This is a guest post by Richard Armstrong who is an early stage investor in many startups in both SE Asia and globally. Plus Richard has cofounded several companies.
Guest Author: Richard Armstrong
In the last few years creators have emerged as powerhouses, commanding massive networks of super loyal fans. Think of folks like MrBeast, Logan Paul, PewDiePie, Ryan Kaji of Ryan’s World, etc.
They have realized that their followings have tons of leverage in creating brands. These brands can drive new products and services.
And they can do so with little to no marketing investment. Because of the ability of the creator to drive organic views to them.
The Zero CAC Phenomenon
So in the marketing world they like to call this concept Zero Customer Acquisition Cost (CAC), and it is extremely powerful. Because traditionally marketers need to spend tons of money to acquire and retain customers.
It is not uncommon for a marketer to spend $50-100 or more to acquire a customer. Hoping that this customer than continues to purchase their products for a year or several years before they break even on their marketing investment.
So you can imagine how it feels when now you pay $0. Especially since for a lot of these products and services that creators attach themselves to… marketing is traditionally by far the biggest cost.
The Example of Logan Paul’s Prime Beverage
Let’s take Logan Paul’s “Prime” beverage, which is now believed to be worth well north of $1 billion. It is essentially sugar water that creates cents to make.
What makes one sugar water more popular than another? Other than of course its taste?
The answer is “Marketing”.
And this is what Logan Paul has provided free of charge to the brand exceptionally well. You see him plug it in his podcast regularly and in every public appearance he makes.
MrBeast and His Feastables
MrBeast does the same with his brand “Feastables”, which is also believed to be in the $1 billion valuation range already.
He incorporates the brand into his content in very original ways. And in ways that really add to the aura around the brand.
An example would be this video… it’s an entertaining video that is typical of MrBeast’s style and it’s all about Feastables.
It’s not that Feastables is kind of flashed in the background or something. No. The content is actually about Feastables.
And this video has gotten over 100m+ organic views.
It is like a marketer’s dream. Create an advertisement and then it gets 100m+ views organically.
The other powerful element of creator brands is that they leverage years of trust
Creators typically did not just pop out of nowhere. They’ve been at it for years.
Cultivating rapport with their followers. Take Ryan’s World.
He has launched numerous games and products leveraging his brand. His “Tag with Ryan” is a mobile game format that has been done tons of times by other gaming companies.
But it adds a few twists specific to Ryan and kills it. Because those twists relate to things that Ryan has done in his show for the last 6-7 years. And his followers just eat it up.
The Challenge of Non-Creator Brands
Now imagine you are a new brand without a creator. But you have millions of dollars of budget to spend.
When you start spending it… you have almost no trust. Because trust takes years to develop.
So even though you have money to have similar reach…. you don’t get the results that creators get because they in essence already have a brand that was created a long time ago.
And now they’re projecting it on that product.
Whereas you are trying to create years of trust quickly by spending cash. And most times it just doesn’t work.
Looking Ahead
As this trend continues to gain momentum, the implications for traditional brands are profound. Creator-led brands are not just competing in the same arenas; they’re changing the rules of the game.
Their agility, fueled by direct feedback loops with their audiences, allows them to innovate and adapt at a pace that conventional brands struggle to match.
Looking ahead, we can expect the proliferation of creator brands to accelerate, reshaping the commercial landscape in ways we’re just beginning to understand.
These entities are not merely riding a wave; they’re steering it, heralding a new era of brand creation and consumer engagement.
As they continue to take share from traditional brands, the message is clear: the future of branding is personal, and it’s being led by creators who understand the power of community and authenticity.
