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Mike Xhaxho - Waterboy
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Mike Xhaxho - Waterboy

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Blaine Bolus

MX

Speaker

Mike Xhaxho

RB

Speaker

Ramon Berrios

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Mike Xhaxho discusses founding Waterboy, a hydration brand born from personal need and fueled by viral TikTok marketing. He shares startup insights, from presales financed by SMS campaigns to organic growth strategies, highlighting the challenges and wins of building a DTC brand focused on better hydration solutions.

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Featured moments

Highlights

“'There's nothing for workouts.'”
— Mike Xhaxho
“And I remember at first being like, oh man, this is going to be so awkward if my friends see it. This is going to get like twelve views... Went to bed that night, I woke up the next day, realized the account grew from zero followers to a little over 6000. The video had a little over 100,000 views and after that I remember thinking like, oh TikTok is fairly easy.”
— Mike Xhaxho
“How the F are we going to finance our next inventory purchase?...You do know there's going to be a lot to finance.”
— Ramon Berrios
“There's like a bunch of people who are starting brands who may not even realize that they have opportunity to tap into people who are interested in what they're talking about.”
— Blaine Bolus
“Your co-founder is a creator.”
— Ramon Berrios

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Full transcript

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Blaine Bolus

Hey, Blaine from Dtcpod here. And today we've got two amazing AI tools for you guys to check out. So AI is obviously eating the world. And these two by HubSpot where you're really going to love. So the first one's called Content Assistant, basically helps you create amazing content, which matters more today than ever. Everyone's creating content, so you got to stand out. With HubSpot's AI powered Content Assistant, you can brainstorm, create, and share content of Flash, all inside a super easy to use CRM. So think things like brainstorming, blog ideas, blog outlines, drafting copy on any topic from marketing trends to media kits or writing value, props for your landing pages, prospecting, emails, and more.

Blaine Bolus

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Blaine Bolus

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Mike Xhaxho

What's up, DTC Pod?

Blaine Bolus

Today we're joined by Mike Gijo, who is the co founder of Waterboy. So Mike, I'll let you kick us off. Why don't you tell us a little bit about your background, waterboy, what you guys are building and everything like that?

Mike Xhaxho

Yeah. How far back do you want me to go? Because, I mean, I can go all the way back.

Blaine Bolus

Let's go back.

Ramon Berrios

I remember, Mike, when we met a while back, you had reached out, you were working on the bags from Bali. Just take it way back.

Mike Xhaxho

Okay, yeah, we'll go way back and then you guys can cut out whatever you okay, I guess I'll even explain maybe my odd last name. I was born in Albania, moved to the US in 6th grade, and then throughout high school just knew I really wanted to do finance, primarily investment banking, and that let me go to UT. I'd worked in investment banking for a year after college. Didn't like it. It was not very creatively, fulfilling. And then after that I had an idea of like, hey, you have all these photo apps out there where people can create and share photos, they can create and share music, et cetera. There's nothing for workouts. So I was working.

Mike Xhaxho

This was 2013. Started working on an app where people can create and share workouts. It was kind of fairly early days of Instagram and fitness, and I saw a rise in social media influencers, but a lot of them didn't have a way to monetize. So we took some of our software stack and started private labeling them apps. That led me to start a company called Body Plan Fitness. Did that for a little over five years. And then while I was in Bali on vacation, my girlfriend at the time wanted to get some bags for her friends, and it took up so much suitcase for him. So I was like, Let me see if I could buy these on Amazon.

Mike Xhaxho

Realized there's not much on Amazon. There's a ton of search traffic because I had tools like Jumble, Scott, et cetera, to look at demand. And then randomly for one summer, I was like the biggest ratten bag women's purse seller. I knew that wasn't going to be like a lasting thing. That was just like a trendy fad. But it was very cool to get experience on Amazon and then fast forward a couple of years, start of 2020. I sold the company I was working on for the fitness apps and took six months off to decompress. And then I was thinking through what products and needs was I excited about in the market? And that led me to create Waterboy.

Mike Xhaxho

And I can dive in further into what waterboy is.

Blaine Bolus

Yeah, why don't you talk a little bit about what waterboy is and the background of that company?

Mike Xhaxho

Yeah. So for me, honestly, the products out of a personal need. It was like nights I'd go out with friends and they'd get away from me and I'd wake up feeling rough in the morning. It felt like the main two products that were on the market were either Liquid IV, which did a pretty good, decent job at Hydration, really good job at marketing, and Pedialyte, which I felt like did an even better job at Hydration. But it was branded for kids. And to me, it's whenever I am waking up feeling rough, I'm not just dehydrated, but there's other symptoms I'm feeling around, like nausea, anxiety, fatigue. So the premise was, can I make a better product for this use case? Because we're making it specifically for that. And can we have a bit more fun with the branding? Because we're in a space that's you take these products around fun times in your life, but a lot of brands have to be overly clinical or very safe.

Mike Xhaxho

So that was the premise of the company. Put out the message on TikTok, it took off. And since then, we've just been focused on what's next.

Ramon Berrios

What do you mean? Just for context, for the audience, what do you mean it took off? What happened specifically?

Mike Xhaxho

Yes. I'll tell you. I mean, this was February 2021. I was driving in my car, and I obviously was a consumer of TikTok during the pandemic but I'd never really made my own personal TikToks. So I remember pulling over, I was about to get mail from my house. I was like, let me just make a quick video telling people what I'm working on and why. And I remember at first being like, oh man, this is going to be so awkward if my friends see it. This is going to get like twelve views.

Mike Xhaxho

I was like, you know what, my friends are probably not even going to see it. What are the odds they see it? This account is not linked to any of my personal stuff. It's a branded water boy account. Went to bed that night, I woke up the next day, realized the account grew from zero followers to a little over 6000. The video had a little over 100,000 views and after that I remember thinking like, oh TikTok is fairly easy. You just have to figure out a story to tell and then people will get behind it. Put another four or five videos, they did well but maybe they got 5000 views. But in relation to that video it was not nearly mike as high as that high felt.

Mike Xhaxho

And then our 7th video ever, I made a video explaining why I was making Water Boy and why I used to drink Pedialyte before and how this is different. And I would say that's the first video that really took off got a little over 2 million views organically. We were fortunate enough to have landing page set up in our bio. So about 17,000 people left us their phone number. And I remember having this massive SMS list and we were like, well we're not exactly sure how many of these people are going to convert or not. So then we decided to run a presale and that presale ended up selling the inventory run that we were already planning on doing anyways a couple of months later. Oh wow.

Blaine Bolus

So how many of the 17,000 converted from SMS into the presale?

Mike Xhaxho

So the thing is we already had a planned production run and numbers and everything that we were going to pay for regardless because I think we already had high conviction that the idea would work. So we had set like our first inventory run was supposed to get us 100,000 in sales. And we sold that really in the first hour and a half. Hour and a half. 2 hours of sending out a text and I just remember clicking send and then looking at the shopify live view and the numbers of visitors on site. Everything was going so fast that every time I'd refresh it was like especially the first 15 minutes sales would jump from like 2000 to 15 to 26. But I want to say a little over half 55% or so click through and then I can't remember the exact number. I want to say it was somewhere around 3000 orders that sold the first 100K.

Ramon Berrios

So as you're seeing all these orders coming in, what's running through your brain? Are you like, how the F are we going to finance our next inventory purchase? I remember when you were working on the bali bags. You were telling me at that time that was like four years ago or so, you were like, man, it's just tough because the cash you make, you then have to reinvest. At least you have a brand here, which is like the big difference between drop shipping. Right? Like, the bali bags were a fad that might just drop off it's on another platform that you don't own here. You're just getting started. But you do know there's going to be a lot to finance. Or like, was the margin covering all of that? What were you thinking? What basis did you have to cover when you saw those quarters coming in?

Mike Xhaxho

Yes, so both my co founder and I had put initial capital that already had funded the purchase order that inventory run. And then obviously when we did a presale and we got this money two months before that inventory run, now we were able to even actually the money we put in in the business, technically, we never touched it because the presale money then paid for the inventory and then the extra. Like, we just kept reinvesting and flipping inventory. And the first six months in the business, we didn't run any ads. Everything was organic and it was just my co founder and I, and we weren't taking a salary, so I'd say we ran it fairly lame. So all the profits was just reinvested into flipping inventory.

Ramon Berrios

That's amazing. And on the presale, it was phone numbers. There was no email capture? Or was it both?

Mike Xhaxho

It was just phone numbers. I remember having a postscript integration and not even realizing I could have like, an email as a step two of the flow. So it was just phone numbers. I'm happy I even had that turned on when the video popped off because this was all happening within a short time frame too. Mike the website had gone live. A week later, I'm like, oh, let me start making videos. And then ten days later this happens.

Blaine Bolus

Yeah, and I'd love to go a little bit deeper into that because I think there's like a bunch of people who are starting brands who may not even realize that they have opportunity to tap into people who are interested in what they're talking about. Right. I know you mentioned postscript in terms of collecting the phone numbers, but what did you have built out? How did you build the landing pages? What did you have in place? So by the time that TikTok popped, you were able to actually at least capture some of that initial interest?

Mike Xhaxho

Yeah, it's pretty simple. It was a shopify website we were just using. Mike an off the shelf theme. The premise of the website was how do I quickly in Mike three or four sections just guide someone into our why? So it's like, here's Mike, a hook, here's your problem, here's what we're solving for and here's how we differ for other people in the market. I would say that was probably the structure of that landing page is very simple. I built it out myself probably in like 2 hours and then after that was, okay, well, I need obviously what are my buttons going to connect to? I have nothing to sell, so how can I capture this interest? And initially was do we want to do SMS or do we want to do email? And a lot of companies that were doing drops or seeing drops at the time that I looked up to, a lot of them were heavy on SMS. So for me was, okay, well, if there's a product, people have excitement around and it was a pretty big risk. I guess I should have tested both email and SMS, but I was like, I feel fairly confident that they're going to give us their phone number as long as on the SMS form, we make it very obvious that, hey, we're only going to text you at launch, we're not going to spam you with anything else.

Mike Xhaxho

We're going to be very mindful of your phone number.

Blaine Bolus

I think that's actually really interesting. One thing that immediately comes to mind, I'd be curious because like you said, you hadn't really tested it versus email, but it seems like if you've got the phone number and you've got that text, maybe there could be a higher conversion to purchase. Right, if you're getting an SMS versus one of many thousands of emails that just pop into your email.

Ramon Berrios

Well, the thing is that I feel like the numbers worked because this all started from a personal one to one video on your personal account. And so the trust was there. It wasn't like a faceless brand, but.

Blaine Bolus

Was it your branded account, Mike?

Mike Xhaxho

It was a branded account, waterboy can, but I think all seven videos are just my face in it, talking to the camera.

Ramon Berrios

That's interesting. I know you've been mentioning your co founder. Your co founder is a creator. How did that come about? And then you said the other videos didn't do as well. What happened there? What was the content strategy from there to keep replicating the success?

Mike Xhaxho

Yeah, I would say the first video did really well because this is my personal story as to why I'm making this. And then in there too, if you watch that video, if you look back at it, it will have elements that people maybe tell you to have. It had like a hook, it had the story, it had a close. So the hook was like, hey TikTok, don't let this flop for the sake of my entire net worth. I had a software company and I sold it to go all in in this company. So if you're watching that, you're like, oh, wow, I'm intrigued. Where's this going? And then I was telling them the journey as to what I'm creating and then I was follow along if you want to see me build a beverage brand from hopefully nothing to something. Because when we were going to launch, actually that first video, we were supposed to be a can beverage.

Mike Xhaxho

That's why the accounts are called waterboy can. And then we made the switch and the pivot to Powder. And then shortly afterwards we made the stick a PD light comparison video for powder. My co founder, he is social media background. But originally we were both very adamant about let's see if we can get traction on our own with my messaging and seeing if we can get people to buy in. Because what we didn't want to happen is just to have like a one day pop of him showing the product to his audience and not necessarily knowing if we even have product market fit. So originally the whole premise was no one even knew he was behind the brand until probably like a month in. So the success of the video wasn't due to some strategy of him resharing it or him being in it.

Mike Xhaxho

I feel like whatever I did, anyone could have done it at that point, too.

Blaine Bolus

I think that's really important in terms of understanding what some sort of product market fit looks like, even if it pertains to the product and the problem you're solving the messaging that you're able to do before necessarily just like launching with a bigger creator who's going to get you in front of more eyeballs. But if you don't have the traction there to back it up and have it tested, then it's going to do the same thing. But I'd be curious, why don't you tell us a little bit about who your co founder is and how you integrated that into the launch once you guys had already validated that product market fit?

Mike Xhaxho

Yeah, so my co founder, he was on a reality show called The Bachelorette. He was one of the contestants on there. And then like a season or two after, he went on again for this thing called Bachelor in paradise. So social media personality, similar background to me. We both worked in finance. He worked at Goldman, I think in their special situations group. So I knew he was smart and he had the social media piece to it, which I felt like would be helpful to our company. And funny enough, we were both talking or romantically interested in this one girl named Sarah at the time, and.

Blaine Bolus

We.

Mike Xhaxho

Decided to be friends. And I remember texting her being like, hey, do you mind intro and me to Connor. I know he's in Austin, we're up to similar things. It just be good to have a chat. We just met up for coffee. And then within a couple of months, that turned into this idea. And then us probably seven months later, launching a company.

Blaine Bolus

That's awesome. And yeah. How did it go once you guys had gotten through your first call? It production run. And you were like, okay, now let's start bringing this to his audience. How did that start to resonate? Did it really help you grow? What did you see? Because I know a lot of people are interested in working with creators on brands. So, yeah, why don't you just walk us through how it unfolded?

Mike Xhaxho

Yeah. So originally we were supposed to be a can drink, and the company that helped us with the formula and everything, their expertise was in can, but they did have stick, pack, powder machinery. So for us was okay, well, let's work with them on the first run because they're familiar with everything. And we realized when it was time to make the product that they didn't have quite the machinery to make, just like the output and everything. So for us, the next step was, how do we get to another packaging facility that primarily specializes in powders and stick packs so they can make more in a more timely manner? And I would say the first time we launched, the flavor was not very good at all for us was oh, as long as the product works and it helps people, they won't be that mindful of taste. They'll just like, what's in it? And we quickly found out that people are very mindful of taste. Like we would have thought, right? In beverage. Some people are like, Whatever, I'll just chug it.

Mike Xhaxho

But most people are very mindful. So for us, on, the next step was now we need to be in another stick pack manufacturing facility ASAP and figure out a better way to make the product. The quickest way for us was we had so much ginger in the product that lemon lime just tasted like ginger. So the quickest way to pivot is we just called the flavor lemon ginger. It was the exact same formula. And we went to our new packaging facility and they were able to turn around on it, thankfully, quickly, just because we paid them more to do so. But yeah, I think the thing we didn't plan for initially is that there's quite a bit of lead time, especially in 2021 when there's packaging delays across the entire supply chain. That oh, shit.

Mike Xhaxho

Now we sold everything. And for us to get more inventory made is going to take an extra x amount of weeks. So we went out of stock, I think, for like, a month and a half. And during that month and a half, we just focused on building the brand or audience, getting more people signed up on the SMS list, and then we were ready to do launch, too. And that kind of issue kept happening because we were just funding everything with inventory that we would restock, it would sell out, and then we would have two months, a month without inventory. And then kind of do that same thing over and over.

Ramon Berrios

But that's what allowed you to not have to raise financing, right?

Mike Xhaxho

Yeah.

Ramon Berrios

For pros and cons.

Mike Xhaxho

Yeah, I wouldn't say that. I think for us that worked better because then it allowed us to focus more on our why the brands, creatives, organic, et cetera. And we weren't just mike throwing money at some of the problems. And then we took all those learnings from six months. And finally when we were in a place that we were better able to do so we started then running paid ads, buying our high performing, organic creatives, and then that really helped grow and scale the company.

Ramon Berrios

I want to let Blaine continue on this thread, but I want to take a step back and ask this question that I know most people in the audience might be thinking, which know how everyone is curious about how do I get to work with a creator? And so you approach this creator, but you didn't even have the full solution. You're still looking for the you're like, hey, we're going to have to figure this out. You didn't know him previously. So what advice do you have for anyone that might be trying to partner with a Creed or what is it that made this partnership work from the beginning with a business intent? Or do you think you just got really lucky in the sense that you guys bonded and it was a friendship first or something?

Mike Xhaxho

Yeah, I think that I mean, I think for us, the elements that helped is we had a similar background, so we could relate on that. We both lived in the same city. We were both in a similar stage in which we were selling at the company where we were previously working on. So that timeline matched up really well. And then I also think too, sometimes a lot of people have this idea that I'm going to partner with a creator. They have X amount of social media followers and they get Y amount of views, and z percentage is going to come over. And sometimes those metrics don't hold true. Right.

Mike Xhaxho

A smaller creator can drive more than a bigger creator, et cetera. I would say the product market fit and there being mike tailwinds behind the industry you're in is probably more important. Unless if you're working with a Mr. Beast shirt, you can probably launch a product in any category and you'll do well. But I would say for most people, rather than thinking, oh, if I get this creator, it's going to just miracle solve itself. It's figuring out where's their white space in an already growing category and what issue can you solve that doesn't quite exist out there. And then the creator then will just more or less be like gasoline on the fire, but they're not going to help you start the fire.

Blaine Bolus

And then my next question is, in terms of now, what running the business looks like with a co founder that's also a creator? Are you guys both equally involved in terms of the operation or do you handle different what are your, I guess, more specific responsibilities now and how do each of you guys contribute? Basically?

Mike Xhaxho

Yeah. Right now I'm in La. Obviously, but everyone works in the office full time in person. We have a fairly small team, just four and a half of us. I would say everyone on the team is very creative, so everyone contributes in some creative capacity, whether it's organic content, whether it's ideas for branding, collapse, partnerships, DTC. My role now has been a little bit more production operations, amazon and then some direct to consumer doing the media buying and performance ads. And then I help out with SMS and email.

Blaine Bolus

Cool. And yeah, and I guess just for clarification, just piggybacking off Ramon's question about working with a creator. So is your co founder as physically involved in the day to day as you are today, or is he juggling other stuff and this is one of the projects that he works on, or is he pretty involved in the weeds in terms of what you guys are doing?

Mike Xhaxho

Yeah, I know he's pretty involved. I would say he's just as involved as I. I would say maybe in the first six months before we even launched the product. There was a bit of transition on both of Friends because he still had a lot of social media things and there was maybe not that much clarity on how things were going to work out. And then I think when we both saw things starting to do well and take off, we realized that's where we're going to focus our attention on. And I think I was fortunate in the sense that I have a co founder that's social media and creator based, but his main goal is to grow the business. And I think the last six to twelve months, I don't know if he's even done any ad deals, he's trying to cut that off. There's times where that access does help.

Mike Xhaxho

If he's in an influencer branded trip or if he's in certain events, he can help plug the product. But I would say his focus is not so much like his personal brand or social media and it's more the company, which is tough to find because I know a lot of times people work with creators where the creator did maybe one post here, one post there, and they kind of like went Mia. But I would say everyone's in the office 40 plus hours a week.

Blaine Bolus

That's amazing. My next question comes down more to the business side in terms of how you guys continued to grow it. So you mentioned you guys are up and running on a couple of channels now, and now that you've made it through your first couple of inventory runs, it seems like there's a bit more stability in the business. So why don't you walk me through what your channels are, how you sell across those different channels, and what kind of some of the strategies are that you guys use to sell on whether it's D to C, Amazon or anything else you guys do.

Mike Xhaxho

Yeah, I would say early on we relied heavily on TikTok Organic to sell and establish that product market fit. And then around January of 2022, we started taking that creative and running paid media behind it on Meta, just Facebook, Instagram, and we did some TikTok ads too. And we probably did that for I'm trying to remember. We did that for some time and then we introduced a product to Amazon. Originally our fear was, oh, if you introduce your product to Amazon, are people just going to buy on there versus their own online channel? And we found most of the sales from Amazon were incremental. But we're also pretty mindful on how we have a differentiator on our website versus Amazon. Whether it's a different pack size, whether it's a flavor launch that's delayed, et cetera. But I would say for us, because we have such a small team that we obviously have to stay focused and we just try to do just a few things well, because it can be so distracting sometimes.

Mike Xhaxho

Right? We get bombarded by agencies all the time. You want to do influencer marketing, affiliate marketing, someone wants to do Google AdWords, Mike, Pinterest, Snapchat, there's just so many. So for us, it's okay. What are our core competencies if it's creating content? Okay, where does this content do really good job living? And how can then we focus and double down on those efforts that are already working while still maybe being mindful of testing at a smaller scale in case something happens and we're not too reliant on one channel.

Blaine Bolus

We are really excited to announce that Dtcpod is officially part of the HubSpot Podcast Network. The HubSpot Podcast Network is the audio destination for business professionals. And we're really excited about being part of the network because we're going to be able to keep growing the show, bringing you guys amazing guests and obviously helping you guys learn from the best founders, marketers, and builders of the most successful consumer brands. So anyway, keep listening to DTC, Pod and more shows like us on the HubSpot Podcast Network@hubspot.com, slash podcastnetwork.

Ramon Berrios

So when you look at the operation of content, so there's the commercial photography content you mentioned, UV suna, then there's the UGC. How much of your guys content is like studio produced versus UGC? Is it 100% UGC? Is there a combination of studio? Is it all in house? What's that operation look like in strategy?

Mike Xhaxho

Yeah, I would say the studio shots are mainly the assets that live on Amazon or on our website. And it's mainly the product shots. A lot of our. Ads are mainly UGC. And for the longest time it was just a lot of videos of me. And then we work with other smaller creators to also help us make some of those assets. And then sometimes too, people will make good videos about us on their own and then we'll reach out to see if we can work together to use that for paid ads.

Blaine Bolus

Ramon, did you have anything else you wanted to ask on content?

Ramon Berrios

Well, the only thing I'm thinking through is how did you guys think about right, because Mike, especially with organic content, this is always a big question of Mike. All right, quality versus quantity. You guys nailed the strategy. All right, are we ten Xing output or are we being really careful and thoughtful about our brand voice? And for some reason, every video we put out is hitting. What did your volume look like? Let's call it TikTok organic. Was it a video a day? Was it ten a day?

Mike Xhaxho

No, not close. I would say earlier days were maybe one every day or two. And then now we're probably two to three a week. For us, it's not so much like in order for us to ten X because there's a ceiling and a limit on how much organic output you can put out there. Right. And then yes, you can partner with more creators and put more organic output out there. But to us was if we already know what videos do well and what structure works for us, we can always get ten X the views by just simply putting more ad spend behind it. So I would say, not that we're too safe and every asset has to be super brand forward, but we probably go more for like, okay, these are just the videos that we want to make and we have a reasonable degree of confidence that will do well.

Mike Xhaxho

And then we'll just make sure they get more views through the paid side.

Ramon Berrios

It's just so interesting because there's also then brands that their game is just putting out crazy volume and so it's just different things work for different brands. Do you guys think you understand the algorithm or have a hold or grip on what works for you and your brand? Or is it a total shot in the dark for every video you put out?

Mike Xhaxho

Yeah, I honestly wouldn't say. I see all these videos all the time and maybe because I engage with them on my For You page that come up of like, the algorithm changed, so and this and this and that changed. And I honestly don't really try to pay attention to the algorithm at all. Maybe I should and hacks, but to me it's like there's some elements that have never gone out of style. Right. So if it's like, okay, what's our goal on TikTok? Right? Okay. Right now we're going to use this platform to entertain and build a community and build a brand and what way do we want to do so? Right? Do we need to show them different parts of our business? Is storytelling the main way we want to show this? We think of it more of like, what are we trying to achieve on each platform and what does this certain video, what story does it tell and does someone care at the end of the day? Because I think a lot of brands take the approach of, this is what I want people to see, but not so much of what do they want to see? So it's not a matter of, like, to me, it's not a matter of like, oh, if I use this hook or be very dramatic or do this, yes, you might go viral once, but then what happens after that? Because I think too many people chase this big viral hit because they see sometimes these case studies of this video sold me out and yes, it might get you 5100, 200K in sales, and then they'll wear off and then what happens then? So I don't think we ever approach any video of, like, we're trying to make a viral video. It's what story is this video telling? What are people gaining from this? Because we don't see competition on TikTok, like, between us and a Liquid IV.

Mike Xhaxho

It's us and other content creators and other videos that are way more engaging to watch. So why would someone want to watch ours?

Blaine Bolus

One thing I like that you just said was it's not about what you want to show the viewers. It's more about what do they want to see from you? So why don't you walk us through a little bit about what works? What do they want to see from Waterboy when you guys are creating content?

Mike Xhaxho

Yeah, I mean, I think in the early days, people wanted to know what we were and maybe what it does for them, but then after a while, you're just going to sound like a broken record if you're just making the same videos, right? And one strategy could be like, I could go out there and hire 100, 200, 300 content creators on a smaller scale, have them all be affiliates with lengths, pump out the same videos, and some of them will hit and some of them won't. And we'll capture that and try to think of that. Does that feel spammy? And what's the lasting branding impact of that? But for us now, it's like, okay, some people know what the product does. What else do they want to see? And a lot of people, Mike, they want to see the behind the scenes of the company and more of the interpersonal dynamic between people. So I think our TikTok channel now almost works as not nearly as good as the show The Office, but more or less, it gives you that vibe that's really cool.

Blaine Bolus

And I think we've seen it work like that for a couple of brands, but I think a lot of brands maybe struggle with being like, oh, do we want to be that authentic? Should we put it out there? But if you're able to tap into that, it seems like the way to do it. So my next question is on product mix, right? You mentioned you guys launched with a couple of different products and.

Mike Xhaxho

I'd just.

Blaine Bolus

Like to know a little bit more about how you thought about how many products to take to market, like what the formats were, how many total SKUs you were like playing with. I see you guys even have like a merch store now. So why don't you just walk us through how do you organized everything and thought through everything that you've got through now?

Mike Xhaxho

Yeah, I would say our main hero and initial product we launched with is the Weekend Recovery. And in that it was okay, obviously people are going to need more than one or two flavors. Let's roll out flavors. And it's always an interesting and tough balance because we're running out of stock and we don't have sometimes enough line time to make these stick packs. So it's kind of hard to be like, okay, now I'm going to introduce more flavors and more products. Hindsight is 2020. But a thing I wish I would have solved for earlier was just more manufacturing capacity and different comb. So we weren't so reliant on like one or two and then it became of like, okay, when do people take our products? A lot of people are telling us they take our Weekend Recovery for Sports, but if we made a product for Sports, it would look different than the Weekend Recovery because the symptoms you feel after a night out are not the same after a workout.

Mike Xhaxho

And even in the workout category alone, there's a use case on before a workout with an energy component and there's an after a workout with a recovery component. So I think the premise of the company to us remains the same, is how do we make Hydration clean and functional, and how do we make formulas, specifically when people need them, rather than, like a one general formula, which would be really easy on our production, but you kind of have to do somewhat of an average job across every use case.

Ramon Berrios

So Mike, your previous company was a fitness influencer app and then the other one was a drop shipping one. And now you're talking about adding different flavors into the mix. These are decisions that if you get wrong could wipe you out financially and the company, if you get the entire production run production run wrong. And this is like your first time doing this. So how did you prevent yourself from making those mistakes that we hear from other companies of getting wiped out because messing up the entire line of production and having to start over? Did you seek mentors? Who were those mentors and yeah. How did you not make those mistakes from the first try?

Mike Xhaxho

Yeah, I would say on one end, we've been fortunate. We partnered with the right people, and some of that came from extensive vetting. We have made mistakes. There was a packaging run where it was like the wrong flavor in all the bags, and we had to put stickers over them. Right. And even that decision was, do we throw everything away or do we just put a five cent sticker that now the bag doesn't look the best? And even when that happens, then obviously we have to be transparent about what happened and tell everyone. So I think a lot of times, too, people, if you are transparent with them and you let them know the decisions you're making and why they'll support you more, I mean, even on their second product drop, I was like, oh, my God, we probably burned so many first time buyers because the product doesn't taste very good. And so the text was like, hey, sorry.

Mike Xhaxho

Like the first launch, we thought if the product was good for you, you wouldn't care how it tasted. It tastes like ass. But this is like what we did to address XYZ, understand that it's still going to be salty and it's not going to be perfect, but we're working on it. And I think if you're transparent with people as to what you're achieving and solving and let them in, they'll rally behind you. Also, with production runs, too, when we were running out of inventory, we were building a margin of safety. We were never like, we're going to take all the cash on the bank and put it all in inventory. So, yes, we could have grown faster if we were more aggressive on that, but we were padding in. Mike, what happens if an entire run just something goes wrong and we have to burn through it? Mean, we built margins of safety in there.

Blaine Bolus

Mike, the other thing I want to talk to you about is the merch component. I think it's really cool, and obviously you guys are doing the whole water boy products, but building out a merch store isn't something that every brand does. Why don't you tell me about how you guys did it, how you executed on it, what it's been like, how it pairs with your community and yeah, just walk us through that part of the strategy.

Mike Xhaxho

Yeah, I mean, the merch was simply people wanting to repper merch. And I don't even know if I have here I had, like, 100 of these green hats and they sold out on the first drop, and people would DM me until the end of time. And the issue was, it's like, we're so focused on product, we don't even have inventory, so ran out to take attention away and use it towards merch. It just didn't seem like the right investment of time and resources from the team. And after, like, a year and a half, probably close to two years. That's how long it took us to come up with merch. And the whole premise around merch is, can we do it in a way that's maybe a little bit fun to us rather than because we could have very easily just slapped our logo off of more or less like a drop shipping type clothing website and just given it to people. But yeah, we wanted some pieces that were a little bit more fun to us that people would wear maybe even if they weren't supporters of the brand.

Blaine Bolus

And then how did you guys execute on it? Did you work with a different kind of merch provider? How involved did you get and how operationally heavy was the lift to be able to support a merch store?

Mike Xhaxho

Unfortunately, way too involved. And maybe in hindsight I wish I wouldn't because I don't know. For me, it's like I try to run things efficiently, but when I get quotes, we even try to do collabs with brands, something that you've probably know of. And when we got pricing back for Hoodies and Joggers and everything, there were like four or five X. It was just very hard to justify, even though everything was solved. So because I had prior experience sourcing from Asia, I was as involved as me and a designer. Not only were we buying it all from Asia, but coordinating our own freight, because the freight rates that were charging us were much higher. So involved pretty much end to end, even with an inspection person on facility.

Mike Xhaxho

Unfortunately, yeah, that probably wasn't the best use of my time, looking back. But at the same time too, it's just like, yeah, I feel like I'm generally involved in every phase of the business and it's kind of hard to.

Ramon Berrios

What'S the size of the team today?

Mike Xhaxho

So right now it's four full time, one part time. But obviously there's a lot of people in production, a lot of people in fulfillment, et cetera. They're just technically not our own employees.

Ramon Berrios

What is the most challenging part of the business now that you're at this stage?

Mike Xhaxho

I mean, right now we're solving for is tomorrow. I'm actually flying to a new production facility that can make like ten times the product at half the speed. So that's one thing I'm really excited about, because once we solve for some of these out of stock issues, it allows us to do other things that we haven't been able to do online. So first and foremost is solving for how do we keep enough stock of product, how do we introduce new flavors that people like, and then from that too? Then the next priority is Mike really creative performance. Just because right now we're all online and then we're now finalizing conversations with retail for next year is just a lot longer lead time, but we'll finally be in retail next year. So now it's setting us up for retail and figuring out how to roll that out properly.

Ramon Berrios

So it's interesting that you're flying out of La. You know, you were in Austin. You're moving back to Austin, I heard. So Austin, another CPG capital. I'm curious, if somebody was to start a CPG brand today, what would you say? It's better austin or mean?

Mike Xhaxho

I think it depends on maybe what the product is, where their personal network is. It's kind of hard because if you're starting CBG brand too, it depends on is the focus industry going to be to be just online and what their core competency is. Right. Like in La, you can find more social media people, you can find more support around creative. Right. But Austin too is like a really good city for CPG as well. So, yeah, I think it really depends on the team score, competency, the product, et cetera. It's kind of hard to answer, but I love both cities.

Mike Xhaxho

Yeah. I have to go back to know the rest of the team needs good. I've had a good six weeks out.

Blaine Bolus

Of here at a good run. My last question before we wrap up is you mentioned you're thinking about going into retail in the future. What does that look like for a product like yours? Are you bringing everything in the merch to retail or are you just bringing a couple of the hero products? Who are those retailers? And yeah, what's kind of the strategy behind your product and how you take it to retail?

Mike Xhaxho

Yeah, I mean, I would say our product, especially the weekend recovery, it's a last minute need. Right. So a lot of people aren't thinking, let me get it three, four, five business days ahead of time. And just like when we added a product to Amazon, a lot of the sales were incremental. We feel like a lot of retail will be that too. A lot of people, unfortunately, they're in the aisles and they're looking for this product and they don't see us there. They're just buying the next competitor. So for us, it's understanding that being in more places is better, but then it's also, what phase of the business are we comfortable taking that on? So if we had tried to bring it on a retailer a year ago and we're constantly out of stock, well, that would not be a very good relationship and they would remove us from the shelf.

Mike Xhaxho

And now that we finally figured out operations, that we have new facilities coming online, we're at a place where we can fulfill bigger POS. We have the cash on the balance sheet to get paid back 60 plus days. So it's kind of that phase. And then the way I would structure it too, it's a year or two ago, a retailer wouldn't have cared to have us on the shelves because to them, it's, well, no one knows who your brand is. How are you going to bring incrementality to me. And if you're just going to try to capture my foot traffic, we're just exchanging dollars from product A to product B. So I think for us is establishing that brand and that community online and leveraging that now for retail and our product differentiators. I think the retail combos we had, we closed a big box retailer over email without even doing a line review and another one off of one meeting.

Mike Xhaxho

And that's just because we've spent the last two years to get to this point. Had we tried to do that a year ago, it probably would have not worked and we probably would have presented and they would have just said no because shelf space is very limited and they want to make sure they can maximize their margin on that square footage.

Blaine Bolus

I said last question. But I have one last question. I know community is mike a big thing for you guys and clearly from the get go, right, having 17,000 numbers to text. Just talk to me a little bit about your kind of lifecycle strategy and how you deal with Community and your customers. How do you keep your customers engaged?

Mike Xhaxho

Yeah, it's hard, right? I don't think we have a specific formula on month one. This is what we lean heavy on month two, almost like I think a lot of it is just like organic. The content people see from us, the way we talk via SMS versus email. I would say speaking to less product personas or less personas probably helps. Right. Because then you flush out who is your community and everyone then relates to that. And I think maybe sometimes issue brands make is they are afraid to be too risky because they're going to turn off XYZ customer and they try to speak to everyone at once and they end up not speaking to anyone. So for us, I don't think we take a scientific approach to Community other than how do we let people into what we're doing in a way that they care about and how do we listen to their needs and address them in a way that makes sense.

Mike Xhaxho

So yeah, I mean it's really that sweet.

Blaine Bolus

Well, thanks for coming on the show today. We learned a bunch about waterboy and for anyone who wants to follow along with you with Waterboy, why don't you shout out where we can find you? Are you on Twitter? LinkedIn. What are your socials? Where can we find waterboy as well?

Mike Xhaxho

Yeah, so waterboy, it's waterboycan on Instagram and TikTok. Waterboy.com for the website. And then if you go to our Instagram, I'm sure you'll see a lot of photos of me and videos of me and you can tab over because my last name is a nightmare to say on how to find me on Instagram.

Ramon Berrios

I have one last question actually. Was the waterboy.com domain available when you just search for it?

Mike Xhaxho

No, this is what happened. We had waterboy can because we were going to be a can drink. And then we had to pivot to powder and we wanted waterboy.com. It just wasn't available. And we could have bought it at the time, it was just a decent price tag. And for us, it was a tricky balance between how long do we hold out? Because maybe the longer we hold out, either a competitor buys it underneath us or this person catches wind as to what we are and increases a price tag. That was like, one of our fears. And then the other thing, too, was like, well, how important is the domain name? Or if we're linking to it? But at times like this or in podcasts, they just say waterboy.com.

Mike Xhaxho

It's very helpful. It was worth a price we paid, but yeah, it was definitely not available. We bought it six months into the business. Sweet.

Ramon Berrios

Well, there you have it. Waterboy.com. All right, Mike. Thank you. That was a great episode.

Mike Xhaxho

Yeah, I had fun.

Blaine Bolus

Thanks for tuning in and we hope you enjoyed this episode of DTC Pod. If you enjoyed the show, we'd love your support. A rating and review would go a long way as we continue to host the best build others in DTC and beyond. Follow and subscribe to the show and make sure to check out our show notes. Where you can find our socials and weekly newsletter. Visit us on dtcpod.com to join our found.

Also generated

More from this recording

1️⃣ One Sentence Summary

From TikTok fame to building a hydration empire, lessons learned.

💬 Keywords

personal TikTok videos, views, friends, popularity, followers, storytelling, engagement, videos, success, inventory, presale, demand, retailers, brand, community, deals, big box retailers, operations, product launch, Weekend Recovery, flavors, manufacturing capacity, sports recovery, pre/post workout, hydration, clean and functional, tailored formulas, TikTok Organic, paid media, Meta, Facebook, Instagram, TikTok ads, Amazon, differentiators, website, small team, agencies, marketing strategies, algorithm, goals, entertaining, community, brand promotion, viral hits, consistent content, competition, content creators, mistakes, packaging run, transparency, second product drop, production runs, margin of safety, safety measures, partnership, product market fit, industry trends, white space, problem-solving, creator, can drink, powder, flavor, packaging delays, inventory shortage, brand building, restocking, software company, finance, investment banking, app development, fitness market, Body Plan Fitness, private labeling, influencers, monetization, rattan bags, top seller, need identification

🔑 7 Key Themes
  1. Virality on TikTok: Unexpected overnight success and growing a large following.

  2. Building a brand and community: Engaging viewers through storytelling and creating value.

  3. Retail expansion challenges: Overcoming initial rejection and securing deals with big box retailers.

  4. Product development and variety: Need for more flavors and tailored formulas for specific needs.

  5. Marketing strategies and platforms: Utilizing TikTok, Meta, and Amazon for sales and growth.

  6. Transparency and learning from mistakes: Being open about product issues and lessons learned.

  7. Founders' background and partnership: Aligning on vision and finding white space in the market.

📚 Timestamped overview

02:13 Born in Albania, moved to the US, worked in finance, created workout app, started Body Plan Fitness, sold it, sold fitness apps, started Waterboy.

05:06 The person joined TikTok, made videos about their brand, gained followers and views, and successfully sold their product through a presale.

10:01 A simple Shopify website with sections explaining the purpose and differentiation of the product. Landing page created in 2 hours. Used SMS as the primary form of contact to capture interest.

12:22 The first video did really well with a hook, story, and close. It introduced the creator's personal story and the journey of building a beverage brand. The brand initially planned to launch as a can beverage but later switched to Powder. The success of the video was not due to a co-founder's involvement or strategy.

15:43 Initially planned for can packaging, but had to switch to stick packs. Flavor was adjusted due to machinery limitations. Experienced delays and stock shortages. Focused on building brand and audience during downtime.

19:10 Having a similar background and timeline matching up helps, but metrics don't always hold true. Product market fit and industry tailwinds are more important. Creators can amplify, but they won't initiate success. Focus on solving existing gaps in a growing category.

23:02 Initially relied on TikTok Organic, then added paid media on Meta and TikTok. Introduced product on Amazon, found sales were incremental. Stay focused on core competencies and double down on successful efforts while testing at smaller scale to avoid relying on one channel.

27:52 The author discusses their approach to TikTok, stating that they focus on telling a meaningful story rather than chasing viral success. They emphasize the importance of providing value to viewers and building a community.

31:21 The main product is Weekend Recovery with limited flavors. Manufacturing capacity and different formulas desired. Customized hydration and formulas for different needs.

33:17 Being transparent about mistakes and decisions builds support and trust.

36:18 In hindsight, it was too involved and not efficient. Sourcing from Asia and coordinating freight were time-consuming. However, being involved in every aspect of the business is challenging.

39:54 Our product is a last minute need, so being in more places is important. We now have the facilities and cash flow to fulfill bigger orders and establish our brand in retail.

43:35 We wanted waterboy.com but it wasn't available. We bought it six months later.

📚 Timestamped overview

02:13 Entrepreneur's journey: finance, fitness apps, Amazon business.

05:06 TikTok success leads to successful product launch.

10:01 Shopify website using off-the-shelf theme. Simple landing page structure targeting SMS leads.

12:22 First video did well, personal story.

15:43 Packaging challenges lead to flavor adjustment and delays.

19:10 Similar background, city, selling stage, timeline match. Metrics may not hold, smaller creators can outperform. Product market fit and industry tailwinds important. Creator is gasoline, not fire starter.

23:02 Relied on TikTok, Meta ads, Amazon sales.

27:52 Ignoring algorithm, focus on storytelling and engagement.

31:21 Hero product, Weekend Recovery, lacked variety. Manufacturing capacity and product differentiation needed. Targeted hydration for specific use cases.

33:17 Transparency, mistakes, and cautious growth strategies.

36:18 Too involved in sourcing and coordinating logistics.

39:54 Product expansion, online brand building, successful retail negotiations.

43:35 Waterboy.com was not initially available, so the company had to pivot their plans. They eventually bought it six months into the business.

❇️ Key topics and bullets

Topics covered in this audio session:

  1. Introduction and Background

    • The speaker's start on TikTok and unexpected success

    • Engaging viewers through storytelling

  2. Building the Brand and Community

    • Gaining traction on TikTok and building a following

    • Running a successful presale with a large SMS list

    • Closing deals with big box retailers after establishing the brand online

  3. Product Development and Expansion

    • Launching the main product, Weekend Recovery

    • Need for introducing more flavors and products

    • Tailored formulas for specific needs

  4. Marketing and Sales Strategies

    • Initial reliance on organic sales through TikTok

    • Running paid media on Meta and TikTok ads

    • Incremental sales on Amazon and differentiation on the website

  5. Focus, Mistakes, and Transparency

    • Staying focused with a small team

    • Learning from mistakes and being transparent

    • Cautious approach to production runs and inventory

  6. Partnerships and Brand Acceleration

    • Importance of partner fit and industry trends

    • Creators as accelerators in finding white space

    • Example of Mr. Beast and success in any category

  7. Packaging Challenges and Rebranding

    • Issues with can beverage packaging and finding a specialized facility

    • Rebranding initial flavor as "lemon ginger"

    • Packaging delays and building the brand during shortages

  8. Video Strategy and Personal Story

    • Elements of successful videos

    • Sharing personal story and selling software company

    • Comparison video with PD Light

  9. Entrepreneurial Journey

    • Speaker's background and career in finance

    • Creating fitness app company and selling it

    • Identifying market need and creating Waterboy

Note: While some details are not provided about Waterboy's specifics, the audio session focuses on various aspects related to the speaker's journey, brand building, marketing strategies, product development, and the importance of transparency and partnership fit.

✏️ Custom Newsletter

Subject: 🎙️ Get Ready for the Incredible Story of Building Waterboy and Creating Viral TikToks 🌊

Hey there DTC POD Squad,

We hope this email finds you well and ready for another exciting episode of the DTC POD! Get ready to be inspired by the incredible journey shared by our hosts, Blaine and Ramon, and their special guest, Mike Xhaxho. In this episode, you'll dive into the captivating story of building Waterboy and creating viral TikTok content that took the internet by storm.

So grab your favorite beverage, settle in, and let's jump into the episode!

🎙️ Episode: Blaine, Mike, Ramon Podcast
🎧 Available on: [insert platforms]

In this week's episode, you'll discover 5 key insights that will have you on the edge of your seat:

1️⃣ The Power of a Single Viral Video: Learn how Mike's initial TikTok video skyrocketed from just a few views to over 100,000 views and 6,000 followers overnight. Uncover the secret ingredients to capturing the attention of the masses.

2️⃣ Turning Stories into Engagement: Hear how Mike realized the importance of storytelling in his videos and how this strategy helped him engage with his viewers on a deep level.

3️⃣ From 2 Million Views to 17,000 Phone Numbers: Discover the moment that changed everything for Mike and Waterboy. Find out how a single video resulted in an overwhelming response from viewers, leading to thousands of potential customers eager to try their products.

4️⃣ The Journey to Retail Success: Dive into the challenges and triumphs of convincing retailers to carry Waterboy. Learn how Mike's relentlessness paid off, resulting in successful partnerships with big box retailers.

5️⃣ Tackling Mistakes and Building Trust: Hear stories of transparency and overcoming obstacles as Mike and his team navigate the ups and downs of product development and production. Learn invaluable lessons in building trust and maintaining open communication with customers.

Oh, and here's a fun fact from the episode: Mike and Ramon share a hometown! It's pretty awesome how their shared background helped create the foundations of their partnership.

But wait, there's more! In this episode's Outtro, Mike dishes out some valuable advice for aspiring entrepreneurs, shedding light on the importance of finding white space in a growing market and the role of influencers in business success.

Now, here's the juicy part! We want to hear from you! Share your thoughts, questions, or even your own epic entrepreneurial journey by replying to this email or reaching out to us on social media.

And hey, if you've been loving the DTC POD so far, don't forget to spread the word by sharing this episode with your fellow podcast enthusiasts. Together, let's build an engaged community of listeners who enjoy learning from inspiring stories just like this one!

Stay tuned for the release of this riveting episode on [insert platforms] this Wednesday!

Cheers,
Your Friends at DTC POD 🎉

🐦 Business Lesson Tweet Thread

(Thread)

🧵 Best Practices for DTC Brand Operators 🚀

✨ Strap in, folks! I'm about to drop some wisdom bombs for all you DTC entrepreneurs out there. Get ready to level up your game! 💪

1/ Gaining traction is all about telling YOUR story. Don't be afraid to share your journey - the ups, the downs, and the lessons learned. Authenticity is the key to connecting with your audience and building a loyal community. #DTCbranding #Authenticity

2/ It's not just about going viral; it's about consistency. Sure, a viral hit can give you a boost, but lasting success comes from creating engaging content on a regular basis. Be entertaining, build a community, and promote your brand through storytelling. #ConsistencyMatters

3/ Don't fall into the trap of relying solely on one social media platform. Diversify your presence across different channels to reach a broader audience. TikTok, Instagram, Facebook - go where your target market hangs out and engage them in meaningful ways. #DiversifyYourReach

4/ Building a brand means building trust. Transparency is the name of the game. Share your wins, own up to your mistakes, and let your audience be a part of your journey. When trust is established, your customers become your brand ambassadors. #TrustBuilding101

5/ Don't rush into partnerships solely based on follower counts. Find someone who aligns with your vision and can act as an accelerator for your brand. Look for product-market fit and industry trends that will drive growth. Fame doesn't always equal success. #PartnershipStrategy

6/ Play the long game when it comes to inventory management. Build a margin of safety, ensure capacity meets demand, and have backup plans in case something goes wrong. It's better to be over-prepared than caught off guard. #InventoryPlanning #LongTermStrategy

7/ Be strategic with your marketing spend. Stay focused on core competencies and double down on what's proven to work. Test new strategies on a smaller scale and be cautious of agencies bombarding you with options. Less can be more when it comes to successful marketing. #Focus

8/ Keep an eye on industry white spaces and emerging trends. Address problems that don't even exist yet, and set yourself apart with innovative products and tailored solutions. Be a pioneer, not a follower. #Innovation #MarketTrends

9/ Last but not least, always be adaptable. Be open to feedback, iterate, and course-correct. The business landscape is ever-evolving, and those who are agile enough to adapt will thrive. Embrace change and push the boundaries of what's possible. #AdaptOrGetLeftBehind

That's it for now, folks! Remember, building a successful DTC brand takes perseverance, creativity, and a whole lot of hustle. So keep pushing forward, stay true to your vision, and make magic happen! ✨💥 #DTCSuccess

(End of Thread)

🔑 7 Key Themes
  1. Unexpected Viral Success: TikTok popularity surprises speaker.

  2. Building a Brand Community: Engaging storytelling creates connections.

  3. Retail Expansion Challenges: Proving brand potential and capacity constraints.

  4. Product Line Development: Need for variety and tailored formulas.

  5. Marketing Strategies: Organic TikTok growth and paid media.

  6. Amazon Sales and Differentiation: Incremental sales and website advantages.

  7. Mistakes and Transparency: Learning from packaging and flavor issues.

1️⃣ One Sentence Summary

Building a brand through TikTok, overcoming challenges, and finding success.

❇️ Key topics and bullets

Welcome to the DTC POD with Blaine Bolus and Ramon Berrios! In today's episode, we have the fantastic Mike Xhaxho joining us as our special guest. Get ready for an exciting conversation as we dive into Mike's journey in the world of TikTok, his experiences with building a brand, and his insights into the DTC industry. Let's jump right in:

  • Mike started making personal TikTok videos back in February 2021. He didn't expect much, thinking only a few friends would see them. But boy, was he in for a surprise!

  • One of Mike's videos went viral, racking up over 100,000 views and 6,000 overnight followers. Talk about a sudden surge of popularity!

  • Mike quickly realized that telling a story in his videos was the secret sauce to engage viewers. So, he started crafting more content with captivating narratives.

  • While his subsequent videos didn't reach the same level of success, the seventh video changed everything. It explained why Mike created Water Boy and spilled all the details about his love for Pedialyte. It blew up with a whopping 2 million views and even had 17,000 people leaving their phone numbers. Now that's what we call reaching a massive audience!

  • With a massive SMS list in hand, Mike decided to run a presale. And guess what? It was a huge hit! The planned inventory flew off the shelves like hotcakes.

  • Mike believes that his product, especially the weekend recovery variant, fulfills a last-minute need for many consumers. And let's be honest, who doesn't want a little pick-me-up after a wild weekend?

  • It wasn't always smooth sailing for Mike, though. In the past, retailers weren't interested in carrying Water Boy because the brand wasn't well-known. But Mike didn't back down. He proved them wrong by establishing a strong online presence and community, and now he has closed deals with big-box retailers. Way to show them who's boss!

  • The Weekend Recovery is the flagship product launched by Mike's company. But he's got big plans to introduce more flavors and products to cater to different preferences. Variety is the spice of life, after all!

  • To bolster his online presence, Mike relied heavily on organic reach on TikTok. But in January 2022, he kicked it up a notch by running paid media on Meta (Facebook, Instagram) and TikTok ads. Gotta love the power of strategic advertising!

  • Mike also ventured into the world of Amazon, and the sales from that platform added to his growing success. He made sure his website had unique offerings like different pack sizes or delayed flavor launches to stand out from the Amazon crowd.

  • With a small but mighty team, Mike focuses on staying focused (pun intended) and doing a few things really well. He knows how tempting it can be to go after every shiny marketing strategy out there but prefers to double down on what's already working while still testing on a smaller scale.

  • When it comes to TikTok, Mike isn't bothered by the algorithm. He'd rather spend his time entertaining viewers, building a community, and promoting his brand. That's what it's all about!

  • Mike values transparency and being open about both decisions and mistakes. He's not afraid to admit when things didn't go as planned, like that time when the wrong flavor ended up in all the bags. Stickers to the rescue!

  • Building a margin of safety is crucial for Mike. He learned the hard way about the importance of having contingency plans in case of any production mishaps. You never know when things might go sideways!

  • Mike emphasizes the significance of finding the right partner. Having a similar background and living in the same city helped in his partnership, but he stresses that choosing a collaborator solely based on their social media following might not always lead to success. It's all about product-market fit and benefiting from industry trends.

  • Did you know that Mike originally planned to package his product in cans? But machinery issues forced a change of plans, and he found a packaging facility specializing in powders and stick packs. Talk about rising above the challenges!

  • Mike's first video was a hit because it shared his personal story, including selling a software company to pursue the beverage brand dream. He didn't reveal his co-founder's involvement right away but waited a month to make the big announcement. Building suspense, huh?

  • From finance to fitness apps to becoming a top Amazon seller, Mike's journey has been quite the roller coaster. He knows the importance of identifying needs in the market and seizing perfect opportunities. And that's how Waterboy came into existence!

That's a wrap for today's episode of the DTC POD with Blaine Bolus, Ramon Berrios, and our incredible guest Mike Xhaxho. Stay tuned for more engaging discussions on all things direct-to-consumer!

💬 Keywords

TikTok videos, popularity, engagement, followers, story-telling, SMS list, presale, inventory, retail locations, brand establishment, big box retailers, manufacturing capacity, product variety, sports recovery, pre/post workout, hydration, TikTok Organic, paid media, Amazon sales, core competencies, transparency, mistakes, packaging, inventory shortage, personal story, beverage brand, investment banking, fitness app, market gap, social media influencers, Amazon seller.

🔑 7 Key Themes
  1. Overnight Virality: Unexpected fame, rapid growth, viral hits.

  2. Building Community: Storytelling, engaging content, value for viewers.

  3. Manufacturing Challenges: Capacity issues, flavor variations, packaging delays.

  4. Strategic Partnerships: White space, industry trends, product-market fit.

  5. Transparency & Mistakes: Openness, addressing errors, margin of safety.

  6. Inventory Management: Restocking cycles, shortages, brand expansion.

  7. Entrepreneurial Journey: From finance to fitness apps, identifying market gaps.

🎓 Lessons Learned
  1. Storytelling for Engagement:

    • Captivate audience with compelling narratives.

  2. Leveraging Social Media Success:

    • Utilize platforms like TikTok for exponential growth.

  3. Navigating Retail Challenges:

    • Overcome hurdles to secure retail partnerships.

  4. Product Expansion & Variety:

    • Diversify offerings to cater to different preferences.

  5. Operational Efficiency & Capacity:

    • Address manufacturing and capacity issues proactively.

  6. Tailored Formulas for Specific Needs:

    • Create functional hydration products for specific purposes.

  7. Strategic Marketing & Advertising:

    • Optimize paid media to drive sales and brand awareness.

  8. Balancing E-commerce & Retail:

    • Establish differentiators to drive sales through both channels.

  9. Focusing on Core Competencies:

    • Stay focused on what works and avoid distractions.

  10. Transparency & Learning from Mistakes:

    • Embrace transparency and learn from past errors for future growth.

💎 Maxims
  1. Focus on fulfilling the needs of your target market, not just the goals of your enterprise.

  2. Establish your brand organically before venturing into retail partnerships.

  3. The success of a partnership should not solely rely on popularity or social media following.

  4. Market relevance and product fit are essential components of sustainable success.

  5. A creator should be seen as an accelerator, not as the key to success for a product or service.

  6. Timing and capacity are critical factors for successful market expansion.

  7. Consistency in delivering valuable, engaging content can be more beneficial than singular viral moments.

  8. Paid marketing avenues can serve as visibility boosters, targeting a broader audience.

  9. Differentiation is an effective strategy in competitive markets.

  10. Transparency and honesty when confronting mistakes establish trust and loyalty among customers.

  11. Strategic planning that includes a safety margin can prevent unavailability and keep customer satisfaction high.

  12. In storytelling or content creating, personal and relatable elements can significantly increase engagement.

  13. Being flexible and adapting to unforeseen issues in the business model or execution can be a key to survival and growth.

  14. The power of a compelling narrative can transform an average product into a highly demanded commodity.

  15. An individual's past and personal journey can be instrumental in shaping a unique and resonating brand story.

  16. Pursuing what truly fulfills and excites you can lead to rewarding pursuits and potential success.

  17. Utilize personal strengths and experiences to propel your brand, but do not solely rely on it.

  18. Always seize unexpected opportunities and adapt accordingly– they might just lead to tremendous success.

  19. Test the waters first before fully committing to an idea or a partnership, ensuring its potential for success.

  20. Always be open to learning from failures; they are part and parcel of any entrepreneur's journey.

🌟 3 Fun Facts
  1. The speaker gained unexpected popularity on TikTok with their personal videos, one of which resulted in 17,000 people leaving their phone numbers.

  2. They initially planned to launch their product, Waterboy, as a canned beverage, but due to machine issues, they shifted to producing powders and stick packs instead.

  3. While on a holiday in Bali, they discovered a business opportunity to sell rattan bags on Amazon and became the top seller for a summer.

🎤 Voiceover Script

"In this episode of DTC POD with Mike Xhaxho, we dive into the journey of establishing a brand, the role social media played in it, and why having product market fit is crucial. Mike discusses his shift from TikTok to other platforms, his experiences with big box retailers, and how crucial storytelling is for engagement. We explore the importance of not solely relying on viral hits, but ensuring consistent content. Stay tuned as we delve into business mishaps, manufacturing challenges, and the need for diversity in products. A truly insightful episode you can't miss!"

📓 Blog Post

Title: The Waterboy Journey: A Dive into Brand Building, Iterative Strategy, and Authentic Narratives

Subheader: A conversation with Mike Xhaxho on launching Waterboy, prioritizing market fit, and leveraging social media

"From Humble Beginnings to Big Box Retailers"

In an enlightening episode of DTC POD, our guest, Mike Xhaxho, delves into how Waterboy, his hydration-focused startup, transitioned from an unknown player to a brand stocked by major retailers. Mike's success can be attributed to the meticulous cultivation of an online presence and community, coupled with astute judgement about the right time to meet rising demand.

"Building a Strong Brand and Community"

Mike emphasizes the pivotal role social platforms played in the recognition and growth of Waterboy. Commencing in February 2021 with personalized TikTok videos narrating his vision and challenges, Xhaxho didn't anticipate the volumes of views and followers this approach would accrue. One narrative, detailing Mike’s journey with Waterboy and its alternative to Pedialyte, brought in over 2 million views and led to a successful presale. Key to this process was delivering value through captivating storytelling.

"Strategizing Product Development"

Speaking about product development, Mike candidly shares how the necessity for a spectrum of offerings for different needs and preferences was only identified later in the journey. With Waterboy's core idea being to create clean, functional hydration formulas tailored for specific needs, adding flavor and application variety should have been a primary focus, he admits.

"Leveraging Content and Paid Media"

Regarding marketing strategies, their shift from primarily exploiting TikTok’s organic reach to the employment of paid ads on Meta and TikTok is also discussed. This evolution was carefully planned, and they ensured their website maintained differentiators compared to competitors like Amazon. The importance of maintaining focus, trying new strategies on a small scale, and maximizing what’s working was acknowledged as a key part of their strategy.

"Transcending TikTok’s Algorithms"

Mike’s approach to TikTok is distinctive. The omnipresent concern about algorithms is immaterial to him. His focus is squarely on crafting high-quality content that entertains, builds community, and fosters brand awareness. The competition, as he sees it is not against other brands but content creators who deliver even better engaging content narratives.

"Transparency in Business"

Openness about their journey, inclusive of missteps, has been a cornerstone of Waterboy's ethos. Whether a packaging hiccup resulted in wrong flavors in bags, or production runs were not as expected, Mike asserts the importance of taking responsibility and being honest in dealings with customers.

"Lessons Learned from Inventory Management"

Transparency also extends to inventory management. Mike reflects on their previous struggles with stock shortages due to packaging delays and the subsequent phase of focussing on building the brand while restocking inventory. He emphasizes the importance of having a safety margin in place to avoid such inventory missteps in future.

"Utilizing Personal Narratives to Connect"

Reflecting on the initial success secured on TikTok, Mike believes anyone could have achieved it by deploying an enticing personal narrative with a compelling hook and an attractive close. This authenticity and relatability acted as a catalyst in gaining traction for the brand online.

"Diverse Backgrounds Fuelling Brand Creation"

From being born in Albania to moving to the US in sixth grade, and from initially testing the waters in investment banking to selling workout apps, Mike’s background gave him a unique perspective that fuelled the creation of Waterboy. This trajectory imbued Mike with hard-earned lessons about finding untapped market potential and creating a successful brand.

Mike Xhaxho’s journey buoys the affirmation that launching a successful brand necessitates more than just identifying a business opportunity. It demands strategic planning, meticulously executed growth, a dynamic strategy and above all, an authenticity that resonates.

🔘 Best Practices Guide

To build a successful brand, identify a gap in the market and create a product that fills that need. Use social media platforms to establish a strong online presence and community. Remember, having a large following isn't enough. It's crucial to have a product-market fit and leverage industry trends. Collaborate with creators to accelerate growth, but do not rely solely on their influence. Be transparent about your business decisions and mistakes. This helps build trust with your customers. Prioritize focus, doing a few things well, especially if you have a small team. Don’t get swayed by marketing pitches. Instead, double down on what's already working for your brand while constantly testing and innovating. Use storytelling in your content, offering value to viewers rather than just trying to achieve viral hits. Lastly, always have a contingency plan to continue operations even when facing difficulties.

🎆 Social Carousel: Do's/Don'ts

Slide 1: "10 Tips Every StartUp Needs to Know"

Slide 2: "Chase Numbers"
Do NOT become engrossed in social media followers and views. INSTEAD: Stress more on establishing a strong brand and community.

Slide 3: "Prioritize Popularity"
Don't place a creator's popularity over product market fit. INSTEAD: Make sure your product aligns with industry trends and caters to a real customer need.

Slide 4: "Sudden Expansion"
Avoid chasing big deals with retailers too early. INSTEAD: Make sure your operations and demand fulfillment are well established.

Slide 5: "Viral Fixation"
Don't obsess over creating viral content. INSTEAD: Concentrate on producing consistent and engaging content.

Slide 6: "Lose Focus"
Don't get distracted by all the offered marketing strategies. INSTEAD: Stay focused and prioritize what's already working for your brand.

Slide 7: "Ignore Feedback"
DO NOT disregard customer feedback. INSTEAD: Be open and transparent about your mistakes. Turn feedback into improvement.

Slide 8: "Early Specialization"
Don't restrict your product line early. INSTEAD: Experiment with different flavors and products to cater to diverse preferences.

Slide 9: "Panic for Outages"
Don't fret over temporary shortages of inventory. INSTEAD: See these periods as opportunities to enhance your brand and expand your audience.

Slide 10: "Suppress Co-founders"
Don't become complacent over hidden talents. INSTEAD: Utilize the varied backgrounds and skills of each team member for overall brand growth.

🎠 Social Carousel

Slide 1: "10 Tips Every Entrepreneur Needs to Know"

Slide 2: "Preparedness"
Establish your operations before seeking big deals, ensuring your ability to meet demand.

Slide 3: "Considerate Partnerships"
Partner with a creator who suits not merely your brand visibility, but the actual needs of your business.

Slide 4: "Storytelling Engages"
Generating meaningful engagement comes from presenting relatable, human stories.

Slide 5: "Presales Work"
An SMS list collected from engaging content can help successfully run presales.

Slide 6: "Product Diversity"
Different products are needed for specific applications e.g., sports recovery or post workout.

Slide 7: "Transparency Wins"
Customers appreciate honesty about your decision-making process, even when admitting to mistakes.

Slide 8: "Safety Margins"
Always plan for a production safety margin to avoid running out of inventory.

Slide 9: "Constant Adaptation"
Be ready to navigate through unexpected changes like packaging issues, production delays, and product rebranding.

Slide 10: "Uncover Opportunities"
Be open to new experiences and opportunities - they could lead to unexpected success.

Final Slide: "Tune in to DTC POD and learn from experts! Don't miss our upcoming episodes."

Interview Breakdown

In this episode, we unveil Mike Xhaxho's transformative journey that led to the creation of the trailblazing product, Waterboy. Immerse yourself in this enthralling insight into the genesis of a cutting-edge startup, its trials and triumphs, and discover the philosophy driving its success.

Today, Mike will discuss:

  • How adopting a strategic approach and testing different content on TikTok was instrumental in his brand's breakthrough.

  • The importance of finding the perfect product-market fit and leveraging industry trends, rather than relying on a famous creator.

  • Mike's commitment to transparency, openness, and learning from mistakes while executing business decisions.

  • The vital role of differentiating his product offerings on his website and Amazon, leading to exponential sales growth.

  • His inspiring personal journey, from born in Albania to creating an unrivaled fitness app, and ultimately crafting the innovative brand - Waterboy.

One Off Tweets
  1. Being available in more retail locations is a goal, but remember: growth is a meticulous dance between increased exposure and meeting demand.

  2. Building a business is not always about being well-known from the get-go. It's about proving the potential for incremental sales that matters in the long run.

  3. Content isn't just about grabbing attention online. The real game is sustaining it, finding that white space in your category, and offering a solution to a problem that doesn't yet exist.

  4. Not every video or post will go viral, and that’s okay. Consistency and offering value to your audience should be your ultimate goals.

  5. One may start small on platforms like TikTok, but remember - every great journey begins with a single step. Tell your story, engage your viewers, and build your community for success.

  6. Being transparent in your business operations isn't a weakness, it is strength. Admit when you make mistakes, learn, and keep moving forward.

  7. Creating products that cater to consumer needs is key, but sometimes, you must manufacture dreams they didn't know they had.

  8. Your competition isn't just other brands. It's anyone who creates engaging content. Keep your content game strong; your viewers demand it.

  9. Sometimes, the best idea may come from the least likely place. Be open to new opportunities, wherever they may be.

  10. Immigration and a career shift are never barriers to entrepreneurial success. They are testament to the enduring human spirit and the capacity to dream, innovate, and achieve.

Twitter Post 1

The sour taste of initial failure can lead to refreshing success. The first flavor for "Waterboy" receieved sour reviews, prompting a quick and zesty rebrand to "lemon ginger"!

Mindsets

If you're looking to unlock the potential in your business and personal strategy, consider these key mindset shifts that derive from our latest DTC POD episode with Mike Xhaxho:

💭 Pivot your focus from solely chasing placement to proving value. Instead of concentrating on getting your product into every retail space, shift towards substantiating its worth and ensuring you can meet demand. When Mike discussed the timing of their big box retail deals, it was evident that proving their product's incremental value and establishing their brand was pivotal before expansion.

💭 Embrace the power of narrative in marketing. Don't just rely on the popularity of creators or influencers; focus on crafting a compelling story around your product, just like Mike's explosive TikTok growth through authentic storytelling. Aim to make meaningful connections with your audience by sharing engaging stories rather than simply pushing content for virality's sake.

💭 Recognize setbacks as opportunities for innovation and connection. When mistakes happen—like the flavor mix-up in their packaging run or the unexpected packaging delays—reframe these as chances to deepen trust with your audience through transparency and quick thinking. This approach leads to creative solutions and can even become a crucial part of your brand's story, as Mike found with the liberating switch from canned beverages to powder form.

As we unpack these insights in "Mike Xhaxho - Waterboy," you can adapt these transformative mindset shifts for your journey. Looking for more tips and stories to propel your brand forward? Keep tuning into DTC POD for the latest discussions on branding, strategy, and personal growth.

Tactics

Looking to give your business a competitive edge with practical and nuanced insights? Tuck into these under-the-radar tactics straight from the DTC POD playbook:

💭 Balance Scale with Demand Forecasting: Jumping into big retail prematurely could backfire if your operations can't keep pace with demand. Instead, fine-tune your production capacity. Adopt a calculated approach to scaling retail presence, which harmonizes with your company's growth phase and supply capabilities.

💭 Cultivate Online Presence Before Retail Pitches: Strengthen your brand online and foster a dedicated community before attempting to secure space on retail shelves. Retailers favor brands that bring proven traffic and incremental sales to the table. By establishing your name online first, you're creating leverage for those critical retail negotiations.

💭 Match Creator Collaborations with Market Fit: In influencer partnerships, don't be swayed solely by follower counts. Seek creators whose narratives resonate with your brand ethos and who can organically accentuate your product's market fit. The right creator should act as a catalyst, not the crux, of your product's success journey.

💭 Develop a Content Strategy That Tells Your Story: A message with a heartbeat captures attention. When creating content, whether it's for TikTok or any platform, prioritize authenticity and storytelling over chasing viral moments. Content that sparks genuine engagement will always outperform in the long run.

💭 Respond Agilely to Product Feedback and Operations Hiccups: Own your missteps and use them to connect with your audience; be transparent about what didn't work and why. In operations, plan for contingencies to tackle production errors. A mistake doesn't define you; your response to it does. Embrace agility in product development and operations for long-term resilience.

Implement these strategic maneuvers to not just grow your business but to cultivate a brand with a robust foundation, ready to endure market shifts and consumer trends. Keep tuning into DTC POD for more gems like these, shared by insiders who are navigating the trenches of direct-to-consumer triumphs.

In Depth Thread

Overrated: Traditional Advertising.

Drowning in a sea of competition with billboards and TV commercials? Save your budget.

Underrated: Virality on TikTok.

Here's the blueprint that catapulted our Weekend Recovery brand to social media success:

Keep it Short & Sweet

Short-form is king.
Start with 15 to 30-second videos that get to the punchline fast.

If you can't hook them in the first 5 seconds, it's back to the drawing board.

The Magic 5 Metrics

What resonates with the TikTok audience? Here’s what to highlight:

  1. Viral Views (i.e., "This video's at 2M+ views!")

  2. Follower Growth (showcase that explosive increase)

  3. Engagement Rate (likes, comments, shares!)

  4. Real Testimonials (user-generated content rocks)

  5. Brand Mission ("Making hydration clean & functional")

Understand Your Market with Brevity

Cut the noise. Focus on quick, digestible bites of what you're all about.

A zesty 5-point frame to illustrate your landscape.

Strapline

A sentence that packs a punch and conveys your essence:
“We make recovery a breeze with clean hydration solutions for weekend warriors.”

Command the Lexicon

We’re not just another sports drink; we champion "Hydration with Purpose."

Be innovative in how you phrase what you do.

Content-to-Conversion Process

What happens after the double-tap?

Outline a simple pathway from viewing to purchase.

Showcase Product Lineup

Highlight your variety and what sets you apart, but keep it straightforward.

Our commitment: tailored formulas for every lifestyle.

Visual Evidence

Hit 'em with the impressive stats and graphics – engagement and conversion rates that prove your product's buzz.

Team Showcase

Our MVPs behind the scenes make the magic happen.

Brief intros to creators, strategists, and innovators driving our brand.

And if you're a new brand needing to prove your mettle...

Emphasize your team's expertise and intention behind your strategy.

Let the ethos of your creators and their approach to virality be your calling card.

Because at the end of it all, the 3 H’s rule on TikTok:

• Humor, Humility, and Hustle

Build your story around these values just like we write every TikTok script.

New Idea

Idea #1: The Power of Storytelling in Brand Engagement

Leverage the art of storytelling to captivate and connect with your audience, enhancing brand engagement through:

  1. Telling Relatable Founder Stories: Mike Xhaxho shared his personal journey of creating Waterboy, including the transition from selling a software company to launching a beverage brand. This narrative allows listeners to empathize and root for the brand, fostering a deeper connection.

  2. Creating Content That Resonates: Mike's TikTok success hinged on storytelling that resonated with his audience. The viral video explaining his use of Pedialyte and the reasons for creating a superior alternative not only entertained but also informed viewers, resulting in a surge of followers and presale numbers.

  3. Transparency About Mistakes and Learnings: By openly discussing mistakes, such as the wrong flavor in the packaging or the second product drop's taste issues, Mike creates a narrative of authenticity and trust. This candor invites the audience to partake in Waterboy's journey, not just as consumers but as vested supporters.

Tweet thread on learnings

Tweet 1:
We just wrapped an insightful chat with @MikeXhaxho of Waterboy, revealing the grit behind the growth of their weekend recovery product. From overcoming retail hurdles to leveraging a viral TikTok presence, here's how they're hydrating the hustle differently: 👇

Tweet 2:

  1. The Power of Being Present at the Point of Need

Timing & availability are essential. @MikeXhaxho knows that Waterboy's success hinges on being where customers are, when they desperately need hydration. Reaching more retail locations isn't just about expansion, it's about capturing those crucial moments.

Tweet 3:

  1. Navigating Retail Rejections to Big Box Success

Initial retail rejections didn't deter @MikeXhaxho. They doubled down, establishing the brand online, fostering a community, and paving the way for big box deals. Proof that brand-building and timing are critical for retail readiness.

Tweet 4:

  1. Utilizing Shared Backgrounds for Fruitful Partnerships

Finding common ground matters. For @MikeXhaxho, it was shared city roots that helped secure partnerships, underscoring the fact that alignment on more than just business can be the foundation for powerful collaborations.

Tweet 5:

  1. Why a Creator's Social Influence is Just the Spark

Relying on creators just for their reach? Think again. @MikeXhaxho's stance is clear: A genuine product-market fit and riding industry waves trumps influencer clout. Think Mr. Beast's versatility, with creators as catalysts, not cornerstones.

Tweet 6:

  1. Crafting a Story with Substance on TikTok

Going viral isn't just luck. @MikeXhaxho's TikTok rise with Waterboy stemmed from a heartfelt narrative connecting their personal journey to the brand's mission. And when videos are a mixed bag of hits & misses, consistency in storytelling keeps the community engaged.

Tweet 7:

  1. Embracing Transparency & Learning from Mistakes

Mistakes like incorrectly flavored batches could have spelled disaster, but @MikeXhaxho opted for openness. They're proof of the need to own up, adapt, and maintain a safety margin in production. An honest mistake can be a stepping stone, not a setback.

Tweet 8:

  1. Innovating Amidst Adversity and Supply Strains

When plans don't pan out, pivot. Waterboy shifted from canned drinks to Powder due to production issues and quickly turned initial flavor flops into fan favorites. @MikeXhaxho shows us that flexibility in product strategy can navigate even rough supply chain waters.

Tweet 9:

  1. Cutting Through the Noise with Authentic Content

Forget fretting over algorithms. @MikeXhaxho focuses on engaging content with purpose. It's not about competing with other brands on TikTok; it's about providing value and standing out among a sea of creators' content.

Tweet 10:

  1. Conclusion: The Road to a Hydration Revolution

It's clear @MikeXhaxho's journey wasn't a straight shot. From Albania to the US, banking to beverages, and a pivotal TikTok takeoff - the tale of Waterboy is one of relentless reinvention and unwavering resolve. 生命周期函数

Future State, 6 reasons post

Within a year of launching, Waterboy became a symbol of weekend recovery and a beacon of hope for the social media-savvy generation seeking hydration solutions. But it didn't just quench thirst; it stirred a movement, gaining presence in both online communities and big box retailers. And yet, the journey has only begun. Imagine transforming from a hot trend into a household staple, stocked in every pantry and gym bag—a symbol of not just recovery but proactive wellness.

PREVIOUS STATE:

The launch was daring, a digital David against the Goliath of traditional retail, contending with skeptics and retailers who overlooked the potential. Operations needed time to mature, and brand recognition was in its infancy. A reliance on organic social traction dictated unpredictable growth trajectories, and the product range was limited—testing waters but not yet diving in.

FUTURE STATE:

The Waterboy brand transforms into a hydration empire. Retail shelves are diversified with an array of products tailored to various lifestyles—from athletes to weekend warriors. Its online presence transcends transactions, fostering a community whose interest spans beyond recovery to proactive health. Operations capably meet demand surges without flinching, and collaborations occur with figures who share the brand's ethos. Waterboy isn't just a product; it's a lifestyle choice that tastes good and feels even better.

To reach this saturated state of success, here are six recommendations that could render Waterboy ubiquitous:

  1. Extend the range: Develop additional flavors and products to cater to broader preferences, emphasizing clean and functional hydration across various applications.

  2. Scale operations intelligently: Steadily expand manufacturing capacity to match retail growth without compromising product quality or customer service.

  3. Cultivate community: Continue to leverage social media platforms, prioritizing engagement over virality, to build a community that advocates for Waterboy as a part of their daily regimen.

  4. Retail relations: Forge stronger relationships with retailers to secure premium shelf space and promotional opportunities, ensuring Waterboy is visible and accessible.

  5. Strategic collaborations: Partner with influencers and creators whose lifestyles align with the brand values, using these partnerships to amplify reach and credibility.

  6. Innovate and communicate: Remain transparent about product development and market feedback, using these insights to innovate and adapt offerings to consumer needs.

The fusion of product market fit, brand story, and strategic partnerships could see Waterboy defining the hydration market of tomorrow. But to get there, we need to keep our ear to the ground and our eyes on the horizon.

What do you think about the journey of Waterboy so far? Where do you see this hydration revolution heading, and how do you believe it can transform the landscape of wellness? Share your thoughts, and let's hydrate the conversation!

About the Episode

Mike Xhaxho, the visionary behind Waterboy, shared his targeted strategies that leveraged both digital presence and community building to catapult his weekend recovery product into various big-box retailers. Coming from a modest beginning, where retailers once shied away due to the brand's anonymity, Mike focused on nurturing the brand's image and presence through powerful storytelling on TikTok. This effort paid off handsomely as it attracted a substantial following, resulting in a deeply engaged community and proven potential for incremental sales. Mike emphasized the criticality of establishing a robust operation before scaling up to meet the demands of larger retailers, suggesting a patience-play that has clearly reaped rewards for Waterboy.

Throughout the discussion, Mike underscored the significance of a creator's resonance with their audience over mere social media popularity. Rejecting the approach of partnering with creators based solely on their follower count, he believes in a synergy of shared backgrounds and passionate storytelling that adds an authentic voice to Waterboy's brand narrative. His personal anecdote of explosive growth on TikTok, which led to a successful pre-sale campaign, endorses his conviction that a creator acting as an accelerator is far more valuable than being the foundation of a product's success. Mike's strategy focuses on the simple yet potent concept of white space in a growing category and solving for a consumer problem not yet addressed in the market.

Mike's savvy use of content creation, as shared during the podcast, goes against the common urge to chase viral moments. Opting for consistency over fleeting viral hits, he crafts TikTok videos with the intention to entertain, build a community, and promote Waterboy's ethos of clean and functional hydration. His hands-on experience with an unexpectedly popular video that amassed over 2 million views, corroborates his methodology. Mike's commitment to transparency with his audience about business mistakes, such as the mislabeled product packaging, further reinforces the genuine connection he seeks to foster between Waterboy and its user base—a connection that thrives on trust and shared values.

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