Astute observation by Greg Isenberg:
I think what we’re seeing is this is a part of a bigger opportunity around creators and creating software products. In the past, if you were a creator what you would do would be you’d go the MrBeast approach.
So, MrBeast created a big audience and then he created MrBeast Burgers which was the ghost kitchen selling hamburgers. He created Feastables which is a chocolate bar company.
With creating physical products you have a lot more headaches:
- supply chain
- merchandising
- distribution
- distributors
It’s a lot more difficult to get to the top selling a physical product than it is to get to the top using code.
When I look at the James Clear playbook, I think it looks something like this:
Number one: You own a category.
So you try to own a category. James obviously owns the habits category.
Number two: You build an Internet audience.
James has spent a lot of time — years — building his 321 Newsletter. Even if you go on his Instagram, on which he has a lot of followers — I think in the millions — it’s all about driving people back to the newsletter. So he’s spent years building his newsletter.
Then, you earn credibility (Number three).
Obviously, he’s a New York Times bestselling author. There’s other ways to gain credibility, but I think having credibility when you’re launching a software product is critical.
Fourth is: you build beautiful software for product-market fit.
The Habits app isn’t just an app. It’s beautiful. And I think they did a really good job and, from what I’ve heard from their community, it’s absolutely stunning, and they love it. They’re really enjoying it.
Later in the clip, Greg ballparks potential revenue for creator-concepted apps like James Clear’s at anywhere between $4 million and $40 million a year, unbundled — any or all of which can be IPO’d and/or exited (or just kept for cash flow), creator’s choice.
If you’ve built unencumbered access to your audience (an email relationship with your best fans on a platform you own), this strategy is potentially well within your reach.
But, as Greg points out, don’t just have an app built for the sake of having one. It has to be beautiful.
Example? I’m reminded of food and lifestyle YouTuber Sadia’s app she launched in May.
Again, Sadia’s a YouTuber, not a New York Times bestselling author.
She’s built the needed credibility with an adoring audience on her channel, has her owned platform in place, and now controls a software asset with 8-figure potential…
…all while enduring nowhere near the headaches and hassles of a ghost kitchen.
— Tang
Greg Isenberg’s owned platforms include: Community Empire and GregIsenberg.com.
