Trading Secrets Podcast Episode 208 Summary: Dani Austin Reveals How She Made $40M from Divi in Her First Year

Release Date: November 11, 2024
Host: Jason Tardick
Guest: Dani Austin, Forbes Top Creator 2022 & 2023, Entrepreneur, Influencer

Introduction

In episode 208 of Trading Secrets, hosted by Jason Tardick of Audioboom Studios, Dani Austin joins as a special guest to unveil the remarkable journey behind her phenomenal success in the influencing space and entrepreneurial ventures. Recognized as one of Forbes' Top Creators in both 2022 and 2023, Dani shares her strategies for building a massive following, navigating the challenges of social media, and scaling her hair growth company, Divi, to an astounding $40 million in sales within its first year.

Dani Austin’s Journey: From Influencer to Entrepreneur

Early Beginnings and YouTube Success

Dani Austin launched her YouTube channel in 2012 at the age of 19, initially focusing on fashion advice, wedding planning, and retail deals. She recounts, “I started with fashion and family life, which gave me a rabid following on Instagram.” Her authenticity and relatability quickly resonated with her audience, allowing her to amass 100,000 subscribers within just a few months.

Quote from Dani Austin [06:06]:
“I grew to like a hundred thousand subscribers within a couple of months, which was like pretty crazy.”

Transition to Blogging and Instagram

As brand collaborations on YouTube became challenging due to limited marketing budgets from brands, Dani pivoted to blogging and Instagram around 2015-2016. This shift enabled her to have more control over her content and focus on conversion rates through affiliate sales.

Quote from Dani Austin [08:44]:
“Blogging was more about conversion. And that’s when I became obsessed with analytics, understanding who was watching and what they were buying.”

Building a Strong Community and Engagement

Authenticity and Vulnerability

Dani emphasizes the importance of being open and vulnerable with her audience. From discussing personal struggles like hair loss to sharing family life, her transparency fostered a deep connection with her followers.

Quote from Jason Tardick [07:58]:
“You do a lot of very relatable skits and very funny videos that go viral. When you talk about personal struggles, it allows you to connect with your audience.”

High Engagement Rates

Dani’s Instagram posts, including skits and family moments, garnered impressive engagement. For instance, her posts from the MLB All-Star Game and family skits received around 11,000 comments each, surpassing even Justin Bieber’s recent posts at the time.

Quote from Jason Tardick [06:20]:
“Your engagement rates are out of control. How are so many people commenting on your photos?”

Entrepreneurial Leap: Founding Divi

Identifying the Problem

In 2019, Dani faced a personal struggle with hair loss, which ignited her passion to create a solution. Frustrated with the limited and harsh treatment options available, she began formulating her own scalp serums, sharing her journey transparently on YouTube.

Quote from Dani Austin [41:20]:
“I wanted to create a scalp serum that women can use long-term because existing products had harsh side effects, especially for women.”

Launching Divi

Dani self-funded her venture, investing over $500,000 into Divi. Despite initial skepticism from her parents and minimal profits in the first year, her commitment and innovative products led Divi to achieve over $23 million in sales by 2021, with projections soaring to $100 million by 2025.

Quote from Dani Austin [45:08]:
“We still own it 100% and we self-funded. Our first year did $40 million, and now we have $33 million just from the scalp serum alone.”

Strategies for Scaling and Managing Growth

Reinvesting and Building a Team

Dani emphasizes the importance of reinvesting profits back into the business. She highlights the necessity of assembling a skilled team, including female chemists and a CEO, to manage the expanding operations and maintain product quality.

Quote from Dani Austin [47:22]:
“Finding the right production team is crucial. Training the right people pays off tenfold.”

Innovative Marketing and Community Investment

Divi's success is also attributed to Dani’s unique marketing strategies, such as influencer trips and interactive campaigns that deeply engage her community. She shares, “Our true influencers are our community members who use and love our product.”

Quote from Dani Austin [49:41]:
“A story is everything for me. I want to work with people who are genuinely excited about Divi, not just for the ROI.”

Overcoming Challenges and Iterating Products

Product Feedback and Adaptation

Dani discusses facing criticism for her initial shampoo and conditioner products, which some users found too heavy. Demonstrating her commitment to customer satisfaction, she personally engaged with dissatisfied customers to gather feedback and subsequently launched improved volumizing products tailored to different hair types.

Quote from Dani Austin [53:44]:
“I invited our negative reviewers to meet face-to-face and listen to their feedback. Then we launched the volumizing shampoo and conditioner to address their concerns.”

Maintaining High Demand

Despite challenges like supply and demand issues, Dani maintains a proactive approach by constantly innovating and expanding her product line, ensuring Divi remains a leader in the hair growth industry.

Quote from Dani Austin [47:59]:
“Keeping up with demand is frustrating, but it’s a great problem to have. It means our products are resonating with our customers.”

Content Creation and Storytelling

Authentic Engagement on Social Media

Dani attributes much of her success to her ability to tell compelling stories across various platforms. Whether through Instagram Stories, TikTok, or YouTube, she ensures her content remains authentic, relatable, and engaging.

Quote from Dani Austin [22:19]:
“My blogs were heavily photography-based, with personal stories and high-quality visuals that persuaded my audience to engage and purchase.”

Strategic Use of Platforms

She prioritizes Instagram as her primary revenue and engagement driver, while also recognizing the potential of TikTok for acquiring new demographics. Dani strategically balances her presence across platforms to maximize reach and effectiveness.

Quote from Jason Tardick [28:09]:
“Instagram is number one by a long shot for revenue and business impact, followed by TikTok.”

Key Insights and Trading Secrets from Dani Austin

1. Integrity in Every Decision
   Dani underscores the importance of maintaining integrity in all business dealings, from hiring practices to product development. She believes that serving others with honesty builds long-term trust and loyalty.

   Quote from Dani Austin [55:19]:
   “Having integrity with every decision you make means truly serving your community.”

2. Storytelling Over ROI Focus
   She advises prioritizing storytelling and genuine connection over immediate returns on investment. By investing in narrative and community, businesses can achieve sustainable growth.

   Quote from Jason Tardick [55:43]:
   “Stop being so focused on ROI. Put your money into the story and see where it goes.”

3. Building a Dedicated Team
   Dani highlights the necessity of outsourcing and building a competent team to manage various aspects of the business, allowing for scalability and efficiency.

   Quote from Jason Tardick [66:07]:
   “Outsource leadership and bring in someone to run the company. It maximizes profits and frees up your time.”

Conclusion

Dani Austin’s episode on Trading Secrets offers invaluable insights into the transformative power of authenticity, strategic reinvestment, and storytelling in building a multi-million dollar business from the ground up. Her journey from a young influencer to a successful entrepreneur serves as an inspiring blueprint for aspiring content creators and business owners alike.

Quote from Dani Austin [57:28]:
“Everything I do, I want it to grow beyond just me. It’s about serving the community and providing real solutions.”

Where to Find More About Dani Austin

• Divi Official Website: diviofficial.com
• Instagram: @DannyAustin
• TikTok: @DannyAustin
• Podcast: D Influence – Dani Austin’s own podcast discussing influencing and entrepreneurship.

Notable Quotes with Timestamps:

• Dani Austin [06:06]:
  “I grew to like a hundred thousand subscribers within a couple of months, which was like pretty crazy.”

• Dani Austin [08:44]:
  “Blogging was more about conversion. And that’s when I became obsessed with analytics, understanding who was watching and what they were buying.”

• Jason Tardick [07:58]:
  “You do a lot of very relatable skits and very funny videos that go viral. When you talk about personal struggles, it allows you to connect with your audience.”

• Dani Austin [41:20]:
  “I wanted to create a scalp serum that women can use long-term because existing products had harsh side effects, especially for women.”

• Dani Austin [45:08]:
  “We still own it 100% and we self-funded. Our first year did $40 million, and now we have $33 million just from the scalp serum alone.”

• Dani Austin [47:22]:
  “Finding the right production team is crucial. Training the right people pays off tenfold.”

• Dani Austin [49:41]:
  “A story is everything for me. I want to work with people who are genuinely excited about Divi, not just for the ROI.”

• Dani Austin [53:44]:
  “I invited our negative reviewers to meet face-to-face and listen to their feedback. Then we launched the volumizing shampoo and conditioner to address their concerns.”

• Dani Austin [55:19]:
  “Having integrity with every decision you make means truly serving your community.”

• Jason Tardick [55:43]:
  “Stop being so focused on ROI. Put your money into the story and see where it goes.”

• Jason Tardick [66:07]:
  “Outsource leadership and bring in someone to run the company. It maximizes profits and frees up your time.”

Final Thoughts

Dani Austin’s profound approach to influencing and entrepreneurship exemplifies how personal authenticity and strategic business practices can lead to substantial success. Her ability to identify and solve real-world problems, coupled with her dedication to community building, offers a compelling model for anyone looking to make a mark in the digital and business landscape.

For more insights and detailed discussions on money, careers, and financial navigation, subscribe to Trading Secrets on Spotify, Apple Podcasts, or your preferred podcast platform. Don’t forget to leave a five-star review and suggest themes or guests for future episodes!