5 things we can learn from Elon Musk and his Cybertruck launch
Elon posted on twitter yesterday that Tesla already received 250,000 pre-orders worth over 12 billion within days of their unveiling of the new cybertruck without any paid ads
The key business and marketing take aways from this launch
Lesson 1. Start selling top models first
Most businesses start selling high volume products first at lower prices and try to upsell the better models later.
Here is Teslas plan
- Create a low volume expensive car
- Use that money to develop a medium volume car at a lower price
- Use that car to create an affordable one for the masses
This plan is great for cashflow and that’s why its very effective.
Getting a few clients is much easier than the masses.
Start at the top of your value ladder when launching a new business with little cash-flow
Lesson 2. Sell First, build later
Cybertruck has 250,000 orders within a week of the live event but its not going into production until late 2021
Everyone that has ordered has deposited 100 USD which helps with cashflow, makes people commit and gives a good indication of how many will buy the car. (some people may not go through with the order, but others will be joining)
This 100 USD gives some validation and confidence to an idea. This reduces risk and installs some confidence with the shareholders.
A lot of revolutionary products have failed, leaving investors out of pocket for many months worth of work and investment.
Creating a sample and pre-selling it is far cheaper than getting the car into production first, it also creates some demand and urgency to be first.
Always sell your product first and build it later. This validates your idea and brings you some cash to develop it.
Lesson 3. Host a live event to launch a new offer
Instead of creating a new product and putting it on your website, you should create some hype and excitement around a live event.
Tesla always hosts a launch event for their cars, it gives the media and masses something to talk about and something to debate. (especially if things go wrong)
The buzz and anticipation during the build up no doubt helps the sales fly. Apple use the same tactics.
When launching a new offer, you should set a date for a live event where you will present the offer and let people put their orders in. Create excitement and curiosity in the build up.
Lesson 4. Don’t be afraid to polarize your market
The more you specialise a subject with a book, the more likely it will be a success, if your product tries to appeal to everyone, it will appeal to no one.
Having a group of your customers loving a product and the other group hating it will generate thousands of pages of content on the internet of heated debates, videos and many articles discussing the product.
The free reach on social media they get from such a design has been unbelievable. The car also makes a statement for people that they want to be different and you always get loyal brand followers that will buy anything.
Elon has a polarizing personal brand, he appeals to a broad range of people yet his personal attacks on people, his fine from the SEC, smoking weed has generated a lot of publicity for him and none of it really effects him negatively, in fact I think the masses admire people that don’t care so much about what others thing.
Hate me or love me, but know me!
Lesson 5. Build your personal brand as well as your business and leverage that.
We don’t know many CEO’s of car companies, probably because they are well established and they feel they have a lot to lose with risky CEO behaviour, they are probably scared to have a voice and damage the brand. But Tesla is in the growth stage and the type that follow Tesla are very loyal to the brand, which makes them ignore the problems and they are used to a risky CEO.
A personal brand puts a face on a business.Its very powerful especially for Elon because the board is less likely to remove him from the company. He can leverage his personal brand to find more investors. Its far easier to launch a product to people that know and trust you from watching your previous content and they feel part of your story.
Showing real people represent your company helps people bond with the company because people bond with faces and voices. (this is why video is better than writing)
