Today's idea is one I've already started building. I'll share how I built it & how it could become a profitable income-generating business.
Each week I help founders & marketers spark their creativity by sharing a new business idea & how I'd launch & market it.
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It's been a few weeks, but we're back, and welcome to 6 new subscribers!
I have a new article to share with you: Innovation starts at the back
- I discuss how & why the most front-&-center companies do the least amount of innovating.
Also, today's issue is sponsored by Braniac:
People don’t buy products. They buy based on emotions...which is why the best product managers & marketers are masters at harnessing psychology. My friend Michal gathered together 150 of the most powerful biases PLUS things you can't google, like 450+ specific ways to apply the biases to your product or marketing. We're giving the database away for free to 10 people who comment on this LinkedIn post, but you can also access the first 10 cognitive biases for free here!
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Now on to this week's product idea: BuySellBitClout.com
If you haven't heard of BitClout, it's a social media stock market, but instead of investing in companies, you invest in people's coins. You can buy $BitClout with Bitcoin, & then use $BitClout to buy the coins of people on the platform, like $lukecannon727.
Creators earn a % of every purchase of their coin, & coin holders can also win by buying an up & coming creator's coin & hoping it goes up in price. Long-term, creators could also reward holders of their coin with Patreon-like rewards, like exclusive content, private DMs, & more.
Value proposition:
- Where does BuySellBitClout.com fit in? Currently, BitClout.com lets you BUY $BitClout with Bitcoin, but you can't cash out yet (though they say that's coming). Many early BitClout creators have 5x-ed or 10x-ed their initial capital, so BuySellBitClout.com is a way for them to get liquidity by selling their BitClout at a discount to others.
- Btw, if you join BitClout, DON'T buy $BitClout on BitClout.com. You can get it at a discount (10-30%) by buying from people who want to sell theirs. I'm biased, but I recommend BuySellBitClout.com, though BitSwap.Network is an ETH/BitClout exchange being built by some awesome people.
How I'd launch:
- In just a few hours, I built a simple website with Carrd. Since it's easier to find sellers than buyers, I made the landing page emphasize being able to buy BitClout at a discount. With a simple website, a too-good-to-be-true pitch, & users having to trust me to execute the trade, it's only natural for people to think it's a scam, so I called out my personal brands on LinkedIn & Twitter to put my reputation on the line.
- With the website done, the next step was to drive traffic to it. I announced it in a tweet, & over the next several days, promoted it in several more tweets. I also searched "BitClout since:[today's date]" on Twitter & plugged it as a resource for people getting started on BitClout. I got 10 people to fill out the form in the first few days, some wanting to sell tens of thousands of dollars in BitClout. As expected, many more people were interested in selling than buying, & so unless I was willing to put forward lots of my own money, I could only fulfill as many sell orders as I had matching buy orders.
How I'd scale:
- To take BitClout to the next level, a few things would have to happen. First, I'd need to find lots more people interested in buying BitClout, & second, I'd need to automate the BTC/BitClout transactions (currently, the person has to send the BTC or BitClout & once I see that I've received it, I send them the right amount of BitClout or BTC).
- It's not that there aren't people who want to buy BitClout, it's that they go right to BitClout.com & buy there. The trick is to intercept them in the process. There's a huge SEO opportunity to capture the attention of people googling it. But rather than target extremely competitive keywords like "What is BitClout?", I targeted more specific keywords like "How to buy bitclout" & "Where to sell bitclout". If you google "How to buy BitClout", the first search result currently isn't even about BitClout. That's how massive the opportunity is.
- A few other growth tactics I'd try are 1) organic BitClout - remember, BitClout is a Twitter-like social media platform, with tweets (called clouts) & retweets (called reClouts), & 2) Clubhouse - by educating others about BitClout live on Clubhouse, you'll be top of mind when they come around to buying their first $BitClout.
Why it would work:
- Anytime a platform fails to capture all the value it creates (i.e. Twitter), 3rd party tools can jump in to capture that value themselves. And despite hundreds of millions of $ already locked in BitClout, 90% of my followers on Public.com, the social stock trading app, hadn't heard of BitClout. There's lots of room to win just riding the rising tide.
- With such an early & untested market, it's easy to make money by taking advantage of buy/sell spreads. For example, if I buy BitClout from sellers at a 50% discount & turn around & sell it at a 10% discount, I'd pocket a 40% margin - just an example, not real rates.
Why it might not work:
- With prominent investors & a platform that's getting better day-by-day, it's hard to argue that BitClout's a scam. At worst, it could turn out to just be a fad or have another platform build on its idea in a better way. However, my bet is that both BitClout's concept & BitClout itself will last.
Question for you:
What are you early to? What do you know more about than most people? Double down on that.
Thanks for reading all the way to the end! If you enjoyed, consider forwarding to a friend or sharing on Twitter.
Cheers,
Luke
P.S. I'm biased, but if you want to buy BitClout, I recommend BuySellBitClout.com :) and you can find me on BitClout here.
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