a few years, sales hit $15M. Then Frito-Lay swoops in and buys it. Annie's got her first big win. But this was just a warm up. 2/ Macaroni time So now Annie's got some experience with cheese powder. And she decides to sprinkle it on something else. Small pasta shells. But this time she goes organic and natural. It's 1989 and that's the food trend. Annie wants to seize the moment. This time she lands on a simple name: Annie's Homegrown. And it's time to hit the shelves. 3/ Selling time She recycles the Smartfood strategy. Getting her macaroni into natural food shops, local markets, and co-ops. And this time she gets personal. She puts her home phone number on every single box. If customers want to chat, they can call the founder herself. She pushes community growth with in-store sampling and word-of-mouth. And the mouths are moving fast. By 1993, this macaroni is selling 500,000 boxes a year. 4/ Growth After a decade of bootstrapping, Annie brings in an investor. She raises $23M, selling 80% of the company. With the cash infusion, growth explodes. They develop new products like cookies and crackers. They get prettier boxes. And they get more shelf space. • By 2010, Annie's is selling in 25,000 stores. • In 2013, sales climb past $200M And in 2014, General Mills picks up the whole company. This time the price tag is $820M. Pretty good for a bowl of macaroni. 5/ My take Annie did a few things right. → She built the brand on a character → She latched onto a growing movement → She targeted an under-served customer But here's the coolest part of all. She did all this all in the face of ridiculous competition. Kraft Dinner has been around since 1939. Dominating the category. Annie side-stepped them with a wedge. Same product. Totally different customer. Just because a category has an established player, doesn't mean there's no way in. Leaders get lazy. Trends change. New customers roll on up. Find a wedge, build a community, and own your market. #marketing #brand #growth ____ Enjoy this? Get my best stuff to your inbox. Join now at https://jondavids.com P.S. At Influicity, we build customer communities that drive growth. I love spotlighting brands like Annie's who do it so well.

Costco did it. So did Tesla. And IKEA too. They all dominated the market by burning the playbook. When everyone figured out the "smart" approach, these guys did the dumb thing. And it worked. → IKEA is a furniture store that doesn't sell furniture. They sell flat boxes stuffed with particleboard. Up until the 1960's, furniture was sold fully assembled. Take it or leave it. But IKEA went modular. Packing it in pieces. So it's easier to customize. And cheaper to sell. Last year they sold $53B of it. That's a whole lot of boxes of particleboard. → Costco is a mega-retailer with wacky options: Bulk items. Limited selection. Warehouse vibes. Who ever thought this was a good idea? For decades, retailers focused on variety and convenience. Not Costco. Plus they installed the ultimate barrier — paid membership. It's a privilege just to wander these orange aisles. → Tesla is a car company with no dealerships. And that might sound simple. But it was ludicrous 20 years ago. Dealerships have dominated since the 1900's. Manufacturers made the cars. Dealers sold them. But Tesla went straight to consumers. Opening showrooms city by city. Calling them "galleries" to bypass the loopholes. And in 2023, Tesla sold 1.8M vehicles. One driver at a time. _____ Sometimes the dumbest idea is the smartest thing to do. #marketing #brand #growth

This little coffee shop is worth $118M. And it all started with one tiny cart. It's a wild story. So I spent 3 hours digging into the business. • It's called Blank Street Coffee • Run by co-founders Issam and Vinay • They've grown to 65 locations in 4 cities Blank Street is hijacking coffee culture with a totally new playbook. And there’s a lot to learn from how they’re doing it. 1/ Early days Rewind to 2020. Blank Street opens a coffee cart in Brooklyn. They're serving up cold brews and lattes. It's a prime location. And priced right. Drinks are 25% cheaper than Starbucks. Right away, the lines are growing. Vinay and Issam get into hustle mode. They keep the carts coming. Scattered around Brooklyn and Manhattan. And they’re brewing something big. 2/ Think small Fast forward 6 months. Blank Street opens a cafe. It's cramped at just 500 square feet. But it works. It's got earthy tones and a minimal aesthetic. Sleek fixtures and vintage lighting. Local art and chalkboard charm. With just the right amount of Helvetica. But don't be fooled by the Instagram vibes. Behind the pastel green is a brilliant business machine. 3/ Smart operations Blank Street is built lean. The stores are small on purpose. They run cheap. Rent is probably $3,500 a month. Compared to $15K at a typical cafe. Then there's the tech. Locations are stacked with mobile ordering and touchless payments. Plus high-octane espresso machines pumping out 90 cups an hour. All running with just 1-2 employees. And moving fast. Blank Street went from a single store to 50. In one year. They’re frothing lots of lattes. And dripping with dollars. 4/ Unit economics I'm guessing each location has 200 customers a day. Spending $5 an order. Which is $30K per month. Labor, rent, and other costs are likely $22K a month. Leaving $8,000 in fine-filtered profit. That's a healthy 27% margin. And all this caffeinated cash has the attention of investors. 5/ Big money Blank Street is being handcrafted by the smartest VC's in town. Tiger Global and General Catalyst are at the table. Plus the founders of Warby Parker and Allbirds. The company's raised $118M so far. Those tiny stores are sprawling from Boston to London. With plenty more on the way. 6/ My take Blank Street is using the "indie-fication" strategy. That's what I call this trend. And it's a smart approach in building a customer community. But it needs to be genuine. Blank Street partners with local bakeries and artists. They use eco-friendly materials. And they pay people well. They’re brewing up a new era of coffee culture. One chai latte at a time. #marketing #brand #growth ____ Enjoy this? Get my stuff to your inbox. Join here 👉 https://jondavids.com P.S. At Influicity, we build customer communities that drive growth. It's every marketer's secret weapon right now. I love spotlighting brands like Blank Street who do it well.

I got an email by mistake. And turned it into a $200K deal. In less than 10 days. It was 49% luck and 51% hustle. Here's what happened. Rewind to 2012. I had recently folded a media startup I was working on. And I was taking a break. Plotting my next move. Unexpectedly, a marketing exec at a big haircare company emails me. Let's call her Megan. She's planning an ad campaign and wants me to pitch for the business. Remember, I had shut down my company a few weeks earlier. But Megan doesn't know that. She thinks I'm still up and running. So I keep reading the email. Here's what it says: "We're looking for a celebrity to use our hair color product in a video series. We want to use the videos on our site and YouTube. Quick turnaround, need it in 30 days." Budget: $200,000. I think about it for a hot minute. I have nothing else going on. So I hit reply. "Sure — I'll get you a proposal in 24 hours." Then I get to work. _____ → First I call a talent agent I know. She's super-connected in Hollywood. I give her a budget and a deadline. I need a celebrity on-board quick. → Next I throw ad up on Craigslist to find production people. I'll need a camera operator, sound engineer, and photographer. I get quotes from all them. → Last I crunch the numbers. I put together a plan and price to get the whole thing done. Then I send in my proposal. Now I wait. A few days pass. I get an email from Megan. "We're going with your proposal." The deal is mine! Time to make it happen. _____ Three days later, I’m at a Beverly Hills hotel and it’s all coming to life. Makeup, hair, wardrobe, video, photo shoot. I've done small productions before, but nothing like this. I learned a lot while getting paid to be there. _____ I worked my butt off to deliver a solid result for my client. The videos were awesome. Megan was thrilled. And I used this as the launching pad for Influicity. Since then, we've run 100's of campaigns with influencers and celebs. Plus we make podcasts, run social channels, and create content seen by millions. We get to work with amazing clients. And all because I responded to an accidental email. #marketing #growth #entrepreneurship P.S. The celebrity I got for the video was Beth Behrs. She was on a show called Two Broke Girls and was great to work with. That's her and me in the photo. For some reason, the pic looks like it's from 1953. It was 2012, I swear ;)

Kim Kardashian’s business is worth $4B. And it made a ridiculous $750M last year. It’s called Skims. They sell shapewear for every body type. Easily one of the fastest-growing apparel brands ever. I told you about Skims a few months ago. Here's the recap. → First off, how is Kim doing it? Let's rule out a few things. → It's not because she has 362M IG followers. Or because she has a reality show. Or because she's in the tabloids. → People love to serve up these quick answers. But it's level-1 thinking. And it sets a false expectation of how brands actually grow. So let's go deeper. _____ Let's assume Kim could slap her name on anything and drive millions in sales. Easily $20M. Maybe $50M. I’ll go nuts and say Kim is solely responsible for $100M of Skims revenue. Purely off that coveted Kardashian halo. But Skims pulled in $750M in 2023. And $500M the year before. These numbers are absurd. This isn’t some celebrity D2C side hustle. It’s a mega-brand. Grande marque in the making. And I’ll tell you how she's really doing it: 1/ Skims touches on a simple unifying belief Fashion should adapt to your body, not the other way around. Skims prioritizes diversity, inclusivity, and comfort for all. Millions of people can rally behind this. And they do. 2/ Skims proves that they’re the real deal • 100,000 5-star customer testimonials • 29,400 influencer mentions in 2023 • 6M followers on social media • 100's of glowing media reviews Even the rowdy reddit crowd are loving this brand. 3/ Skims super-serves the customer Kim and crew make great shapewear. Simple as that. And that's the cornerstone of this whole thing. No amount of community hacking will work if your product sucks. _____ Skims launched with Kim as the main character. And then did a whole bunch more to build a powerhouse. Influencers are critical to any marketing strategy. But thinking a single person could forklift a $4B brand is insanity. Even if her name ends in Kardashian. #marketing #growth #brand P.S. I cover this entire 3-step formula in my book — in detail. It's the Movement Formula. And it's the cornerstone of brand building. If you want your brand to mean anything to anyone, this is the way. We've been doing it for years at Influicity. Grab the book so you can do it too 👉 https://lnkd.in/gtMKi_AN

Justin Bieber did it. So did Katy Perry. And Jessica Simpson. They all got paid to promote Proactiv. That's the billion dollar pimple popping brand that launched with a single infomercial. Now here's the crazy part. In 2024, infomercials are still selling $200B+ each year. And watching them teaches you everything you need to know about marketing. Here's a cheat sheet. 1/ Create demand before you sell Most people assume that infomercials are designed just to drive sales. They're not. The best infomercials don't even tell you how to buy the product for the first 15 minutes. First make them want it. Then let them have it. 2/ Highlight use cases Infomercial OG Ron Popeil is the master of use cases. Just watch him talk about the 5-Tray Food Dehydrator. You can make homemade banana chips, beef jerky, soup mix, potpourri, and more. Ron lists all theses things individually. One at a time. And he sold millions. I know you're craving some homemade banana chips right now. 3/ Demonstrate at scale Infomercials show the product to everyone at once. Because nobody wants to make an appointment to get the basics. Make your demo widely available, entertaining, and on-demand. 4/ Use testimonials Showcase real people who have used the product. This is the ultimate form of marketing. And infomercials do it all the time. They'll run 3 minutes of testimonials before even telling you how to buy the thing. And they finally do, your credit card is ready. 5/ Create urgency and FOMO It's corny and it works. Every infomercial includes a stack of limited time offers, buy-1-get-3, pay in four easy instalments, only 6 left in stock... you get the idea. You can also throw in countdown clock. It's meaningless. But it sells. _____ Stop wasting time trying to capture demand that doesn't yet exist. Create that demand first. Customers will line up to buy your Snuggie. #marketing #growth #brand P.S. If you find this valuable, then you'll love my new book. It's called Marketing Superpowers. It will teach you how to build a brand so good that getting customers feels like magic. You can grab it now at the link in my profile.

This company makes $96M a day by renting cars. Not every year. Every day. I'm talking about Enterprise. The biggest car rental company in the world. • 9,500 locations • 3 different brands • 417 rentals a minute Here's how they do it. 1/ Figure out the business model Rewind to 1957. That's the year Jack Taylor opens his car leasing business. Customers are getting vehicles for weeks, months, or years at a time. Before long, Jack notices something weird. Customers are asking to borrow cars by the day. He's confused. Because Hertz and Avis already do that. And they're everywhere. But he keeps thinking about it. And then it hits him. 2/ Find a wedge The big guys are not actually "everywhere". They're really only in one spot. At airports. Serving travellers on the road. What about the locals? Those are Jack's customers. And they want to rent cars too. So in 1962, he pivots to rentals. Growth explodes. Within a few years, he's up to 50 locations. St Louis. Atlanta. Nashville. And then he starts thinking big. 3/ Open new channels Fast forward to the 1980's. Enterprise is dominating the local markets. And it's time to open more sales channels. • insurance companies need cars for customers during repairs • government agencies need cars for agents in the field • corporations need cars for employees on the move Each of these segments is worth billions. Enterprise has them all. Adobe rents 15,000 vehicles a year. The Department of Defense is at 55,000. And State Farm is the biggest at 300,000. 4/ Make every dollar Renting cars is a good business. But the cash keeps coming long after the rent dries up. Enterprise makes sure of it. In 2023, they made $3.6B selling their used cars to consumers. Then there's the auctions. Another $2B, selling cars to dealerships. And the rest goes to scrap yards. Even then, Enterprise takes in $50M. Those catalytic converters ain't free. 5/ My Take I love the simplicity of this business. Meshed with relentless execution. And there's so much to learn. → Don't be precious with your business model. When customers want to hand over cash, listen. It could be a bigger opportunity. → Don't assume you're late to the market. Leaders get lazy. New customers roll in. You just need to find a wedge. → Don't operate like everyone else. Enterprise is a family business. No investors. No private equity. These guys play by their own rules. And that's how you make $96M a day renting cars. #marketing #brand #growth P.S. Did you like this? Then you'll love my newsletter. All my best stuff straight to your inbox. Subscribe here 👉 https://jondavids.com