Unlock the Hidden Power: Why Your Next Big Success Lies in Launching a Completely New Brand

Ever wondered how to roll out a shiny new product line without turning your loyal customers into confused skeptics or scattering your team like startled birds? I chatted with Rok Hladnik—a savvy ecommerce merchant turned agency maestro—who throws a curveball at the usual wisdom: “Why not just launch a new brand instead?” It’s a neat little secret wrapped in bold strategy—applying everything you’ve learned, but under a fresh banner. Based out of Slovenia, Rok’s agency, Flat Circle, tackles ecommerce challenges worldwide, blending a sharp eye for AI’s game-changing tricks in advertising with a no-nonsense take on why product quality still reigns supreme. Plus, he dives into the rollercoaster thrill and risks of spinning up a new brand, while keeping your cash cows happy. Sound like juggling fire? It kinda is—but Rok’s insights might just keep those flames under control. Dive into this conversation and see why sometimes, the newest hat might just be your best bet. LEARN MORE.

I asked Rok Hladnik, an ecommerce merchant turned agency owner, how to launch a new product line without confusing existing customers and diverting staff. He advised creating a new brand. “There’s nothing wrong with applying learnings to a new company,” he told me.

Rok’s agency, Flat Circle, is based in Slovenia and serves ecommerce businesses worldwide. In our recent conversation, he shared how AI is changing advertising, why product quality matters, and the appeal (and risk) of launching a new brand.

Our entire audio is embedded below. The transcript is edited for clarity and length.

Eric Bandholz: Tell our listeners who you are and what you do.

Rok Hladnik: I’m the founder of Flat Circle, a Slovenia-based marketing agency. Luka Dončić, the basketball player, is from here. I launched this business in 2019 after running our own ecommerce stores.

We focus on brands doing six to eight figures annually and looking to reach the next level.

AI is changing the agency business. We manage ad campaigns for clients, but platforms such as Meta are trying to eliminate media buyers. They don’t want intermediaries between them and the advertisers, the brand owners.

Bandholz: It’s getting hard for merchants to find margin from advertising. AI learns the best creative and messaging and applies it to everyone.

Hladnik: It shifts the priority to developing superior products that consumers want. Still, brands have a lot of customer data to leverage. AI definitely comes into play here.

Brands know their customers and can use that data to identify buying patterns, cohorts, products, repeat buyers, and more. The result is better decisions and higher profits.

Bandholz: We’re not doing that yet at Beardbrand. I’m a bit of a technology laggard. Making tangible products costs a lot of money. There’s real risk in getting it wrong.

Hladnik: AI is heavily dependent on inputs. The wrong inputs can lead to huge mistakes.

Bandholz: Rolling out a new product to a new audience can end up in horror. There are so many stories. I think of Sean Frank with Ridge, the wallet company. He knows the wallet market is only so big. He has to roll out new products to grow. But doing that can risk the brand’s sanctity.

Then there’s Yeti. They started with coolers and then rolled out tumblers, which became their top product. So how does a merchant identify a complementary product for their existing customers?

Hladnik: We used to work with Ridge and spent a lot of time with Sean discussing this very topic. I have two approaches in mind. First, listen to customers. Understand their pain points and what they’re buying. Then ask them, “What can I make to help you?”

The other option is to create a new brand. There’s nothing wrong with applying your learnings to a new company.

Bandholz: The entrepreneur in me loves the idea of creating new brands. But then I start questioning myself. How can I create a new brand without distracting my team? We don’t want to divert focus from the moneymaker brand that’s keeping the lights on.

Hladnik: A new brand doesn’t have to be the top performer. It may be your fourth or fifth category, but if it’s a moneymaker, why not? You have your system, the creative machine,

The key is figuring out the total addressable market — how much money you could theoretically make out of this new brand — and not investing in it too fast. That can be hard because everybody is excited about possibility.

But you need to be realistic. It seems easy to copy and paste the success of one brand into another — your ads, landing pages, offers, production team, whatever. But it’s rarely that simple.

Bandholz: What are the green and red flags for new products?

Hladnik: Green flags come from the demand, whether initial customers like your product. If so, I wouldn’t focus as much on unit economics as on building the product to match the need. You can optimize later.

Red flags include brands starting to make their products cheaper and lower quality. That’s not typically sustainable months or years from now. Customers notice the drop in quality, which sends the wrong signal.

Carefully evaluate your brand values. What do you stand for? How are you positioned in the marketplace?

For direct-to-consumer brands, look for a manufacturer with equal or better quality at a lower price. An enterprise-level manufacturer can be inefficient for a smaller merchant. You might be forced to buy larger quantities, which increases risk.

A smaller factory offering reduced lots could make a lot of sense. In my experience, those opportunities exist. Plus, it’s a good way to lower unit costs without sacrificing quality.

Bandholz: Where can people follow you, find you, hire you?

Hladnik: We’re at FlatCircle.agency. Follow me on X, and reach out on LinkedIn.