Channel Drives Product

Shaan Puri shares his perspective on building products by working backwards from distribution channels, specifically discussing the new NIL (Name, Image, Likeness) opportunity in college athletics as a marketing channel.

Key Points:

• Distribution First Thinking:

  • Look for unsaturated marketing channels
  • Work backwards from the channel to determine what product would work best
  • An unsaturated marketing channel right now can be worth $100M+ if you're first to figure it out

• College Athlete NIL Market Opportunity:

  • Recent law change allows college athletes to monetize their brand
  • Currently no dominant marketplace connecting athletes to brands
  • Potential to be the "AngelList for NIL marketplace"

• Product Considerations for NIL Channel:

  • High repeat purchase rate products work best
  • Need high margins
  • Look for mass appeal items
  • Examples of potential products:
    • Credit/debit card targeting college students
    • Protein powder
    • Athletic greens
    • Energy drinks
    • Subscription-based products

• Brand Strategy:

  • Could create campus-specific versions of products
  • Leverage existing school brand affinity
  • Use athletes' connection to their specific schools
  • Example: Create school-specific deodorant scents with relevant branding

• Distribution Strategy:

  • Get influential college athletes to post about products
  • Tap into trust between athletes and their audience
  • Focus on building products that naturally fit with athlete endorsements
  • Take advantage of this being a new, unsaturated marketing channel

• Market Entry Timing:

  • Currently few brands utilizing this channel effectively
  • Opportunity to be first mover in this space
  • Need to move quickly before channel becomes saturated