#224 - Haris Memon: Miracle Brand - 30M+ How to break through the 8 Figure Ceiling | DTC POD: How The Best Brands Are Built podcast

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Episode description

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Episode description

On this episode of DTC Pod, Haris joins Blaine & Ramon to talk about how he built Miracle Brand into a profitable 8 figure brand. They discuss best practices in performance marketing, breaking through the 5M revenue ceiling, the dos/don'ts of working with agencies, incentives of ad networks, a crash course in affiliate networks, why affiliate & retail networks are so effective at scale, how to build with a big exit in mind, how to capitalize (and not capitalize) your business, and much more.

20:10

2 to 3 years ago, it was probably 80% Facebook. these days it's a third because, Facebook for us and everyone in the world was definitely easier three years ago. And I don't mean that just because of iOS 14 and everything going on in the world, just in general, like traffic networks are always going to get more expensive as time passes. CPMs are always gonna rise. Inventory is decreasing and demand is increasing. So at the end of the day, the advertiser and the ad inventory available is always gonna get more expensive year over year.

23:00

Most CPG strategics, the reason they actually buy brands that are already scaling in brick and mortar retail is because that's showing them data at scale. That's proving that you can reach mass market America, that you can outpace the legacy players on the shelves. And that you've already proven a level of turnover at scale at the, and at the most important retailers in the country. So that's why most of the big exits you've seen a hundred, 300, 500 million plus are brands that have substantial retail distribution.

26:30

I can look at a brand and a product and understand whether or not Walmart target CVS into those guys will pick it up. A lot of times, it's it's price point, it's category, it's audience. like, look, you can go to Walmart and go on, a shelf of any category you wanna look at and you can look at their maximum price point. Walmart's not putting a $5 drink in their stores. They're not putting $300 comforters in their stores

55:00

Why Too Much $$ Can Be A Disaster

I think one of the biggest challenges we face in this space is everybody raises too much money. and I don't mean that in a traditional tech way of like, oh, you've burned a hundred million. I just mean that more from like, look a lot of really, really great brands can be amazing 50 to a hundred million exits. but they've raised capital to the point where only a 250 million exit is of success. and you've kind of shot yourself in the foot because look D to C and CPG is not a category with a lot of billion dollar outcomes. It's also not a category with a lot of 500 million outcomes. It's a lot of hundred million outcomes. And if you've raised a 25 million series B, you're gonna have a really tough time getting your board to approve that $75 million acquisition offer.

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