Blog | Viral Nation

The Second Purchase Problem: Why Creator Brands Fly or Flop

Written by Hannah Farquhar | May 7, 2026 2:22:51 PM

We know the creator economy is the dominant new brand-building format. Creators are no longer a "nice-to-have" social tactic but a foundational marketing channel. It comes as no surprise that creator-led brands are taking over store shelves, from Sephora aisles to beverage coolers.

Creators are brilliant at sparking initial interest because they're optimized for ignition. But the catch is that their initial viral blast rarely translates naturally into long-term endurance.

In the consumer goods world, staying power is tough for everyone, especially after a huge launch. The reality is brutal: IRI's research shows that of the 10,000+ new products hitting shelves annually, an estimated 90% fail. Only a handful, fewer than 10, ever achieve 'blockbuster' status by breaking $100 million in year-one sales. Creator brands can absolutely crush year one, but the real test is year two, when they face the single most unforgiving question in retail: Do people buy it again once the novelty wears off?

Nielsen’s data on repeat purchasing is crystal clear: It takes about seven repeat purchases for a consumer to genuinely become "loyal". Alarmingly, brands lose nearly half of their buyers between the first trial and the first repeat purchase. That, in a single statistic, is the 'creator brand cliff.' Creators excel at driving that initial trial. The brands that truly endure are the ones that systematically build the backend systems and positioning necessary to convert that viral trial into profitable, long-term repeat business.

The following will unpack what separates creator brands that scale into category leaders from those that stall after launch. This will break down the strategies, missteps, and key signals marketers should look for when turning audience attention into sustainable business growth.

 

Audience-powered commerce and the creator brand playbook

A creator business, in the modern CPG sense, is a brand where the creator’s audience functions as a built-in launchpad. The creator supplies reach, narrative, and a feedback loop. The business then tries to translate that into a scalable product company.

The common playbook looks like this:

Creators start with a high-trust attention engine. Brands are spending more on creators partly because creators can reach hard-to-reach consumers and influence purchase behavior across the funnel. For the creator, that attention becomes a distribution advantage that many traditional startups have to buy.

Creators then manufacture urgency. Scarcity, limited drops, and content-driven launches produce early velocity. PRIME’s early frenzy and queue culture are examples of this “event launch” pattern.

Creators also compress the research cycle. Comments, DMs, polls, and community reactions can operate like continuous product research. Chamberlain Coffee explicitly describes learning from customers and scaling RTD because it can be placed in more hands faster.

Where creator brands diverge is what happens after the first wave. Businesses that “fly” accept that the creator channel is mainly a first-purchase engine and then build a second engine for repeat and mainstream distribution. Businesses that “flop” keep operating as if every month can feel like launch month.

Nielsen notes the steep consumer drop-off between repeat purchases, with attrition compounding until it stabilizes around the eighth purchase. Separately, Numerator’s research suggests many buyers are not even strongly anchored to the founder identity. Numerator reports that only 18% of celebrity or influencer brand buyers could correctly match the public figure to the brand, and that these brands are recommended less often than leading category brands. The implication is straightforward. If the product and brand cannot stand on their own, the creator halo alone is not sufficient to create advocacy and repeat.

 

The flyers: standout creator successes built to last

Feastables (MrBeast, snacks and chocolate)

MrBeast launched Feastables as a “better-for-you” snacking brand with gamified marketing baked into the product story from day one. The brand’s most important success signal is not reach but their economics. Bloomberg reported Feastables generated about $250M in sales in 2024 and more than $20M in profit, per investor documents. That combination is rare among creator brands, where high CAC can hide inside content production and giveaways.

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Feastables also illustrates how successful creator brands expand beyond the founder’s audience by investing in broader credibility signals. In 2024, Feastables partnered with Tony’s Open Chain as part of an ethical sourcing strategy focused on improving conditions in cocoa supply chains. In a crowded category like chocolate, these signals function as differentiation that is legible to non-fans.

Chamberlain Coffee (Emma Chamberlain, coffee and RTD)

Chamberlain Coffee began in 2019 and expanded from beans and accessories into matcha and canned ready-to-drink coffee. The brand’s strategy is explicitly about leaving “creator-only” distribution behind. Marketing Brew notes the brand expanded from its own e-commerce to retailers including Amazon, Walmart, and Whole Foods, with leadership describing a push to get RTD “in hands.” Food Dive similarly frames Chamberlain Coffee as a brand trying to broaden appeal while expanding into retail.

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The important signal is Chamberlain’s decision to operationalize the brand so it can survive outside Emma’s posting cadence. That includes product formats that fit repeat behavior (coffee is a replenishment category) and distribution that creates habitual visibility.

Bloom Nutrition (Mari Llewellyn, supplements and wellness, plus beverage adjacency)

Bloom is a useful “flyer” case because it shows how a creator brand can move from social adoption into institutional partnerships and shelf presence. The brand was founded in 2019 by Mari Llewellyn and Greg LaVecchia. Inc reports Bloom reached about $175M in annual revenue, then raised $90M in financing in January 2024. Nutrabolt’s official announcement confirms the same $90M financing and states Nutrabolt took an ownership stake of approximately 20%, becoming Bloom’s largest investor.

image creds: https://www.42signals.com/blog/bloom-nutrition-marketing-strategy/

Bloom also demonstrates a durability lever creators often miss: product-line adjacency that extends the brand beyond a single hero SKU. Nutraceuticals World notes Bloom Sparkling Energy launched in mid-2024 and expanded to nationwide distribution in early 2025, reflecting a deliberate expansion into new occasions.

 

The fadeouts: when hype outruns habit

PRIME (Logan Paul and KSI, beverages)

PRIME is the clearest modern example of a creator beverage that spiked fast and then hit a second-act slowdown. Bloomberg reported PRIME was set to surpass $1.2B in annual sales in 2023. In the UK, NIQ data cited by Marketing Week shows PRIME’s sales reached £131.1m in the year ended September 2023, then fell to £68m in the comparable period the following year.

In the U.S., Business Insider, citing Numerator panel purchase data, reported that as of June 2024, PRIME sales were down 40% year over year, attributing the decline to fewer new buyers, less frequent purchasing, and lower spend per unit among existing customers.

image creds: https://www.tubefilter.com/2022/01/04/logan-paul-ksi-launch-drink-brand-prime/

Operational stress shows up in the legal and supplier narrative. Refresco sued Congo Brands alleging Congo backed out of a long-term production agreement, with Refresco seeking $67.7M and describing significant capacity investments. There was also high-profile scrutiny over PRIME Energy’s caffeine and youth marketing. Senator Chuck Schumer urged the FDA to investigate PRIME Energy in July 2023. PRIME’s failure mode is not “bad marketing” but a mismatch between an acquisition engine built on creator hype and a retention engine that did not keep pace once the scarcity moment ended.

MrBeast Burger (MrBeast, food and ghost kitchens)

MrBeast Burger shows how a creator can win demand and still lose the business if operations undermine trust. MrBeast launched the virtual brand with Virtual Dining Concepts in 2020. Reporting describes a hot start and then escalating consumer backlash due to inconsistent food quality and poor delivery experiences across ghost kitchens. In 2023, MrBeast sued VDC seeking to end the partnership, alleging the experience was damaging his reputation.

Business Insider reported the brand’s revenue fell from $64M in 2022 to $45M in 2023. This is a distinct creator-business risk: when the creator’s name is the brand, the creator inherits the partner’s quality-control failures as personal brand damage.

ITEM Beauty (Addison Rae, beauty)

ITEM Beauty launched in partnership with incubator Madeby Collective, positioning as “clean” and creatorco-created, with Addison Rae as co-founder and chief innovation officer. The brand earned an important mainstream channel step when it launched at Sephora in August 2021.

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By January 2023, multiple outlets reported Sephora was pulling ITEM Beauty, with commentary about mixed results and discounting. Glossy reported ITEM’s DTC site was marked 40% off during the period when Sephora exits were circulating.

ITEM’s lesson is that retail entry is not the finish line. In categories like beauty, shelf space is performancebased. Creator awareness can earn a debut, but repeat purchase and differentiation decide whether the retailer keeps you.

 

Beyond the Launch Moment

Creator brands aren’t won or lost at launch. The real outcome shows up in what happens next.

Across the brands that sustain momentum, there’s a clear shift after the initial spike. The creator drives awareness and trial, but the business quickly reorients around retention. Product quality holds up without constant promotion. Distribution expands into environments where purchase becomes routine. The brand builds meaning that extends beyond the creator’s identity and into the category itself.

The brands that struggle tend to stay locked in launch mode for too long. Demand is front-loaded, operations strain to keep up, and the product experience doesn’t give consumers a reason to come back. Over time, the gap between early hype and everyday relevance becomes harder to close.

For marketers, the takeaway is practical. Look beyond early velocity and track how quickly customers return. Focus on formats and categories that naturally fit into repeat behavior. Invest in supply chain and retail readiness as early as possible. And continuously test whether the product stands on its own, without relying on the creator to carry it.