Tren Griffen on Proprietary Product Distribution

Businesses that can create proprietary product distribution are modern day alchemists.

“Proprietary product distribution is a customer acquisition system that is within the control of the business itself and which generates a customer relationship that the business owns.” This is in contrast to paid ads, which are increasingly less effective.

“Proprietary product distribution is the only approach to acquiring customers that can generate the necessary scale to create businesses with multi-billion dollar valuations.” There are also businesses which are a mix of proprietary and mixed. He uses the example of Disney, with its own network and also ads in other places.

And a nice bonus quote from Jeff Bezos, “The balance of power is shifting toward consumers and away from companies…the individual is empowered… The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it. If I build a great product or service, my customers will tell each other…. In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts.” “Your brand is formed primarily, not by what your company says about itself, but what the company does.”

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