Howdy Readers š„°Ā
In this newsletter, youāll see:
šThe Levers of scaling fast and without brakes!
šŖļø Navigating Marketing During Natural Disasters: Ethical or Opportunistic?
š Ad of the Day
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Together with Wellput
Wall Street loads up on surprising $2.1tn asset class
Bank of America. UBS. JP Morgan. Theyāre all building (or have already built) massive investments in one $2.1tn asset classāand itās not what you think. Itās not private equity or real estate, but fine art. Why?
In partnership with Masterworks, data from Citi shows itās a potent diversifier with low correlation, and certain segments have even outpaced traditional investments. Take blue-chip contemporary art, which has outpaced the S&P 500 by 64% (1995-2023).
Masterworks knows the power of art investing, with their platform giving 900k+ users the opportunity to invest in this asset class as part of their overall portfolio strategy. In fact, from their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5%* (among assets held for longer than one year).
With so many users, Masterworks offerings can sell out quickly.
Our readers can diversify right away by clicking here to skip their waitlist!
*See important Reg A disclosures at [masterworks.com/cd](http://masterworks.com/cd).
šThe Levers of scaling fast and without brakes!
Reaching multi-million-dollar revenue isnāt about hustling harderāitās about leveraging the right strategies to outpace competitors. Brands that achieve exponential growth have one thing in common: they capitalize on key business advantages that allow them to scale efficiently and sustainably. If youāre serious about building a powerhouse eCommerce brand in the coming years, you need to master at least one of these four critical levers.
1ļøā£ Profit Power: Build for High Margins
Brands with strong profit margins dominate their industries because they can invest heavily in customer acquisition and product development without sacrificing profitability. Slim margins limit your ability to scale, while premium pricing gives you room to grow.
š” Actionable Tip: Create products with high perceived value through premium design, exclusive offerings, or bundling strategies. Prioritize pricing power so you can reinvest profits into scaling your business.
2ļøā£ Retention Mastery: Keep Customers Coming Back
Acquiring customers is expensive, but keeping them is where real profit lies. Brands with strong customer retention models can afford to spend more upfront because they know the long-term value of each buyer.
š” Actionable Tip: Introduce loyalty programs, subscription services, or limited-time offers that encourage repeat purchases. The longer customers stay engaged with your brand, the more profitable your business becomes.
3ļøā£ Audience Ownership: Cut Acquisition Costs
Brands that control their own audience have a major advantage. Relying solely on paid ads is risky and expensive. You can market new products and campaigns with minimal costs when you own your distribution channels.
š” Actionable Tip: Focus on building direct relationships through email marketing, SMS campaigns, and private communities. This will reduce reliance on paid ads and keep more revenue in your business.
4ļøā£ Operational Efficiency: Scale Without Waste
Running a lean, agile operation gives you the flexibility to scale quickly. Brands that avoid bloated teams and unnecessary expenses can allocate more resources to growth initiatives.
š” Actionable Tip: Automate routine tasks and outsource specialized work. Keep your core team focused on high-impact activities like strategy and product innovation. Lean operations lead to sustainable growth.
š Final Thought: Growth Demands Leverage
Fast-growing brands donāt just rely on luckāthey leverage profitability, customer retention, audience control, and operational efficiency. Identify where your strongest advantage lies and double down.
šŖļø Navigating Marketing During Natural Disasters: Ethical or Opportunistic?
Insights from The Media Buyer
Natural disasters create a difficult balance for marketersāpursuing business growth while staying ethically responsible. MGM Resorts, a Las Vegas casino, pledged $1 million and offered discounted hotel rooms during the LA wildfiresāraising a critical question for marketers: How should brands navigate marketing during natural disasters?
The Breakdown:
Authenticity Is Crucial: Consumers quickly spot self-serving gestures masked as philanthropy. Any disaster response must be genuine and not disguised as marketing. Know whether your actions are rooted in pure support or veiled brand promotion.
Every Action Is Political: In todayās climate, even donations carry political weight. Supporting a local fire department versus a global cause sends different messages. Brands must understand where theyāand their customersāstand and control the narrative accordingly.
Sell Security, Not Fear: If your product genuinely helps during crises, focus on providing solutions, not exploiting fear. Amplify safety and support, but avoid fear-based marketing that appears opportunistic.
Only Act If Relevant: Brands must ensure their products are directly related to the disaster before marketing. Forced or irrelevant associations damage trust. Ethical marketing during crises only works when your product offers real value.
Disasters demand careful brand responses. Authentic, ethical engagement builds trust, while opportunistic marketing can irreparably harm reputation. Brands offering real solutions must lead with empathy and responsibility to maintain credibility and drive meaningful growth.
š Ad of the Day
What Works:
The tagline āCool Your Jewelsā is a daring and clever play on words that instantly grabs attention. It speaks directly to the product's core benefitābreathability and comfort in menās underwearāwithout being overly explicit.
Draping the underwear over a solid block of ice isnāt just visually strikingāitās a perfect metaphor for the cooling and moisture-wicking technology the product offers.
What Could Be Better:
While the visual and copy emphasize cooling, the ad misses an opportunity to briefly highlight how the underwear achieves this benefit. A subtle mention of fabric technology could add credibility and depth to the cooling claim.
Broader Insights:
Humor, when done right, can break through the noise and make traditionally mundane products (like underwear) feel exciting and aspirational.
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