IKEA

How to create value from a broke, flaky, uncommitted audience

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This week, I’m promoting Newsletter XP, a course on how to build, grow, and monetize a successful newsletter.

The undeniable star of the Newsletter XP show is co-host Alex Lieberman.

​​In 2015, Lieberman started Morning Brew, an email newsletter covering the day’s business news. Within five years, he built up Morning Brew into a 9-figure company. In 2020, he sold a controlling stake in Morning Brew for $75 million.

There’s a bit in the monetization section of Newsletter XP where Alex is asked to give an example of how he pitched big brands like IKEA on buying six-figure ad packages in Morning Brew.

​​Alex obliges.

He delivers a 1 min 24 second masterclass — the pitch he performed 10 times a day, every day, for three years.

​​His pitch is truly impressive because what he is really selling is an audience of 18-30 year olds, largely broke, uncommitted, and flaky — not an audience any serious business would be excited to advertise to.

And yet, Alex does it with such enthusiasm, cleverness, and conviction, that by the end of his pitch, I bet the IKEA marketing execs were begging him to run their ad, versus the other way around.

Once again, this pitch was how Morning Brew got to tens of millions of dollars a year in ad revenue, before Alex cashed out for $75 million.

You can use Alex’s IKEA pitch to inform your own sales strategy if you want to start a newsletter and you’re bent on selling ads to big brands for a lot of money.

Or, you can use Alex’s pitch to guide where you take your newsletter.

Because you might not be getting into the newsletter business to hang out on LinkedIn and pitch marketing managers 10 times a day.

​​The good news is, Newsletter XP gives you real options for both the ad-supported path to monetizing your newsletter, as well as the no-ad path, where you simply create content you love and get paid well to do it.

It’s all there inside the course.

​​I’m promoting Newsletter XP until Monday, Feb 25, at 12 midnight PST. During this promotion, you can get $200 off the usual price of Newsletter XP. Here’s how:

1. Go to the Newsletter XP sales page at https://bejakovic.com/nxp

2. If you decide you want to get Newsltter XP, then use coupon code JB20 at checkout.

3. Make sure the coupon code works — that you see the price drop by $200. This is not my funnel, and if you end up buying at full price, there’s nothing I can do about it.

Boris and the world’s saddest lamp

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Boris raised the famous golden trophy over his head, and the crowd erupted in cheers and applause.

​​They had never seen anything like this before.

Boris had become the youngest man ever to win the most prestigious tournament in tennis, Wimbledon.

For 17-year-old Boris, the acclaim was nice. The $169,000 prize winnings — equivalent to $446,000 in today’s money — didn’t hurt either.

Throughout the rest of his tennis career, Boris Becker won 48 more tournaments, including 2 more Wimbledon titles.

​​When he retired from tennis, in 1999, his entire career winnings totaled over $25 million. Combined with various endorsements and sinecures, his total earnings came to over $50 million.

But it’s not hard to squander a fortune. And over the years, Becker has worked hard to squander his.

Luxury apartments around the world… expensive divorces… a child begotten in the broom closet of a Nobu in London… by the mid 2010s, Becker’s resources were strained. And his debts were mounting.

Finally, it became too much. In 2017, Boris Becker filed for bankruptcy.

The tennis world, and the world at large, shrugged. It’s hardly a new story — a talented star makes millions in his youth, then squanders it all in middle age. Besides, bankruptcy is not the end of the world. People routinely recover from it.

But then just this past week, things got a lot worse for Becker.

It turns out he has been under criminal investigation for failing to report some of his assets during the bankruptcy hearings.

So now, not only will those assets be seized, but there’s a very real possibility that on Apr 29, Becker will be sentenced to jail time for his bankruptcy jiggery-pokery.

​​He might have to spend the next 7 years in prison… pushing the library cart around, fighting off advances in the shower, and trying to get used to the gruel — no Nobu behind bars!

Yesterday, I told you about the first canonical story type, rags-to-riches, which can be represented by /.

Today is about the second canonical story type, riches-to-rags, \. There are plenty of illustrations of this format. But I had been reading about Becker only a few days ago, and so he popped into mind.

And here’s an extra tip if you are massaging a story, whether riches-to-rags or any other type:

It matters big time where you start your story. Not just for sucking the reader in and getting his attention. But for the total effect.

For example, I could have started today by talking about the struggles Becker experienced only weeks before his first Wimbledon. Or I could have talked about the sacrifices he made as a kid.

Those might be valid places to start — if I were after a different effect.

​​But if the point of my story is to get you depressed and scared about losing everything you’ve got — after all, if it can happen to somebody as talented and blessed as Becker, why not you — then the best place to start is the highest, most pure moment of his career and life.

“Yeah about that,” I hear you saying, “this riches-to-rags structure is kind of depressing. It’s also kind of preachy. Who wants to read this kind of thing? I feel like you’ll just turn people off.”

Fair concern. But the fact is, some of the most influential and powerful stories in human history basically follow this basic riches-to-rags structure.

Adam and Eve had it really good in the Garden of Eden and then—

King Lear had three fair daughters who loved him and then—

And an Ikea lamp had a happy home and—

​Well, maybe you don’t know the most famous Ikea commercial ever.

​​It was directed by Spike Jonze. And people still talk about it today, 20 years after it came out.

​​You can find it below. And if you watch it, you will find a second crucial thing you need to do to make your riches-to-rags story work well.

​​In fact, it’s something I screwed up with my story of Boris Becker above.

​​It’s too late for me and my story in this email. But it’s not too late for you. Watch below and learn. Oh, and sign up for my email newsletter — I will write more about story types tomorrow.

The absolute cheapest köttbullar in a 30-mile radius

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Back in 1958, Ingvar Kamprad had a bold idea.

He was opening a furniture store — and he decided to tack on a cafe as well.

The reasoning was straightforward:

Customers with full bellies might buy more furniture.

This furniture store + cafe business became quite the success. It’s called IKEA (the “IK” in the name being Kamprad’s initials) and it does about $40 billion in sales each year.

The IKEA restaurant alone does about $2 billion. But that’s not what the company cares about.

In fact, the guiding principle of the IKEA restaurant is to offer the absolute lowest price on a food item within a 30-mile radius.

IKEA doesn’t mind if it loses money here — because its köttbullar (AKA Swedish meatballs) are known as the “best sofa seller.”

Makes sense.

People wouldn’t stay in the store as long if they get nervous or hungry…

On the other hand, if they come expressly for the Swedish meatballs or cheap hot dogs (30% of IKEA customers come just for the food), they might wind up buying some throw pillows or stuffed rats or even a new lamp.

And the point of all of this is NOT that you should offer a loss leader.

Instead, it’s a simple lesson about copywriting.

In writing copy, as when selling furniture, you need a hook.

A hook is a way of sucking people in, so you can buy yourself time to do a proper selling job.

This is important when you’ve got a huge offer — thousands of separate products — like IKEA does.

But it’s just as important when you’ve got a single product, say a supplement, with multiple ingredients or benefits.

Or when your audience doesn’t know your brand as well as they know Ingvar Kamprad’s Furniture + Meatball Emporium.

So how do you write a good hook?

The basic principle is there in the story of the IKEA restaurant. If it’s not yet clear to you, don’t worry. You’ll be able to get more info on it if you take me up on the following free offer:

https://bejakovic.com/profitable-health-emails/