Marketing Operators - E039: Scaling to $20M+ in 2 Years With a Team of Six: Dan McCormick of Create Wellness
The conversation explores the challenges and strategies in scaling businesses, particularly in the context of marketing and team management. Dan McCormick, co-founder of Create Wellness, shares his experience in building a brand around creatine products, emphasizing the importance of understanding market trends and consumer needs. He highlights the significance of creative testing in paid social media to maintain efficiency as spending increases. The discussion also touches on the benefits of having a lean team and the strategic use of agencies and freelancers to manage growth effectively. McCormick notes the importance of product differentiation and the potential of creatine as a widely accepted supplement. The conversation further delves into the role of technology and communication tools in enhancing team productivity and the impact of influencer marketing, exemplified by Joe Rogan's mention of Create Wellness.
Key Points:
- Creative testing is crucial for maintaining ad efficiency as spending increases.
- A lean team structure can be effective, but strategic outsourcing is necessary for expertise.
- Understanding market trends and consumer needs is key to product success.
- Effective communication and decision-making processes enhance team productivity.
- Influencer marketing can significantly boost brand visibility and credibility.
Details:
1. 🎙️ Podcast Grievances and Guest Introduction
1.1. Starlink Wi-Fi Technical Issues
1.2. Impact on Podcast Recording
2. 🍬 Meet Dan McCormick: Innovator in the Gummy Space
- Dan McCormick is a leading innovator in the gummy industry, known for his significant contributions and expertise.
- He primarily engages socially through digital platforms, with most interactions occurring via DMs on X and through podcasting.
- The transition from online to in-person interactions is humorously acknowledged as awkward, reflecting a common modern communication challenge.
- Dan's work is admired not only in his business ventures but also in media marketing, particularly through his podcasts and newsletters.
3. 📈 Growth Strategies and Creative Testing
3.1. Growth Strategies and Creative Testing
3.2. Tools for Creative Testing
4. 💊 The Creatine Journey: From Gummy to Brand
- Create Wellness, founded by Dan McCormick, initially launched with creatine gummies and has expanded into various creatine products, capitalizing on the growing trend of creatine supplementation in the US.
- Dan McCormick's background in e-commerce and experience with venture-backed DTC brands like Away and Parade informed the strategic development of Create Wellness, focusing on building a modern brand while avoiding common pitfalls.
- Create Wellness is designed as a high-margin, subscription-based business targeting an underpenetrated market with significant growth potential, aiming for mass market appeal and a transition to omnichannel distribution.
- The brand leverages Dan's personal passion for creatine and his understanding of successful D2C and CPG business models to create a unique market position.
- The transition to omnichannel distribution involves strategic planning to overcome challenges such as maintaining brand consistency and managing logistics across different sales channels.
5. 🧠 Misunderstood Products and Market Opportunities
5.1. Creatine Market Potential
5.2. Success of Misunderstood Products
6. 💼 Team Management and Business Growth
- Creatine was selected as a supplement due to its commodity status, akin to collagen and sodium, but was innovatively differentiated through a gummy form to reduce stigma and enhance the consumption experience.
- The gummy form of creatine was designed to make incremental improvements in convenience, consumption, and taste, potentially leading to significant behavioral changes over time.
- The speaker's personal experience with creatine since high school provided an insider's understanding of the market, without experiencing the negative side effects often associated with it.
- A significant spike in creatine demand in 2021-2022 resulted in a supply shortage, presenting an opportunity to improve product taste and capture a larger market share.
- In 2022, the only available creatine product online was Creatine HCL from Raw Labs, which had a poor taste, indicating a market gap for better-tasting alternatives.
- The potential market for creatine in America is estimated to be over 100 million people, representing a substantial business opportunity.
- The speaker shifted from managing a media business to focusing full-time on the creatine product due to its perceived market potential.
7. 🏢 In-House vs. Outsourcing: A Business Dilemma
7.1. AI in Social Media Management
7.2. Decision-Making: In-House vs. Outsourcing
7.3. Business Growth and Team Structure
8. 🤝 Building a High-Leverage Team
8.1. Importance of Video Production
8.2. Supplement Industry Practices
8.3. Transition from Outsourcing to In-House Operations
9. 📊 Marketing and Growth Leadership
9.1. Insourcing Success and Challenges
9.2. Strategic Hiring and Role Allocation
9.3. Comprehensive Role of Marketing Leadership
10. 🔍 Incrementality and Marketing Measurement
10.1. Role and Team Structure
10.2. Retention and Channel Management
10.3. Scalability and Growth Plans
10.4. Leadership Involvement and Strategic Alignment
10.5. Incrementality and Efficiency
11. 🚀 High-Leverage Business Models in DTC
11.1. Efficiency and Revenue in DTC Models
11.2. Challenges and Risks in DTC Models
12. 🗣️ Communication and Efficiency in Teams
12.1. High Leverage Areas and Creative Pods
12.2. Complex Business Management and Brand Awareness
12.3. Internal Efficiency and Decision-Making
12.4. Communication Standards and Time Management
13. 📅 Q5 Strategies and Seasonal Marketing
13.1. Efficient Team Processes and Communication
13.2. Upper Funnel Marketing and Measurement
13.3. Q5 Marketing Strategies
13.4. Health and Wellness Marketing Insights
14. 🧪 Product Expansion and Brand Flexibility
- The company is expanding its product line by introducing creatine powder in single-serve sticks, addressing the market demand for more traditional forms of creatine while maintaining convenience and precise dosing.
- The decision to launch creatine powder was influenced by the insight that for every one person buying creatine gummies, four to five are more interested in creatine powder.
- The single-serve stick format is chosen for its convenience, ease of travel, and precise dosing, filling a gap in the market where single-serve creatine products are scarce.
- The brand aims to balance its innovative product offerings with consumer demand, showing flexibility in its approach to product development.
- The strategy mirrors successful brand positioning seen in other companies, such as Dr. Squatch, which adapted its product offerings based on consumer preferences.
- The company emphasizes the importance of listening to consumer needs and adapting product offerings without compromising brand identity.
- The introduction of creatine powder in a new format is seen as a strategic move to make the product more accessible and appealing, similar to how other brands have repositioned existing products to enhance consumer appeal.