In short
Podcast Episode Notes: “Fame Is Not a Business Model”: Celebrity Brands Exposed
Overview In this episode of the "Operators" podcast, Sean, Matt, and Katy Mimari (CEO of Caden Lane) explore the dynamics of celebrity brands, analyzing why some achieve billion-dollar success while others fail. The discussion delves into deal structures, red flags, and the factors that contribute to brand longevity.
Key Themes
- Fame vs. Business Success
- Thesis: Fame alone does not guarantee commercial success. Lasting success requires either an excellent distribution model or skilled operational teams.
- Longevity: While celebrity brands may get a launch boost from fame, sustaining success relies on product quality and market strategy.
- Case Studies of Success and Failure
- Successful Brands: Rhode, Skims, and Fenty are highlighted as examples of successful celebrity brands with effective strategies.
- Failed Brands: The Honest Company, founded by Jessica Alba, and Kylie Cosmetics are discussed as cautionary tales, showcasing that not all celebrity-led initiatives succeed despite significant fame.
- Partnership Dynamics
- Role of Celebrities: Successful partnerships often see celebrities deeply integrated into brand operations (e.g., Kim Kardashian with Skims), contributing to marketing and product development.
- Challenges with Celebrity Collaborations: Many celebrity brands fail when the celebrity is minimally involved, leading to poor integration and lack of ongoing promotion.
- The Ideal Celebrity Partner
- Social Savviness: The ideal celebrity or influencer should be adept at utilizing social media and maintaining audience engagement. Their authenticity and connection to the brand are vital for success.
- Influencers vs. Traditional Celebrities: New media influencers often outperform traditional celebrities in terms of relatability and engagement with younger audiences.
- Deal Structuring
- Equity vs. Cash: The podcast discusses various ways to structure deals with celebrities, emphasizing the benefits of equity partnerships over simple cash payments for ad appearances.
- Example of Marquez Brownlee: Sean shares insights on his partnership with tech influencer Marquez Brownlee, discussing how their collaboration has driven value for Ridge.
Key Takeaways
- Authenticity is Crucial: Successful celebrity brands must have authentic product-market fit and a strong connection to the celebrity's persona.
- Operational Excellence Matters: Successful celebrity brands depend not only on the celebrity's fame but also on the effectiveness of the operational teams behind the brand.
- Risk Factors: Brand risk exists for both celebrities and companies; negative publicity from either side can affect the partnership.
- Strategic Engagement: Effective partnerships involve multiple touchpoints and ongoing collaboration rather than one-off promotional efforts.
Conclusion The episode highlights the complexities of launching and sustaining celebrity brands in the eCommerce space. While fame provides a head start, strategic planning, authentic engagement, and operational prowess are essential for long-term success.
Listen to the Full Episode For a deeper understanding and more detailed anecdotes from the hosts, listen to the full episode of “Fame Is Not a Business Model” on the Operators podcast.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOUnderstanding Celebrity Brands
0:00 to 1:24
Learn why fame alone isn't a sustainable business model for celebrity brands.
“My thesis is the successful brands in the celebrity space either need a distribution model that doesn't require being good or have to have teams that are really excellent.”
E-commerce Challenges and Trends
2:42 to 4:00
Insights on managing e-commerce operations during peak seasons and scaling.
“It's been a couple months you've been on the episode.”
Growth Strategies for Q4
4:00 to 5:10
Learn about effective strategies for managing inventory and sales in Q4.
“million next year, but they make all their stuff in Southern California and like their ops are imploding.”
Navigating Production and Scaling
5:10 to 7:40
Discuss the challenges of scaling production and managing workforce during holidays.
“I think it would be better for my mental health.”
Marketing Strategies for E-commerce
7:40 to 10:40
Explore different marketing strategies and how they impact sales.
“It's not like Sean who goes like 10 X bigger, you know, in the last like 30 days of the year, we don't have that.”
The Shift to Omni-channel Selling
10:40 to 13:00
Understanding the transition into omni-channel selling and its implications.
“And anyway, so what else, what else vibes are you guys feeling for 2026?”
The Dynamics of Store Management and Sales
14:01 to 14:58
Learn how store management strategies can drive sales effectively.
“It's still, it's crazy how much sometimes things don't change, you know?”
Excitement for Future Trends
15:43 to 16:40
Explore the hosts' optimism about future economic trends and product launches.
“But I think on the YouTube comment, Sean, that's partly why.”
Analyzing Celebrity Brands: Success and Failure
16:41 to 17:40
Understand why some celebrity brands succeed while others fail.
“I cannot explain how excited I am to have things that can be gifted.”
The Honest Company's Story
17:41 to 19:15
Learn about the challenges faced by the Honest Company and its impact on celebrity branding.
“So some of these brands are really working.”
Show all 32 chapters
The Importance of Authenticity in Branding
19:16 to 20:37
Discover how authenticity affects the success of celebrity brands.
“Like she said, I want, I want to wash my children's clothes and products that doesn't, I think they gave her rashes or they gave her whatever product she was using, gave her kids rashes.”
The Role of Distribution in Brand Success
20:38 to 21:46
Find out how distribution strategies impact the success of celebrity brands.
“but Matt ultimately what has caused the demise is because there's a lot of like lawsuits going on that she claimed they didn't use certain chemicals in their products.”
Celebrity Brands in the Alcohol Industry
21:47 to 24:49
Explore why alcohol brands tend to succeed more than other celebrity ventures.
“Well, and they grow too fast and then they are horrible at running the business part of it, right?”
Product Quality vs. Celebrity Status
24:50 to 26:25
Examine how product quality influences the longevity of celebrity brands.
“But I don't think it's that like Skims, I think she actually has a great product.”
Gender Dynamics in Celebrity Branding
27:12 to 28:00
Analyze why female celebrities dominate the branding landscape.
“Okay, so like the obvious reasons aside.”
Female Celebrity Brands and Market Influence
28:00 to 28:45
Exploration of the dominance of female celebrities in brand success within the beauty industry.
“one i think most famous people are probably women because you have to think about like i think if you look at the aggregate of the music industry and everything it's probably 60 40 there's more famous women than men.”
Authenticity and Product Market Fit
28:45 to 29:49
Discussion on the importance of authenticity for celebrity brands and successful product-market fit.
“Like they know their freaking audience so well and the consumer culture so well.”
Understanding Fame’s Impact on Brands
29:49 to 30:56
Analyzing how the level of fame affects brand sustainability and success.
“And also the ability for Skims to stay in relevancy for so long, like doing the Nike collab, doing the thing where it makes you look like your nipples are pierced.”
The Olsen Twins and Luxury Branding
30:56 to 32:08
Examining how the Olsen twins' brand operates outside traditional celebrity marketing.
“And I don't know if we have any examples of that working.”
Celebrity Brands vs. Traditional Brands
32:08 to 33:49
Discussion on the differences in success rates between celebrity-endorsed brands and traditional brands.
“Well, I think they had the money, right?”
The Role of Operating Partners in Celebrity Brands
33:49 to 34:56
Insight into how the choice of operating partners can affect the success of celebrity brands.
“It's like, you know, George Clooney started Casamigos.”
Structuring Celebrity-Endorsed Deals
34:56 to 37:14
How to properly structure deals involving celebrities to ensure better brand outcomes.
“So Matt asked, how do you actually structure these deals?”
Evaluating the Success of Celebrity Brands
39:50 to 41:12
Discussion on the overall success rates of celebrity brands compared to traditional brands.
“What's the percentage of celebrity brands actually get off the ground and go?”
Authenticity in Celebrity Promotions
41:12 to 42:04
The importance of authenticity in celebrity endorsements and its impact on consumer trust.
“It must help that in the, in Kim's case, in the Kardashians case, they are all very socially savvy.”
The Evolution of Celebrity Endorsements
42:04 to 43:19
Learn how the perception of celebrity endorsements has changed over time.
“using your product in people magazine they thought it was real they didn't realize we had to have publicists and like go through all these jump through hoops and get it into their hands and it was free.”
Integrating Celebrities into Brand Strategy
43:20 to 45:10
Discover the importance of consistent celebrity integration in branding.
“Otherwise, like you might get a little pop, but then it's, you're just, there's nothing else there, right?”
Structuring Celebrity Deals: Cash vs. Equity
45:11 to 47:19
Understand how to structure deals with celebrities for maximum benefit.
“guys think about you don't need to give us specifics of the deal but like structure wise what would you advise people to do?”
The Risks and Rewards of Celebrity Partnerships
47:20 to 49:28
Evaluate the potential risks and rewards of partnering with celebrities.
“So that is so often when these deals get done.”
Finding the Right Celebrity Fit
51:54 to 56:00
Discuss the challenges and strategies for finding celebrity partnerships.
“and I'm just thinking of like how to do a deal like this.”
Understanding Celebrity Influence in Marketing
56:00 to 56:48
Exploration of what makes a celebrity effective for brands, focusing on social media reach and audience engagement.
“You're saying that I've already expired out of my brand.”
The Evolution of Celebrity Branding
56:48 to 58:56
Discussion on the changing landscape of celebrity branding and the importance of new media personalities.
“And I don't know, like, I just - I think it's all the same now, right?”
Leveraging Influencers for Brand Growth
1:00:10 to 1:02:34
Insights into how influencer partnerships can provide value and drive success for brands.
“Sean, do you think the Marques effect is a part of why you were able to scale up YouTube this year?”
Transcript
Automatic transcript. May contain errors.0:00My thesis is the successful brands in the celebrity space either need a distribution model that doesn't require being good or have to have teams that are really excellent. Fame itself is not a business model. And it seems like fame gets a decent launch edge. But then there is like longevity, which is where a lot of these companies seem to struggle. But it's also just a really great product. Sometimes celebrities just get like Kim. There's a lot of authenticity in Skims because her whole pitch at the beginning was that she was altering other like body shaping things, right, to make it work. I see a lot of young brands get very excited when they get an email from somebody being like, hey, I love your brand.
0:39I want to be involved. I just temper those expectations so low. Push those expectations all the way down because I've only ever seen money go one way and it's brand to celebrity. We have sponsored YouTubers for a long time. We've worked with Marquez for a long time. He liked the product. He used the product. And it just made sense with where our brand was going to bring him into the fold. The celebrity brands that fail, it's like you do one shoot a year. You know, you get a handful of assets and then that person is just kind of gone and they're not really integrated, which is why I think that the, how socially savvy and like if you're gonna do a deal with an A-lister or like even a B-list, they gotta be talking about it all the damn time.
1:14Isn't that the ultimate risk? Like if a celebrity, whatever brand they create, ultimately they need to be able to step away from it and then still succeed. Welcome to the Operators Podcast. My name's Mike Beckham and we are proudly brought to you by Fulfill, Aftersell, Rich Panel, Northbeam, Sarah's Analytics, and PostScript. We are a community for entrepreneurs that are building things. And if you want to be a part of this community, you can listen to the podcast, but you can also go sign up for our newsletter. A ton of awesome information in there. We also partner with e-commerce fuel, a forum for you to connect with other entrepreneurs that are building businesses where we can learn from one another.
1:52So without further ado, onto the pod.
2:02I use Fulfill. Groons use Fulfill. Kats uses Fulfill. HexCloud uses Fulfill. Why did we all choose Fulfill? There's no expensive middleware. There's no third-party developers. There's no consultants. You can be live in a couple of weeks for order management, inventory management, accounting, EDI, purchasing, and manufacturing. There's a reason why Groons, the greatest e-com brand of the past five years, I was looking at all of them and they chose Fulfill. They are the number one ERP for this podcast for a reason. You mentioned the Operators Podcast and you can use them too. What's up, Operators family?
2:37We got Katie here. She's the number one operator. She's replacing all of us. We are so lucky to have her today. We're talking celebrity brands. Okay, let's dive into it, guys. One, Katie, how you've been? It's been a couple months you've been on the episode. What is new in your life? I know. I figure I keep screwing up, so I'm glad to be back. I can't screw it up this time. But Katie, seriously, how was 2025? This is coming out in 2026, 2025. How are you feeling about it? We're right in between Black Friday and Christmas, and I'm not sure I even know my name right now. I'm so exhausted. What do people in e-commerce even exist right now?
3:13I forgot about Thanksgiving. it didn't even exist in my house and yeah and now christmas is in a few days but i i don't know i like it honestly sean this has been a better year than last year for us so but but q4 was soft i'll say that like i do the i'm ready for january i think uh i think q1 is going to be good and it's already kind of in the last few days i feel like it's leaning into it so i'm optimistic dude i'm so optimistic um before we before we talk about the optimism of the future i'm gonna call it a couple of things, but I want to understand how you guys ramp up because Matt actually produces his goods in person.
3:51Katie, you do your own fulfillment. I'm talking to a friend. They have, they have a really awesome brand. They're doing$5 million this year. They're going to do 15 million next year, but they make all their stuff in Southern California and like their ops are imploding. They have no idea how to, how to scale up. So how do you guys. Yeah. Well, but so the one thing I love is that we're not dependent on Q4. So like my best time of the year is January, February, March. So which is great because CPMs are like half the cost, right? So scaling into Q4, we just kind of load up on inventory based on trends throughout the whole year.
4:28So we get to kind of see what's selling and what people are leaning into. And then we shift from like normal, you know, baby clothes and baby shower gifting to really like giftable, you know, items that go under the Christmas tree. So I don't know. I think that's like, yeah, Matt's got no inventory, so he can just gear up with that. We definitely go deeper on inventory, but it's, we don't have to move it at Black Friday because it's not like stagnant inventory. Right. So I didn't realize that your Q1 is the biggest quarter of the year for you. For new customer acquisition. Yes. So, and profitability.
5:08Yes. Yeah. Q4 is highest revenue numbers, but only because you put so much peer pressure on me to, I feel like everybody's like driving home huge numbers and that, you know, I have like performance anxiety and I have to like lean into it, but really I'd be totally fine being busy all the other months of the year and like taking November off. I think it would be better for my mental health. Yeah. Well, I'm with you on that one. um matt how do you how do you guys actually scale up the workforce like you you have the hardest part a fact the hardest part yeah the the the benefit of having owned manufacturing is balance sheet friendly so we don't have a lot of cash tied up in inventory the downside is we actually have a pretty low ceiling in terms of like planned growth so i can't exceed capacity right yeah like I can't see my numbers.
5:59So many phone cases in a day. Well, and we're injection molding them. So like if it was just printing, it'd be a lot easier. But like we are literally pressing them ourselves. So yeah, my issue, Sean, is if we forecast like a certain amount of growth, I can't exceed that by like 50%, right? Because like we won't have the workers. We won't have the materials. Literally don't have the shifts scheduled. Then you got to account for people calling in sick. It's the holidays. is like there's just a bunch of things that cap growth when you own your own production. And the reason you do that is the downside to it sucks.
6:33So like you want to run when you own, when you're vertical, like you want to run at near capacity always because that gives you the lowest cost per goods sold, right? So if I have a bunch of like headroom in capacity, that's good for a like, hey, I could burst up if I have to. Bad from a like everyday COGS perspective. That just means I'm overpaying for my own goods, if that makes sense. Did you pull forward then? Because we have to do that with personalization too. Like we know exactly how many we can embroider or laser or print in a day during Q4. And I'd say two years ago, we started pulling forward volume just so that we weren't like having to turn off items on Black Friday.
7:16We pre-make stuff. Like bestsellers will pre-make as much as we possibly can. But again, like I try to run at capacity all year. So coming into Q4, I still don't have like a ton of room. And, but like you, Katie, Q4 for us is not a massive time. Like we might see a 30 % lift in daily sales volume relative to the rest of the year. It's not like Sean who goes like 10 X bigger, you know, in the last like 30 days of the year, we don't have that. But I think the pull forward, yes. and then frankly we actually just cut off early like this year we had to shut off holiday shipping on like December 12th because we just were too far behind I'm like nah we're screwed like there's just no way we can keep up yeah I mean like there's so many good advantages to your business but like that is that is definitely one of the hardest things because you know we also days yeah we our factory just does personalization for us right so like you know we we had to cut that off I think on the 10th for guaranteed shipping delivery.
8:20And then they took it till the 15th to actually make and deliver those goods. But the rest of the store, we guaranteed shipping delivery up until the 20th. And those 10 days are so big. We ended up doing 50 days in a row of over a million dollars a day. And that's just like, that's my Q4. That's like from November 1 to like, you know, 12, 20. I really love how humble you are, Sean. It always makes me feel very good about myself. No, no. But you look, I'll tell you all the failures too. You talk about 2024 being bad. Connor, my great CMO, he posted this chart. I saw it. The one that he sent in the group.
8:58Yeah. Yeah. Yeah. It's pretty incredible actually how much you guys optimize this year. Yeah. Cause last year sucked, right? Like, you know, we were up here celebrating Apple up in and it's like, yeah, I spent a bunch of money there, but that's cause I couldn't spend money on meta. Like I'd much rather put the money into the machine that I know and trust. And luckily we got a minute of work again this year. So we ended up having a big holiday out of it. But yeah, we don't know why things went so well, but they went well. And let's hope you're right about 2026 being better. I think it's going to be.
9:26Yeah. So I listened to Scott Bessett on the All In podcast and he was talking about the reasons why he's bullish on 2026. And what he said was
9:40tariffs aren't going away. So if you're counting on - Wow, really new insights there. Start off with a good one. Yeah. Yeah. But Mike Becker on this podcast is really counting and he thinks he will get a tariff refund. I want that for him. Dude, it'd be so good. But Skype business specifically said, there is no way we're giving these tariff refunds. We will go above and beyond to make make sure we don't give people back their money. But what he pointed out was interest rates will continue to come down. At the same time, huge tax refunds because they've changed taxes for how the middle class work, but then people haven't changed their adjustments or whatever.
10:21So they're going to get an extra$2 ,000 that they didn't expect in January, February, March, April. And at the same time, he's like, then they're going to change their deductions. And so there'll be a double whammy. They'll get a big refund and they'll have more money in their paycheck every single week. I love that. I love that for them. And I love that for us. Yeah. So good for us. Yeah. And anyway, so what else, what else vibes are you guys feeling for 2026? I don't know. I honestly, it's kind of unknown. I'm choosing to be optimistic. I want meta to stop changing their algorithm and doing coding adjustments and all that crap because it broke too many times this year.
10:59So right. Needs to break less. Although I guess Sean's didn't break. I guess they broke his two years ago and now they're just screwing with ours. Yeah. In 2024, we probably spent in Q4 less on Meta year over year than ever before. And this has never happened. Meta spend always goes up. 2024 actually goes down. And then so we had to spend all the first part of the year rebuilding our ad engine and moving way more top of funnel, like we're doing actual non-purchase events. And that mix proved out with house actually seems to be very incremental to the business and why we're able to scale oh so you're doing what they tell us to do and it worked yeah yeah i guess so uh also youtube i spent a bunch of money on youtube which like youtube program ads yeah so i think it all just feeds feeds this funnel and this is a great year people love their dads so when people love their dads they buy rich wallets as opposed to next year or the year prior when might be moms daddy issues Yeah.
11:58Oh, oh yeah. Or moms. Yeah. I like that. Next year's going to be the year of the mom for sure. Uh, wait, Sean, you know what else I'm excited about for next year? Cause I've, well, I'm either terrified or excited. I don't know, but I've always just been direct to consumer or direct to consumer. But now I officially can say I'm omni-channel just like you guys, because we're going into wholesale. So what? Like that's big, right? That's a big deal for you. Yeah. do you have a retailer lined up who are you launching with well yeah we already well we launched it like two months ago and on fair and it's honestly it's killing it so i think it's great and then wait the retailer what's the um shields yeah yeah yeah they already sent us our first order for all their stores and they were so excited because they said they keep reaching out to us and so when i find you you know kindly introduced me to them and when i emailed them They were like, oh my God, we've been begging for your product.
12:57So, so far it's been great wholesale. We'll see what we'll see. Yeah. Shields is the best retailer out there. Only 35 stores, something like that. I don't know. I'm not, honestly, I'm not the one talking to them. Kristen is, and she's learning about wholesale and she's like, these wholesalers are very needy. And I'm like, yeah, I know it hasn't changed in 20 years. Nope. It's a different muscle. You know what? I have to tell you a funny story. She about died because we were looking into just using some reps for like the gifting shows because gifting has always been a big thing for Caden Lane. And so we're looking into new order to, you know, kind of use it outside of fair.
13:39And Kristen almost died because she's like, so you're saying that these reps that we pay commission to don't process credit cards and we have to actually chase down credit cards for these like smaller, you know, mom and pop. And I'm like, yeah. And she's like, so in 20 years, none of that's become automated or whatever. And I'm like, no, it's all still the same. Yeah. I mean, it is. It's still, it's crazy how much sometimes things don't change, you know? Yeah. And it's a really hard business. I mean, Shields is really the best because they will work with you. Like every store can place their own POs.
14:17So like the store manager has a lot of control over the layout and driving sales. Oh, I didn't know that. Yeah. Which is, I think, super smart because each store is in a different region and they're going to sell different. Yes. So, and they're opening one in Texas. They're opening, I think their first one in Texas, they said in Austin. Yeah. So dude, you got to check it out. The stores are always like a huge adventure, but like the stores kind of like go against each other. So like the store managers like try to out-compete each other. It's a great model. I love that. Yeah. Also a commission sales staff.
14:45I think that's critical. Yeah. Like Nordstrom. Yeah. The only way to get good to get good service. You got to pay these people like a commission off the rip, but all right, cool. What's up operators. Welcome to the RichPanel ad read. RichPanel has been a sponsor for over 12 months. I've been a paying customer for over 12 months and guess what? I just renewed to pay again for another year. We have cut our SaaS bill in half and automation dropped our cost per ticket by 70%. Our CSAT has also improved from 88%, which is still really good to 96%, best in class, all powered by RichPanel. I told them last year, hey, you guys need to do the same thing with returns.
15:23And now RichPanel has a returns portal. It's built to cut down your tickets and convert more refunds into exchanges. They do the heavy lifting, data imports, self service, retention flows, team training, all of it. And they'll be live in two weeks. If you want to save 30 % guaranteed on help desk and now returns, book a demo. So Matt, why are you excited about 2026? Katie's going to laugh. I'm like AI positive at the moment. It's like all he talks about. It's true. I like this stuff so much. But I think on the YouTube comment, Sean, that's partly why. Because I think these ad platforms are actually getting better.
16:052025 like meta broke a lot. It's hard to deny that. But I think on the whole, it's all getting better. So I'm optimistic because we're spending money in places we've never been able to spend before, which I like to see. I'm really excited about interest rates. I think that the housing market is a massive drag on the consumer economy right now. I think that people feel poorer when they get stuck in homes and they can't sell them or they feel like they can't. So I think mobility in the housing market is amazing for us. And yeah, I got product categories coming guys. I've like not launched new product categories in three years.
16:42So I'm so excited to sell other things. You're going to love it. I cannot explain how excited I am to have things that can be gifted. I'm so stoked for next year. Yeah. You know, I, on, on the interest rate environment, like it's very hard for us to predict the macro because this year tariffs horrible, but next year, like, I think they're talking about making it so you can write off your car interest loans like the interest awesome yeah because you could do it for houses you can't do it for cars and it's like up to a certain amount though i think right yeah i actually have been following super closely but like it is just feeling like they're trying to put more money into like the the middle class and those people will spend it on ridge wallets and kate lane products and maybe maybe maybe eco-friendly phone cases if you get maybe yeah but more than likely us first what what what did i do because i'm canadian yeah um but cool guys it's been fantastic all right the real topic for today that i wanted to talk about was celebrity brands we talked about this maybe two years ago but i'm gonna i'm gonna resurface the idea and here's what i want to cover one why some celebrity brands work Two, why some celebrity brands don't work Three, how to structure a deal And then four, my personal musings on our deal with Marquez Brownlee Does that sound good for you guys?
18:02Let's do it Okay, so brands that work We're going to start there You know, since we did the last one Rode sold for a billion dollars So Haley Beaver's brand sold for a billion dollars Fenty, still absolutely crushing it So Skims, Skims Skims doing deals with Nikes left and right worth billions of dollars. So some of these brands are really working. And at the flip side, brands that look very similar to them are totally failing. Lady Gaga had House, which was a makeup brand, didn't go anywhere. Addison Rae has a bankrupt beauty brand called Item Beauty, got taken off the shelf of Sephora. And Addison Rae had like the biggest album of the year, right?
18:45So it's like, there's no way to plot the celebrity's appeal and success with the brand being successful. Katie, you brought up the Honest Company. The Honest Company is still only worth $100 million or whatever in the public market. It's probably going to get taken private or go bankrupt at some point. Jessica Alba, they put a bunch of money into that. She's actually famous. They try to do this whole thing. It's a great product, but it just doesn't work for whatever reason. Well, no, no. I don't think even that. Actually, the Honest Company, I think, is a really cool story about how celebrity cannot work for you you know because you know what happened do y 'all know what happened to honest company no please so it's a and i also think she was kind of one of the first celebrities to really lean into brand uh because at first like in the early 2000s it was all remember when everyone had like perfumes and now it's everybody has beauty brands for whatever reason and then denim at some point in there everyone came out with like jeans but all that failed too but honest was the first to really lean into like um like organic and natural um like products in your home yeah there was like 2014 2015 yeah or maybe earlier i don't know you probably ask your ai person man i'm sure they can tell you but it literally so she and hers was the like an authentic story sean which i think is so important for celebrity because she was like a she was like a founder, right?
20:17Like she said, I want, I want to wash my children's clothes and products that doesn't, I think they gave her rashes or they gave her whatever product she was using, gave her kids rashes. And so she said, I'm going to create a product that doesn't do that. And then she named it Honest Company and she created, no, I mean, yes, it's brilliant, but Matt ultimately what has caused the demise is because there's a lot of like lawsuits going on that she claimed they didn't use certain chemicals in their products. And I don't know, apparently maybe she did. And so the consumer is like going at them saying, you call yourself the honest company.
20:56And it's like, not, you're not holding up to what you're. Yeah. Good name, bad, bad approach. Yeah. I was going to say, it's kind of like how every government bill, whatever the name is, it does the opposite. So it's the American for prosperity. It's like, uh, yeah, you know, So I've loaded the honest company a little bit and their market cap is currently$300 million. They're down 86 % from IPO. They came out in 2011. So it's been a long journey with that business. And the real problem is it's like you look at the cap table or you look at the amount of money spent on people and it's horrible. It's like they have way too many people who do nothing at that business.
21:38And then you end up just losing money because they have these massive bloated payrolls. And that's something I see all the time at celebrity brands is that they'll just have way too many people. Well, and they grow too fast and then they are horrible at running the business part of it, right? Yeah, totally. And that's what I really think. Like my thesis is the successful brands in the celebrity space either need a distribution model that doesn't require being good or have to have teams that are really excellent, right? So the alcohol brands, you don't need a distribution model. You have to just convince borrowers to have you, and then maybe people will order it and then put them on your menu.
22:20But it's like a whole different world. But I'm thinking of Texas, so I immediately go to Tequila and George Clooney because he's gorgeous. And he started Casamigos, right? But he leaned into it. He used, like, yes, he had distribution, but didn't he like go and - Yeah, but the smart thing with what George did, so his business partner was Cindy Crawford's husband, and he's from that world, right? So I think his background was hospitality, bars, like that kind of thing. Yeah. The key with alcohol, I invested in a tequila company in New York in like 2014. So like my one learning about alcohol is, Sean, what you're hitting on is that the business models basically get to like 10 ,000 cases a year, okay, which is hard.
23:06That's a slog. But once you get to 10 ,000 cases a year, you're an instant acquisition for a Diageo who will take you to 100 ,000 or more. So that all they have to do is like take one state, like one to three good size states, and that'll get you your 10 ,000 cases. And then the big guys come along and just plug you into their system because it is all just doors. It's straight up like all booze is bought. Nearly all booze in all categories is bought in physical stores. So it's Sean, you're right. It's a good example of like, you don't need to be a great marketer to make alcohol work. Like that's why all the celebrities jump into it.
23:46Cause like, that's actually where they have an edge. Cause the people who buy at these stores are like, Oh, it's George Clooney's tequila. Sure. Right. Like that's an easy yes. You're right. And, and I, when I say that they don't have to be good at marketing, they've never run a Facebook ad before. I mean, they have, they have no idea. Yeah. But, you know, so alcohol and like, you know, CPG products have this like unique thing where like you just need brand awareness and you have to hope that the brand awareness closes the actual sale. You know, you see the all the YouTuber brands, right? So there's Prime, there's Feastables, there's Lunchly.
24:20It's like we're just going to take the most famous people on YouTube and we're going to hope these kids ask their parents for it. Right. There is no direct response marketing funnel required where I know Paul, who runs growth at Skims. And he's an amazing marketer. So it's like he is actually in there optimizing the Facebook thing. So it's like that's where you can have a growth engine and the celebrities a little icing on top. That's when you get a massive success. But so often you end up just getting brands that don't know how to survive without the celebrity. And that's what I think the descendants is.
24:50But I don't think it's that like Skims, I think she actually has a great product. Whereas Kylie, her sister came out with Kylie Cosmetics and it's been a flop, right? right but skims has been a success i think it like it crushed in the beginning this is the thing i think the to me it's like fame itself is not the business is not a business model yeah right and it seems like fame gets a decent launch edge but then there is like longevity which is where a lot of these companies seem to struggle and i think you look at a skims and like clearly they're good operators like they just continue to bang out win after win and that's probably hit the the partners.
25:29Like the, it's probably not even just the growth guy, Sean. It's like, I bet you the CEO there is very good. But it's also just a really great product, Matt. Like I think sometimes celebrities just get like Kim, there's a lot of authenticity in Skims because her whole pitch at the beginning was that she was altering other like body shaping things, right. To make it work. And so, yes, she probably has phenomenal operations and the whole thing, but I think she has, I think it's authentic what she's selling. Whereas, and it's a great product. Kylie cosmetics got a lot of, it got on because it wasn't a great product.
26:07Like they had some kind of a, um, like it was like a scrub or something that like people didn't like. And then it was, you know, and then it gets some Reddit thread that goes viral and people start talking about how it's not a great product. I don't think the celebrity status can fix that. long time sponsor north beam is launching incrementality later this quarter this means that you can now have the trifecta of marketing measurement all in one platform that is multi-touch attribution media mix modeling and incrementality holdouts all inside of north beam you can automate that lift testing end-to-end unify results with your mta and your mmm this is a lot of letters but if you know you know and you can start to cut what doesn't work and you can scale what works and You can do this all with confidence.
26:54This is why this is such an incredible ad to Northbeam. Northbeam's incrementality measures what results marketing is actually generating, not just what they're claiming credit for. As a CEO, that's like music to my ears. Sign up now and you can lock in 50 % off unlimited tests for the year. Why is it that all, it seems like the vast majority of celebrity brands are also women? Well, because we're smarter. We're just smarter. Okay, so like the obvious reasons aside. like but why is there a reason for this is it just the share of wallet like the all the old ones or something else like i don't know sean like you you're more aversed in this world but like i just can't think of a lot of like male backed like male celebrity backed brands like i think b justin bieber might have one now uh yeah clothing i'm trying to think of some well so tom brady very very famously had a uh oh yeah a supplement and apparel line but he actually just rolled it into noble so like noble is now it was a merger so tom brady and you know i think it was called tb12 or something right and i would yeah he's just part of the noble family um why is it female focused one i think most famous people are probably women because you have to think about like i think if you look at the aggregate of the music industry and everything it's probably 60 40 there's more famous women than men.
Read the full transcript
28:13And then women control most of the spending, right? 70 % of spending or whatever. So I think that's probably both those things adding into it. Because I'm looking at a list. Ariana Grande has a great one. Hailey Bieber obviously had had a massive success. There's some male YouTubers. I mean, we talked about Mr. Beast and the Paul brothers all have something. Jonathan Van Ness has a haircare line that went bankrupt. And he's like a beauty youtuber so yeah uh it also seems to be beauty heavy like selena gomez's brand um they kill it right rare crushes it yeah i think katie you're hitting on the thing it's it's like the ones that seem to work it's hard to like describe it but it does seem that there's like an authenticity and like an influence thing that that i'm particular celebrity has on the category and that it's like well yeah like the the kim thing i mean you gotta your hat has to come off Like you got to give the Kardashians their credit, man.
29:12Like they know their freaking audience so well and the consumer culture so well. So like clearly that one is just real. Like even Gordon with Hexclad, like it's obvious. Like it just works. But it's such great product market fit. Just like Kim. Like she's known. A product celebrity fit. Yeah. Kim's known for her body, right? So making body shapewear that helps people look like Kim just connects with people. If Kim was selling products for blondes, people would be like, why? That's why Hexclad and Gordon are so perfect for each other. Yeah. And also the ability for Skims to stay in relevancy for so long, like doing the Nike collab, doing the thing where it makes you look like your nipples are pierced.
30:00Like they are so good at getting attention and like leaning into their customer base. So I think the point was we're trying to uncover why some of them work or why some of them don't work. And I think an obvious takeaway is product, right? If you have a bad product, it's never going to work. The next one is it's like, do you have a business model where the fame is additive or is the fame everything? And like in alcohol, the fame is everything, right? for CPG products I think the fame ends up being like all of it like Feastable's massive success I think 500 million in revenue this year that brand doesn't exist without Mr.
30:38Beast it's like the fame is everything attached to it where a skims really if Kim went away the brand might be just as big because but that's isn't that the ultimate risk like if a celebrity whatever brand they create ultimately they need to be able to step away from it and it still succeed. Yeah. And I don't know if we have any examples of that working. Maybe the row. I think road could. Yeah. Well, I think Hayley Bieber is going to step away. Yeah. But I was, I was thinking, I don't know if you could say this is a celebrity brand, but the row is Ashley and Mary Kate Olson. I wouldn't even call that a celebrity brand.
31:13Cause like, I don't even know what do they do? It's a like high end, like I would say like, like a new luxury brand right sean like yeah like a younger luxury brand by the olsen sisters incredibly high end we're talking stuff is like five grand and it like wins awards they've been doing it for like 15 years um and yeah but they're not the face like that's the crazy thing katie is like the ash the the olsen girls don't actually like get in front of it and promote it they're building it the way that luxury brands are built, which is like slowly. And like, it just, you think that's a bad thing. I kind of think it's a good thing.
31:50No, I think it's a great thing. I just wouldn't call them like a classic, like celebrity face first brand. Um, but they are behind like to your, what you were asking, like Sean, it's a good example. Like they're totally behind the scenes. I'm sure their names on it, got it going. Um, but they stayed behind it and got funding, right? I'm sure easier. Well, I think they had the money, right? Yeah. Um, yeah, I guess I think the other one, Sean, like, why do they not work? It sounds like some of them just have bad operating partners. Like, let's be honest that the, uh, they're the celebrities themselves aren't the ones like running these companies.
32:27It's unlikely. Like if there's, if you line up a hundred celebrity brands, one of them might actually be the CEO of their own brand. Yeah. And if they are the CEO of their own brand and they're actually going to the office every day, then it's less and less likely to be a celebrity brand because it's like the Olsen twins. Like they haven't been in a movie in 25 years or whatever. Well, they don't need to be if they're crushing it with their brand, right? Yeah, totally. I think they do like 200 to 300, 400 million a year. Wow. Something like that. Yeah, yeah. It's real. It's like, it's real. Dude, you might love some of their pieces.
32:59People love their shoe line. Sean, what about how the deals are actually structured? We've talked on the show about CapTable. Forget celebrity brands, but CapTable can sink a company if it's just poorly structured. Have you seen or heard about how these deals happen? How much of these companies do the celebrity wind up owning relative to the operators? And is part of the problem just like a really bad incentive structure for everybody involved? Like how much of their comp is like genuinely tied to equity value increasing? How many of them are doing it simply because they just want cash? I wonder if that's an element here.
33:43Right. And this is a big distinction point that really probably separates it is like what makes a celebrity brand and what makes a brand with a celebrity attached? It's like, you know, George Clooney started Casamigos. So he's like, this is a thing I want to do. I'm going to own 55 % of it. I'm going to have partners. I'm going to put money into it. And that, I think, guarantees a higher level of success versus I'm going to make a makeup brand. Oh, I'm going to go add a celebrity to it and give them 3 % to 5 % or whatever. I think that's what happened with Addison Rae's makeup brand. And we know somebody in our lives who did a brand with a former A-list celebrity, probably a B-tier celebrity now.
34:23they did a big launch on Amazon and it went horrible. And it's because that, that brand was a brand that already existed. And they were like, Oh, we're going to rebrand it as this person's line. And it didn't go anywhere. And like Amazon takeover front page. And like, they literally did 75 sales that day and 15 were from the post. Uh, you know, uh, I, I do feel like the operating partner matters here, Sean, like Roman is like, I love Roman, but Roman shouldn't be making a judgment call on like a female uh brand like a celebrity like honestly like i my wife could have told you that vanessa hudgens can't sell it like she's got no actual influence she's famous yes but she has no influence so i think that there's like there's a big distinction between those two things like you can have a massive amount of fame and be absolutely like not influential who was was it one of you guys that sent a list in one of our groups and it was like a whole bunch of celebrities and we had to like say oh that was me oh yeah yeah yeah because sean was shopping yeah right so sean was like out shopping for for celebrities and he had like the price list for everybody but it made me think of what you just said matt and basically it was like a list of like just famous people but but do they really like i don't know like was it for your rings or your wallet i can't remember sean yeah so okay i'm we're gonna recenter the conversation, I want Matt to ask and I'll answer this question.
35:49So Matt asked, how do you actually structure these deals? And yes, I got a list from CAA or UTA or one of the agencies, and this was for celebrities to just be in a commercial, right? So like classic thing in DTC accessory brands or legacy accessory brands, they just add a celebrity to their commercials. You see beauty brands do it and perfume brands do it, whatever. So I'm like, oh, I should add a celebrity to it. And so I have a list of all the celebrities and the random prices attached to them. Right. And you can kind of go through and you can try to choose like your look and your fit and how much you're willing to spend.
36:26And then you can put those things together and you can have a commercial. So we're going to do that. We will have a ad with a celebrity in it in the next 12 months. I'll let you guys know when we pick. Is it the one I picked or is it the one Matt picked? It's probably the one I picked. So we're still in negotiations, right? Because you got to figure out who the right person is. But we have a big campaign this year and we're like, we want, we want to put extra juice in it. And it's worth the$300 ,000 that it will cost to get the celebrity in it for a day. But do you think it's because the celebrities, you said it's for commercials only, right?
36:55So is it YouTube and streaming and linear, like that kind of stuff? Yeah. I'm going to put it on TV basically. Right. Just. So is it more just so that they recognize the celebrity or is it the celebrity actually selling the product? It's just to get an extra hook out of it. Like an extra reason to pay attention a little more extra, like just make it a little more visually exciting. This goes back to the launch thing, Sean, like for the launch or for a big campaign, there's a likeness that celebrities have that gives you an instant like marketing. It's credibility. It's scroll stop. Yeah. Right.
37:26It's like, I see somebody I know I'm going to pay attention at least for a little bit. So like, you know, we put a lot of money into finding hooks. It's kind of the same, same thinking. I like it for a hook. Yeah. But I don't know about like, do you then like, what if this celebrity comes back at you, Sean is like, Oh, I want to buy in, you know, does that increase your brand value? No, no. And so I think, yeah, so there's, there's probably three types of deals to do. One is you found a company with a celebrity, right? And then it's like, that person is in the business. They have double digit equity chunks, and they're going to be there as a partner operating.
38:00That's the Kim Kardashian's, the Cosamigos. I think that's the highest chance of success. Then there is, you know, you have a business and you bring a celebrity partner on that's what ridge did with marquez but i think a lot of these deals have failed are because they did that and then the third one is i'm going to pay you money to be in a commercial right and that's like a you know we work with travis barker all the time or um i'm sure all of us have put celebrities in ads before so the third one is what i'm going to do at some point in 2026 you will see an ad with a vin diesel or somebody like that talking about how cool Ridge is as a brand.
38:33And that is just from a commercial output standpoint. It's like the way I'm measuring that is, does my Facebook CPMs go down when there's a famous person in them? I'll let you guys know if that works. The first one, I would love to do that. If I'm launching a new brand, I'm going to find a celebrity and I'm going to become their best friend and we're going to launch this thing together. We're going to hustle together on it. I think that's a very high chance of success. But what I just described is very difficult. It's like, okay, go be friends with a celebrity and then launch a brand with them.
39:03Who am I going to do that with? Connor? I don't know. Sean here to tell you about Saris Analytics and Saris Pulse. Ridge is profitable every single day, and we've taken that super seriously since we've built this business. We track contribution margin by day. We look at the SKUs we sell every single day. And we have to do this manually up until Saris Analytics came out. We take all of our SKU level data. We build it into the data warehouse. Everything that goes into making a true P &L, I get on a day-to-day basis. Sarah's Pulse gives you clarity so your CLO and your CFO and your CMO start speaking the same language.
39:38Contribution margin shifts teams away from hoping profits survive the season to managing them in real time. Book a walkthrough with the Sarah's Pulse team today. Click the link in the description and thank you, Sarah, for bringing you this show. You probably know this. What's the percentage of celebrity brands actually get off the ground and go? Like, is it higher than just a regular old person starting a brand? Oh, that's a good question. Like, how does, how does the, I mean, it's so hard to know this, but like, what's, what's the comp set? You know, if you look at, if you lined up like a hundred celebrity, celebrity like involved, so like their partners in the business and you lined up like a hundred regular, you know, us.
40:17And it's just direct to consumer. Yeah. Like what's the success rate of these things? I bet it's a double, but the success rate is still very low. Yeah, it's still better, but it's not great. I think one in a hundred brands actually make it. Yeah. And if you're listening to this, like, congrats, you made it. And I think like two out of a hundred celebrity brands make it. I think it doubles your odds, but the odds still suck. But I think it still is the same reasons why it makes it, whether you're a celebrity or not. Right? Oh, yeah, for sure. It just gives you a little more juice. But like, it's still, you have to have a good product.
40:50You have to have good market fit. Like going back to, you know, Skims, they had perfect product market fit. You bring up like, you know, Kim's famous for, for, you know, being attractive. Just say it, her butt. Like it's her butt. Yeah, yeah, yeah. She's famous. She's famous for this stuff. And she makes a product that is so in line with the culture. She crushed it. Totally. So yeah, the product market fit, huge. It's also, I think it also helps. It must help that in the, in Kim's case, in the Kardashians case, they are all very socially savvy. And a lot of celebrities are not. Yeah. Like, I don't know.
41:25I like sometimes stumble on somebody's like a celebrity's Instagram page. I'm like, oh, you're bad at this. Like you're so obviously bad at this compared to like a creator who's built up their audience. Like, and I think that that, I think for founders, that's the thing to watch for. You can see an actual like movie star with 40 million followers who's posted six times on Instagram in the last year. Like that is not the person you probably want to do the deal with. No, because it has to go back to being authentic. Like that's what it's all about. like I think about this is totally off the topic but like when I first started Caden Lane Sean it was all about celebrities like we had a lot of celebrity placements but that was when you were in magazines and people didn't know that if you saw a celebrity carrying your whatever or using your product in people magazine they thought it was real they didn't realize we had to have publicists and like go through all these jump through hoops and get it into their hands and it was free.
42:20They never paid for it. I think influencers today have completely like pulled the curtain back on celebrities and what they use. And so that's why them being authentic and actually like, I, I believe that Kim wears her products. Right. But I don't know that like, I believe that some random celebrity maybe is carrying your wallet unless you know what I'm saying? Like, you know, I think that that's actually like, okay, so the integration of the celebrity into the brand, right? Like if you look at, uh, like, let's just use Jason and Gordon. Gordon is everywhere in that brand before, before Hexclad even existed.
43:02He owned that, that category. And he's like everywhere. Like when you look at every interaction you have with the hex clad brand it is likely you see gordon's face from ad to site to like everything and he's making a ton of content with them and i think the the celebrity brands that fail it's like you do one shoot a year yeah you know you get a handful of assets and then that person is just kind of gone and they're not really integrated which is why i think that the like how socially savvy and like if you're going to do a deal with a, with an A-lister or like even a B-list, like a really well-known face, they got to be talking about it all the damn time.
43:43Otherwise, like you might get a little pop, but then it's, you're just, there's nothing else there, right? Like there's no residual value. Or using it like Sean is just as a hook. Like why is that person holding his wallet? Yeah. But then you're not like, that's not an equity deal. That's not a partnership with a celebrity. Sean's just going to pay this guy cash and just say like, it's worth the extra cash to like stick come in a video well hell then you can test it that way sean totally right like that's what everyone should do is just test it first and then as long as it's not a complete flop and and if they are you're just like peace out you should date before you get married for sure like uh you know you brought up could i see like is there going to be product brand fit with uh with the celebrity of your choice and it's like yeah guy fieri probably already uses a ridge wallet i could probably get guy in the ridge wallet but do people think he's cool enough we're going to find that out when the ad comes up.
44:33You just told us who it is now? No, no. But his name we've thrown around. Guy Fieri was - Yeah, I've seen him on the list. Sean, how would you structure a deal? So let's say there's somebody listening to this and they actually do have a friend of a friend, whatever. They've got a great celebrity. That celebrity does want to be involved in the brand. how would you structure the deal like cash equity uh like their level of involvement like what would you expect from them i'm curious if either of you have an opinion on this but i know sean you did a deal with marquez we gotta call him a celebrity that guy's got a massive audience um how did you guys think about you don't need to give us specifics of the deal but like structure wise what would you advise people to do?
45:23Yeah. So I see a lot of young brands get very excited when they get an email from somebody being like, Hey, I love your brand. I want to be involved. And I saw this happen. There was a guy, he had a very cool, uh, CrossFit brand. And he's like, the CrossFit games, like wants me to be the, the official backpack of the CrossFit games. How cool is this? All right. I know a guy with a faith-based apparel company and he's like, Tim Tebow team emailed us and they want to be involved. And I just temper those expectations so low, push those expectations all the way down because I've only ever seen money go one way and it's brand to celebrity.
46:04Now I hear sometimes celebrities put money into stuff. I've never seen it happen on a deal. I know Jay-Z has a venture fund. I know - He's invested in us. I got Jay-Z on my cap table, right? But he doesn't do for me. yeah i know shack has uh an investor fund but you have to think that there's and i've i've we've been close to some of these celebrities this is not marquez but other other actual you know like on tv celebrities and they are surrounded by people and those people's job is just to pay for themselves and make them a little extra money not doing the core thing so like we were talking to a tv star and he's on a show he's like how do i make money that isn't me acting he's like i would love to be the face of your brand because then I can make money from not acting, right?
46:49They're all looking for ways to come in, like different revenue streams. Just like how I sell wallets, I sell rings, they're trying to sell something else that isn't their main skill. So that Tim Tebow example, I was talking to the brand founder and I'm like, just make sure you clearly lay out what the expectations are. Because I think what's happening is Tim Tebow's team is doing cold outreach to you to get you to give Tim Tebow money. And you think Tim Tebow is trying to give you money and you're going to show up there and you're both going to have your hand out and no one's going to have any money to give each other.
47:21So that is so often when these deals get done. Anyway, so temporary expectations. Now we chose to do a deal with a YouTuber, with Marquez, I think the best tech YouTuber. And that's because it's just who native to who our brand is, right? Like we have sponsored YouTubers for a long time. We've worked with Marquez for a long time. He liked the product. He used the product. And it just made sense with where our brand was going to bring him into the fold. So with that deal, we're in a bunch of videos. So look up Black Friday, Marquez's video. We have that ad spot. Then the week after, we have that ad spot.
47:55So we are in a bunch of his videos. Collectively got like 100 million views on those videos in 2025. And that pairs up with us getting into tech products. So this is the second or third year of the deal, and we've launched power banks and phone cases and this stuff. So it's helpful to have the number one tech influencer talk about that stuff as a co-owner of the business. And then the third piece, when you go to a Verizon or a Best Buy and you say, hey, we're going to put our tech products here, and then Marquez is going to say you can buy them here, it's like a double win for them, right? They get these great products and they get built-in foot traffic.
48:27He'll talk about it. Do you worry, though, that it's risky? Like what if Marquez like pisses off somebody, right? And so he's not just a nobody upsetting somebody, but like what if he like really says something that just completely alienates his whole audience? Then is it too connected to Ridge? Like do you really think you sold all your techie stuff because of him or was he just a value add? Right, and you should never treat one of these celebrity deals as the Hail Mary to save your brand because it won't save your brand. We originally offered it to Colin and Samir. they're they're these two youtubers and you know they've had a hard year both their houses burned down the palisades fire and we're like the original deal was they were going to come in and be like the behind the scenes make a documentary about like doing like a brand like ridge and like tell the whole story that would have been really cool and it ended up not working out with them we ended up going with marquez but like what they liked about the deal is they're like we're so glad that we don't have to save your brand it's like like the brand's already successful.
49:28This is just icing on top. And that's how the celebrity deal should be looked at. I think you're exactly right. Yeah. Yeah. Like we didn't sell our tech stuff because of Marquez. It just helped. It's like we get to run ads with them. It just helps. Yeah. Now, what do like, is there brand risk both ways? Like imagine if Ridge Wallet started, I don't know, scamming people or whatever, right? Like that'd be very bad for Marquez. And one of Marquez's sponsors did tweet a bunch of it and marquez had to be like i'm not working with this brand until they apologize and the brand isn't apologizing um so the brand risk does go both ways there but yeah dude marquez launched an app uh panels and people hated it on the internet oh i remember that yeah that was bad yeah and he got what was it about why did they hate it just it was it was a premium wallpaper app so like you would pay money for wallpapers it came out last year and people just thought it was tone deaf for whatever reason.
50:23Anyway, when you're famous, people look for reasons to shit on you. And then he got caught speeding and people freaked out about him speeding. The guy owns Porsche 911s. Of course, he drives fast. But anyway, people on the internet look for reasons to be mad. I'll tell you that we never got any blowback from those comments. That's good. I think both those are very minor things. I didn't care at all about the app or the speeding, but uh i think maybe if you have if yes there are situations where it could hurt your brand if this like if you sponsor somebody who does something really really bad that's all i'm gonna say
51:08every sas company says they are ai powered but very few can explain what it actually does for the revenue of my brand this is why postscripts approach stood out to us they don't just build AI for demos or buzzwords. They built it to drive real incremental revenue. Postscript's AI called Shopper, it shows up inside of SMS at moments with real buyer intent when shoppers are likely asking questions, hesitating, maybe even about to drop off. Shopper can answer product questions instantly, answer questions about fit, availability, recommendations, order issues, the kinds of stuff that people usually bounce for.
51:39This means more conversions, higher AOV, less lost demand. So you are driving more revenue and doing it more efficiently. Check out Shopper from Postscript. We use it at Pilo, which is why I am telling you to check it out. If you, when you're looking at it, and I'm just thinking of like how to do a deal like this. Like, let's say I get somebody, I'm like, we have a celebrity, we want to do something or a YouTuber. How much are you trying to get like an equity deal done with the person versus how much cash? Like, what's the mix? You know, like, why wouldn't you just pay Marquez for all the placements and all the whatever?
52:15why have him come in as a as an owner in ridge yeah so there's different asks and the different ask go to different buckets so if i would if i just wanted ad space i could pay for the ad space if i just wanted the ad rights to the content i could pay for that but then there's a lot of other stuff he does that like it just it's hard to put a dollar value on like we do weekly calls where we talk about the brand and project is coming up and try to align those things we talk about he's like a co-developer of some of the products. He's on our board. So when you get to those things, it just makes sense to, to, to sort of have the equity in the conversation.
52:51He probably has a lot of value add on that actually with product development, right? Because he's so tuned into all the other kinds of products outside of yours. Yeah. He's a product expert, right? And we want that feedback coming across, like what colors to choose, like what features are important. And it's, it's hard to compensate that on a dollar basis. Also, it's good to just say he's a co-owner in the business, right? Like if things ever go bad, knock on wood, everybody, uh, things ever go bad. It'd be good to be like, Oh, you, you're a co-owner in this. You, you're supposed to have our back more than just a check.
53:21Right. So do you also pay him cash every year as part of all this stuff? Like, was that part of the deal or was it a pure equity deal? So yeah, it was, it, it's a combo of both, but it's, it's structured in a very circular way where like, we're giving him money. He's using the money to buy the equity. So it's like a, it's like a big circle. yeah did you just have to figure this out sean or did somebody help you structure it i used hex clads uh structure so what i mean this is a you got it jason is is where being a lawyer is actually super helpful like his deal is really smart yeah and what we found is i mean marquez doesn't have an agent so we get to work directly with him right like he's in the slack we talked to him.
54:07But that was really helpful when negotiating the deal. So it's like, I can just be like, hey, this is what we're thinking. This is what we're thinking. And it's just an LOI with a Google doc written up of what the deal is, what the deliverables are. We both agree on it. This is where going through an agent, probably better for both sides, but you're going to pay way more and it's going to be very painful. You're going to fight about like... Shit. Yeah. Part of our deal with Marquez is I think we get four production days a year and they'll be like, well, what counts as a production day? They'll be like, just travel kind of production day like that's something an agent would do where Marquez is just like yeah man come to the office we'll shoot whatever you want to shoot that's the way the deal usually works I feel like yours is a bit of a unicorn though because it's truly like he's got the reach and the trust factor for your audience specifically and that's hard to find but I guess Katie is that not that I that cons so I agree it's such a perfect fit yeah for Ridge but is that a unicorn?
55:04Cause like, it does seem like there's enough of these celebrity brand, like product market fit examples out there that it's not that rare. I mean, can you think of one that would be a good fit for us? Because Kristen has gone down this map before with me and she like names. We've not found one either, by the way. Like I'm with you. Like we haven't, but it does seem more common. I think it's common. I think people like to think about it, but like, I would challenge you to really, like we've really thought about it. And I'm like, I can't think of one. And then if I think of one, she's only relevant to a certain group.
55:38Right. Right. Cause ours would be a mother obviously. Right. So I don't know. I just think, um, they also expire. Like, I think that that's the tricky part with the mother part is like, their kids are only young for so long and they're only relevant to mothers for so long. Yeah. Kids grow up and it's like, I, then the new generation of moms, like the shelf life of moms as an influencer is actually pretty short. Yeah. It's their expired. You're saying that I've already expired out of my brand. Totally. Yeah. Yeah. Yeah. Sorry, Katie. You passed expiry. Great. What I was going to say is, yes, the unique thing about Marquez is he comes with reach and he comes with trust, both those things together.
56:19So you're looking for a new media celebrity, right? You're looking for somebody who actually can control their socials and actually be good at that, like a Kim Kardashian. Dude, my first, my mind goes to Hilary Duff. I think Hilary Duff would be great for your brand, right? Literally, she's come up, yes. And we've talked, but her kids are a little bit older too. And to Matt's point, like, right? Can we sell into like zero to three? Yeah, I mean, no, bigger than that. We're going the whole way, but still, I don't know. And then what's the difference between celebrities and influencers? And I don't know, like, I just - I think it's all the same now, right?
56:53I do too. Yeah. And I think actually in media part is the smart part that Sean said, it's like this new media version. It's exactly what you just said. Like if a celebrity doesn't know how to utilize their reach on social, what value are they to us except for a familiar face on TV? But if they're terrible at making content, right, or they're never on their social or they have some huge audience, but they're never posting and then they finally post and their engagement is at 1%, like where was their value add, you know? Yeah. And that's why we went for YouTubers because they're just so much – they're good storytellers and they're commanding attention at 20, 30-minute chunks at a time.
57:36So maybe you find your celebrity the opposite way. Go to the channel you really want growth on. find out who's only on that channel that specializes in whatever product or thing that you're doing. But I bet you there's more influencers that could maybe have just as big of an impact. When you say celebrity, I think if they're in a movie, right? TV movie. TV movie. That's what we wanted to do this year is that Marquez is incredibly famous to a certain subset of people on the internet. And it's men who spend a lot of time on YouTube, right? And so we do want to try, what is the true old school TV celebrity?
58:12The list I sent you guys, what I asked for was people who were famous from TV shows in the 2000s and 2010s. I know, and I think half of them, some people didn't even know who they were, right? No, because they're too young in the group. Because they were too young and they're like, who's so-and-so? And I'm like, oh my God. Like the guy from Full House. What was the guy from Full House? talking about yep yeah yeah black hair guy yeah the handsome guy from full house yeah yeah not mario that's nine that was 90210 but yeah like different guy we're talking about like those other people it's like okay if we put them in tv ads like are they actually better right but like if you want to grow digital channels i think a new media celebrity you know is great and i and i think it's to your audience too like when you guys just saying that out loud i'm like oh we're just all dating like our self.
59:03I don't think my kids would even know half of the people on that list that you sent, Sean. Like, right. They want to see YouTube stars and they want to see people that maybe aren't in movies as much. Oh, totally. What we're trying to do is make a commercial that 35 year olds think is awesome. Right. Yeah. So 35 and up, that's what we're trying to make. I'll let you guys know if it works. If you're scaling an e-commerce brand today, ads alone aren't enough. After Sell focuses on the one moment that every brand already owns after checkout and turns the post-purchase moment into more profit. Monetize every order with post-purchase offers and thank you page experiences without disrupting checkout or hurting conversion.
59:44Enterprise-grade tech used by Gap, Ticketmaster, Macy's, and Target now driving results for brands like True Classic, Hexclad, Ridge, and Jones Road. I would know. This is the reason I ended up buying three pans from HexCloud instead of two. Aftersell has already generated over$1 billion in additional revenue for e-commerce brands, revenue that doesn't require more traffic or higher CAC. So check out Aftersell and tell them that the operator sent you. Sean, do you think the Marques effect is a part of why you were able to scale up YouTube this year? For sure. Yeah. Yeah. Putting Marques in ads made the ads way better.
1:00:23It's like, that's undeniable. Is that like, you know, we have a list of winner ads. So every week, like, you know, we test hundreds of ads and the winners get pulled into this Figma board and we go through them. And specifically in Q4 of this year, like Marques selling wallet ads just crushed for us. And that's like probably a big part of our success. So it makes the deal worth it when you can actually, he's driving value in and of itself. He's posting on social. and then we put the creative into YouTube and scale that up and sell more wallets. Yeah, he's adding value in a lot of places. And I think that's actually a takeaway for people listening to this is if you're going to look at doing a deal like this, there's got to be like multiple touch points of value if that influencer celebrity is going to be much more involved, like particularly cap table.
1:01:08I think you're going to do anything with cap table. That has to be true. Yeah, multiple ways to win, right? So like you're looking for multiple avenues of actual success. And yeah, so I think we found that in Marquez. Did you test him first or did you just go straight into the deal? Like, did, did he actually post about you guys organically and you saw a huge lift or whatever and, or no, you just, no, we, we, we paid him, we paid him the post. So we, we've, we sponsored two YouTube videos in 2021. Um, and they, they performed fantastic. So we're like, okay, we should go back and look into this.
1:01:45but we had a list of you know 500 youtubers that we were looking at i posted on twitter i went very viral being like who wants this deal and we went through a big list of them and you know i ended up doing a cold outreach to marquez and closing it with him but like i only have five twitter people can i give you a big list and you post it for me and for sure okay my reach is your reach katie um but anyway i think i think that's that's the up for today guys so we talked about the pros and cons. What makes a successful celebrity brand? What makes a failing celebrity brand? We talked about the journey of actually getting them on the cap table, the weird dance of if they're going to give you money and they're probably not, you're probably going to have to pay them for it, when to bring them on as an equity partner.
1:02:28And I promise you guys in a year, we will revisit this and I'll let you guys know if a Guy Fieri TV spot was worth it or not. I think it will be. Love it. I totally think it will be. Matt, Katie, you guys are fantastic operators. If you would be more like them, you're going to want to sign up for the newsletter, the operator's newsletter. It is free. We hired Aaron to run it. He does it because he loves it. We have events coming up. We have sponsor stuff we're always going to be doing. Join EcomFuel. Thank you guys so much. Talk to you later. Goodbye.
From the publisher
What separates billion-dollar celebrity brands from total flops
Sean, Matt, and Katy Mimari (CEO of Caden Lane) break down why some partnerships become massive exits like Rhode and Skims, while others like The Honest Company and Kylie Cosmetics struggle to survive. They dive deep into deal structures, red flags to watch for, and the real math behind putting famous names into your brand.
The crew debates whether fame equals influence (spoiler: it doesn’t), why alcohol brands have an unfair advantage, and how Gordon Ramsay became the blueprint for celebrity integration. Sean shares the inside story of his MKBHD partnership at Ridge — including how they structured the deal, why YouTubers beat traditional celebrities for DTC brands, and whether Guy Fieri might be showing up in a Ridge ad soon.
Powered By
Fulfil
Richpanel
Northbeam
Saras Analytics
Postscript
Aftersell
Operators Newsletter

