Sean Cannell’s closing arguments v. Kevin Espiritu on Justin Moore’s Creator Debates podcast:
I think the smartest move that any newer creator can make is figuring out the simplest way to get revenue that you could potentially reinvest into something later.
And honestly I gotta warn you:
- with direct-to-consumer brands getting crushed right now,
- with the unpredictability of ad costs,
- with supply chain issues,
- with manufacturing issues and costs,
you’re putting a lot of risk if you start with something physical, especially when funds are low.
So, I recommend trying to come up with the simplest business model that can be the shortest and fastest path to revenue, and then, sure, later when you have more financial stability and perhaps some brand influence then, absolutely, you may diversify your brand into something else
I think it’s a flawed argument to point to Logan Paul or MrBeast, because they already had exponential influence and money.
But for somebody, when money is tight and you may have some sweat equity and you want to do a side hustle, I highly recommend starting with digital products, and that will open the door of opportunity for you to write your own checks in other ways in the future.
Agreed. And I’d add that starting with a digital product offer to your fans isn’t just wise for new and undercapitalized creators.
Even as a more established creator, offering something digital can be a smart toe dip into the water to help you get a sense for how many loyal supporters among your current subscribers are actually on board, and open to a buying experience with you.
With that initial feedback from your audience in hand, you’ll make the decision between a digital or physical product focus with a lot more confidence.
Here’s what was missing from the debate above (and most discussions about how well a creator’s business is doing): Profit.
Annoyingly, venture-raising startup culture has made it standard even among creators to speak of the health of one’s business in terms of revenue.
Along the course of Sean and Kevin’s otherwise well-argued debate, I heard some impressive-sounding numbers — none of which revealed percent net margin.
I don’t care that you’re at 8 to 9 figures in revenue. I care about how much of that revenue your business is keeping (Advantage? Usually digital products, in my experience and observation).
Ultimately, taking the physical vs. digital product path should be a decision based on a number of important factors, not the least of which include:
- who you are
- what you love enough to put your name behind
- the economic demographic of your audience
- your financial risk tolerance
- what you want your life to look like 5 years from now.
If, after weighing the options, you still can’t decide, the answer is digital.
— Tang
Sean Cannell’s owned platforms include: Think Masterclass, Video Ranking Academy, and SeanCannell.com.
Kevin Espiritu’s owned platforms are: Epic Gardening, and KevinEspiritu.com.
Justin Moore’s owned platform is: Creator Wizard.
