TikTok Shop: die 200 Millionen Dollar Lücke im System

0:00Unternehmer/Gast We sell memberships to TikTok shop creators, where we help them with education, we match make them with brands, and we also give them a community where they connect to other creators. We are currently in the first year we did 3.6 million in revenue, and we want to go >> year? >> First year, yes. And we want to go to yeah, for the next 2-3 years to 30-40 million and then after to 100 million, like the biggest in the industry. >> Okay. [snorts] >> Currently, what is stopping us is nothing really, like we are growing quick. It's just more on business models focus, where should we put the focus on?

0:30We are the first mover, we are currently the biggest in the US, um and >> Really? >> It's Sorry? >> Really? >> Yes, on creator creator community on TikTok shop, yes. >> Okay. >> And um yeah, TikTok is growing quickly, other markets. >> price? >> Uh 50 one of $50 and one of $200. >> All right. Are you getting off of ads, or are you getting off of word of mouth, or what? >> Affiliates. >> Okay. So, who are the affiliates? >> Our creators. They are doing TikTok shops, so they know how to affiliate for products, so they also affiliate for our community. They coach and they are also coaches in the community.

0:59>> through TikTok shop? >> Through TikTok. >> No, no, I know, but like I'm just This is me being curious. >> No, that's not possible, because TikTok is only physical products for now. Future, there will be other products as well. >> Okay, so you just run it through like what, Shopify or >> No, no, just Oh, the the membership Whoop. Whoop. >> Okay, got it. >> That's cool, sorry. >> All right. >> No, but yeah, it's it's >> you'll come to school eventually when you got a business. >> it's No, really it's we we have to think about structure. >> [laughter]

1:23>> So, yeah, we are doing a lot. We do the matchmaking between the brands and creators on the no-code platform. Currently, we are They are building a full-scale platform as well. That platform can scale easier, but the memberships is also very interesting model. Currently, it's about 50/50 in revenue from membership fees and from connecting the brands with the creators and giving them the transitional transaction fee. >> Yeah. >> So, yeah, this more Where do we scale? Where should we focus on? We are also thinking about raising investment potentially for the platform itself. So, we are kind of okay, what is the fastest way to grow to the 200 million?

1:54Alex >> need to raise capital. Why do you need to raise capital? >> That's from the building the platform like >> Yeah, but even then like you're making money, you're growing. Like coding is like with all the AI stuff that's out now like you don't need you need like two really good coders not like a team of 20. >> Yeah. Yeah, it's if you ship fast it's uh so we need quite a few but then we need to be we are looking at the

2:20Alex >> What are your margins now? >> Margins depends yeah on the if you not looking at the gross stuff so higher in the codes and everything that are not really impactful at the moment it's decent margins it's like 50 60% if you take it off it's not the last few months we're really investing heavily so that's not like crazy profit margins we're investing kind of all the way. >> Yeah, I get it. Yeah. So I wouldn't raise capital >> Okay. >> because you have sufficient cash flow now to fund the growth. That's fine. >> Okay.

2:46>> So I don't see that as an issue. >> And the first move advantages that we have because we have it and TikTok is growing very fast on the markets global. >> Yeah. But the thing is is that to get a huge percentage of the market share it doesn't require money. If it did a lot of networks would win. Better well funded. >> The community part is our biggest USP that we build up together at the event as well. >> skill. >> Yeah. But at this hiring the right people that's where we require capital.

3:14>> But I'm saying like if you want to grow as fast as you can then let's take this to the natural extreme. What would be the best thing that could possibly happen in order for you to do that? >> Have all TikTok shop creators on our platform using our stuff and connect to our brand deals. >> Well, that's all of them. But what happened before that? >> More creators. >> Okay. Do you think there'd be like if there was a big creator who got on and made a big deal about it? That would >> That would help yeah for sure.

3:42>> [clears throat] >> Yeah. >> So maybe you have like three to five people who are big names and big faces that can build your brand and drive audience to the platform. They also have their own audiences. >> That's what we have right now So, we have the coaches in our community like one is like 150k followers on TikTok just from teaching TikTok shop creators. >> So, it's like how do we do way more of that? >> So, yeah, focusing purely on that. >> Yeah, cuz that's the biggest growth lever that you have.

4:07It doesn't require a huge amount of capital to go get those people. >> No, that's true. It's more relationship building. The hard thing is that those all creators >> money makes you lazy. Because you just think when you when you have more money, you think how can I solve this with money? But there's a lot of problems that don't get solved with money and money actually impairs your thinking ability, which is why I'm not pro that for you right now. >> Okay. >> So, it's like you have good cash flow. You like by all means eat up all your profit if you want and then put it towards dev. I see that is fine. It's tax efficient, whatever.

4:34Alex >> Yeah. >> Um but I would be bringing You've got one guy. It's like well, what would it take for us to get 100? >> Yeah. >> Okay, if you had 100 of that guy, how much bigger would the business be? >> Yeah, way bigger, of course, yeah. >> Right. So, then what stops you from doing that? >> Great workers creators is work kind of like working with influencers. They feel it's hard sometimes to really get them close to you, to really depend on them. That's our biggest thing. That's our down down side. No, no, of course, but it is the it's the dependency on them which makes growth

5:04>> Dude, new world. Influencers are everything. >> That's true. Yeah, yeah. It's also our biggest USP right now. >> They canceled Colbert. They're going to cancel Fallon. Like all the all the mainstream stuff is dead and dying. >> Yeah. >> So, like and direct response stuff is also like old school pure direct response is is tanking. People are having a really hard time converting. Um and it's because you need brand. Because like all the attention is on creators. And so, all the trust is with creators. >> And that's also how we've been growing from the first

5:31>> Right. So, you're you you get it for your opportunity. You're just not using it for you. >> Yeah, yeah, yeah. >> Right. >> Yeah. >> So, again, said differently from what when I started, if a year from now only one thing was true and that would 10x the company, what is that worth to solve? >> That is true. And then on focus on the back end, like having the two business models I've been talking a lot with all the >> I'm not I'm not I'm not actually as bothered by that

5:57>> Okay. >> as I normally would be because the price is so cheap, it's almost just like a it's just like a cost of entry. You know what I mean? It's almost like So, like for example, Shopify, um you know, they become a payments company over time. >> Yeah. >> But they had, you know, subscription revenue. Like it's okay to have a blended model. I'm not I like I I'd have to look more like we'd have to look more into the hood to understand the like delivery constraints, which is beyond the scope of right now, but um Yeah, I I don't I don't want to answer that like I don't know yet on that one.

6:29Alex Um I don't know yet on that one. In terms of growing, I would find the highest leverage influencers and basically remove everything in my path that's not that. >> Okay. And then pricing models is not a that's another thing we can think about. Some of those who make this great crazy money. >> there's improvement. I just can't say it right now until I like till we look everything. But yeah, that's the But yeah. Interesting. Cool.

6:54>> Yes, thank you. >> Rock and roll. Appreciate you. Does that thinking process help of like, cool, there's a hundred things we could do, but if we just like only had one of these things be true in a year, would like if we just made that thing true, wouldn't all of our goals get accomplished? And if we did that, doesn't that mean that all of our goals would be accomplished? So, why are we doing anything but that? Yeah. >> If you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so, we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.