A Brilliant $29,000,000/Month Shopify Niche Store

Summary

This video script delves into the success story of 'Hey Dude', a brand that defies expectations by achieving $29 million in monthly revenue with seemingly generic products. The key to their success lies in consistent innovation, launching trendy new designs, and a cult-like brand following. Despite mixed reviews, 'Hey Dude' thrives through aggressive marketing, including extensive ad testing and leveraging social media to build a strong community. The script also highlights the importance of continuous testing and learning in e-commerce, emphasizing the value of experience and adaptability in business growth.

Takeaways

• 💰 The store 'Hey Dudes' is generating an impressive $29 million in revenue per month, showcasing that even generic products can be highly profitable with the right approach.
• 📈 The brand has a consistent growth strategy that involves releasing new products on trend, demonstrating the importance of innovation in maintaining customer interest.
• 🔍 Despite having a 'cult-like' brand appeal, their products are not necessarily of exceptional quality, indicating that branding and marketing can compensate for product quality.
• 🎨 The brand uses a variety of designs on their products, similar to the strategy used by Udy right with Dve Fardi, to create a flywheel of growth through new designs.
• 💸 They are currently running a significant 25% off sale on almost all products, showing that even successful brands use sales as part of their marketing strategy.
• 👟 The brand is owned by Crocs and has nearly reached a billion dollars in revenue in 2023, highlighting the potential of niche products in a larger market.
• 👦👧 The brand, while named 'Hey Dudes', continuously innovates with new products for kids and women, showing adaptability in product lines to reach a broader audience.
• 📊 The brand's social media presence is a key part of their success, with a significant following on platforms like Instagram and TikTok, emphasizing the role of social media in brand growth.
• 📝 The script mentions the importance of testing different ad creatives and strategies, with the brand having an extensive ad library, underlining the value of A/B testing in marketing.
• 🤝 The speaker offers to consult with the 'Hey Dudes' team, expressing a willingness to provide value and share knowledge, which reflects the collaborative nature of the e-commerce community.
• 🌐 The brand also sells through retail channels, similar to Crocs, suggesting that a mix of online and offline sales can be a successful strategy for brand growth.

Q & A

What is the monthly revenue of the store discussed in the video?

The store mentioned in the video generates an estimated revenue of $29 million per month.

What is the name of the store that is being analyzed in the video?

The store being analyzed in the video is called 'Hey Dudes'.

What is the significance of the store's product variety in its growth strategy?

The store's product variety is significant because it allows the store to continuously grow by releasing new products that are on trend, which helps in maintaining a cult-like brand appeal.

What is the main strategy that the store uses to grow its revenue?

The main strategy used by the store to grow its revenue is consistently releasing new products that are on trend and have mass appeal.

How does the store 'Hey Dudes' relate to the brand Crocs?

The store 'Hey Dudes' is owned by Crocs, which is building a monopoly on this type of footwear.

What is the store's approach to sales and discounts?

The store 'Hey Dudes' runs significant sales, offering 25% off almost everything, which is a strategy used by some of the biggest brands in the world.

What is the store's approach to social media and content creation?

The store has a strong social media presence with a large following on platforms like Instagram and TikTok, where they continuously pump out a ton of content, which is a key to their success.

How does the store handle negative reviews and customer service issues?

The script does not provide specific details on how the store handles negative reviews and customer service issues, but it does highlight that even big brands sometimes receive negative reviews.

What is the store's approach to advertising on platforms like Meta?

The store tests a large number of different ads, with the ad library containing 300 different results, indicating a strategy of extensive testing and creativity in advertising.

What is the store's revenue in 2023, and what does this indicate about its growth?

The store's revenue in 2023 was almost a billion dollars, indicating significant growth and success in the market.

How does the store's approach to testing and pushing boundaries contribute to its success?

The store's continuous testing of new things and pushing boundaries, such as targeting different demographics and creating new designs, contributes to its success by keeping the brand fresh and engaging.

Outlines

00:00

💰 High-Earning Generic Products on Shopify

The video script introduces a Shopify store that defies expectations by selling generic products with mass appeal, generating an impressive $29 million in monthly revenue. The store, named 'Hey Dudes,' has grown to have 4 million monthly visitors, focusing on consistent release of trendy, new products to fuel its growth. The script highlights the importance of testing and variety in product design, comparing the store's strategy to that of Udy, who also capitalized on a mass-appeal product and created new designs for it. Despite mixed reviews, the store's success is attributed to its cult-like brand and continuous testing of new products and marketing strategies.

05:01

🚀 Growth Strategies and Branded Dropshipping Insights

This paragraph delves into the speaker's experience with branded dropshipping and the importance of continuous learning and adaptation in e-commerce. The speaker shares their agency's success with a store that achieved $600 in sales from a $200 ad spend, emphasizing the value of testing different strategies. The script also discusses the significance of social media presence, with the store in question boasting a substantial following on Instagram and TikTok, and the importance of content creation as a testing strategy. The speaker offers to consult with the 'Hey Dudes' team to provide further value, highlighting their passion for contributing to the growth of e-commerce brands.

10:03

🌐 Leveraging Social Media and Expanding Retail Presence

The final paragraph of the script discusses the symbiotic relationship between providing value to brands and personal growth as an entrepreneur. It emphasizes the importance of viewing every business experience as a learning opportunity, regardless of immediate success. The speaker mentions the store's use of various apps to enhance their marketing and the potential for direct-to-consumer sales and retail expansion, similar to Crocs. The script concludes with an invitation for viewers to join the speaker's community and stay updated on their offerings, reinforcing the theme of collective growth and optimism for the future.

Keywords

💡Mass Appeal

Mass Appeal refers to the broad attractiveness of a product or idea to a large audience. In the context of the video, it's used to contrast with the common perception that only unique, niche products can be highly profitable on platforms like Shopify. The video discusses how a store with mass appeal products, considered somewhat generic, is achieving significant monthly revenue.

💡Revenue

Revenue is the total income generated from the sale of goods or services. It is a key financial metric for businesses. The video emphasizes the impressive monthly revenue of $29 million that the store 'Hey Dudes' is generating, highlighting the success of their business model.

💡Cult-like Brand

A cult-like brand is a term used to describe a brand that has a very loyal and passionate customer base, often due to its unique identity or products. The video mentions that 'Hey Dudes' has created such a brand, which contributes to their continuous growth and customer loyalty.

💡Product Variety

Product variety refers to the range of different products that a company offers. The video script mentions that 'Hey Dudes' offers a variety of products, which is one of the strategies that helps them to grow and maintain customer interest over time.

💡Trend

Trend refers to a general direction in which something is developing or changing. In the context of the video, it relates to the store's strategy of consistently releasing new products that are in line with current market trends, which helps to drive sales.

💡Sales Strategy

Sales strategy involves the methods and tactics used to increase sales. The video discusses the store's approach of running big sales, such as 25% off almost everything, as a strategy to boost sales and attract customers.

💡Unit Economics

Unit economics refers to the financial metrics related to the sale of a single unit of a product or service. The video suggests that the store likely has strong unit economics, which is a factor contributing to their growth and success.

💡Direct to Consumer (D2C)

Direct to Consumer (D2C) is a distribution model where products are sold directly to consumers, bypassing traditional retail channels. The video mentions that 'Hey Dudes' also sells in stores, indicating a hybrid approach that includes D2C sales.

💡Branded Drop Shipping

Branded Drop Shipping is a business model where a brand sells products online without holding inventory, instead, orders are shipped directly from the manufacturer or wholesaler. The video mentions this as a strategy that the presenter's agency teaches and practices, highlighting its effectiveness.

💡Social Media Strategy

A social media strategy involves the planning and implementation of social media activities to achieve marketing goals. The video praises 'Hey Dudes' for their effective social media strategy, which includes creating a lot of content and having a significant following on platforms like Instagram and TikTok.

💡Testing

In a business context, testing refers to the process of trying out different strategies, designs, or approaches to see what works best. The video emphasizes the importance of testing in advertising, product designs, and marketing strategies, as evidenced by the store's extensive ad library and social media content.

Highlights

A store named 'Hey Dudes' is making $29 million per month with somewhat generic products but a strong brand appeal.

The store's success is attributed to its consistent release of new products that are on-trend and not too risky to launch.

Hey Dudes runs a significant sale, offering 25% off almost everything, which is a strategy used by some of the world's biggest brands.

The brand's revenue in 2023 was nearly a billion dollars and is owned by Crocs, indicating a strategic monopoly in the shoe market.

Despite being a male-oriented brand, Hey Dudes continuously innovates with new products for women and children, expanding its market reach.

The brand's advertising strategy involves testing a multitude of ads, with 300 different results in their ad library.

High-performing advertisers test almost a hundred times more than the average, as shown by recent data from Meta.

Even with significant growth, the brand has received mixed reviews, indicating that success can come despite negative feedback.

The concept of branded Drop Shipping is presented as a viable strategy for launching an e-commerce business, even with initial struggles.

A case study is shared where a store launched with only US$200 spent on ads and achieved $600 in sales in a day.

The importance of testing and creativity in advertising is emphasized, suggesting that there are no shortcuts to success.

A new product, a $10 million TikTok ad dataset, is introduced to inspire creativity and effective ad testing.

Hey Dudes' social media strategy is highlighted as a key to their success, with a significant following on Instagram and TikTok.

The brand's content creation is viewed as a testing strategy, leveraging organic algorithms for growth.

The potential of using viral social media content for paid advertising is discussed as an untapped opportunity for many brands.

The transcript concludes with a call to action for viewers to join the community, Discord, and newsletter for further value and support.

Transcripts

ladies and gentlemen when we think of

products that make a lot of money on

Shopify we tend to think of really

unique things that you can't find

anywhere else we hardly ever think of

products that actually have a Mass

Appeal and you could consider to be a

little bit generic and in this video

we're going to actually dive really deep

into a store that exactly like the lad

thing I just mentioned they are somewhat

generic they are a pretty cool store but

I'm going to show you just how normal

the store is and through this normal

approach that they're taking they are

able to do $29 million per month I'm not

talking about per year I'm not talking

about total lifetime Revenue I am

talking about per month it's quite

unbelievable so we're going to dive into

everything in this video and it's going

to be extremely valuable reverse

engineering these things is always

always really helpful for not only your

own learning but also for the future I

know that may sound crazy but it's true

I work with a lot of crazy Brands some

big ones and just studying these things

every day has really allowed me to you

know provide value for those brands in a

big way so as you see we got store leads

pulled up and we're estimating right

away the revenue to be $29 million a

month and the store is called hey dudes

I believe I've touched on them before

however I want to do a more detailed

video on it because they've just

continued to grow grow more and more and

you know as you see now their monthly

visitors are consistently at the 4

million Mark and what's crazy to me is

honestly their products aren't anything

that crazy they are cool designs but

they're not insanely wellmade or

anything that crazy they've just really

created a cult-like brand uh with a lot

of different variety of products which

actually is one of the things I want to

touch on right

away this is a great example of how a

niche store can continue to grow over

and over again month over month for a

long time by just simply releasing new

products I mean that's really the main

strategy here is consistently releasing

new products that are on Trend and that

you know are AR aren't even necessarily

too risky to launch right like these

things are probably going to convert

well because it's literally just the

same product but with some sort of

design on a new design this is actually

similar to the udy right with dve fardi

he kind of did the same thing actually

you know he had this winning product

right this kind of Mass Appeal product

and then just created new designs for it

and that just created this flywheel of

growth um and that's exactly what

they're doing now this is just another

thing I want to show is that these guys

are running a big sale so 25% off almost

everything that's pretty crazy that's a

big sale so you know a lot of people say

if you are a brand you should never run

sales all the time

well some of the biggest brands in the

world are doing this um and actually

just quickly I want to show you their

revenue in 2023 was almost a billion

dollars almost a whole billion and

they're actually owned by Crocs so you

know Crocs is building a Monopoly Here

on these types of shoes which is really

interesting uh to see honestly and the

other thing that's interesting to see is

that even though they mainly have men's

shoes I mean the brand is literally

called hey dude they also are constantly

coming up with new things for kids new

things for women um so they're pushing

the boundaries all the time and and

testing new things which you know once

we look at their ads you're going to see

as well how much they truly test but

this is really what makes the difference

guys it's just continuously testing new

things and pushing boundaries um so let

me show you let's go to popularity so

this will show us which shoe is the most

popular out of this collection so this

is all the men's shoe this is one of the

most popular here um it's just a Wall-E

Sports MH it's a mesh shoe that has this

sort of like boat shoe design um it's

nothing that crazy I mean it it's it's

pretty nice like I think um people

really do like it but actually a lot of

people don't and I did want to highlight

this not to be you know a dick or

anything to the to the brand like I know

that you know these guys are great and

sometimes things happen but I want to

show you this as encouragement right um

sometimes it helps to see that even some

of these big Brands they don't get the

best reviews sometimes look at you know

two reviews back to back of people

saying that the products are terrible

that the customer service sucks um and

then even here you know we're seeing

consistent bad reviews here this is

actually pretty pretty you know bad wow

there's a lot of really bad reviews here

um so again this isn't just to like

on the brand or anything this is just to

show you that sometimes people get in

their heads and have limiting beliefs

about launching there for example if

you're Laing a branded Drop Shipping

Store which is something that you know

we teach at a cab.com obviously we're an

agency and we work with Incredible

Brands but we do try to always be on top

of you know the latest launch strategies

and I believe branded Drop Shipping is a

great way to launch an e-commerce

business um so it's one of the things

that we teach and one of the things that

we actually practice as well you know I

I'll show you a Tik Tok in a different

video and maybe I'll make a whole video

around this but we launched the store

from zero targeting us only and did $600

in a day uh from $200 spent through a

very simple strategy in a branded Drop

Shipping approach so ultimately that's

why I wanted to show you this right cuz

I just want to show you that even if

you're struggling at the beginning to

make your customer super happy it's part

of the game and as long as you just

continue to try to serve them you will

be in a great spot for growth and

honestly I don't want to say that you

should do this but even if you don't

serve them the best as you see you're

still going to continue to grow if

you're you know consistently focusing on

the right strategies these guys are

running a lot of ads so let's actually

focus on that now you know this is what

their product page looks like and uh

it's pretty simple but their ad Library

as you see has 300 different results and

this is some piece I actually saw some

data recently from meta where they

showed that the top advertisers are

testing almost a hundred times more than

the average Advertiser um which just

that the theme of this video today is

test more um they're doing exactly that

when it comes to meta ads they are

testing so many different things all the

time 300 different ads are that's a lot

of ads um so just remember that when you

think maybe you have a brand and you hit

a plateau and you think maybe your

product is dead actually it's likely

that you just haven't really gotten

creative with your ads or tested enough

um and the great thing is you don't have

to get Super Creative that's why we made

this new product recently um at a

IM at $10 million Tik Tok at data set

that's the reason we created this

because I know sometimes it's very hard

to find you know to to get creative um

and find ideas that are going to work so

what we did is we compiled a list of a

hundred different Tik Tok ads that have

all produced over $100,000 in sales each

each so it adds up to over $10 million

and that's why we called it this uh but

replicating these ads the great thing is

all of these ads are actually not crazy

edited it's really raw ads that almost

anybody can make um so that's why we

created it so that you could have some

inspiration so and test more ads because

again that's really the key A lot of

people hate to hear that because they

want to find shortcuts there are no

shortcuts this is probably the closest

you can get to a shortcut is to just you

know not reinvent the wheel and copy

what works and that's exactly what

they're doing so they're running a lot

of different sales they're running a lot

of different ad creative some really

well-shot ads they're starting to Target

more women as you can see uh which is

kind of interesting and yeah I mean

that's really about it for their ads

their social media is extremely good

this is really where they shine and they

have a huge following now because of it

um as you see they have 600,000 on

Instagram and then 500,000 on Tik Tok

and what's cool is um they're actually

not even reposting their Instagram or

their um sorry their Tik toks onto

Instagram which I think is a huge missed

opportunity if they're not doing it on

this page they should at least be doing

it on a separate page but ultimately

this is you know one of the big keys to

their success is they're continuously

pumping out a ton of content and this is

actually a way to test a lot of people

don't see this as a as a testing

strategy they see it as just like a

social media strategy but you know I

like to consider myself a bit of a

scientist when it comes to business and

e-commerce and just in general I really

love science but this is a testing

strategy it's just utilizing you know

organic algorithms as opposed to paid

ads and what's great about this is if

you find something with viral potential

for example let's say this video that

got 100,000 views this is a sign that

you should potentially run some ad spend

behind that and funny enough actually a

lot of Brands aren't even doing this I

don't even think they're doing it um

funny enough again people don't know

that you can actually run All Those ads

on meta and likely get really good

results in my opinion they should

totally be you know taking this 300

number to even 500 right they could be

testing 500 different creatives with

some of the content that they have on

Tik Tok I mean if anybody from the

heydude team is watching I would

absolutely love to work with you to

consult with you to provide a value in

any way ship or form I just simply love

providing value for Ecom Brands and just

brands in general I'm a big believer in

that it all comes around right I'm

trying to stack Good Karma I'm always

trying to provide as much value as

possible um because what's cool about

this guys this is what I'm so thankful

for when it comes to this community is

that as much as this content um

you know benefits me right because I'm

reaching more people and whatnot um it's

also really helpful for people so it's

it's a really symbiotic relationship

here and same thing with providing value

for Brands right I get to help them and

provide as much value as possible but in

return I get to learn Priceless

information that's going to continue to

help me in the future as I grow as an

entrepreneur so that's a good mindset

thing I I wanted to share with you that

I have myself that maybe could help you

in the future um every single experience

that you have whether you're getting

paid for it or not whether you're making

sales or not even if you're you've

posted 20 Tik toks and you've gotten

zero sales these things are teaching you

things uh whether you know it or not

sometimes it's it's not obvious in the

moment but it becomes obvious over time

um so yeah I covered a lot with this

store you know I think there's a lot

more that we could cover on store leads

actually what's cool about this is we

can see some of their apps um they're

using a lot of different apps this is an

interesting one it's a ugc ad app to

find ugc content but yeah I think this

store is definitely a great example of

how far you can push a very simple niche

in my opinion this Niche isn't anything

that crazy and given the reviews that

they're getting you know a lot of people

obviously love them they wouldn't be so

big without a solid Community um but I

will say also that they just have

amazing marketing strategies um they

probably have really great unit

economics there's a lot lot of things

that we don't see behind the scenes you

know we're only judging the surface

level stuff here uh but I'm sure there's

some really talented people in the back

in here that are really understanding

unit economics and allowing this to grow

to this extent um so super cool stuff

and yeah they don't also uh do direct to

Consumer that's that's a big thing here

they also sell in stores they have a

huge retail chain similar to Crocs um I

didn't want to mention that in the very

beginning because it's not super

realistic for a lot of people but it's

definitely a worthwhile strategy to you

know put into place once you're building

um some good momentum but that's really

about it for this video I hope you

enjoyed it make sure you check out at

cab.com make sure you join our community

and Discord I would love to have you in

there I would love to provide value to

you in any way and you know just join

our newsletter we have a lot of cool

stuff here and we're only getting better

I'm only building this team more and

more uh and trying again to provide as

much value as possible so be optimistic

about the future um because wearing it

together but that's about it peace