How Andrew Yu generated $10M with fake AI brands
About this episode
Andrew Yu is a 26-year-old dropshipper and ecom YouTuber who started at 19. He had done about $5M when he bought his McLaren and puts his total near $10M to $15M, running his AI brands with two VAs.
In this episode he walks through the rabbit hole method for product research in the Facebook ad library, why he only copies products four weeks old or newer, his budget ladder from $100 to $250 to $500, the cruising altitude where margins start to slip, BOGO and free gift offers, building a store with AI in minutes, and AI UGC versus real creators.
Key takeaways
- Product first. Andrew calls the ad strategy the car and the product, creatives and site the driver: a fidget spinner will not scale no matter how good the ads are.
- Use the rabbit hole method. Search a keyword in the Facebook ad library, pull around 10 new keywords from the live ads you find, and keep opening new tabs across niches.
- Only copy recent, scaling products. He looks for products four weeks old or newer, because after the three or four week mark almost none of the copycats on his own stores manage to scale.
- Respect the cruising altitude. He raises budget from $100 to $250 to $500 day after day, and if results are bad two days in a row he moves back to the last budget that worked.
- Test cheap, then concentrate spend. One ASC campaign with 5 to 10 creatives, kill the ads eating budget at low ROAS, double down on the outlier, and stop each product test at around $100 to $150.
Chapters
- 0:00 Andrew Yu intro & ecom background
- 3:46 Winning products vs ad strategies
- 8:40 Product research: Rabbit Hole Method
- 12:56 Importance of being early to trends
- 18:14 Scaling from 0 to 10K/day strategy
- 23:00 High-converting offers & AOV tips
- 27:07 Fast AI store building process
- 31:36 AI vs UGC for creatives
- 45:00 4 keys to scaling ecom brands
Recorded in person in New York. Every guest runs a 7 or 8 figure brand, across every category. Hosted by Sam Jacobs, co-founder of Commercive.
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