Reed Duchscher: Inside Feastables, Night Media and Niche Creator Businesses

Podcast Summary

• Staying focused and true to your goals: Embrace single-mindedness and reject distractions to achieve success. Prioritize opportunities that align with your goals and maintain a clear focus on your priorities.

  Focusing on one thing and staying true to your values is essential for success, even when opportunities for distraction arise. During this episode of the 0 Clout podcast, the hosts discussed their interview with Reid from Knight Media, who manages some of the biggest YouTubers in the world. They expressed their disapproval of interviews that solely focus on the success of others, labeling it as disrespectful and clout chasing. The hosts also announced that this was producer Ben's last day, and Ben shared his experience of staying focused on the podcast's growth despite numerous distractions. He emphasized the importance of saying no to opportunities that don't align with your goals and maintaining a clear focus on your priorities. The hosts also encouraged listeners to follow their new podcast, "How to Take Over the World," and expressed their gratitude for the support they have received throughout their journey. Overall, the episode highlighted the importance of staying focused and true to your goals, even when faced with numerous distractions.

• Stay updated on trends while focusing on creating valuable content: Effective marketing involves staying informed about trends, but prioritize creating valuable content over chasing views and clicks. Focus on engaging your audience and collaborating with influencers and producers for successful campaigns.

  Effective marketing requires staying updated on trends, but it's essential to focus on creating valuable content rather than chasing algorithms for views and clicks. The speakers discussed their experiences with podcasting and recommended the "How to Take Over the World" podcast for those interested in great conquerors and achievers. They also highlighted the importance of a producer for the smooth production of their podcast. The speakers also shared their experiences with various influencers and marketing reports, emphasizing the significance of staying informed about marketing trends while focusing on creating engaging content for their audience. Additionally, they discussed their evolving business, Knight Media, which has expanded from talent representation to a creator holding company with a venture studio, a studio for creating shows on streaming services, a venture capital fund, and a growth vehicle.

• Expanding Beyond Talent Management: Individuals in talent management can broaden their income streams by exploring entrepreneurship, investing, and content creation, allowing them to create more value and access new opportunities.

  The talent management business can be limiting in terms of revenue potential and reliance on a few high-profile clients. However, by expanding into other areas such as entrepreneurship, investing, and content creation, individuals in this field can create more value and diversify their income streams. The speaker mentioned their experience in this regard, transitioning from a talent management company to a venture studio with a focus on content creation for streaming platforms. The structure of talent management agencies involves recruiting talent and acting as their business representative, with the potential for exclusive or nonexclusive deals depending on the company. These businesses generate significant cash but have struggled to grow beyond this cash-generating model. By starting in the digital space and representing digital creators, individuals can build a wedge into other industries and use the management company as a means to access bigger opportunities. Examples of successful individuals who have done this include Maverick Carter and Scooter Braun.

• Managers as Business Builders: Effective managers are not just overseeing businesses, they're building them with creators and taking equity in the digital age

  Effective management is not just about overseeing a business, but it can also serve as a gateway to other opportunities. As discussed, managers like Maverick Carter and Rich Paul, who started as high school friends of their clients, have built successful businesses in production, investing, and more. Scooter Braun, who discovered Justin Bieber on YouTube and built a music management company, sold it for a billion dollars due to the potential for long-term royalties from music catalogs. In the digital age, where royalties and residuals may not exist in the same way, these managers have shifted their focus to building businesses with creators and taking equity. Knight Media, for example, has a staff of over 60, with a focus on talent management and business building. These managers have moved beyond just managing talent and have become key players in the creation and growth of new businesses.

• Shifting focus for growth: Focusing on one opportunity can lead to significant growth, even if it means letting go of other projects or responsibilities.

  Focusing on one opportunity can lead to significant growth and success, even if it means letting go of other projects or responsibilities. This was the experience of the speaker when they shifted their energy from managing a creator to growing their own business, Feastables. Before this, the speaker had dreams of becoming a sports agent, but a discovery of YouTube changed the course of their career. The speaker also mentioned the emergence of Kik, a Twitch alternative, and the controversy surrounding its gambling features. The speaker's friend's success story with JM Bullion, a gold buying and selling website, was also brought up. Overall, the conversation highlights the importance of staying adaptable and seizing opportunities when they arise.

• Entrepreneurs taking control of supply chain and distribution channels: Some entrepreneurs, like a former affiliate marketer, create their own companies to control their supply chain and distribution, while others, like Kik, offer lucrative contracts to streamers to potentially become serious competitors in their industry

  When faced with business challenges, some entrepreneurs choose to take control of their own supply chain and distribution channels rather than relying on others. This was the case with a man who started as an affiliate marketer but ended up creating his own company after being dropped by the one that supplied his inventory. Similarly, Kik, a new website, is attempting to lure Twitch streamers with lucrative contracts, allowing them to continue streaming on the platform while earning substantial income from Kik. This strategy could potentially make Kik a serious competitor to Twitch, especially since Kik's business model doesn't rely on ads or subscriptions, but rather on funneling users to their casino. The success of this venture remains to be seen, but it's clear that these entrepreneurs are willing to take big risks and invest significant resources to build their businesses. The financing for these ventures comes from the profits of their existing businesses, such as Stake.com, which is ultra-profitable. The large contracts offered to streamers are real, and it's an intriguing development in the world of streaming and online gambling.

• Kik's Successful Partnership with Creators for Crypto Trading Platform Stake: Kik's partnership with creators for crypto trading platform Stake is a successful combination of cash and equity incentives, allowing creators to stream on multiple platforms and generate significant cash for Kik. The approach of providing instant distribution and consumers to executives is attracting talented leaders, making it a promising venture.

  Kik's partnership with creators for its crypto trading platform, Stake, is a successful combination of cash and equity incentives. This nonexclusive deal allows creators to stream on multiple platforms, funneling traffic between them, which can be more beneficial than an exclusive deal. The creators, who are reportedly not wild or reckless, seem to have things under control and are generating significant cash for Kik. The success of Stake, which has signed big names like Ninja and Drake, has made it a runaway train in the market, and Kik is expected to double down on it in the coming months. The company's approach of providing instant distribution and consumers to executives joining the business is attracting talented leaders, making it a promising venture.

• Securing Funding for Startup CEOs: To become a successful startup CEO, founders must balance cash compensation and equity while securing enough funding to meet retailer demands.

  The process of recruiting CEOs for startups involves offering a combination of cash compensation and equity, similar to what a CEO would receive in a traditional business setting. However, the unique challenge lies in securing sufficient funding to meet the demands of large retailers, who may require significant upfront payments for product orders. This issue was exemplified by the case of Feastables, which faced the need to raise substantial capital to meet Walmart's request to stock their product in thousands of stores. The success stories, such as Prime, which was co-founded by Logan Paul and KSI, demonstrate the power of a strong marketing engine and the potential for exponential growth in the consumer products industry. The founders of Prime, who partnered with an existing beverage company, brought their marketing influence to the table, resulting in impressive revenue figures. Despite the challenges, the potential rewards make the journey worthwhile for many entrepreneurs.

• Unexpected partnerships can lead to success: Successful collaborations can emerge between unlikely allies, driven by mutual business interests and opportunities.

  Successful partnerships can arise from unexpected places, even between longtime enemies. The founders of Prime Hydration, who had not previously achieved significant success with Alani Nu, managed to secure a deal with Logan Paul by presenting an opportunity that resonated with him. Despite their past animosity, Logan's desire to expand his business ventures and the potential of the product led him to partner with KSI, despite their history of personal conflicts. This partnership proved beneficial for both parties, allowing Prime to establish a strong presence in key markets and paving the way for Feastables to enter those same markets more easily. Choosing a category to enter can depend on various factors, such as market size and consumer behavior. The snacks industry, specifically chocolate bars, was chosen by Feastables due to its massive size and holiday seasonality, making it an attractive and profitable category. However, even in a seemingly saturated market, the right partnerships and product offerings can lead to success.

• Entering the Chocolate Industry with Innovation and Global Expansion: The company entered the chocolate industry in 2021, focusing on innovation, gamification, and higher quality ingredients to differentiate themselves from competitors like Hershey's. They aim to expand globally and offer content in multiple languages to reach new markets, despite challenges in the global supply chain.

  The company entered the chocolate industry in 2021, inspired by the success of the Willy Wonka Golden Ticket promotion. They identified Hershey's as their main competitor and focused on innovation, gamification, and higher quality ingredients to differentiate themselves. Chocolate, despite being dominated by a few large players, offers significant revenue potential and opportunities for seasonal sales, especially during holidays. The company aims to expand globally, dubbing their content in multiple languages to reach new markets. Though the chocolate business comes with challenges, such as navigating the global supply chain, the potential rewards make it a worthwhile investment for the company.

• Expanding Business into International Markets: Asia and Middle East: To succeed in international markets, creators must localize content and distribution, understand their audience, and maintain a strong motivation and hands-on approach.

  The speakers in this discussion are focusing on expanding their business into international markets, specifically in Asia and the Middle East, where they see significant growth potential. They plan to localize their content and distribution to better cater to these regions. Despite the vast opportunity, they acknowledge that they are still in the early stages of exploring this business opportunity. The speakers also touch upon the topic of creators' mindset and motivation in building and promoting their brands. Some creators may come across as naive or innocent, but this ignorance can sometimes be an advantage, allowing them to make quick decisions and adapt to the market. The speakers also discuss the importance of understanding the audience and the creator's brand when it comes to promotional efforts. Some creators may be more successful in promoting their brands due to their authenticity or their ability to create a spectacle. Ultimately, the speakers believe that having a strong motivation and a hands-on approach can lead to success in building and growing a brand.

• Creator-owned businesses are on the rise: Creators are increasingly owning and growing businesses around their content, leading to deeper involvement and higher promotion, resulting in significant revenue and employment opportunities.

  The relationship between creators and brands is evolving, with creators increasingly seeking deeper involvement and ownership in the businesses they promote. This shift leads to a higher level of excitement and promotion, as seen in successful creator-owned businesses like Finger on the App and Emma Chamberlain Coffee. Examples of other creator businesses include Rare Candy, owned by a large Pokemon-style creator, and niche businesses like pressure washing and lawn mowing services that have grown significantly from a single TikTok video. These businesses may be larger than people realize, with some creators making tens of thousands of dollars a month and eventually hiring employees. One example of a surprisingly large creator business is Dhar Mann's media company. Overall, the future of creator businesses lies in mid-tier creators who are gaining traction and building sustainable businesses in various niches.

• Challenging the notion of scripted content's profitability on YouTube: Dhar Mann's scripted YouTube channel and Ryan Hall Y'all's weather channel prove that unique business models and content strategies can lead to success in unexpected areas on YouTube, despite challenges like ad revenue and expenses.

  Dhar Mann's scripted YouTube channel, with its massive production operation and 18.5 million subscribers, challenges the notion that scripted content can't be profitable on YouTube. The channel, which started as a hydroponics business, has found success by creating content quickly and cost-effectively, with Dar writing most of the scripts and using reusable sets. This business model, which is cash flow positive, has proven that scripted storytelling can be a lucrative venture on YouTube despite the challenges of ad revenue and expenses. Another intriguing business is Ryan Hall Y'all, a former meteorologist's channel focusing on weather patterns across the country. Despite being a seemingly localized topic, the channel is gaining traction with millions of views per video, suggesting that there's potential for growth in this niche. The team is likely small, consisting of Ryan and an editor, and the content covers various weather-related topics, making it more holistic rather than localized. These examples demonstrate that unique business models and content strategies can lead to success in unexpected areas on YouTube.

• Unique perspectives and innovative approaches can attract a large following and generate revenue in even the most saturated niches.: Success in niche content lies in offering a unique perspective and finding innovative ways to engage audiences, leading to substantial revenue opportunities.

  There's a vast array of content that appeals to various audiences on the internet, even in seemingly oversaturated niches. The success stories of niche channels, like farming or weather updates, prove that unique perspectives and innovative approaches can attract a large following and generate significant revenue. The example of Ryan O'Gill's weather channel demonstrates the potential for creators to disrupt established platforms and build profitable businesses. Additionally, there's immense value in established channels and businesses, offering opportunities for innovation and new strategies to tap into their existing audience base.

• Twitter's depth of consumer engagement makes it an attractive platform for businesses: Twitter's older demographic and high fan loyalty create deep engagement, leading to word-of-mouth marketing and sales opportunities for businesses

  Twitter, with its older demographic and high fan loyalty, offers significant value for businesses looking to build authentic relationships and sell products to engaged audiences. Unlike more casual platforms like TikTok, Twitter users tend to have a deeper connection with the content they consume and the creators they follow. This depth of engagement can lead to word-of-mouth marketing, as followers trust and value the opinions of their favorite Twitter personalities. Brands and individuals can leverage this loyalty by authentically promoting products and services, leading to increased sales and brand awareness. For example, Blake Robbins, with his 30,000-400,000 follower base, has built a loyal following on Twitter through his interesting and thought-provoking tweets. This loyalty translates into sales, as seen when a tweet about an Eight Sleep mattress led to the company reaching out for a potential partnership. Overall, Twitter's depth of consumer engagement makes it an attractive platform for businesses looking to build genuine relationships and sell products to a highly engaged audience.

• Potential for Twitter Threads to foster fan loyalty: Despite skepticism towards Twitter Threads' ability to grow businesses or attract a large user base, the speaker sees potential for it to strengthen fan loyalty.

  While the speaker has little faith in Twitter's Threads feature for growing businesses or attracting a large user base, they see potential for it to foster fan loyalty. The speaker also doesn't believe the massive download numbers are indicative of long-term success, as a significant portion of those users are likely to churn. The speaker's personal experience with the app has been minimal, and they don't plan to push their talent to focus on Threads over other platforms like YouTube. The speaker values Knight Media for enjoyment and wouldn't sell it unless they were offered a significant role in the acquiring company. The speaker also shares a lighthearted moment by jokingly referring to themselves and a colleague as "Zuck's cocks," a term used to describe those who believe in a controversial figure or idea despite criticism.

• Interviewee's passion for Nightcapital and growth potential: Interviewee is deeply passionate about Nightcapital, focusing on buying cash-generating businesses, expanding them, and sees significant growth potential over the next five years. Open to partnerships but not full sales.

  The interviewee is deeply passionate about his role in his venture capital fund and is not considering selling it for any amount of money at the moment. He sees significant growth potential for the company over the next five years and is open to partnerships but not full sales. The fund, named Nightcapital, focuses on buying cash-generating businesses and expanding them, similar to what Churnin has done with businesses like Cars and Bids and Barstool. The interviewee is taking a patient approach to finding the right business to invest in and is cautious about the current economic climate. The interviewee and his co-host had a lively discussion about the value of listeners on different platforms, with the interviewee expressing a preference for YouTube and the co-host advocating for the value of listeners on platforms like iTunes and Spotify. Overall, the interviewee's enthusiasm for his work and his strategic approach to investing were clear throughout the conversation.