Sandals founder Butch Stewart didn't wait for profits to reinvest in advertising. He spent millions upfront because he believed the most valuable and difficult real estate to build is the brand's position in a consumer's mind. This 'spend bigger to earn bigger' mindset established the brand's identity early.
Instead of using retail to build awareness, Manscaped waited until they had massive marketing spend. This ensured customers would specifically seek them out in stores, guaranteeing high sell-through for partners like Target and de-risking the move from D2C to physical retail.
The "build it and they will come" mindset is a trap. Founders should treat marketing and brand-building not as a later-stage activity to be "turned on," but as a core muscle to be developed in parallel with the product from day one.
Instead of justifying brand building as a defense against AI-driven commoditization, frame it as an offensive move that builds long-term value. A strong brand shortens sales cycles and increases customer lifetime value, directly impacting revenue and making it a proactive investment that resonates with CEOs and CFOs.
Achieving a brand status that commands a premium price is not a short-term project. It demands years, often decades, of consistent messaging and marketing investment to build the necessary emotional connection with customers. Most companies lack the patience and long-term vision for this.
The common "brand vs. demand" debate is flawed. Panelists argue that consistent, long-term brand building (creating "brand gravity") is not something to balance with short-term pipeline goals, but rather the foundational investment that makes demand capture easier and more predictable.
Startups focus 100% on direct-to-purchase ads, making them vulnerable. Long-term, successful brands shift to a 70/30 split between brand awareness and direct response. This builds a durable moat that performance-only marketing cannot, protecting them from competitors and rising ad costs.
For startups competing against well-funded rivals, the key is not to outspend but to out-clarify. Rigorously defining who you are and why you are different creates a powerful brand affinity that money alone cannot buy, building a transactional business into a brand.
Clay demonstrated a radical commitment to brand from day one. The company purchased the premium domain clay.com and contracted a claymation artist—who charged a recurring "SaaS" fee for his art—all before the business had any meaningful revenue, embedding the brand deep into its DNA.
LoveSack operated successfully for years based on product instinct alone. However, transformational growth occurred only after the company intentionally defined its core brand philosophy—'Designed for Life'—and then amplified that clear message with advertising. This shows that a well-defined brand story is a powerful, distinct growth lever, separate from initial product-market fit.
The old view that demand generation funds brand is backward. A strong brand is a prerequisite for long-term, sustainable demand. Investing in brand equity makes all performance marketing and sales channels more effective, creating a compounding effect on growth over time. Brand is an investment in long-term demand.