# Breaking down Rihanna’s Company (Real Tactics You Can Use)

## Метаданные

- **Канал:** Alex Hormozi
- **YouTube:** https://www.youtube.com/watch?v=eX3Ch_HuR70
- **Дата:** 28.01.2025
- **Длительность:** 43:20
- **Просмотры:** 105,184

## Описание

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If you're new to my channel, my name is Alex Hormozi. I'm the founder and managing partner of Acquisition.com. It's a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I'll give you some stuff you can google to verify below.

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of https://Skool.com, which is a platform for people to build communities online, making a living doing what they love, with people like them.
36 yrs old: I did a $106M book launch selling 3.6M copies of my $100M Money Models book, in 72 hours, breaking the Guinness world record for the fastest selling non-fiction book of all time.

Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).

To all the gladiators in the arena, we're all in the middle of writing our own stories. The worse the monsters, the more epic the story.

You either get an epic outcome or an epic story. Both mean you win.

Keep crushing. May your desires be greater than your obstacles.

Never quit,

Alex

DISCLOSURE
Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary.
Copyright © 2025.

## Содержание

### [0:00](https://www.youtube.com/watch?v=eX3Ch_HuR70) Segment 1 (00:00 - 05:00)

Rihanna is worth $1. 7 billion but the majority of that money is not from music it's from this and it's because of her companies and so today I'm going to analyze Rihanna's flre company Savage xvy and my name is Alex rosi I invest in companies I own acquisition. comom which is a portfolio that makes unreasonable amounts of money so be very impressed and at the very end I'm going to be wearing all of this and so there's five things that her companies specifically Savage xvy does different that I think any business owner can model independent of whether or not you're celebrity and if you watch nothing else about this video make sure to stay for the breakdown of her actual membership offer she has like nine different bonuses that she figured out how to combine to make what would otherwise not be a recurring product into a reoccurring purchase that I thought was really clever that I think every business owner who sells stuff even on any kind of subscription can use so helping me out today will be my lovely assistant Savage and Fenty and let's pull up Rihanna's website okay so here we are so Rihanna looks great this is awesome and she's obviously selling tons of product through the site but the real question is how could she go from zero to global distribution overnight when she has no experience in manufacturing no experience in brick and mortar distribution and arguably probably not that much experience even in online shopping and so she did five things that I want to dial in on so the first thing she did was she partnered for her deficiencies right and so she has three cord deficiencies around this business so the first one is going to be distribution but I mean physical distribution she already has the media brand so she has the eyeballs but how does she get the stuff into people's hands right the second is how do we create the stuff how do we actually do the manufacturing and then thirdly the internet sales side is also a completely different game from making music or you know social media or even to a degree design cuz I would argue that she probably has a much stronger hand in the design of the products which we'll get to in a minute the first is that she partnered with someone with an existing distribution base lvmh and so if you don't know what lvmh is lvmh uh is the holding company of Bernard Arno who's one of the top whatever 15 wealthiest people in the world he's a centa billionaire so if you haven't heard of lvmh you've certainly heard of their companies like Christian Dior Louis vuon javoni Hennessy and Tiffany and Co and they own a ton more beyond that so the first thing she did was she partnered for her deficiency now what does lvmh bring to the table that she could not otherwise have done on her own now to be clear I'm not saying that Rihanna doesn't have the ability to do this it's just that she'd have to learn a ton of skills that's probably not quarter what she's really good at right and so what things did lvmh bring to the table so first and foremost they have distribution so as much as she has the media distribution that's a u there you go maybe I can spell uh she has the media distribution she can get the eyeball attention she has the brand Association which we will talk about but if people want to buy from her the vast majority of people still buy lingerie in person and so even though she has an online store where she can drive people too they have physical retail experience finding locations building them out and basically helping people build a retail model when she has no retail experience the second thing that they could help her on is manufacturing right it's one thing to uh you know make a product to do some Drop Shipping you know connect with some little manufacturer the thing that happens is the bigger you get the more difficult supply chain becomes and the more you need to have Partners who can handle that kind of scale and volume and here's the hard part day one right like it's more common for you to sometimes you partner with someone and they kind of grow with you with their business as your business grows but she's a super mega A-list celebrity day one and so she has access to almost like a global audience day one and so she needs someone with global fracturing and global distribution day one and so just put some numbers on this they have 118 factories globally and over 6,000 retail stores so they have the experience so zooming back out if you're a business owner you're like okay what I mean that's great for Rihanna what can I do with this well number one is distribution is one of those key things that you can make Partnerships for that Mak sense right like for example when I uh invested in school I brought media distribution right I had a lot of people who wanted to start businesses or had businesses and wanted to build communities online and so that was something that I brought to the table and so building distribution either retail physical stores that is something that that's an asset it makes something very valuable that you can bring to a partnership for example again when we had uh gym launch which was the company that I started and sold we had a distribution base of brick andmar gyms and so when I started Prestige Labs which was our supplement company I could sell through that BR brick-and mortar distribution base day one which is why that company within the first month that it's $1. 7 million in sales in the first

### [5:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=300s) Segment 2 (05:00 - 10:00)

month of really being in business and so I I bring that up to say that like there are few things more valuable than building distribution and so the third one to tie this off is that they had retail and online sales experience right so they know how to build out the online presence for all the brands they have under lvmh and they are probably have teams upon teams of Specialists who know how to run direct response ads who know run branding campaigns that have PR Specialists that can go and get her in the right places at the right times all of that stuff and so the big takeaway for me and potentially you and this is something that took me too long to learn is that I think in the earlier part of my career I wanted to learn everything and I think that's very valuable but at some point I believe that businesses are limited by the collective brain power so these are my little brains there we go that are inside of an organization and so if you're the only brain in the organization because you have taught everything you know to every other person then it means that a business is limited on one person's Lifetime and I don't care how smart you are I mean if you're Elon then you know congratulations you're an alien and have beat everyone but for us mere mortals we usually need to get other people in their lifetime of learning and put it all together so that overall we can create a bigger Enterprise and the best people in the world don't do it for free and to give you some scale here her laundry brand alone did over $100 million in sales now it's like how do we know what numbers they're not super public about the numbers and so but I think big picture we can just say they make lots of money what can we learn so number two is she picked a good market now if you've read the book $100 million offers I talk about this before I even get into the offer because your Market is more important than anything else to give you an extreme example if you were selling toilet paper during covid you didn't need to have an amazing offer if you just had toilet paper you had what a starving crowd right on the flip side if you were trying to sell marketing services and you're the best marketing services in the world you're trying to sell it to newspapers that are paper newspapers those things are going down no matter what right and so the first thing that's going to be the biggest lever on the success of the business is who you actually serve to now the vast majority of markets are neither of those extremes they're not dying every day 25% compounded inally in the wrong direction or absolute Supply demand uh discrepancy between the entire world trying to buy toilet paper right most markets I would just consider our normal markets now what she did that was unique and so I'll put it in here I'll pull this up from the book is that there are four components to a market that I like is are they in pain do they have the purchasing power are they easy to Target and are they growing and so let's run through the market that Rihanna selected for her Avatar through this framework so first and foremost were they in pain the answer is yes and she actually followed a rule that I really love when it comes to product is that you want to have lived with the pain of what you're solving typically for a long period of time now Rihanna is a uh she comes from mixed ethnicity she has mixed parents she has a very diverse background and I think as a result of that she also has a very diverse audience and so one of the issues that she found is that lingerie and undergarments uh the nude colors were not actually matching the vast majority of skin tones so they had a hand they had one nude but it didn't match basically anyone and so she had a novel idea which is number one is that she offered 40 different shades of nude underwear and so to quote her she said there needs to be something for a dark skinned girl really pale girl and there needs to be something in between right and so that became the foundation of Savage X fenty's entire business model and so this then laded up to their overall brand approach which is aligned with Rihanna which was about inclusivity and body positivity now part of that is because this was a unique carve out from the traditional uh industry standards not to say that those are right wrong it's just they were different right and the other piece of this is that her personally we've seen her kind of weight Journey over time and so there's been like thicker Rihanna and then there's been thinner Rihanna and so in either of some situations and obviously there's people who are you know like I like Rihanna I like the skinny Rihanna whatever the point is that she has gone through this experience she resonates with the pain and her audience knows that it's authentic when she tries to solve that problem and so the second thing that you want is purchasing power now she had a very difficult decision to make here right lvmh is a luxury brand so this is a company that's known for selling bags for 5,000$ 10,000 $50,000 and sometimes they don't even put the price on their sites because it's so expensive and they ship out one or two products two physical locations which just to keep the scarcity so high now meanwhile let's pull up our site let's see if we can make sure that we don't get banned from YouTube for uh for softcore um look at the prices on these are super reasonable prices $5 for g strings uh I mean actually I'm not really a purchaser of G-strings but I

### [10:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=600s) Segment 3 (10:00 - 15:00)

imagine that's not super expensive $25 12 for 2 for30 you know uh $5 accessories $10 bras $15 Sports Styles $20 Lounge Styles $3 underwear right so there's a lot of very affordable stuff on her site and so for that what she saw for the purchasing power for very large audience was she just made it affordable right and I think that was a good brand move for her given her uh upringing where she came from and kind of like I think it was on brand it was the right move for her so first off did she have pain yes and she lived with that pain and she knew her audience did too so she made the 40 colors next is did she make it price so that the vast majority of audience could buy it yes her audience was everyone so she had to make it affordable for everyone now the next thing is was it easy to find now this is one of the big things that she brought to the table with her distribution she was able to overnight have the world find out about this brand which is an advantage that most people don't have and so she just did a casual overnight 20year career to build her brand so yeah it was overnight naturally but she was able to easily find the audience because she already had them within her community and then finally is this a growing market right and so this is a company that is serving an audience of people that's very diverse they have posit body positivity at least in the US people are getting more of a weight every year and so there's lots of people who feel disenfranchised with the beauty industry now there's a little bit of pendum swing back there fine but buy and L I think that uh we can just look at the projected value of her Market segment and it's growing at a 5% kager right which is basically compounded annual growth rate and so not like she has a lot of Market to go after and the market itself is growing because she's a smart businesswoman lingerie is maybe an80 billion market right at least in 2025 or projected to be but active wear is just under 600 billion all right and that has a 23% annual ized growth rate compounded all right so like this thing so at 23. 5% just to give you context that's doubling every 4ish years all right like very fast so like that means that if you stayed in the same exact percentage of the market that you have that means that your company would double automatically in that same period of time and so this shows the advantage of having a Tailwind versus a headwind like just keeping up with the growth of the marketplace your business doubles not a bad gig and so for her boom she checks off the having a growing market and so when we're picking what industries we're going to go in what adars we're going to serve it's like cool let's make sure that we're going after a clear pain Point that's not being served do they have the ability to pay for what we have can we find them easily and are they likely to continue to get bigger or smaller over time when you ever have a kind of a significant Innovation then you're going to have people who follow right and I'll give you a completely different example uh Sarah Blakeley recently just launched sneaks which is basically like high heels that are sneakers and so her whole thing has been how do I exploit industries that have not made Comfort a standard but are still in Beauty there's going to be a large increase in these high heel sneakers because women want to be comfortable but also want the inches and right now it's underserved and so finding that pain and this is also again like Sarah like just like Rihanna a pain that she had lived with for years so the third big thing that she did exceptionally well was her brand now you're like okay well what is what does that mean with regards to this well she is a mom she's had the change in weight she has different body types and different skin color kind of like herself she's kind of mixed and so because of that it made sense for her to kind of do this brand now big picture what I want to highlight here is why would someone care about buying her stuff versus what they already are currently purchasing so she has this massive audience of people that have positive Affinity towards her positive sentiment they like her songs they like her lifestyle they identify with her she's aspirational so if you've got two bras that you're looking at right two products and one of them is just from a brand that you have no real Affinity towards and the other is one where you have this you're a fan of the person and their price the same and the quality is the same which one you going to go with you're going to switch from the one that you have no real Affinity towards to the one that you do and so she capitalized on that and so one what's happening in a lot of markets is that there are a lot of old corporate brands that don't have personel or have lacked personality lacked Champions and so they've made room for people to come in with a large audience and who have stronger Affinity to then create their own brands with equivalent products uh in terms of quality and design and upset the market really quickly like you're seeing this with Mr Beast and his chocolate bars versus Hershey and I'll say let me give you an example of a brand that's doing this really well in my opinion Nike has been able to stay iconic because they actually leverage personal Brands better than almost anyone else and so it's

### [15:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=900s) Segment 4 (15:00 - 20:00)

like well who's like if LeBron wanted to start his own you know line it's like he could but he just went straight to Nike because if you want to compete with Nike you're not just competing with Nike you're competing with LeBron you're competing with tiger for the the peak of his career you're competing with you know huge teams I should probably name more people that are associated with Nike but all the greats many of them have signed with Nike so it's like you're not just competing with Nike you're competing with all of their legacies so Rihanna came up with this this bra that because she is a mother and she wanted to make it easier for nursing she wanted to have a bra that helped her do that and so she made a bra that did that and that bra she made cheaper with a membership which I'll talk about in a second but I think the underlying thought process here is what can I do to make my product faster for people easier for people or more risk-free right and so these are the vectors of value creation right and I talk about this in the offers book at length it's probably one of the Core Concepts within the book which I refer to as the value equation which is the dream outcome for them is that they want to look sexy they want to feel confident and maybe even relate maybe just a fraction of how Rihanna feels they're like she's cool she's amazing she's Savage she's ferocious right I want to feel like a baddie like her right and then perceive likelihood of achievement well you know what this actually fits me it's actually my skin color this decreases the risk around feeling dumb feeling stupid when you put something on and it's way too small or whatever right and then time delay and effort and sacrifice these are the things like how do we make it easier so she made the clasp easier and then uh she made them more comfortable and then time delay that's going to be more on the logistics of shipping for this type of product compared to maybe a service or something like that and I'm going to talk about how she hammered the value equation in her membership model which she did a number of unique things that I think a lot of people could copy uh who are watching this right now badir Riri uh made her launch campaign and she followed the clear textbook whisper tease shout method and so she did a whisper Campaign which was where she had this kind of mysterious post right where she had Savage xvy which was at that time a mysterious account that she followed it was the only thing she followed and then overnight it got all of this press because it was the only thing she followed and it got all of these followers virtually overnight like 177,000 followers in 24 hours with zero content on the page think about what the whisper phase is right so it call outs it's like an ad the co the key phase here is curiosity right and so this is keep the product itself mysterious and hint at how big of a deal it is but keep wiers short and bonus points if you can show behind the scenes now this then transitions into where she's going for tease right so this is where she then teases the upcoming launch and she starts to fuel excitement so people are starting to guess what is this about now I think people had a decent idea of what this launch was going to be when she made the te's right and so now people like the anticipation begins to build and then finally she transitions to the shout phase which is basically giving people the call to action yes it's live go buy it now Savage X venty and she made it available to her you know hundreds of millions of followers across all platforms and I want to talk about something else that she did really well that I think a lot of us business owners can model so one of the things that Rihanna does exceptionally well is she makes organic content right and one of the key Parts is that she makes her organic content contextual to the platform so if you look here one of the steps in making content that I have inside of the book 100 million doll leads right is that like this is you know the Old Linkedin Facebook Instagram Tinder meme is that you can't walk into a party I think Gary has a great analogy you can't walk into a party uh dressed in a tuxedo when you're going to a club like it looks weird it's out of place even though that tux there's nothing wrong you look like James Bond you look great it might be out of place there now nowadays maybe you'd be you know people would think it looks really cool because I think it would look kind of cool but you get the idea right now she has uh a huge following on Instagram huge following on Tik Tok huge following on YouTube and she makes the content uh platform specific and so there's very little crossover between her Instagram content her Tik Tok content her YouTube content and YouTube and Instagram and so she makes it platform specific so she's very clever marketer uh because she understands how the platforms work and makes platform native content and so here's more or less how she breaks down on Instagram she does a lot more high-fi stuff it's a lot more aesthetic and so she'll do more image-based stuff uh and she'll share photos and you know models kind of showcasing the lingerie now the only behind the scenes material is probably going to just be her stories all right now Tik Tok is short form videos right and so there she's showcasing products a little bit more um and she has kind of hops on more trending sounds and challenges uh and she's a lot more collaborations with other creators and because of Tik Tok shop it's easier for her to have direct purchases right on platform and then finally with YouTube she's using more long form strategy she so more try on hauls reviews promotes her VIP membership which I'll talk about in a second which I think is one of the more clever things that she's done here that I think a lot of businesses will copy that you can too and so if your cous all of this is branding all right so with the exception of her making you

### [20:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=1200s) Segment 5 (20:00 - 25:00)

know direct ass letting people know about the products that they can buy if you just demonstrate the use of the product if you demonstrate expertise if you're in a in a B2B or Services business demonstration in a lot of ways makes the association between you and uh the positive sentiment that you want and if you do that over and over again that is what can take a high information buyer somebody who needs a lot of information before making decision which is the vast majority of the marketplace and then convert them into a customer now number four the next thing she did is she doubled down on Affiliates really hard and I'm a huge fan of Affiliates uh Allen my software company was built uh entirely off of Affiliates Prestige Labs was built off of a distribution base of Affiliates of gym owners and so I'm a huge advocate for Affiliates school is 65% uh affiliate traffic in terms of the percentage of the people who are on school it's people from school who refer other people to school right and so I'm a huge advocate of this because fundamentally Affiliates compound right and they become these permanent nodes of distribution for you and so obviously there's basically two levels of Leverage that she was able to achieve with this business first leverage lvmh's retail distribution base so that's the physical presence and then layered on top of that she was able to Leverage The aggregated Following of many mega stars and what I think is really unique about her affiliate strategy is that you'll notice the different look and feel of the Affiliates I'll name them in a second but like they represent different Beauty ideals and so I think they were very deliberate about who they chose so they have people like the hadit sister gigg and Bella Hadid they had Emily radch Kowski I don't know how to say her name but like very pretty lady but different look they had Norman right again different look lizo different body type right Vanessa hudgin Cindy Crawford Demi Moore and so lots of different looking feels uh to attract a wider audience and I think the common theme between all of those is that they're considered beautiful this is something that's actually taking me a long time to learn is that the Affiliates that you choose have a huge influence and the reason and I wrote this on the same page is a huge influence on your brand it's a bir directional relationship your brand influences who's attracted to the brand who wants to affiliate it and then those Affiliates then reinforce the brand itself of what are we about right what are the associations people make with our products and services and the things they no like can trust all right she followed the affiliate Playbook says chapter inside of $100 million leads uh to a so she found her ideal Affiliates we just covered that now she made them an offer now some of them is sponsor ship some of them they get a SP sponsorship and a percentage of Revenue I would imagine that for the vast majority of these types of deals they're probably almost all just cash sponsorships that they make a certain amount of post every year where they're repping it and they're wearing it and I think at this level I would hope the vast majority of them it was on brand for them as personal influencers to make the association with Rihanna and lvmh because lvmh has an amazing brand too right um now obviously the qualification they were already Superstars uh we already covered how to pay them get them to advertise that what posting Cadence what things we want them to wear right and so we have to think about the value equation also for Affiliates and I think this is one of the most misunderstood part people think they like oh I'm going to have an affiliate program people just automatically promote my stuff that just basically never happens Affiliates basically become another tier of customer for you and you have to make an offer so good they feel stupid saying no just like you would for a customer and so it's like how do I make it easier for them so she sent them banners links uh promotional materials so that it kind of made it turn key for them so they didn't have to you know take a lot of time to think about how they're going to promote it and she could actually make sure that their promotions were still on brand and so to reinforce her Affiliates positions as Premiere right in terms of aspirational uh Savage xvent has a fashion show that actually won an Emmy that was on Amazon Prime and she invited some of those Mega influencers to come and join her to kind of rep it and so this is brand a creative it's brand additive to them so this is like the perfect brand deal is one where both part parties benefit from one another and both Brands go stronger and have more positive sentiment across a wider distribution base than they did prior to the deal because then there's zero cost to the deal there's added Financial value but there's also increased Goodwill and distribution right like that's those are the good types of deals and fundamentally I think that's what she was able to achieve so I'm going to flash up some stats so Instagram actually did a breakdown of this campaign of how they were advertising across uh social media and rather than read you all these stats I'm going to give you the bottom line which is that most direct response marketers it takes everybody a different amount of time to figure this out but let's say this is the world of potential buyers that you have well about this many of them are ready to buy today so this is the classic if you've never heard this sta before it's 97% of people are not ready to buy today and 3% are right and so most direct response marketers are all fighting making better and better offers to this tiny little dot but the clever

### [25:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=1500s) Segment 6 (25:00 - 30:00)

marketers who understand the longer game is that this 97% you move along the Continuum to hear through brand awareness through brand education and positive associations and so there's no mistake that they did a lot of topop funnel awareness a lot of associations a lot of narrative a lot of aesthetic storytelling pairing associations that they deemed quality to their demographic graphic so that when they did make an offer to them they had moved them along this Continuum into their now much larger bucket that everyone else has a 3% bucket they're competing for and maybe they're at a 15% bucket that's five times big that looks like a three there you that's a five um and so fundamentally this is how Brands always beat businesses that are purely direct response you look at the biggest companies in the world they're not like they're not Arbitrage businesses they're not like I can buy a click for a penny and I can sell it for two the thing is that brand advertising outperforms direct response advertising every time as long as you know what you're doing caveat on a long enough time rizon and so in a in 30 days direct response will probably be branding but on a year branding will smash it and that's where you get those 20x 50x sometimes 100x Returns on advertising dollars it happens when you grow the pie and then no one else can compete against you because all of this extra that we grew with the brand awareness is only extra for you and everyone else is still competing for this little Dot and you don't even need to advertise that little dot because you've got this massive pie right here that you grew organically with Goodwill with positive sentiment by the way the reason I make these videos this is all branding the whole point here is that hopefully you can learn some nugget that you can apply to your business and then as a result make more money and Associate that making more money with me and she did this growing of the pie overnight over 20 years right of having more like Platinum hits than almost any musician today um and maintaining a very kind of cool badir uh brand I ranked these in order of what I would deem important St you're like how could distribution from lvmh for partnership be more important well if she didn't have them she wouldn't have a business right she wouldn't be able to manufacture products keep up with the demand she wouldn't have the brick-and mortar distribution that she has she wouldn't even have the necessarily the brand Association of Premium luxury goods all of those things were massively beneficial right the second thing is that she picked the right Market if she had picked the wrong Market to begin with for example I think if she had gone luxury I think that would have been really bad I think people would have been like she's being ridiculous she's so greedy she's which is hilarious uh that she's so greedy really she just made more money doing it this way just because she was being smart it would have just been a bad move given her brand now for example like we do huge you know very big deals in terms of what we do so it makes sense for anything that I would eventually sell to be expensive right it makes sense so second like I said if you don't have a good Market that you're going after it's going to fall in flat ears if she had done a big luxury move and gone like $5,000 $10,000 St I think it would have been a disaster right so she picked the right market and she was clever about the fact that not only did she go after Ling Ray she also went into Athletics stuff right well this is loungewear but the idea is that those are growing at disproportionate faster than population growth and GDP growth she's going into growing markets she's going into drinking she wouldn't have sold anything to begin with third then when you have the growing Market you have the distribution brand allows you to capitalize on it that allows you to get people to switch from what they're currently buying to your thing because they have brand Affinity because of the 20 years of Goodwill that she's built up from the music that people associate with going out from having fun from just relaxing from in their drives all of that positive sentiment built up over years then gets monetized flipped when she starts presenting real products now when she has that then it's like how do I get leverage on that because if she had just done that she would have made plenty of money but how do I get more leverage fourth she brings in the Affiliates now she gets even more leverage on the distribution in terms of media by also getting more inclusion because of different skin types color types Beauty Aesthetics Beauty ideals so she can capture a wider percentage of the marketplace and then finally number five now we talk about the offer all right and so this is in order of importance all right so she had what I would consider a grand slam membership offer because she could have had just a generic offer and I think it probably would have done fine but she did a couple unique things that I think are really worth uh dialing in on now there were some technical components that required her to do this and um she did get a little bit of dings from uh from Regulators but I will talk about that briefly so let's look at the core components of her membership and so there's kind of Three core components here one is so remember the grand slim offer right so you have you want something that's going to be uh easy you want it to be fast low risk all right and then you want it to have the dream outcome all right and so each of these elements of value are actually woven into this membership so it's not just a normal membership where you just uh you know like a a box

### [30:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=1800s) Segment 7 (30:00 - 35:00)

subscription right you pay 50 bucks a month and you get a box of stuff every month that I think would have not done very well and probably would have had a tremendous amount of churn now the amount of members they have on this the sources are kind of varied my guess is she's probably got over a million people on this thing making it easy and fast to join so they do it right at checkout that's not necessarily unique but what I think they did make that unique is that anybody who buys basically buys into not only a discount Club so you save money immediately by joining the club so thing one so let's just let's outline these things so she gives a discount for being the membership is this unique not really there's plenty of discount memberships that exist now number two getting a little bit more unique she also includes VIP benefits that are media related okay so she provides behind the scenes fashion shows access exclusive content that she has inside of an app her VIP extra app um where she shows this stuff so people feel more connected to the movement that she's trying to build with Savage X fenny really clever so this is a brilliant kind of combination of the physical products world and the digital Community World which is something that I'm all in on when it comes to like school right school one of the big reasons I made the investment is because there's so many businesses that benefit from it right like if you're an e-commerce business you should have a community for all of your customers to be in cuz guess what happens there they buy more often they refer more friends they give you feedback back on the products so that you have more insight and Intel so that you know what your next product should be or how to make 2. 0 versions of it to make them even better all of that stuff and the nice thing is you can offer it for free right and the crazy thing is you'd pay for the Intel that you get from a community but here you actually you're going to just convert more people into it so it's awesome all right now here's one of the most clever things she did um I I think I think it was I think this is the best part of this membership is it's skippable all right so what does that mean so remember I said you have to have easy fast low risk now the low risk has multiple components to this so one risk is that I don't get something that I want right that's a big risk um and that has two components one is paying for something that I don't want or that there's just nothing available that I don't want uh she handles the first one with having the different colors the different designs and so that one's kind of handled but in terms of okay what's in my box that I get every month well what they do is they actually personalize the recommendations per person monthly all right so these are all personalized based on your shopping Behavior so once you make your first purchase and you join the community you join the membership they then tailor the recommendations for the box for you every month based on those past purchases all right so this makes it more likely lower risk that you're going to get what you actually want but let's say that you see this box of stuff and you're like well I don't want any of this stuff well she made it skippable and so think about it like this for the first four days of every month they say hey here's the stuff that you can buy here's the stuff that's catered to you and you can say you know what I don't want it this month and it just skips the billing and so you actually just get basically the opportunity to get stuff at a cheaper price and you don't have to even pay to do it you just stay in it and so it's almost like being locked into a free in someways dis membership and then when you choose to buy something and if you assume you would be buying stuff anyways which is what this kind of capitalizes on then the months that you want to buy something you can and with the credit and so this is here's e it's based on a credit system so when you actually buy the subscription doesn't necessarily send you something in the Box they give you a credit that you can then redeem and pick and choose the pieces that you want which also means that let's say you uh get a $60 credit which is the price point that she has if you want to buy a $75 thing you just pay 15 bucks a checkout and worst case scenario let's say that uh you don't want to buy anything that month well next month you're going to have 60 plus 60 so you have $120 that you can spend and so in some ways it almost acts as lay way for some people to almost be like a savings program where they can save up for a special occasion and then Splurge with the discount that's already locked in and so I think this combination of skippable and personalized plus the credit I think this is a really compelling combination that has led to the success of the membership offer these are the big ones but let's talk about other risk things well one they have a 90day fit uh guarantee so that gives so again risk it decreases risk even further right so you're like okay well I want to pay less and have more time to return stuff that makes sense they also get Early Access all right so that's closer to the approximated dream outcome right if we're talking about the four values right so like okay now I get to see this stuff earlier you also get a free annual gift so that's more bonuses right during your birthday month right when people are at the height of their emotional peak of like wanting to feel special they make them feel special and they associate that feeling with the brand brilliant move all right on top of that they have free shipping on all $59 Plus ERS meaning anybody who redeems their credit gets free shipping on whatever

### [35:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=2100s) Segment 8 (35:00 - 40:00)

they buy right so this encourages more people to of course use the membership and they get up to 25% off so it's pretty significant discounts and that's year round right and they get 15% discounts on skin which is a different company overall that's when you start being able to cross pollinate by different companies which is just a brilliant move on her part so look at all these benefits this is what you might consider a bonus stack if you will um just done in a physical product space and on top of that if you but wait there's more right she also has a free underwear pick or bra after every fifth billing now why do you think they did it after every fifth billing because they probably know where their average turn is and so they probably have delayed a bonus past the average Turn Point to give someone immediate reward for staying longer and so then they summarize this on one place which makes it a super Grand Slam offer which is why I wanted to make this video because the amount of people are like man I read the offers book and I just don't know how I can apply to an e-commerce business this is how you right and of course they make cancelling easy uh so you can go there you can call them um and uh you can cancel obviously online and so the core membership offer she presents is $59. 95 a month and it's credit-based and so now let's lock into what are the specific extra bonuses that she does to make this a grand slam offer not just a traditional membership so if you're wondering okay well beyond the first purchase how is she getting these personalizations a brilliant lead magnet so if you don't know what a lead magnet is I covered in the book $100 million leads and so if you want to get more traffic to convert give them something very valuable for free now the point here is that let's say that you just said hey go buy My Thing versus hey try a free thing and then once they get value from the free thing then asking the people got the value to then buy the thing you will get way more people to ultimately buy and so this is kind of a little visual that I have to explain the difference like you might have a 100 people that you talk to you get one sale versus low trust turning them into a high trust audience and then getting three times the sales right which is super common all right and so there's different types of lead magnets now for hers she's using type number one which is revealing a problem and so when you reveal a problem it's doing it through personalization so you can watch as we walk through this and so she's able to personalize recommendations not only based on what they buy but she can also change the shopping experience based on what people already say they want or likee and so at the end of this personalization obviously they have to tie it to a contact so after you go through this so you have sunk cost bias right you have consistency and commitment bias so you've already gone through this and you're like oh shoot I might as well make an account and she still gives you a cookie for doing it which is that she gives you a discount code as soon as you sign up for it and so you can do this in any business so for example for acquisition. for business owners uh we have a scaling road map so it gives you a personalized road map of whatever stage of scaling you're at between 0 and 500 employees and we broke it into 10 stages across eight functions so it's like what do you need to do for sales when you're going from 50 to 99 employees what do you need to do for marketing what do you need to do for customer success what do you need to do for product what do you need do for it what do you need for recruiting what do you need to finance what do you need for HR right for each of these functions what's the problem and what's the solution at each stage right and it's very different going from five to nine employees uh versus going from you know 50 to 100 right so you want to be as personalized in your deliveries as possible and so if you want to check our version out you can go to acis. com roadmap that being said the point of this type of lead magn which I'm obviously a fan of is revealing the problem then you then have your delivery mechanism for what that lead magic is going to be now for her she uses information as the thing that she's basically doing so the for her the lead magnet then turns into physical basically informs uh the physical products that she's going to offer right that's fundamentally the issue now I guess you could have a discount I don't normally consider uh discounts as a lead magnet I kind of see that as a component of an offer um but yeah fundamentally that's how it works and guys don't be afraid of asking for more look at this this is Step eight of eight right like if you need more information to make something more valuable for someone ask for it right like a lot of people have this fear of like oh my conversion rate is going to go down it's like yeah but conversion rate of whom right like of people who really want to buy the thing like they probably will finish it now to be clear there's good friction and bad friction like you don't want to make the user experience clunky but if fundamentally you need the information so that you can give them more value then ask for it like we ask for more information about the business so that we can make a personalized road map for you which we have some automation cool stuff in the background that delivers the stuff that you need at your particular stage in business and so there's more than like hey just your name and phone number right it's personalized so one of the really clever things that credit-based memberships have is that they basically function like gift cards and I'm a huge fan of gift cards for a variety of reasons the biggest one being it's basically getting a interest free loan from your customers all right and so whenever someone you know signs up for a gift card they basically front you money and you haven't done anything yet right so from a cash flow cycle it's a it's the most accelerated cash flow possible they pay you and you don't have to do anything right and so the idea is one you have

### [40:00](https://www.youtube.com/watch?v=eX3Ch_HuR70&t=2400s) Segment 9 (40:00 - 43:00)

faster cash flow which is good second some percentage of people are not going to necessarily redeem it and so that becomes pure profit right because the way that hers is written it's not redeemable for cash in any way all right now I think one of the the unique components of her membership offer really smart because lingerie in of itself right not as recurring of a purchase like if you were if I were to say hey name me a membership type you probably the first thing that came to mind probably wasn't going to be lingre it pro if anything that just when I think lre I think special occasion right which by its very nature is going to be intermittent not recurring on a regular basis right otherwise it wouldn't be a special occasion just be an everyday occasion right and so it's like how do you get people to consistently buy from you well the discount is a huge part because they figured that over the year they're going to buy number one number two they can choose to not purchase anything the whole year and so they can just choose to execute their credit only on the months they do have special occasions but at least it keeps it top of mind and I would imagine that many women her target audience um like shopping and it's almost like window shopping done digitally where they say hey here's a bunch of stuff that we think you might like and some people just enjoy window shopping I mean it's a it's a it's something that women do on a regular basis or people in real life and they do the same thing online people browse and they don't buy anything because they still get some DOP mean or whatever it is that re forces them from looking next thing that she's really gone all in on with this membership is that it's she almost makes it hard to not buy the membership um and so you can look here at her purchase page so first off the button says member add to bag it doesn't say buy it doesn't say guest check out it says member add to bag and you can see the breakdown too where she has kind of like a double price drop right so you've got guest purchase which is almost gray out right you can even see they they changed the pixel so it's a little bit um it's like good better best right and so the worst here is you know guest is $12. 95 right then member is $9. 95 but for you because you're brand new and we're I'm obviously not a g string uh painting collector um maybe I am who never know my other my other life um but it's uh it's $518 so you see this tremendous price drop so 60% off and if someone's like well shoot I'd rather do that and then when you find out oh you can just apply that today and never have to pay again because you skip functionally every other purchase that becomes a very attractive offer but you have to cancel in a month right well you could cancel whenever you want but you probably only be reminded to cancel in a month but at that point they'll present you new stuff and so if you have a membership offer I think making that your primary offer and then basically downselling the premium is one way of doing it that obviously has worked very well for her and I will mention this just because I think it's an obvious one having thirdparty financing is is very uh you'll just make more money so if you don't have that integrated to your site especially if you're doing physical products uh you're typically losing somewhere in the neighborhood of 30% of your sales and so to summarize my rating and critique for this business I rate this a baddy business out of 10 and if you want me to break down or critique another business and run through the models that we teach acquisition. put it below and I'll put it in one in my lineup for next businesses

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*Источник: https://ekstraktznaniy.ru/video/16321*