📈 Million dollar TikTok companies

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• 📲 The rise of TikTok

• 😂 Meme of the day

HAVE YOU HEARD OF TIKTOK? LOL

If the title sounds sarcastic, it definitely is.

By now everyone has heard of TikTok, even your grandma Gertrude.

I remember when I first started doing TikTok I think Charlie D'Amelio had under 1M followers. Now she almost has 150M 🤯

TikTok has seen come crazy growth beating out all the big social media companies to 1 billion users in half the time.

Source: Substack

With Facebook, Instagram, and WhatsApp all having between 1.5-2.5 billion users it's safe to say that TikTok is in the big leagues and if they keep growing like this might become the top dog.

Now you guys probably know how crazy the TikTok growth has been even without me showing you this chart. So why am I telling you about it?

Well, put simply, the market is so humongous that it would be a crime for me not to tell you more about it.

Whenever there is growth like this, there is money constantly moving around the space. So, while this trend is probably not a surprise to you guys, there are still opportunities to make money from the ludicrous demand from small-cap to Fortune 500 companies alike.

More eyeballs = more money. With billions of eyeballs hitting the app every month, companies want their brands to be seen to set themselves apart from competitors.

Making a product is hard, but creating a community of loyal followers is even harder. Companies know this.

One of my favorite examples of this is Chipotle. They've amassed over 2 million followers on TikTok and recently did a #boorito campaign for Halloween and got over 4.2 billion views!

Even one of my buddies who works for Slim Jim says the company brags all the time about how fast their TikTok account is growing.

Would it have been better to get into TikTok two years ago? Definitely, but it's not too late and you don't even need to be a creator to make the big bucks.

Here are two opportunities I see in TikTok:

1. Creator Marketplace

With myself being a content creator, I have an inflow of brands reaching out and wanting to partner up. This isn't the case for all creators, especially the smaller ones.

For smaller creators, it's harder to get brand deals because they have smaller followings even though they could have higher engagement than huge accounts with millions of followers.

This is because the followers of an account with 50k feel more a part of a community compared to just being a number in an account with 10 million.

If there was a platform that included all of creator's engagement metrics (number of comments, likes, shares vs followers) companies could see the real value of all creators by not just looking at their follower count.

Add on top of this an "agent" that negotiates the best deals for creators without taking a 20% cut of the deal, which is standard for agents, would save creators a ton of time and effort.

I'm imagining a Tinder for brands and creators. Creators can "swipe right" on brands and brands can do the same with creators. Each creator profile includes important metrics for businesses and the brands talk to agents and only the creators when there's a brand deal.

This process allows creators to skip straight to the end.

I know, at least for me, if the service was good and saved me countless hours of back and forth email, I'd pay for it.

There's a company that does this for only businesses called creatorbar and they charge clients 2k-7k a month pairing the brand with a creator they think will represent it well.

2. TikTok Agency

This next one gets a lot of interest and for good reason. A lot of companies have no idea what they're doing when it comes to TikTok content and many fail to reach the younger audience on the platform.

As you can see by this chart, the Google search volume for “TikTok Agency” has drastically increased over the past two years because companies are looking for someone to hold their hand in the unknown jungle we know as TikTok.

If you are young, this is a perfect business for you because you know what type of ads appeal to younger audiences. You can keep company's content up-to-date on the latest trends and connect way better with the younger audience than an older person could.

We've all seen bad ads. I can bet they come with ridiculously low conversion rates. This is something your TikTok agency could help with.

Whether it be editing videos (which is on the rise according to Google Trends) to drive more engagement or writing funnier scripts for ads to include relevant trends, you could help a lot with content.

For instance, Wendy’s has a huge appeal from the younger generation on TikTok because they know how to keep up with trends and just be funny.

To a boomer this might make no sense but to Gen Z and Millennials we know they're talking about a dating app.

And Wendy’s is seeing the benefit of this. They have 1.3 Million followers on TikTok and on nearly every video people are commenting funny memes.

Building "brand equity" is vital for companies and they'll pay millions of dollars to increase it.

The earnings potential of a TikTok agency is massive because you can keep scaling as you get more clients.

MEME OF THE DAY

This is just absurd 😂😂

That's all folks! Have a great weekend :)

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.