Why beginners get cooked selling supplements
The speaker warns beginners against entering the supplements market, calling it one of the most competitive niches in e-commerce. Even major supplement brands struggle to scale profitably in the US, and success requires an elite-level direct response marketing skill set.
Summary
The speaker expresses frustration with beginners who jump straight into selling supplements, describing it as a poor strategic choice for those new to e-commerce or marketing. He characterizes the supplements space as one of the most competitive markets in the world, particularly within the United States.
He points out that even the largest, most established supplement brands are not scaling profitably, suggesting that profitability in this niche is extremely difficult to achieve regardless of company size. For anyone whose primary goal is to turn a profit, he recommends pursuing a different product category altogether.
The only exception he acknowledges is for individuals who possess a highly advanced, 'lethal' skill set in direct response marketing. He notes that some of the best direct response marketers in the world operate in this space, meaning newcomers are effectively competing against industry veterans. Finally, he explains the mechanical challenge this creates: in high-competition markets, CPMs are elevated, so advertisers must compensate with superior ad creatives and metrics — specifically by driving up click-through rates (CTR) to bring cost-per-click (CPC) down to a manageable level.
Key Insights
- The speaker argues that beginners commonly make the mistake of entering supplements, one of the most competitive niches in e-commerce, without understanding what they are up against.
- The speaker claims that even the biggest supplement brands scaling in the US are not doing so profitably, suggesting systemic unprofitability in the niche at scale.
- The speaker contends that the only viable path to success in supplements is possessing an 'absolutely strapped lethal skill set' in direct response marketing — not just basic competency.
- The speaker states that some of the best direct response marketers in the world operate in the supplements space, meaning entrants are competing against elite-level talent.
- The speaker explains that higher competition drives up CPMs, and the mechanical solution is to produce superior ad creatives that raise CTR in order to bring CPC down to a normal level.
Topics
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