Rich Habits Podcast Episode 128: How to Build a 9-Figure Brand
Release Date: July 28, 2025
Introduction
In Episode 128 of the Rich Habits Podcast, hosts Austin Hankowitz and Robert Kroke delve into the intricate process of building a nine-figure online brand. This comprehensive discussion offers a step-by-step framework based on Robert's extensive experience in launching and scaling successful consumer products. Whether you're an aspiring entrepreneur or looking to elevate your existing business, this episode provides invaluable insights into transforming a simple idea into a formidable brand.
1. The Due Diligence Process
Timestamp: 04:13 - 07:55
Key Topics:
- Ideation and Recording Ideas
- Market Research and Competitive Analysis
- Assessing Market Potential
- Brand Naming and Branding Strategies
Discussion Highlights:
Robert Kroke emphasizes the importance of capturing every idea, stating, “If you have an idea for something, write it down. I keep all of mine in a notepad” (04:13). He encourages entrepreneurs to observe their surroundings, engage with friends and family, and identify emerging trends or niche markets that present opportunities.
Austin Hankowitz complements this by highlighting the simplicity of generating ideas, “Coming up with an idea, I feel like, is probably the easiest part of this entire process” (05:11). He underscores the entrepreneurial mindset required to innovate and iterate on existing products.
The duo discusses comprehensive market research, utilizing platforms like TikTok, Instagram, YouTube, Amazon, and Etsy to gauge market size and competition. Robert advises, “Ensure that your idea has legs and can make you thousands per month, maybe even 10,000 per month of profit” (07:03).
When it comes to branding, Robert details his approach: “I use word recognition. I will take an idea and say, all right, this is the product. This is what I think the search words are going to be” (07:26). He also highlights the significance of securing a memorable URL and consistent social media handles to enhance brand virality.
2. The Manufacturing Process
Timestamp: 16:51 - 21:52
Key Topics:
- Securing Manufacturing Agreements
- Selecting Reliable Manufacturers
- Initial Order Strategies
- Production Timelines
Discussion Highlights:
Robert Kroke underscores the critical nature of legal protections before engaging with manufacturers: “You want to make sure that you have a really solid manufacturing agreement ready and a non-disclosure agreement and a non-circumvent agreement” (16:51). He warns against the common pitfall of working with middlemen traders on platforms like Alibaba, advocating for direct partnerships with genuine manufacturers.
He elaborates on due diligence during manufacturer selection: “I always do a zoom call, make them walk the factory floor, show me the equipment, show me the staff” (19:25). This ensures the legitimacy and capability of the manufacturing partner.
Regarding initial orders, Robert advises a cautious approach: “I like to start small. When we launched Paragon puzzles, we had six designs and we bought only 100 units of each to start” (19:43). He cautions against ordering large quantities prematurely, emphasizing the need to validate product-market fit before scaling inventory.
Austin adds, “From sharing the designs with the factory to taking delivery, the Puzzles took two to three months” (19:43), highlighting the importance of timeline management in product launches.
3. Distribution and Scaling
Timestamp: 22:48 - 26:39
Key Topics:
- Seeding Products with Influencers
- Leveraging TikTok Shop
- Digital Advertising Strategies
- Scaling Sales and Maintaining Momentum
Discussion Highlights:
Robert Kroke outlines his distribution strategy, beginning with seeding products to micro-influencers: “We ship the product to a list of micro influencers who we've worked with in the past” (22:48). This generates initial buzz and user-generated content crucial for building brand credibility.
He emphasizes the significance of establishing a strong presence on platforms like TikTok Shop, despite the arduous approval processes: “Once you get that done, then you can start affiliating with creators on the platform” (22:48). Aligning with the right creators ensures that the product reaches a relevant and engaged audience.
Transitioning to digital advertising, Robert shares his approach: “We started out with Facebook ads and we budgeted $50 a day and we tested a ton of ad sets” (25:39). He advocates for extensive testing to identify high-performing ads before scaling ad spend, ensuring a positive Return on Ad Spend (ROAS).
Austin summarizes the phase: “Seed the product with influencers and micro influencers. You want to make sure it's easily affiliated via Amazon or TikTok shop” (25:39). He also advises patience, giving the brand time to build organic growth before heavily investing in digital ads.
Robert adds a cautionary note on maintaining an online presence: “If someone is going to check you out like they should, they see you on TikTok shop and they go to your Instagram and you have three posts and 12 followers, they're probably not going to trust the brand” (26:03). Building a trustworthy and recognizable brand image is essential for sustained success.
4. Q&A Highlights
Timestamp: 28:29 - 42:05
Key Topics:
- Personal Finance Strategies
- Emergency Funds vs. Investments
- Real Estate vs. Brokerage Investments
Discussion Highlights:
Question 1: Managing Excess Cash Jules from Instagram asks about handling $200,000 in a high-yield savings account after maxing out retirement contributions.
Robert responds decisively: “You're sitting on too much cash” (29:51). He advises reducing the high-yield savings to around $25-30,000 and investing the excess in diversified assets like index funds, ETFs, cryptocurrency, and precious metals to avoid letting money stagnate.
Austin concurs, recommending allocating funds to both personal and business emergency funds before investing the remainder: “I would keep 25% of your annualized business expenses in a business savings account... and three months of expenses for yourself in your own emergency fund” (30:55). He suggests utilizing a mega backdoor Roth solo 401k and investing in a taxable brokerage account for additional growth.
Question 2: Emergency Funds in Investment Accounts Chris from New Zealand inquires about moving emergency funds into investment accounts for better returns and quicker access.
Austin clarifies the purpose of emergency funds: “The emergency fund is not an investment, it's insurance” (34:46). He explains that investments are subject to market volatility, which can jeopardize access to funds during emergencies. Therefore, keeping emergency funds in liquid, safe accounts ensures financial security without compromising investment integrity.
Robert reinforces this distinction, highlighting the importance of keeping emergency funds separate to protect investments: “Because your investments can stay investments is because you have insurance” (34:46).
Question 3: Real Estate Investment Decision Victoria H. asks whether to invest $45,000 in purchasing a long-term rental property or to allocate it to her brokerage account, considering current mortgage rates.
Robert encourages diversification into real estate, especially in affordable Midwest markets: “I would definitely consider... you can buy some incredible, incredible homes around the Ohio, Indiana, Michigan area where they still meet the 1% rule” (38:21). He praises the benefits of real estate in generating cash flow and capital appreciation.
Austin balances this by highlighting the advantages of passive investments: “Compare that to whatever the cash flow might be with your real estate. Now, real estate comes with tax rider write-offs... but Neos funds... are paying 12, 13, 14, 15% annualized yields” (39:24). He advises evaluating personal preferences for passive income and the responsibilities tied to property management versus the hands-off nature of brokerage investments.
5. Key Takeaways and Conclusion
Austin and Robert conclude the episode by reiterating the structured framework for building a nine-figure brand:
- Idea Generation: Capture and refine ideas through observation and feedback.
- Research: Conduct thorough market and competitive analyses to validate the idea’s potential.
- Brand Development: Create a memorable brand name, secure relevant URLs and social media handles, and design cohesive branding elements.
- Manufacturing: Establish legal agreements, select reliable manufacturers, and start with small production runs to test the market.
- Distribution and Scaling: Seed products with influencers, leverage platforms like TikTok Shop, and implement scalable digital advertising strategies.
- Financial Prudence: Manage excess funds wisely by balancing emergency savings with diversified investments.
The hosts emphasize the importance of patience, continuous learning, and adaptability in the ever-evolving market landscape. They encourage listeners to embrace both successes and setbacks as opportunities for growth, maintaining a resilient and proactive approach to entrepreneurship.
Notable Quotes:
- Robert Kroke: “No idea is too silly or too small to explore.” (03:37)
- Austin Hankowitz: “Any idea matters.” (05:46)
- Robert Kroke: “You have only so many hours in a day.” (05:11)
- Austin Hankowitz: “It's only learning, not failure.” (27:10)
Final Thoughts
Episode 128 of the Rich Habits Podcast serves as a masterclass for entrepreneurs aiming to build substantial and sustainable online brands. Through detailed discussions and actionable advice, Austin and Robert equip listeners with the tools and mindset necessary to navigate the complexities of brand creation and expansion. Whether you're in the ideation phase or looking to scale an existing business, this episode is a valuable resource for achieving financial success and cultivating rich financial habits.
For more insights and actionable strategies, tune into future episodes of the Rich Habits Podcast and join the community of over 100,000 listeners committed to mastering their financial journeys.