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[Hidden in Plain Sight: Profitable Business Models and the Power of Cultural Hijacking]-[3 Killer Businesses Hidden in Plain Sight]

My First Million · B2 · 2024-11-04

Business
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📋 Summary

The Art of Monetizing Hidden Opportunities

In this episode, the hosts explore the concept of products and services that are "hidden in plain sight." These businesses often succeed by taking something that is technically free or accessible to the public and packaging it in a way that provides convenience, structure, or compliance for a fee. The discussion highlights three distinct examples that illustrate how to turn overlooked data or requirements into profitable ventures.

1. Oasis: Democratizing Water Quality Data

Oasis is an app and website founded by a user named Cormac, inspired by his own struggle to find reliable information about tap water safety after moving to Los Angeles. The platform aggregates existing, publicly available water quality reports—data that anyone could technically request from their city or water provider—and structures it into an easy-to-use interface.

With a business model centered on a ~$50 annual subscription, the app provides full reports and health assessments. Despite the initial skepticism regarding a paywall for public information, the product has gained significant traction, currently generating around $40,000 in monthly revenue. The company effectively uses viral TikTok videos that critique common bottled water brands to drive traffic, proving that consumers are willing to pay for curated, actionable health information.

2. The Labor Law Poster Industry

Perhaps the most classic example of a "hidden" business is the labor law poster. By law, businesses are required to display specific labor regulation posters in their break rooms, which must be updated annually. While these posters are available for free from government websites, navigating those sites is often intentionally confusing. Private companies have capitalized on this by mailing official-looking notices to businesses, creating a sense of urgency or fear of non-compliance. These companies sell a single SKU—a poster—for roughly $45, generating millions of dollars annually with incredibly high profit margins by simply solving a minor, yet mandatory, bureaucratic headache.

3. GS1 and the Standardized Barcode

Perhaps the most ubiquitous "hidden" product is the barcode. Originally invented by Norman Woodland and Bernard Silver using Morse code as an inspiration, the barcode struggled for decades to find a use case. It wasn't until grocery stores faced operational inefficiencies in inventory management that the technology was adopted. GS1, a non-profit entity, became the central authority for issuing these codes. Because retail giants and platforms like Amazon mandate the use of GS1 codes, the organization holds immense pricing leverage. Today, GS1 generates over $80 million in annual revenue primarily from selling these codes, maintaining hundreds of millions in assets, and proving that owning a standard can be a wildly profitable, albeit unconventional, business.

Cultural Hijacking and the Power of Marketing

The episode transitions into the concept of "cultural hijacking"—the ability of marketers to shift societal norms and create new traditions that benefit their products. The hosts discuss how brilliant ad campaigns have fundamentally changed human behavior:

  • Casual Friday: Levi’s used an 8-page pamphlet sent to HR executives to invent the concept of "Business Casual," effectively creating a market for their Dockers line.
  • Toothbrushing: Claude Hopkins transformed oral hygiene habits in America by convincing people to run their tongues over their teeth to feel the "film," turning a fringe habit into a mass-market necessity.
  • Social Traditions: The hosts note that concepts like "Friendsgiving," "Graduation Season," and even the diamond engagement ring tradition (De Beers) were not organic evolutions but carefully crafted marketing campaigns.

The Philosophy of Institutional Creation

The discussion concludes on a reflective note regarding the nature of institutions. By visiting historical sites like Yale, the hosts contemplate how individuals leave a legacy by creating something that becomes a foundational part of society. Whether it is the invention of vulcanized rubber or the creation of the dictionary, these figures shaped history by standardizing how we live. The hosts argue that for entrepreneurs, the goal should be to move beyond "thinking small" and aim to create institutions—or participate in the "Silicon Valley" model of building things that eventually become verbs, like Google or Airbnb. By understanding these "human hijacks" and the mechanics of business hidden in plain sight, entrepreneurs can find opportunities to shape culture and build long-lasting, impactful companies.

🎯Key Sentences

1
I feel like I can rule the world.
2
three dots make a line.
3
I never really paid much attention to it.
4
that whole deal.
5
he gets an upset stomach.
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📝Key Phrases

1
hidden in plain sight
2
in passing
3
get a cut
4
flying blind
5
go viral
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📖 Transcript

All right, so check this out.
I'm gonna tell you about three products that are hidden in plain sight.
And the genius of these is that they take something that's free and they sell it.
They take a free thing and they sell it.
And I'm gonna tell you about one example that makes hundreds of thousands of dollars.
Another one that makes millions of dollars.

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