Doing Things, a digital media company founded by Reid Hailey Jr. and Derek Lucas, has experienced remarkable growth, transforming from a single meme account, ShitheadSteve, in 2014 to a portfolio of 40 niche editorial brands boasting over 100 million followers across social media platforms. This success story echoes the trajectory of traditional media giants like Hearst and Conde Nast, emphasizing strategic acquisitions and diverse content creation as key drivers of expansion. The company’s 2023 financial performance underscores this growth, with gross revenue reaching nearly $40 million, a significant leap from $10 million in 2021, marking their highest profit on record.
A core element of Doing Things’ strategy is identifying and acquiring promising brands with engaged communities and potential for expansion. Their acquisition of Overheard in early 2023, fueled by a $21.5 million equity investment secured in 2022, exemplifies this approach. Overheard doubled its revenue year-over-year, primarily through brand partnerships, validating Doing Things’ investment. The integration of Overheard took a year, focusing on streamlining operations and identifying scalable opportunities. The company’s acquisition criteria prioritize brands with active, engaged audiences, niche appeal, and potential for original video content, all informed by data-driven decision-making. This strategy mirrors the broader media landscape, where the cultivation of loyal communities and tailored content are crucial for success.
The company’s brand portfolio, including Recess Therapy, Middle Class Fancy, and Animals Doing Things, reflects a diverse range of interests and demographics. While prioritizing video content expansion, particularly on platforms like TikTok and YouTube Shorts, Doing Things recognizes the enduring importance of established platforms like Instagram, which accounts for roughly half of their total audience. This multi-platform approach serves as a hedge against potential platform-specific disruptions, such as a TikTok ban, while also catering to audience preferences across different social media ecosystems. This strategy underscores the company’s adaptability and foresight in navigating the ever-evolving digital media landscape.
Doing Things demonstrates a diversified revenue model, incorporating consumer goods and in-person events alongside traditional advertising. The success of Bob Does Sports’ Breezy Golf tournaments showcases the potential of in-person events to drive both audience engagement and revenue through merchandise and beverage sales, reminiscent of the successful strategies employed by brands like Nelk Boys’ Happy Dad Hard Seltzer. This innovative approach to community building and monetization highlights the company’s ability to blend online and offline experiences. The Have a Day tequila beverage, a joint venture with Pink Reef, further illustrates their commitment to product diversification and expansion into the consumer goods market, with plans for national rollout and potential future investment to scale operations and distribution.
Despite exploring diverse revenue streams, advertising remains the cornerstone of Doing Things’ financial model, contributing approximately 60% of gross revenue due to its higher margins and lower delivery costs. E-commerce, events, and content licensing comprise the remaining revenue, with some brands, like Bob Does Sports, achieving parity between merchandise and advertising revenue. This balanced approach ensures financial stability while allowing for experimentation and growth in other areas. The company’s recognition of advertising’s continued importance, even within a diversified portfolio, showcases a pragmatic approach to revenue generation.
Looking ahead, Doing Things plans to continue its growth trajectory through further acquisitions and exploring new product opportunities for its existing brands. The company has previously experimented with podcasts, and this area could present a potential acquisition target if a suitable opportunity arises. This forward-looking strategy suggests a commitment to continuous innovation and expansion within the digital media space. Furthermore, Hailey’s advice to emerging creators emphasizes the importance of strategic partnerships, strong leadership, and investment in team development, highlighting the company’s understanding of the key factors driving sustainable success in the creator economy. By focusing on building a robust internal structure and seeking out synergistic acquisitions, Doing Things aims to solidify its position as a major player in the digital media landscape.
