The MRR allure & Power of Creator Partnerships

Mr. Beast launched Feastables.

Logan Paul launched Prime.

The Rock launched Teramana Tequila.

Celebrities and creators successfully launching products is nothing new.

But, what happens when you fuse this same formula with productized services?

That's the experiment Hunter Hammonds is currently undertaking. Genius? Madness? Time will tell.

His strategy is twofold.

First, he finds creators and forges partnerships with them. Second, he creates a relevant productized service with the creator, aiming to provide value to their audience.

When executed well, this approach can propel growth by tapping into an eager existing audience. Conversely, it could also lead to overwhelming demand or hug of death scenarios. Both outcomes are possible.

To date, he's launched ViralCuts (short-form videos) with Codie Sanchez and Sam Parr, Hey Friends (a YouTube Agency) with Ali Abdaal, OFF MENU (Design) with Sahil Bloom, and Key Frame (Animations) with Dan Koe.

It's an intriguing experiment to monitor.

He intends to launch one new productized service each month with different creators throughout 2023. Discover more about his journey in this recent interview here. Love to hear your thoughts.

Let's take a closer look at Key Frame.

Estimated read time: 3 minutes 45 seconds.

Spotlight: Key Frame Design

I’m a huge fan of turning ideas → visuals.

I’d like to think my illustrations and even some of my videos like this bring value and make sense of what’s in my head.

Key Frame helps take concepts/ideas and then turn them into visual animations like this:

Notes ✏️:

1. Pain

Standing out on social media is hard. Animated videos like these help. It is easy to copy “Alex Hormzi-style” captions. However, creating unique animated assets provide you with a nice creative moat. Creators have frameworks & ideas. They just need help visualizing them.

2. Pricing 💰

  • Solo: $399/month for one short-form video per month

  • Core: $1,399/month for up to 4 videos monthly, with unlimited revisions and 24/7 support ($350/video)

  • Creator: $4,499/month for a full-time dedicated animator, including unlimited revisions, expert project management, and 24/7 support.

*Still is unclear how long the videos are and their creator plan doesn’t define output other than someone dedicated.

*Do the videos roll over? Still some questions there.

3. Business Model

Monthly Subscription model.

Strategy: It’s not always about MRR

While Monthly Recurring Revenue offers stability and predictability, it can inadvertently limit your scope of services and the value you provide.

Too many focus solely on MRR and not ensuring it is the best fit for one their service, and second their customers.

Some customer problems might require unique, non-recurring solutions that could create significant one-time revenue.

Instead of being bound by the monthly billing mindset, focus on solving your customer’s problems first. Which may be best suited with a one-time payment option.

Sam Shepler of Testimonial Hero for example talks about this a lot. None of his services are recurring monthly but he has been able to offer a higher-end one-time payment that still gets repeat purchases and holds a strong LTV. Recurring monthly payments for his service simply wouldn’t work nor would best serve his enterprise customers.

Remember, delivering customer value should be your primary goal, and there's more than one way to achieve this. Just because a customer buys something one-time doesn’t mean they can’t be a recurring customer and still have a strong LTV.

Don't let the allure of MRR limit your business model.

Resource: Breaktimer

I literally use this every day. My legs, back and sanity thank me constantly.

I don’t know about you but for me, It’s easy to sit and work and never come up for air. Breaktimer lets you create a custom Pomodoro timer which then locks your computer to force you to stop working, get up, and move. Don’t worry there is an optional “skip break” button 😃.

Highly recommend it.

Keep stacking bricks 🧱 . See you next week.

TG

Thinking Time Chief @
Productized.Services

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