Logan Paul Generated $250 Million Dollars in 12 Months Through This Marketing Channel

0:00Logan Paul generated over$250 million in 12 months through this marketing channel. So Eric, you want to give a backstory on it? And he generated$250 million through his energy drink called Prime, right? Yep. So I'll give you some backstory here. So one of my friends, Jeffrey Wu, he's partnered up with Logan's brother, Jake Paul, in his VC fund. So he has a little insight into how Prime is doing. Prime is a drink. So Logan Paul, just some context here. He's a popular, let's just call him an influencer for lack of a better word. He actually does a lot of different things. He's been successful. Good for him.

0:34And he also partnered with another influencer named KSI. They basically partnered with a third person that's an operator that has kind of been in the drink space. I don't know if they're necessarily energy drink, Neil, but I know they're a drink, right? And so what they've basically done is over$250 million in a very short amount of time. And Neil and I want to talk about how they've done this. And I'll just preface it with this, right? The story here is that they've partnered up with FC Barcelona. They've partnered up with Arsenal. They're like the official drinks there. And they're also the official drink of UFC, for example.

1:06So Neil, you want to go into it? Yeah. So what he's doing is he's leveraging influencer marketing. Him and another guy named KSI, they partnered up. They both have massive influence and they're leveraging influencer marketing, not just with their brands, but now with sports teams and other people who are super popular to help generate more sales. And I believe in the long run, the company is going to get bought out because they're taking the energy market by storm due to the fact that they're leveraging a lot of cool hit people that's appealing to whoever's buying the energy drinks through influencer marketing.

1:39And I don't know if you've ever tasted it. I've talked to a few people. They weren't the biggest fans of the taste. I personally am not a fan of any energy drinks taste for any of them like Red Bull or Monster or whatever it may be unless you're mixing it with alcohol. It still tastes like crap with alcohol. And then I remember the last time I had Red Bull, Red Bull with alcohol, I had six of them in one night. That was my fault. And then I, my body wanted to sleep, but I couldn't sleep. So it was hell for like the next eight hours. Dude, this is true. I haven't drank in so long. I think I'm genuinely allergic to alcohol, not like red, but more so when I drink within five minutes, even if I take the tiniest sip, I have a massive hangover within five minutes.

2:16Like you don't even get to the drunk phase. Just take a sip and I can't even, I just don't, I don't like alcohol. Here's another thing that ties in with this was like, what are you guys, these guys even talking about. Well, the thing between the commonality with prime and alcohol in general is why is it so popular? It's because they're so well marketed. Dude, the rocks tequila company is blowing up right now. George Clooney's tequila company blew up, but they're not the only ones that are doing it. Kylie did this with Kylie cosmetics. Rihanna did this with Fenty, although they're saying the sales of Fenty are starting to flatline now, but either way, they still built a massive company through the same channel, influencer marketing.

2:50It's a lot of businesses for some reason just aren't putting in the resources to influencer marketing. I have a buddy who owns this company called Legion Athletics. And he literally has, they call, I think, the Legion Army, over a thousand micro influencers who are super into or who are really into fitness and is highly profitable for him. And what most people and companies get wrong with influencer marketing, you can generate millions of sales without being our Kardashian. You don't even need popular influencers. You need popular influencers within your vertical. It's okay to have a lot of influencers that have 20, 30, 50 ,000 followers instead of having those people with millions.

3:28And I would actually say it's better to have a lot of them with 20, 30, 50 ,000 followers than the person with a million or 2 million, because a person with 20 to 50 ,000 followers within your vertical, they're really likely to generate you a lot of sales in the long run and at a much affordable rate and a much more profitable manner. Yep. So on our end, we actually have a influencer partner on the single grain side called Betterly. And so it's B-E-T-T, I think it's R-L-Y without the E, so Betterly. And they do micro-influencer marketing, I believe. And that's kind of what we're touching on. You don't necessarily have to work with the biggest ones because A, they're too wide already.

4:07And then they're also too expensive for you. The other thing, I mean, another good example here is not to toot our own horn, but for marketing school, the reason why we've had people renew with us and advertise with us, like the Shopify's, the Microsoft's, or the Dreamhost's, and we're very grateful for this is because we're niche influencers, at least in the marketing space and more specifically SEO. But I think it's growing more in the marketing space, right? So it just depends. You have to understand where the attention is. If I were advertising, let's say for some blockchain type of technology, I might advertise on like the Bankless podcast, which is a crypto podcast, right?

4:37Or if I want to do finance stuff, I might go after Bloomberg, right? So you have to decide marketing one-on-one is understanding where your audience is hanging out. That's what it is. That's right. And just don't take influencer marketing for granted. Eric, do you want to share your screen and go to Google trends and type in influencer marketing? Yeah, yeah, yeah. Influencer marketing is something that most marketers don't talk about. We've both written articles around it. We've both given speeches around it. It's just not a popular topic, but it has a massive ROI. And what people should be learning from is you can build big businesses from it.

5:07Look at Eric. He's built a multimillion dollar business from his brand. Most of his clients don't come from SEO. They come because they want to work with Eric. Similar to me, we build businesses from our brand. And if you don't have a brand, that's okay. You can do influencer marketing by either A, paying other people, or B, by building up your brand. Either model works. If we're going to pay other influencers, the real trick, and this is where people get messed up, you can just pay. Let's say if I'm selling fitness supplements like Legion Athletics. And let's say there's this buff guy named Neil Patel.

5:39I'm flexing right now, although I'm not buff at all. I'm actually probably in the one percentile in weight in which I'm too skinny. But let's say there's this Neil Patel guy who's super buff and I'm Legion Athletics. And let's say Neil Patel has 100 ,000 followers and Legion pays me a few hundred bucks to post on their product, right? They wouldn't just have me pay or they wouldn't just pay me to post on the product. The landing page I drive people to should also have my face, Neil Patel, showing how buff I am and the supplements and everything that I'm using, because that's what actually causes the conversions to be great.

6:11Where most people make the mistakes is they pay the influencer to promote the product, but they don't tie in the influencer on the website. So the messaging and the flow just isn't seamless. And the conversions just drop if you don't include the influencer throughout the whole funnel. Yep. Check out the screen. Yeah. And we'll go back from past five years to all time. Look at the growth of influencer marketing. It's popular. It's still going up and you're going to continually see it rise over time. The key though, is micro influencers. You don't need a card of Ashiya. You just need people who are really well-known in your space that have great engagement on their social followings, even if they're not popular.

6:48If they don't have tons of engagement and they have a lot of followers, that means their followers don't care to hear what they have to say, which means when they post about your product, you're probably not going to generate any sales. Interesting enough, Neil, I don't know if you asked your sales team this, but when I talk to mine, I say, Hey, how many of like, I'm just for fun, right? I'm like, how many of them actually know who I am. And it's 70%, even though the leads might, a lot of them might come from SEO or other sources. And I venture to guess it's probably equal or more for you. It's probably similar.

7:17We actually get a lot of customers that don't know who I am. If I had to guess, I would actually say it's probably less, maybe 60%. Still a lot, right? It's still a lot. And for us in the United States, it's really high in certain regions, like India, it's really high and same with Brazil. But we've expanded to so many countries at this point, I think we're in 16 right now, that we're just in regions where some people barely know who I am and which is fine. Ideally, I'm hoping one day 10 % of the customers know who I am and more so 90 % know the brand of the organization. All right. So that is it for today.

7:51Please don't forget to rate if you've subscribed five stars, please. Next event, marketing mastermind happening in Beverly Hills, August 7th and the 9th. You can go to leveling up.com slash founders to register. Going to be talking about AI marketing, going to be talking about building companies with zero employees m &a deal structures and all the good things but more importantly hanging out with amazing people and that's it for today goodbye