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Using AI to unlock $90M Q2 revenue for Soho House
Plus, why AI influencers are on the rise
Charlie Braithwaite
August 15, 2023
AI Marketing School Newsletter #47
Hi there marketers,
Welcome to AI Marketing School, where we’re helping marketers harness AI to its full potential.
Today, we’re looking at:
How Jack Raines used AI to grow WeWork’s revenues by an estimated $90M
Why AI influencers are on the rise
Spending $300 to earn thousands with the 5*-rated AI Marketing Masterclass course
Hope you enjoy the issue.
Charlie & Tom
STORY
How Jack Raines generated $90M in revenue for Soho House using AI
⚠️ While this story is a unique insight into how to use AI for marketing, we don’t recommend you follow Jack’s example for obvious ethical reasons. That said, it’s still impressive.
Jack Raines—founder of Young Money—had an idea.
What if he could use AI to:
A) Generate Soho House an estimated $90M
B) Earn himself a tidy $343,000 in the process
This is how he did it.
Hacking the system with AI-powered marketing
Jack created a fake Hinge profile using AI-generated images of an entirely fictional (but good looking) woman. ‘Her’ fake bio said she went to Penn State, lived in New York’s West Village, and that her ideal first date would be espresso martinis at Soho House.
Why? He reckoned men looking to impress her would buy a membership at Soho House, so they could act like they were regulars at her favorite spot. And he was right.
Jack agreed to every incoming date proposal, which was always at Soho House (surprise, surprise). He used ChatGPT to handle the conversations with prospective suitors.
Now here’s the math. Jack estimates his Hinge matches paid an average membership cost of $3,060. He agreed to 30,000 dates (!), meaning he contributed around $90M to Soho Houses’s top line in Q2.
Jack also bought $50k worth of call options, which would expire after Soho House released its earnings. These earnings were a healthy 16%—so Jack sold his call options at a tidy profit of $343,000.
CAREER GROWTH
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THOUGHT OF THE DAY
Are human influencers in danger of being replaced by AI?
AI influencers are raking in the cash.
Lil Miquela, Milla Sofia, and Shudu are just a few high-profile AI influencers that charge up to $8,000 for a single sponsored post.
And with the virtual influencer market already worth an estimated $4.6BN, what does this mean for the future of influencer marketing?
Why are AI influencers on the rise?
They’re not confined by human limitations: they can post 24/7, speak multiple languages, and be instantly redesigned at will.
They don’t have personal biases or controversial opinions that could negatively impact a brand’s image.
Creating a campaign with an AI-generated influencer can be cheaper than working with an actual influencer. Brands don’t need to hire expensive photographers or models.
Some believe they’re more engaging to Gen Z consumers who seek seeking novel experiences from brands.
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BONUS RESOURCES
Here are a few great AI marketing resources and tools that we’ve come across recently. Enjoy!
How NOT to Grow a Newsletter Using ChatGPT
Can you really create and grow a newsletter using just ChatGPT? As it happens, no you can’t. Caya from The Hustle digs into how his latest hustle is going and explains why you can’t rely too heavily on AI to grow a newsletter.
O.C. Welch Ford, a Ford dealership in South Carolina, has created an entirely AI-based marketing campaign, headed up by Annie, its AI-generated avatar. What do you reckon?
Repurpose long videos into snappy, shareable shorts in just one click. Let AI identify the most compelling hooks, extracts the best highlights from different parts of your video, and seamlessly rearrange them into short clips.
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Happy marketing. We’ll see you again on Friday.
Charlie & Tom
