4.6 / 5 (fifteen)

So often we feel like we have to work it out for years to get results.

If you work hard and persistently enough, the results will come. What about all the outliers that defy this rule?

  • Charlie D’amelio has the largest following on TikTok. She now has more than 80 million followers and opened her account in June 2019. She was not known beforehand and had no unfair advantage.
  • Billion dollar companies are starting up faster and faster. ForHims.com is a telehealth company valued at over $ 1 billion. It was founded in 2017.

I loved the success of reverse engineering and I came to the conclusion that we live in the USA Age of leverage.

Here is the truth: If you find and ride the right "wave", you can achieve astronomical growth without years of grinding.

It is everywhere.

When I look back on the history of affiliate marketing, so many super affiliates can attribute their success to riding the right wave.

Whether it was about leveraging traffic sources before they got too competitive, or the ability to create angles that reflect the current flaws in the customer's mind.

Of course, it took hard work, but we underestimated the importance of timing.

How do we recognize these "waves" before they occur?

The key is to understand the market inflection points and their implications.

Turning points are key events that lead to significant change, or "disruption" as people like to call it.

I'm going to list some turning points and I want you to think about how which companies have used them.

  • Everyone uses a smartphone and GPS tracking is activated for these smartphones.
  • Amazon.com allows third parties to sell on its website. Now everyone can easily access Amazon's large audience.
  • 9/11 causes the TSA to create new regulations. Now everyone has to take off their jacket, shoes and laptop.
  • COVID-19 is changing the world. Some schools and universities implement virtual learning. Everyone has to wear a mask.

As marketers, we're always trying to figure out what's "trending" or "what's hot", right?

We'll use tools like AdSpy to research the competition on Facebook, or we'll see which keywords are up to date on Google Trends.

The problem is, you will always be a few steps behind. Instead of figuring out what's hot now, train yourself to see what's going to be hot.

The easiest way to do this is with a market diffraction framework. I'll show you different types of market inflections and share stories about how different companies have benefited from them.

After reading this article, you can see opportunities everywhere.

The 6 types of market inflections

I've broken market inflections into six different categories and provided different examples.

You should go through each point and think about which companies have benefited from market inflections.

1. Diffraction of accessibility

I can be up and running a new e-commerce brand within a few hours in 2020.

The website is online, I have access to the inventory and can process your credit card.

Now imagine if this were the case 1998.

I should have invested thousands of dollars in hiring people to build the technology. And I would have suffered brain damage trying to delegate tasks through AOL Instant Messenger.

If third party payment providers are this shitty in 2020, I can't imagine what kind of bastards there were in the 90s.

What has changed?

Well, e-commerce is now more accessible due to various tools.

What other industries have boomed because barriers to entry have fallen?

I can't imagine what a pain it must have been to create a monthly subscription box a decade ago. Now Cratejoy has made it easy for anyone to get into this industry.

Subscription-based newsletters have been around since Decades. Now it seems like everyone is bringing out a paid newsletter because of SubStack.

These technologies do not create new markets from scratch. But they lower the barriers and increase the number of players in the game.

Accessibility also means democratization. If I want to become a rapper, I can put my next mixtape on SoundCloud. (But I'm not a rapper.)

If you're funny, you can use your phone to upload videos to YouTube. We no longer need permission.

Here's what I learned about business: if something becomes too accessible, sooner or later it will feel like this: "saturated.

We tend to run away from difficulty or pain. We complain that something is "too hard" or that it takes too much time.

But that friction and headache keep the competition away. In a way, the early ecommerce websites had a competitive advantage as the world's shopifys didn't exist.

Photo by LED supermarket from Pexels.

2. Flexion of social displacement

Ten years ago I had no idea what "gluten" was.

Now every grocery store has lots of “gluten-free” breads and cookies for the Karens.

As a society, we are always adopting new beliefs. Do you remember when doctors advertised cigarettes as healthy in the 1950s? Yeahhh….

What social changes are currently taking place?

  1. Well the Black lives count Movement continues. What's an effect of that?
  2. More and more companies want diversity in their workforce. OK what are some solutions?
  3. There will be a demand for tools to help both. For example, diversity recruiting software for analyzing your existing workforce. Or transparency software for reporting racial discrimination.

COVID-19 triggers one social change after another. Seriously, it's like we'll have two decades of it in a year.

What are some social changes that are taking place now?

  • People want bigger houses
  • More and more companies are moving away
  • All wear face masks.
  • Children learn virtually
  • Prepare for survival
  • hygiene

Think:

  1. What social changes are currently taking place?
  2. What problems does this create?
  3. What are some solutions?

Here is a video I made a few months ago that came up with pandemic business ideas.

3. Platform flexion

“A platform is a business model that creates value by facilitating exchanges between two or more groups, usually consumers and producers” – Alex Moazed, Modern Monopolies.

Platforms are where Billions are produced.

Some platforms you may have heard of: Apple App Store, Airbnb, Amazon, Wayfair, Uber, Doordash, Facebook, Udemy, YouTube, etc.

The platforms themselves are billionaire companies. However, each platform is also home to million dollar companies that were founded on the platform itself.

(Ok … maybe Uber Drivers and Doordash Delivery drivers won't get rich.)

But think of all the companies built from YouTube, Facebook, the Apple App Store, and Amazon.

A great takeout here is timed coordination.

It's a lot harder to build a YouTube audience now than it was 10 years ago.
It's a lot harder to build an Instagram audience now than it was 10 years ago.

Take a look and do some research to see what new platforms are out there because being a first mover is always beneficial.

When Facebook Pages first opened, they got massive organic reach. Now my posts will probably reach around 20% of my Facebook fans.

In the early days of Instagram, posts were displayed chronologically. Everything you've posted will be sent to your followers. Now everything is based on an algorithm and it is difficult to achieve the following that you created.

Charli D’amelio is talented and attractive. She would have been successful if she had made dance videos on any platform.

But she could become a huge celebrity in less than a year for discovering and driving an emerging platform – TikTok.

4. Technology diffraction:

How many companies have tried to be the "Uber of Blank"?

All of these companies use a Technology diffraction.

People adopted smartphones and these devices came with GPS tracking technology.

These inflections enabled new businesses to be built using these technologies.

When people think of drones, they think of military drones or drones recording awkward videos of you on your balcony.

There are now window cleaning drones. Amazon is working on delivering packages with drones. Disney uses drones to help with their lights and fireworks shows.

The technology I'm most excited about right now is augmented reality. As soon as Apple launches its Apple Glasses, new billion dollar companies will be created.

5. Rules and regulations inflection:

9/11 happened.

And because of this terrorist attack, new rules and regulations were passed. These new rules and regulations have caused us new pain by forcing us to take off our shoes and laptops.

A new business grew out of these new rules. For $ 179 a year, Clear lets you skip the lines without taking off your shoes and laptops.

There is also an opportunity if you can remove Rules and regulations.

Telemedicine is currently booming with players like Hims, Roman and Lemonaid.

These ventures weren't legally possible over a decade ago.

First, the patents of some drugs like Viagra have expired.

Second, you could now legally get a prescription without going to the doctor.
You can imagine how much growth these companies have seen from COVID-19.

So whenever new regulations are added or removed, think about what businesses can emerge.

Photo by Luca Nardone from Pexels.

6. Influencer flexion

I remember being part of a mastermind group a decade ago.

We were a group of affiliate marketers, all 20 year olds. Apart from talking about campaigns, we had a strange ritual every day.

We loved seeing Oprah. It wasn't because we were interested in getting advice for middle-aged women.

We observed her because she has great dick energy over middle-aged women.

She could recommend anything and it became an instant bestseller.

So we kept our eyes on her show, hoping that she would recommend something regarding diet.

There are some people out there who are so influential. You can create million dollar industries out of casual conversation.

Some of these God influencers include:

  • The Kardashians
  • Kanye West
  • Oprah
  • Joe Rogan

With Kanye West wearing a fanny pack every time he's out and about, I can guarantee you that there are millions of people who open fanny pack stores.

These are the titans. But find that these Titan influencers are in every little niche.

Photo by Andrea Piacquadio from Pexels

Conclusion

Understanding these frameworks helps me reverse engineer companies, but it also helps me think about new ideas.

Let's say you're not interested in building one of those million or billion dollar companies.

You just want to make your first $ 1,000 online.

Okay, let me think about an idea very quickly.

A social change = face masks.
A Shift in Accessibility = I've seen you can now print custom masks with Printify.

If you combine these two on the right platform (Amazon, Facebook, or Etsy seem great) then this is a great money maker.

What is your biggest takeaway from this article?

Cover picture: Photo by Andrea Piacquadio from Pexels

Please rate this article – it helps me know what to write!

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