Fame's Effect on Charging Out Of Market Prices

"Fame alters the perceived value of things better than anything else." as stated in Automatic Clients. "It allows things that cost next to nothing to be sold for up to 1,000%+ mark ups, and it works so well because humans are tribal by nature, we ping off of each other to determine the value of things."

Consider these examples:

• The average marketing consultant charges $1,000 for one day's work. Jay Abraham charges $50,000.

• Typical sneakers sell for $30 to $50. Yeezy's retail for $350 and are scooped up and then resold for more than $1,000.

• Most life coaches ask $500 a month. Tony Robbins has clients that pay him $1,000,000 per year and he does not do 1-on-1 clients anymore.

• Most people on Cameo charge $50 per video. Caitlyn Jenner charges $2,500 per cameo.

• Influencers charge, on average $10,000 for a social post. Kim Kardashian earns over $250,000 per post.

• Most business coaches charge $1,000 to help an entrepreneur, but Alex and Leila Hormozi host workshops costing $5,000 per person. They train 100 people at once per workshop.

• Most experts on Intro charge $500 per call, but Nikita Bier charges $2,500 for a 15 minute call.

People seek fame for a reason: it boosts earnings. You can gain enough recognition to charge more in a specific area online, without having world-wide recognition, and that can still be very lucrative. Though if you are world famous, you earn even more.

Niche fame lets you raise prices while avoiding some of the crazy fanfare that bigger fame may entail. Many, for example, don't know what Jay Abraham looks like.

If fame is not your goal, creating a luxury product or a strong brand offers similar advantages.

When you see the Nike logo or its slogan, “Just Do It”, you don't think of a single face or famous persona. But Nike still charges $120 to $250 for its shoe while average shoe costs $60 to $100. Building a strong brand also means you can command high prices, like how Apple AirPods sell for $129 to $249 despite the fact that other similar wireless earbuds sell for much less ($25 to $80) price.

In short, you can set prices above the market through three key avenues: gaining fame or piggy backing on another person's fame, building a luxury product, or creating a powerful brand.

Top Tweets of the day

1/

If you can control your mind to change certain behaviors, you have a massive advantage over others. Majority cannot and that's one reason why addictions exist. Everyone has bad habits that they know they shouldn't do but they still do it.

2/

Deepseek v3 came with a model on the level of Claude Sonnet 3.5 NEW with a massive reduction in price. Costs are 10x cheaper. They didn’t have billions in funding so they came up with a unique solution using constraints. Constraints breed creativity.

Claude Sonnet 3.5 would cost $20 to $25 for a specific app and it only costs $1 to $2 with Deepseek v3.

All tests I’ve seen were done on coding. Not sure how it compares with Claude in writing.

3/

Clipping is here to stay with the collective lack of attention span of all humans.

Kids these days can't even watch a single 2 hour movie. They just scroll through TikTok, Instagram, and YouTube for their entertainment because they don't want to "commit" to any series.

And whatever kids do, adults follow in a few generations. Facebook was originally for kids but adults followed. Instagram too. And now you can see grown-ups jumping on TikTok.

Rabbit Holes

1. "Text only" ads on Meta by Dara Denney

2. 19Y-Old That Grew Her Business to $1M in One Year Through TikTok & Reels by Guillaume

3. The Secret to TikTok Shop by Steven Young

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More Startup Spells 🪄

1. Trikko's Faceless Marketing Playbook (LINK)

2. Testimonial Hacking (LINK)

3. Netflix's Genius Content Play (LINK)

4. Owning Distribution vs Buying Distribution (LINK)