How To Make A Million Dollars And Accidentally Build Nothing
One of the strangest businesses on Earth right now is a TikTok Shop that made a million dollars last month and has the long-term stability of folding chair at a WWE event. A product appears. Nobody has heard of it. It might be a blender. It might be a collagen gummy. It might be a glowing silicone object whose purpose remains unclear even after three demonstrations. Doesn't matter.
The algorithm sees it, points at it like Leonardo DiCaprio spotting himself in a movie and suddenly every creator on the platform is yelling: "OH MY GOD, GUYS".
Sales explode. The founder starts posting screenshots. Friends start asking for angel allocations. Someone updates their LinkedIn bio to "disrupting commerce." And then, three weeks later, the entire thing dies with the dignity of a mall fountain.
Because TikTok Shop has created a fascinating new category of business: companies that are wildly successful right up until the exact moment they aren't. In fact, some operators have started comparing it to Groupon which is a bit like hearing sailors compare a cloud on the horizon to the iceberg that sank the Titanic. Groupon was fantastic at generating customers who were deeply loyal to discounts and completely indifferent to the businesses offering them. The fear is that TikTok Shop may be creating a modern version of the same phenomenon: massive revenue with surprisingly little residue.
For years building a brand was painfully boring. You had to earn trust. Deliver consistently. Create reasons for people to come back. It was slow, repetitive work, like raising a child or training for a marathon. Now you can skip directly to the part where strangers throw money at you. Unfortunately you can also skip directly to the part where they stop.
That's because many operators are accidentally confusing attention with loyalty. And to be fair, that's an easy mistake to make. If ten thousand people buy your product in a week it certainly feels like you've built something. But a crowd and a customer base are not the same thing. A crowd also forms around street fights. A crowd gathers when someone accidentally releases fifty inflatable Minions into a shopping mall. A crowd once watched a man spend eight hours carving a canoe out of concrete. Human beings will assemble for almost anything.
The question is whether they come back. Want the framework? Here's The "What Happens After The Hype" Survival Guide.
Because if your sales depend entirely on an army of affiliates shouting about your product every day you don't own demand. You're leasing enthusiasm from the internet. And the internet is the worst landlord imaginable. It raises rent constantly. Changes the rules without warning. And occasionally burns down the entire neighborhood because people got temporarily interested in sea moss.
That's why so many TikTok Shop businesses look incredible from a distance. The graphs go straight up. Revenue is booming. Everyone is celebrating. But some of those businesses are essentially riding a bicycle downhill while declaring themselves transportation experts.
The test isn't whether sales are growing. The test is what happens when the noise stops. If every creator disappeared tomorrow would customers still show up? Would they search for you? Recommend you? Remember you? Or would your business vanish so completely that future archaeologists would conclude it was some kind of seasonal weather event?
Because the asset isn't the revenue spike. The asset is what remains after the spike. The email list. The SMS subscribers. The community. The people who know your brand before they see a discount. The people who buy because it's you, not because a stranger on the internet pointed aggressively at your product for 27 seconds.
A viral product is not a business. It's an audition. And right now too many companies are mistaking applause for loyalty.
So enjoy the sales. Celebrate the growth. Frame the screenshots if you want. Just don't confuse a stampede with a customer base.
One is an asset. The other is merely a large number of people running in the same direction until something shinier appears. |