Business Lessons From Luxury Brands

2020 will forever be memorialized as one of extreme economic uncertainty and global unrest.  That is, for everyone except one select group of businesses that walked out unscathed and even with their heads high and their pockets deeper than ever before. 

These are the entrepreneurs who managed to whittle down their workload, servicing a handful of highly-selective clients, and still make more money quarter over quarter. They even learned to say no to clients, without an ounce of guilt or the slightest quiver in their bank accounts.  

So who are these lucky few who transformed 2020 into a goldmine of possibility? They’re the experts who’ve been brave enough to position themselves as luxury personal brands. And in a minute, I’ll tell you exactly why this strategy’s paid off in spades. 

But first... 

What Is A “Personal” Brand, Exactly?

A personal brand is anyone who’s made a conscious effort to publicize their expertise or individuality. Kim Kardashian is a fantastic example of a personal brand. And in today’s entrepreneurial-driven age, whatever she sells is in greater demand than ever before. Now, until recently, I’d venture to say that at least 95 percent of the personal brand market followed the Kardashian method of marketing. It’s a mainstream model that appeals to the masses. And indeed, many of these entrepreneurs have gotten exceptionally wealthy adhering to this high-volume approach. 

However, 2020 threw a wrench in their plans.

Like so many other businesses that met a tragic fate in 2020, the personal brands built on massive reach struggled to break even, especially as many of them relied on affiliate commissions from retailers and designers facing uncertainty. The luxury personal brands, on other hand, crossed the threshold of success and stepped into a new, shiny frontier. Here’s why...

They’re Hyper-Targeted

There is indisputable logic behind the idea of selling to the masses. If even a fraction of a vast audience converts on your offer, that percentage still equals a sizable amount of new clients. There’s just one problem, though. This “bottom of the barrel” approach doesn’t take into consideration the interest level of your target market. 

And while a $500 course might sound like a nice idea (and even a viable expenditure during steady economic times), it becomes a frivolous expense when you measure it against the weight of uncertainty. Now, watch what happens when you target only a select few people who sit at the highest society levels.  Suddenly, money becomes less of an issue. Plus, if you’re willing to commit to the price tag that reflects the value of your expertise, you end up compounding the credibility of your services.

With a hyper-targeted marketing approach that caters to the one percent, these luxury personal brands appear to be a more worthwhile investment. And the right client will see that number as a reflection of something irresistible they absolutely must buy.

They Touch On the Deepest Levels of Desires

Make no mistake; the luxury audience is willing to pay six-figure prices if it means enriching their inner world with white-glove services and once-in-a-lifetime experiences. And in 2020, these rare, elite offers became more in demand than ever before. Remember, in the luxury business model, you aren’t targeting people who consider an exotic vacation or five-star business retreat a “nice-to-have.”

These are the A-listers, celebrities, and business mavens who crave exclusivity — and are forever willing to pay for it. The reason? Because their incomes were not adversely affected by the pandemic, the luxury brands that service them also remain immune to an economic downturn.

They’ve Steered Clear of the Discount Paradox 

This is perhaps one of the most important lessons of 2020 and the reason I’m seeing so many experts shift to a luxury business model. 

The entrepreneurs who raked in heaps of revenue last year weren’t the ones who drove down their prices in a desperate attempt to convert clients. They were the ones who stuck to their guns and steered clear of discounts despite the economic downturn. It might go against every impulse you’ve got to appeal to your audience. But the reality is, discounts on a personal brand do one thing and one thing only:

They call into question your expertise. And instead of inciting an “I absolutely need to have this” reaction in your potential dream clients, they start to wonder how much actual value they’re getting from your services.

The businesses that stayed focused on their long term legacy didn’t give in to the momentary fears of economic uncertainty. They ended up becoming irresistible beacons of luxury to those who could afford their services. Which brings us to the last point...

Luxury Personal Brands Bridged the Genius Gap 

Without a gold standard to back our worth, the science of measuring value has become increasingly complex. And when you’re selling your genius, that process might feel infinitely more complicated. Over the years, I’ve helped my clients awaken to the reality that they’re undervaluing the authority they have to offer. And through extensive research and competitor analysis, it became abundantly clear that other people — with even less expertise — were attracting better clients at higher rates.

In fact, it’s one of the greatest mysteries of my career. The most extraordinary entrepreneurs I’ve met are often those who need the most convincing they’re worth ultra-premium prices. In 2020, the brands that did the best were the geniuses who were brave enough to claim their worth and market themselves as what they are: The one percent catering to the one percent. 

Who’s a Good Fit For a Luxury Personal Brand?

I’m a firm believer that what we saw in 2020 is merely a harbinger for what is to come in the luxury personal brand niche. So if you’re brilliant at what you do, and have authority in your space, then there’s no reason why you shouldn’t capitalize on this rising market. That’s why I’m teaching entrepreneurs how to shift from a mainstream model made for the masses to a luxury model designed for their dream clients. 

For some, applying the Laws of Luxury to your personal brand may help you build a resilient legacy that withstands the winds of change. 

About the expert:

Kathryn Porritt was the founder of one of Australia’s fastest-growing and high-profile lifestyle e-commerce companies.  After 9 years, Kathryn sold this company and assisted a large technology company to prepare for sale which sold for 75M. Kathryn soon began a new venture at another global technology company. Within 12 months with Kathryn’s expertise, the company doubled its revenue. She's proven that the Laws of Luxury can be successfully applied to any niche and any market if executed properly.

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Yvon Lux is the editor of her Apple News channel. Her “blogazine” celebrates sisterhood and empowers women by focusing on women’s health, travel and entrepreneurial news while also sharing the most coveted trends and stories. Yvon also published a journal and fast track guide to learning unconditional self-care while claiming your peace and happiness. The Best Friend Journal is available on Amazon now.

As an entrepreneur and influencer, she has been featured in Thrive Global, Los Angeles Times, Orange County Register, Modern Luxury Magazine, and various other media outlets. Connect with her on Instagram and subscribe to her Apple News channel!