Axiom's Supplement Company

[axiom]

Hey guys, I figured its about time that I created a progress thread. The plan is to make this a place to track my progress and write down little pieces of information I learn along the way.

I'm starting a supplement company--yes I know, nothing new or revolutionary. But the supplement market is a unique one in that branding is king, and I have a solid brand identity that I am confident will attract attention (then its my job to turn that attention into paying customers). Plus my niche is relatively under developed with plenty of room to grab myself some market share.

For obvious reasons, I will not go into specifics about the type of supplement, ingredients, etc. and I may never divulge that information--but as MJ always says, it is the process, not the product or idea, that is worth its weight in gold.

So I have already run the research, figured out my marketing angles, etc. and have just placed my first order with a manufacturer. I private labelled an existing formula with my own branding and design and ordered a relatively small batch (~70 bottles) to officially test the market.

What platforms am I selling on?
I am beginning with Amazon and launching my own site simultaneously. I will be using FBA for all of the benefits, and I will also use it to ship website sales too. Eventually I'll get a different fulfillment house to handle website sales but for ease, I'm starting with just FBA.

How am I setting up my site?
I'm using Shopify as my ecommerce platform (super easy to implement). I'm starting with a free theme, because the most important part is getting my product out there and making sales. Speaking of sales, I am also using Unbounce in conjunction with Shopify for my landing pages. I've written copy for two different landing pages so far, and plan on A/B testing the hell out of them.

How will I market my product?
PPC. The most easily scalable and controllable form of internet marketing and perfect for supplements. For Amazon, I'll use Amazon ads, and for my site, I'll use Google and FB ads to forward potential customers to my landing pages.

How will I brand my product?
I have my ideal customer very well established in my mind, and have written every piece of copy towards that audience. Our brand name, our company 'philosophy', and the product itself all work coherently to create a strong brand image and goal that will serve as a differentiator.


Short-Term Goals

• Officially launch- Should be in 2-3 weeks by the time the bottles are manufactured, sent to me, sent to FBA, and ready to go.
• Get the first sale... and the next one- Selling. The single most important part of a new business (Thank you Ready, Fire, Aim--great book, read it). I will devote 80-90% of my time to selling. This means optimizing my Amazon listing, A/B testing my landing pages, and even spreading the news by word of mouth.

Long-Term Goals

• Reach $5,000/month in profit by August 2015 (margins are great, 300%+)
  
• Expand product line to 5 products by November 2015 (have to make the holiday rush)
• Solidify branding message and shift focus from Amazon to our own site
• Create a subscription model that offers a discount per bottle who sign up to receive a month supply at their doorstep every month (3-month, 6-month, 12-month plans)
• Keep selling.

And that's about it. Feel free to ask questions, offer some wisdom, etc. I'm planning on repaying this forum for the tremendous amount of value it has given me.

-axiom

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Peakdesire]

Awesome man! Glad to see people taking action.

Just one question; how much capital do you need to start a supplement business?

 

[axiom]

Awesome man! Glad to see people taking action.

Just one question; how much capital do you need to start a supplement business?

Well my first order was only about $500, which is far less than most people think. Of course, I designed the label and logo myself which saved me some money (probably around $200).

However like I said above, supplements are all about the branding, meaning the real costs will start racking up once I start my ad campaigns. Its possible to avoid spending too much here also by relying more on SEO, but I have neither the time nor patience for that.

 

[GuestUser113]

I see that you are a INSIDERS. Take a look at these threads: https://www.thefastlaneforum.com/co...duct-centered-business-progress-thread.53204/ & https://www.thefastlaneforum.com/co...ng-social-media-marketing-masterthread.51141/

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Phillipbro]

Good stuff man, looking forward to your progress.

 

[WorldImperator]

Good luck axiom.
However, one question.

You wrote that margins are 300%.
But you are writing about margin or markup?
If the later than Indeed, it's right and nothing strange.
If the former, than it is an incredibly awesome cash cow and looks too great.

I am asking, because i see people too often are exchanging these terms, while they mean completely different things.

 

[axiom]

Good luck axiom.
However, one question.

You wrote that margins are 300%.
But you are writing about margin or markup?
If the later than Indeed, it's right and nothing strange.
If the former, than it is an incredibly awesome cash cow and looks too great.

I am asking, because i see people too often are exchanging these terms, while they mean completely different things.

Yeah, that's my bad. I meant markup, as in I buy for $5, sell for $15-$20 (not real numbers).

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[axiom]

I'm not going to update this thread unless I have something to say that could help myself or someone else here, so here are a few things that have come up in the last couple of days.

1. Order is officially in the process of being manufactured. It should be a week or two until I can get selling.

2. Manufacturer made me sign an insurance agreement. This is very important if you are working with consumables. You always need to make sure you have your a$$ covered and all good manufacturers will include you under their umbrella plan. *Don't choose a manufacturer that won't let you do this.

3. In the interim before I receive the products, I have been focused almost entirely on beefing up my future Amazon listing and landing page copy. I haven't even begun to sell yet, and I already can tell that copywriting is one of the most important skills you can have--and the ability to sell translates to all areas of your life. To succeed, you have to win people over to your side, and this is done through selling. If you are new to the business game, read these books about selling:

• Ready, Fire, Aim
• Ca$hvertising
• Anything by Gary Halbert

These will provide you with more value for your money than any MBA in my opinion.

4. Take back your morning. This is more of a lifestyle thing, but it will definitely affect your business in a positive way. For about three weeks now--yes, including weekends--I have been getting up at 5 AM with no exceptions. Consequently, these have been the three most productive weeks of my life. The morning is an incredible period of time in that it allows work to be done faster than any other time, all while your competition is snoozing away on their warm, cozy pillows. Read the Miracle Morning, take back your morning, and thank me later.

That's about it. Nothing concrete to report, just a few things that I believe could be useful to people here.

 

[borntodominate]

Goodluck man, curious to see how it goes.

 

[Mbc]

Competition is very fierce in the supplement industry. Guys doing a lot of volume will outbid you in PPC. CPA is easily 30$ and expect much higher when starting out.
I'm not saying this to discourage you. Actually the opposite, don't get discouraged quick because it is a very hard niche for people starting out in online marketing without big capital (10-20k). Overseas markets are less crowded than US.
Just be prepared to spend a 200-800$+ on PPC before getting a sale, CPA could easily be 50-60$ while testing (On your own ecommerce). Cashfow is very important.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[axiom]

Competition is very fierce in the supplement industry. Guys doing a lot of volume will outbid you in PPC. CPA is easily 30$ and expect much higher when starting out.
I'm not saying this to discourage you. Actually the opposite, don't get discouraged quick because it is a very hard niche for people starting out in online marketing without big capital (10-20k). Overseas markets are less crowded than US.
Just be prepared to spend a 200-800$+ on PPC before getting a sale, CPA could easily be 50-60$ while testing (On your own ecommerce). Cashfow is very important.

Yeah, man, I appreciate your advice. I have chosen a supplement in a niche that is far less crowded than say muscle building supplements, however there are still competitors who are bigger than I am.

The thing is, they are weak in their marketing from what I've seen, and I'm confident I'll be able to out-execute them once I get through this initial testing phase. One of the reason I'm launching with a focus on Amazon is to get sales and revenue as quickly as possible. Luckily, I've been blessed with more startup capital than most to get the ball rolling.

Now, is there anything you'd recommend in terms of getting sales quicker and shortening the testing phase? Maybe a different marketing approach in conjunction with PPC? I'd appreciate any input.

 

[Mbc]

Yeah, man, I appreciate your advice. I have chosen a supplement in a niche that is far less crowded than say muscle building supplements, however there are still competitors who are bigger than I am.

The thing is, they are weak in their marketing from what I've seen, and I'm confident I'll be able to out-execute them once I get through this initial testing phase. One of the reason I'm launching with a focus on Amazon is to get sales and revenue as quickly as possible. Luckily, I've been blessed with more startup capital than most to get the ball rolling.

Now, is there anything you'd recommend in terms of getting sales quicker and shortening the testing phase? Maybe a different marketing approach in conjunction with PPC? I'd appreciate any input.

Well the more money you spend the faster you can test! Test at the times your demo will be buying, maybe at lunch, evening, late night, depending on who your target demo is. I'd say go narrow targetting first, then broaden as you hit roi. Find someone who is good with a traffic source maybe work out a deal with them, network with online marketers, learn faster.
Find forums etc with your target demo and go ta

 

[Traveling Morgue]

How exactly did you get hooked up with the manufacturer? What is the process like?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MoneyDoc]

Hey. How many products will you start off with? One?


Sent from my iPhone using Tapatalk

 

[axiom]

How exactly did you get hooked up with the manufacturer? What is the process like?

I just knew what kind of product I was looking for (ingredients, average selling price of similar products, level of competition, etc.) and researched 'Private label supplement companies' on Google. I found several and contacted each of them, got quotes, and made my decision. I looked at custom manufacturing this first product but the MOQs were far too high, so I will go down that route once I get revenues.

Hey. How many products will you start off with? One?


Sent from my iPhone using Tapatalk

Yeah, one in the beginning. It will act as an "entry-level" product for my niche and will pave the way for many more products in the future. I figured its best to focus on selling the hell out of one product until I get a large customer base to sell other products to.

 

[theag]

300% markup sounds kinda low to me for a supplement and hard to really buy traffic with. How does this change with higher volume? I think zen mentioned much higher markups in his supplement syndicate thread. I would expect supplements to be 1000%+++ markup.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[camcam]

300% markup sounds kinda low to me for a supplement and hard to really buy traffic with. How does this change with higher volume? I think zen mentioned much higher markups in his supplement syndicate thread. I would expect supplements to be 1000%+++ markup.

All depends on the supplement, pure protein been the most common one, most companies barely make a profit from this few pound. In the UK that is.


Sent from my iPhone using Tapatalk

 

[axiom]

300% markup sounds kinda low to me for a supplement and hard to really buy traffic with. How does this change with higher volume? I think zen mentioned much higher markups in his supplement syndicate thread. I would expect supplements to be 1000%+++ markup.

Well I did do some more research on products with comparable quality and it turns out most are selling for 500%-600% markup, so that leaves me with a bit more room. But like I stated above, this first product's goal will be to develop a customer base to sell other products to. Profit won't be the primary goal in the beginning.

On top of that, this supplement is supposed to be taken continuously which will allow for recurring monthly payments, raising the overall lifetime value of a customer.

 

[camcam]

@axiom , I'm in the supplement market too, I hope your product is effective and actually works. Whether it's a product you take regular or not, if people don't see results they won't buy. Trust me, the supplement market is a vicious one. Good luck though and see you in the battlefield

Happy to give a hand if needed (from what you've talked about your product I don't think our products would clash. )


Sent from my iPhone using Tapatalk

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[axiom]

@axiom , I'm in the supplement market too, I hope your product is effective and actually works. Whether it's a product you take regular or not, if people don't see results they won't buy. Trust me, the supplement market is a vicious one. Good luck though and see you in the battlefield

Happy to give a hand if needed (from what you've talked about your product I don't think our products would clash. )


Sent from my iPhone using Tapatalk

While no clinical trials have been conducted on this specific combination of ingredients, each individual one has been proven--or at least been speculated--to improve certain bodily functions (this whole product discretion thing is harder than it looks).

I do personally take it regularly, and I have noticed a difference, which is a good sign. I guess only time will tell if the market feels the same way.

And yes, I'd welcome any help I can get and depending on our products, there may be an opportunity to work together sometime in the future. Shoot me a PM.

 

[eliquid]

Who did you use for manf.?

Ive looked at several for custom formulation and no one would let me order for less than a couple grand to start out with. Who did you score $500 with?

 

[1milclub]

Is this a custom formulation or standard? What is the USP if competitors offer similar product?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[borntodominate]

How did you come up with your username? Axio labs?

 

[axiom]

Who did you use for manf.?

Ive looked at several for custom formulation and no one would let me order for less than a couple grand to start out with. Who did you score $500 with?

Most good manufacturers should be willing to let you do a test batch of less than their MOQs. In my research, I found that several manus (all based in US) were willing to allow me to buy less than 100 bottles to start out with. With supplements, I'd strongly recommend staying in the US. Just gotta do some digging.

Is this a custom formulation or standard? What is the USP if competitors offer similar product?

Glad you asked this. I have looked at all of the major competitor's products, and none of them are as comprehensive as the one I found. From what I can tell, the people that private labelled this product before me were small vendors with B&M stores.

However, as anyone in the supplement industry will tell you, the brand is the most important part. This is why my entire brand--including the name--is centered around a lifestyle that I am creating for the consumer. There will be more details on this in the future.

How did you come up with your username? Axio labs?

Well axiom means "a concept generally regarded as true," which I thought fit nicely with the whole slowlane vs. fastlane thing. Its sort of an ironic username.

Beyond that, it just sounds cool. Although it has nothing to do with my company name.

 

[borntodominate]

Most good manufacturers should be willing to let you do a test batch of less than their MOQs. In my research, I found that several manus (all based in US) were willing to allow me to buy less than 100 bottles to start out with. With supplements, I'd strongly recommend staying in the US. Just gotta do some digging.


Glad you asked this. I have looked at all of the major competitor's products, and none of them are as comprehensive as the one I found. From what I can tell, the people that private labelled this product before me were small vendors with B&M stores.

However, as anyone in the supplement industry will tell you, the brand is the most important part. This is why my entire brand--including the name--is centered around a lifestyle that I am creating for the consumer. There will be more details on this in the future.


Well axiom means "a concept generally regarded as true," which I thought fit nicely with the whole slowlane vs. fastlane thing. Its sort of an ironic username.

Beyond that, it just sounds cool. Although it has nothing to do with my company name.

It's a cool name, I was just playing with you since Axio labs is a underground steroid brand

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Mark Anthony Le]

It's a cool name, I was just playing with you since Axio labs is a underground steroid brand

Eat clen and tren hard brother!

 

[axiom]

Update #2:

I Should be receiving my first order this week--I'll shoot an email to the manufacturer tomorrow and get a status update on that. In the meantime, I've been laying the groundwork so I can start my execution with a bang.

What I've done:

• Set up Shopify store. I'm using a free theme for now, but am in the process of picking a paid theme for a more customized/professional look. On top of that, I created all of the graphics (header, logo, favicon, bla bla bla) with Photoshop, which I am pretty proficient in.
• Created a third landing page. This is a longer one and it should be able to cater to both impulsive buyers and meticulous buyers. I intend to make as many LP variations as I can humanly manage because I know that in order to sell this stuff, my copywriting game has to be top-notch.
• Started writing site content. At first, I considered not utilizing content marketing, but in my case, my brand message will be amplified multiple times over with the use of content. I'm not doing it for SEO purposes (not willing to spend my time on it), but rather to provide extra value to the customers or even just random people that aren't buyers. This company is based on giving more than it takes, something lost on many supplement vendors. I wrote five articles (roughly 500 words each) and plan on having 15 at launch--followed by one article a week.
• Wrote Amazon Listing. I wrote three different headlines, five bullet points highlighting the benefits of the product and a 1997 word description (max 2000). I am making use of every word that Amazon gives me, something my competitors noticeably don't do. Another thing they don't do is list the ingredients within the description, which seems insane to me.
• Opened a business account at my bank and got a cash-back credit card to fund my expenses. I need to connect it to Shopify in order to collect payments.
• Determined my starting price, which is higher than I'd be willing to sell it for. I figure its better to drop the price than raise it. Plus it could raise the perceived value and I may not even have to lower it. On my site, I am also offering a subscription model at a discounted bottle price to set up some recurring revenue.
• I am learning. I read three books (Cashvertising, Ready. Fire. Aim, and Thick Face Black Heart). All great, all recommended.

What I will do:

• Finish 15 articles by Thursday.
• Create slight variation pages for each of my three LP in order to A/B test. This would mean changing just the headline, just the pictures, etc.
• Set up social media pages. Already got the accounts, just need to populate them with posts as well as possibly a base of followers. Nobody wants to be the first person to like a page. Starting on Instagram and FB (mostly for FB ads).
• Sign up for FBA.
• Find some more books to read. My list is running thin. If anybody has any sales-oriented books, feel free to mention them.
• And above all: SELL.

Once I send my product to FBA, I will be dedicating 80-90% of my time on selling. This means copywriting, content writing, PPC campaigns, and paid social posts. The plan is to hit the ground running with speed.

My next update will come sometime after I have made my first sale. Stay tuned, Fastlaners.

 

[The Grind]

Starting a supplement company appealing because of the high % markups. When researching if it's a "good" idea to start one, the majority of people say don't.

Strictly because it's an extremely saturated and competitive market. Also, more important, the regulations and liability that comes with selling something that is put into peoples bodies.

What made you want to start this? And how have you prepared for the liability aspect and the "safety" factor for your drugs?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[axiom]

Starting a supplement company appealing because of the high % markups. When researching if it's a "good" idea to start one, the majority of people say don't.

Strictly because it's an extremely saturated and competitive market. Also, more important, the regulations and liability that comes with selling something that is put into peoples bodies.

What made you want to start this? And how have you prepared for the liability aspect and the "safety" factor for your drugs?

What made me want to start this? Three reasons:

1. I picked a sub niche that is much less developed than say... Protein powder.
2. I looked at the competitors thoroughly and I am confident I can offer something they can't.
3. I look at it as a learning experience. Whether this succeeds greatly, moderately, or crashes and burns, I will be far more equipped to take on my next venture.

What about safety? Manufacturer's umbrella insurance has me covered that regard. The product is all natural and extremely safe but if for some reason someone decided to sue, they'd be taking on my manufacturer, not me.

I look at it this way: the supplement market was saturated two years ago and in that timespan, some of my competitors have risen to the top. I see no reason I can't pull them down--I welcome an opportunity to hone my marketing and branding skills. Its a big pie and even a small piece is worth its weight in gold.

 

[youngtrep]

What about safety? Manufacturer's umbrella insurance has me covered that regard. The product is all natural and extremely safe but if for some reason someone decided to sue, they'd be taking on my manufacturer, not me.

Make sure you are operating as an LLC, S-Corp etc and that you doing everything strictly by the book in terms of your corporate setup. I have been running a supplement company for almost a year now and you need to make sure in case something does go wrong you can't be held personally liable. If someone does decide to sue I can guarantee you your company will be named in the suit along with the manufacturer. Do some reading on piercing the corporate veil and make sure you are following all applicable rules like adequate capitalization and following corporate formalities. This is a pretty good overview http://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html.