Merch Revenue Models

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.

SP

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.

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