If you guys ever opened Instagram Reels or TikTok, you probably seen this a million times: some girl doing one of those cute little videos holding a new beauty product, maybe a serum, lipstick, face cream, sunscreen, whatever. She holds up the serum, puts some on her face and says, “Okay guys, today we’re trying the GlowBerry Vitamin C Serum.”
So, she puts it on, tells you how good it feels, how nice her skin looks, maybe the video gets a few hundred thousand views, girls in the comment saying “Slaaay 💅💗🫧🌸🎀💨” ”and people start buying it. That’s basically what most people see when they think about a beauty brand: girls, TikTok, Instagram, nice packaging, marketing, and brain rot.
This is where it gets interesting. Before that girl can be on TikTok and say “Slaaay 💅💗🫧🌸🎀”, somebody actually has to make the product she is holding. Someone has to make the serum. Someone has to make the bottle. Someone has to design the formula. Someone has to put the serum inside the bottle. Someone has to ship the boxes when people start buying it.
And the funny thing, and the golden nugget I wanted to share with you guys is, the beauty brand does almost none of this themselves.
The person who owns “GlowBerry” might know some marketing, might know how to reach out to TikTok influencers, branding, they have maybe like 200,000 followers. But most of them rarely ever own a giant factory somewhere mixing Vitamin C serum themselves. They get other companies to do all of that for them.
There are companies whose whole business is literally making products for other beauty brands. You tell them: “I want a Vitamin C serum.” They make it. Another company can make the bottles. Another one can help formulate the product, another one can store all the boxes and ship them when customers order, another one can help make sure the product follows all the rules.
So before GlowBerry can make a single dollar, GlowBerry has to spend money with all these companies first. And this is where the opportunity is.
What is the opportunity? It is very simple: whenever any business needs to spend money on something, of course another business exists that will want to sell it to them.
In our example: If GlowBerry needs a company to make 10,000 bottles of serum, that manufacturer wants GlowBerry as a customer. (duh), again If GlowBerry needs packaging, the packaging company wants GlowBerry as a customer. If GlowBerry needs someone to store and ship the products, the fulfilment company wants GlowBerry as a customer too.
So every time a new company starts in business, they want to make something, sell something, open something, hire someone, ship something, build something, that money has to go somewhere obviously, that’s literally what business is, and wherever that money is going, there is another company on the other side saying: “I want that customer.” That is the whole game.
Taking an example: let’s say a manufacturer wants companies like GlowBerry as customers, cool. Well the most logical thing in the world would be to find GlowBerry before GlowBerry already has a manufacturer. Because at that time the founder is still looking & the manufacturer still has a good chance to win the business.
Because If you find GlowBerry three months later, after somebody else is already making the 10,000 bottles, then congrats, you found the customer after the money was already spent.
And this is exactly what most companies do. The manufacturer does not have some magical notification saying: “Hey, GlowBerry was created this week. The founder still needs a manufacturer. Go talk to her now.” So they find these companies late. They see them on Instagram after launch. They hear about them from somebody. They meet them at some event. They search Google for “beauty brands.” But by that point, a lot of those brands already picked the companies they want to work with.
And this is where you guys can sit in the middle and make money. Think about what is happening here. GlowBerry literally cannot launch the product without these companies. Someone has to manufacture it, make the packaging, formulate it, store it, ship it, etc.