Selling to Pets to Make Millions

What’s up? You’re reading Founder Runway, your weekly business workout - no sweat, all gains.

Let’s get into it:

• Trend Experiment Update

• This week’s new trend: AirTag Collars

• This simple side project went from $0 - $30k in 9 months (with barely any work)

Trend Test Update: TikTok CPB

I’ve earned $2759 in total so far. It’s Tuesday as I write this so it hasn’t been a full week yet since the last earnings showing.

So, since last time (5 days ago), I’m up $532. Bit of a slowdown compared to last week, but 2 videos are blowing up as we speak so I think that will put me over at least the $3.5k mark by the time you’re reading this.

I got a lot of questions asking what kind of videos I make.

I just clip podcasts and post them on the account. I use CapCut and add auto-generated captions to the video as well to try and increase retention.

If you want more in-depth info, vote in the poll below and ask a specific question.

Trend of The Week: AirTag Collar

This is a trend I’m very excited about. AirTag Collars are exactly what the name says. A collar for your dog or cat with a little spot to put an AirTag.

The purpose is so that you never, under any circumstances, lose your beloved furry friend.

Warning: Other companies are doing this. But, here’s the kicker: they’re missing out on huge marketing channels… or just have a pretty shitty product.

As you can imagine, the marketing potential of a product like this is unmatched.

Here’s a quick stat that blew my socks off: In 2013, Americans spent $57.8 billion on their pets. By 2022, that number jumped to $136.8 billion!

Pretty nuts. And, in my opinion, that number doesn’t even do it justice. A recent study reported that 68% of pet owners say their pet’s needs contribute heavily to their decision to buy a house, AND which house to buy!

Have I convinced you of how important pets are to people now? Hopefully.

Because this idea is primed for someone who can do it right.

Business Idea: PetSafe

Problem: 

A pet owner’s worst fear is losing their dog or cat. The current market has loads of AirTag collars already, but what it lacks is utilizing the “newer” marketing channels, like influencer marketing and, of course, TikTok shop.

This is a very marketable and potentially emotional purchase by the consumer, and the best way to market products like that is through videos that also feel personal and emotional. The only real marketing going on right now is simple Amazon listings and there’s only so much emotion you can invoke through an Amazon listing.

A lot of competitors on Amazon also have very poor products. The main issue with AirTag collars is the AirTag needs to be “built-in” to the collar (have a little sleeve for it to slide into). Why?

The alternative is a key chain attachment, which typically ends up being chewed and ripped off by the pets (according to the product reviews).

Solution: 

PetSafe will be a direct-to-consumer brand for AirTag collars. Due to the DTC nature, the branding will be very well done.

PetSafe will offer different colors, etc to appeal to the personal taste of the pet owner. The branding and copy will be playful, yet understand when the right time is to be serious. What I mean by that, is the brand shouldn’t be based on fear-mongering, but when it comes down to it, this $25 purchase could potentially save a pet’s life in the event they decide to run free.

To have the best product on the market, the collar with have an AirTag sleeve, rather than a key chain, so it never falls off (and it never bothers their pet).

Customer Acquisition: 

The first order of business will be getting on TikTok shop. It’s a macro trend that would be extremely stupid to ignore.

Depending on the startup budget of the business, you can go a few different ways to start. The first is only doing TikTok shop and individually contacting creators (ideally with pets, but not even necessary) to promote your product via commission only.

The second step is to hire part-time creators to run multiple TikTok brand pages and drive traffic either to your website or the TikTok shop store. This is the “horizontal scaling” method I mentioned in the last newsletter. Typically these creators are paid through a split method. A small monthly retainer and a small commission based on the sales they generate.

The third step is to get your product in the hands of pet influencers (yes, that’s a real thing). There are actual pets (not just pet owners) that are internet famous.

Another customer acquisition method would be direct response. If you have a strong background in copywriting then this is a clear winning product for direct response advertising methods (advertorials, long-form sales letters, VSLs, etc.)

PRO TIP: Follow us on Twitter. I’ll be breaking down more trends on there this week.

This Weird Side Project Makes $30k/year (and you could hypothetically copy it in another industry)

“Good artists borrow, great artists steal” - Pablo Picasso

Here’s a business that makes decent money with very little upkeep.

• Problem: Magicians can’t find work

• Solution: Simple online directory (built on Webflow)

• Price: $299/year to get listed

• Validation Method: Sold 50 spots at $99 each (when launching site)

• Smart Domain Name: ranks #1 in SEO (see image)

• 103 Magicians on the platform x $299/year = $30k/year in revenue

• Costs about $30/month to run

• Started last year: From $0 to $30k in 9 months

• Recurring Revenue!!!

This site idea is extremely low-maintenance and can be replicated for many industries.

• clowns

• comedians

• caricature artists

• fire performers

• dancers

• speakers

• mixologists

• singers

• event planners

• fortune tellers

• etc

In my opinion, it’s gotta be super niche to work this well, but this is a very simple concept and is probably the best idea on the newsletter so far. At least in terms of going zero to one.

Around The Web

• ChatGPT just launched the GPT store! (link)

• What I’m reading (link)

• Some beautiful product photos to base yours on (link)

That’s all for today!