Make Millions by Copying Other Businesses

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You may have heard of the Samwer brothers before, but if you haven’t, they’re 3 German brothers who made billions by copying other businesses in different markets.

In 1999, they saw eBay’s early success in the US and cloned it in Germany. 100 days after launching their clone, they sold it to eBay for $53m.

They have rinsed and repeated this business model countless times to varying degrees of success.

Their blueprint was to spot successful US businesses, clone them in a different market and later exit for millions or go public.

They’ve cloned:

• eBay > Alando

• Groupon > City Deal

• Pinterest > Pinspire

• Airbnb > Wimdu

• Zappos > Zalando

Today we’re gonna break down this strategy.

Let’s jump in!

🗞️ Things worth checking out

The best businesses solve specific problems so I’ve created an ever-expanding database of problems that are begging for a better solution. Check it out here.

Want to start a business but don’t know where to begin? I created an email-based course that helps you find a profitable business idea, validate demand and make your first sale all within 5 days. Start your journey now.

Are you struggling to find the perfect business idea? What if you could consistently generate profitable business ideas, anytime you wanted? The Idea Factory is designed to help you do exactly that.

⭐️ Examples:

• Ola (India) cloned Uber and at its peak was valued at $7 billion and had investors like Vanguard holding significant stakes.

• Alipay (China) cloned PayPal and is now worth around $120 billion.

• Shopee (SEA) cloned Amazon and is worth about $24 billion.

📈 Stats:

Global E-commerce Market Sizes:

• South America - Market Size: $45 billion

• Germany - Market Size: $99 billion

• France - Market Size: $65 billion

• Japan - Market Size: $144 billion

• South Korea - Market Size: $80 billion

• China - Market Size: $1.3 trillion

• India - Market Size: $64 billion

• Brazil - Market Size: $22 billion

• Mexico - Market Size: $21 billion

• Russia - Market Size: $27 billion

• Italy - Market Size: $29 billion

• Spain - Market Size: $30 billion

• Netherlands - Market Size: $28 billion

• Sweden - Market Size: $12 billion

• Singapore - Market Size: $4 billion

• Malaysia - Market Size: $4 billion

🧐 Opportunities:

Here are some businesses you could clone in other markets:

Eight Sleep

Sleep technology, including smart mattresses and sleep tracking, is gaining traction in the US and could be cloned for global markets

Capsule & Hims:

The online pharmacy and prescription delivery model could be cloned for countries where pharmacies are less digital, offering convenience for consumers with medication needs.

Gumroad & Lemonsqueezy:

Both platforms empower creators to sell digital products directly, which can be cloned in regions with growing creator economies but lacking monetization tools, such as Latin America or Southeast Asia.

Elevenlabs:

AI voice generation tools like Elevenlabs could be cloned for markets with demand for localized, dynamic content creation, particularly in non-English-speaking regions.

Rocket Dollar:

Self-directed retirement investment platforms like Rocket Dollar could be adapted for regions with limited retirement options, offering more flexibility in investments like startups, small businesses, real estate and crypto.

Plural Policy:

A platform for managing government relations and compliance, Plural Policy could be cloned in regions where navigating complex regulations is a growing business challenge.

Zaymo & Klaviyo:

Marketing automation platforms for e-commerce, like Zaymo and Klaviyo, could be replicated for emerging markets where businesses lack advanced customer engagement tools.

Retool & Zapier:

No-code platforms for building internal tools and automating workflows can be cloned for markets with a tech talent shortage, offering businesses a quicker way to optimize processes.

Hyperbound:

Hyperbound offers AI-driven roleplay simulations for sales teams, allowing reps to practice cold calls, discovery, and post-sales scenarios with realistic, customized AI buyers. This model could be cloned in markets where businesses need advanced sales training tools to improve team performance.

🛠 How to Build:

• Identify Proven Businesses: Look for successful and emerging businesses in markets such as the US, that have a scalable model (e.g., e-commerce, SaaS, fintech) and are backed by solid growth metrics.

• Select a Market: Look for regions with growing demand, favourable economic conditions, and underdeveloped competitors.

• Research Local Market Dynamics: Study local regulations, consumer behaviour, cultural nuances, and existing competitors. Understand how the product or service might need to be adapted to fit local preferences.

• Adapt the Business Model: Tailor the cloned business to local needs. This might involve tweaking pricing, localizing language, or adjusting marketing to align with cultural norms.

• Secure Local Partnerships: Establish partnerships with local suppliers, distributors, or other businesses that can provide logistical or market access support, reducing the friction of entering a new market.

• Leverage Local Talent: Build a team with expertise in the target market. This can help navigate regional challenges, regulations, and customer expectations more effectively.

• Test with a Soft Launch (MVP): Run a soft launch or pilot program in the target region to gauge the market’s response, gather feedback, and make further adjustments before scaling fully.

• Replicate What Worked: Use the same strategies, technologies, and processes that made the original business successful, but adjust to local market conditions.

I break down every step from idea to first sale in way more detail in Launch in Five.

🚀 How to Grow:

• Paid Search Ads: Use Google Ads to capture demand and drive immediate traffic.

• Paid Social Ads: Target specific demographics on Facebook, Instagram, and TikTok.

• PR Campaigns: Generate media coverage to build credibility in the new market.

• Influencer Marketing: Partner with local influencers to build trust and reach.

• Local Partnerships: Collaborate with established brands for market validation.

• Affiliate Marketing: Incentivize affiliates to promote your product for commissions.

• Discounts & Promotions: Offer special deals to attract early customers.

• Content Marketing: Create localized content to capture organic search traffic.

• Cold Email & Sales: Implement outbound sales and personalized cold email campaigns.

• Sponsorships/Events: Sponsor local events to build brand visibility.

• Brand Ambassadors: Use micro-influencers as local brand ambassadors.

• Referral Programs: Launch referral incentives to drive word-of-mouth growth.

• User-Generated Content: Encourage customers to share their experiences.

• Native Ads: Use paid content on local platforms to reach the right audience.

• Testimonials & Case Studies: Leverage early success stories for credibility.

🔥 Cool Stuff

(Bookmark these)

• Find problems that need business solutions - Access the Problems & Pain Points Database.

• Want to grow your business? Here’s a database of tools that can help.

• Want to promote your startup for free? Here’s a database of free places to promote your startup.

• Want to turn your idea into a business? Check out this business idea checklist.

• Want to differentiate from your competitors? Check out this Differentiation Strategy Guide

• Want to run ads for your business? Use these proven psychological ad positioning strategies.

• Like the newsletter and want to show your support? You can buy me a coffee here.

🤯 Recommendations

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