Merch Revenue Models
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A key strategy for creator merch is choosing between consumables or collectibles, based on insights from Colin & Samir's approach to merchandise.
Two Core Merch Strategies
-
Consumables Strategy
- Used by larger creators (Logan Paul, Mr Beast)
- Focus on products meant to be used up (energy drinks, chocolate, regular merch)
- Aims for recurring purchases and revenue
- Examples:
- Prime Energy Drink
- Mr Beast Chocolate
- Standard t-shirts and merchandise
-
Collectibles Strategy
- Better for smaller creators with devoted followings
- Creates limited edition items that never come back
- Functions as a tribal signal between community members
- Benefits:
- Creates scarcity and urgency
- Builds stronger community bonds
- Signals membership in the creator's tribe
- Higher perceived value
Why Collectibles Work for Smaller Creators
- Don't need to make a fortune from merch sales
- Focus on the most devoted 1000 fans
- Items become badges of honor for true fans
- Creates recognition between community members
- Higher quality items justify premium pricing
Implementation Tips
- Make limited quantities
- Never bring back the same design
- Focus on high quality over mass production
- Use items that represent inside jokes or community sayings
- Create items true fans would recognize and appreciate
The key is choosing the right strategy based on your audience size and engagement level - consumables for mass market, collectibles for devoted communities.
02:13 - 03:49
Full video: 01:04:50SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.