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Distribution and conversion models for consumer startups
Internet Scale Businesses
joincolossus.comCreator Economy 2.0: What we’ve learned, why it’s hard, and what’s next at andrewchen
andrewchen.com
(1/14)After observing $250M+ in ad spend on @facebook, I’ve noticed that DTC brands that scale very quickly have a few things in common:
- High margins & high AOV
- Business model is focused on retention
- Cross-border activation is simple
- Product is a consumable & impulse buy
Faheem Siddiqitwitter.comFurther, the internet made the marginal cost of distribution go to zero, implying that adding one additional customer is as simple as adding one more row in a database. It’s virtually free. This means the best companies win by providing the best experience, which earns them the most consumers/users, which attracts the most suppliers, which enhances... See more