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EXECUTION My Journey To A $100M eCommerce Empire

Discussion in 'Progress/Execution Threads' started by GetShitDone, Apr 8, 2018.

  1. GetShitDone
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    GetShitDone Bronze Contributor

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    Hey man, thanks a lot for the response and listening in on the progress!

    Questions answered below in bold.


    - Marketing Strategy:
    - How carefully are you vetting and filtering influencers you want to work with? Looking at any other metrics besides follower count to determine if that influencer is a good fit for your brand as well as likely to bring in sales?

    I'm using tools such as Phlanx Engagement Calculator to assess every engagement %, likes, comments, etc for the average post of each influencer. Also, a lot of these influencer platforms already provide analytics on the engagement levels of each influencer. This lets me assess if they get strong engagement on each post. ADDITIONALLY, I manually check each IG influencer's actual posts myself by quickly skimming through a few of their photos' comment sections to see if it's not just obvious "paid-comments' where it's fake comments or people getting paid to say generic things like "this is so cool!", "I will definitely get this product!", etc.

    Lots of "influencers" these days use these methods to boost their engagement levels, so takes some deep diving. Hopefully I'll find a powerful tool and platform like Ninja Outreach/Scrunch which I will begin using this week.

    Regardless, I still only pick influencers in my niches of Men's Grooming/Bodybuilding.


    - What process did you go through for choosing the 50% affiliate commission? Is this an industry standard or did you just think that was fair/incentivizing for the affiliates?

    My gross margin is 75%. And it's a monthly used product. Therefore if I give away 50% on the customer's first sale, I still make 25% AND I make 75% on ALL FUTURE sales from that customer.

    50% sounds big to the affiliate (and it is from the offers I've seen) and I still get a benefit of the customer's lifetime value after.

    The industry standard from what I've seen ranges from 10%-30%. My only main competitor (different product as mine is the first of its kind) is giving 10% commission.

    I want to get "superstar affiliates" to promote my product within the Fitness and Men's Grooming niches. So I want to incentivise them big time, as well as provide enough data and sales material to give them a strong base to work with. Already created my Affiliate Landing Page (which I embedded into my site), next I will likely create some affiliate marketing material.



    - Sales
    - What expectations do you have for sales coming in from your 2 permanent posts from the 2 influencers, as well as expectations from the affiliate program? Do you have any basis for these expectations or looking to find out yourself?

    I want to get a minimum of 10 sales from my influencer testing this week (I will still be doing more then just those 2 influencers) to prove the demand is out there.

    I did a Facebook test and from 700 views on the ad, I got around 70 page clicks, and 7 sign ups to request a purchase. Could of gone longer, but FB banned my ad because it was against their ad policies (fitness products have this issue on Facebook ads). So I may tweak my FB ad strategy, whilst doing influencer marketing. Hopefully my influencer marketing converts even better then how the Facebook ad was doing.

    Affiliate program, I will focus heavily on whilst I await my supply to be on its way. But my goal for that is to build a strong network of 1%er type affiliates that can powerfully promote my product. Bit of also a shoot in the dark as its my first time doing sourcing Affiliate Marketing for my product.


    - You mentioned offering a subscription-model for monthly supplies. Is this something you saw the market wanted or are offering it because it provides more value and makes it easier for the customer?

    My product is a consumable product. So I decided to create a "monthly supply" of it and turned that into a "monthly subscription". I don't have the Shopify App yet for a monthly subscription type product, I only have a monthly supply product listed on my website. I will create a subscription service for my product soon enough where they're billed each month and the product is sent to them.

    I'm offering free shipping in the monthly subscription + free "Exclusive" content only for the Insiders if you will, of the subscription (Hey, kind of like the Fastlane Insiders, haha!).

    Therefore, the subscriber gets set-and-forget convenience, free shipping, and valuable content.

    In my opinion, monthly subscription revenue = king. Once the ball is rolling after launch, I want to do as much as I can to add mega value to convert customers/people into a monthly subscription.



    - Channels:
    - As for moving into wholesaler after you validate your initial order, what is the change in strategy that you are using now of selling direct to consumers. How do you plan on targeting other retail businesses and convincing them of carrying your product?

    Right now, I am simply doing testing with my marketing via influencers/fb/etc. When I get my first initial wholesale order sent, I will continue to build my affiliate army, build my top micro-influencer army, and prepare a strong marketing campaign. Step by step, I will make my marketing get more and more aggressive to scale.

    My main competitor (been around for 2 years) has had 30,000 google results, 200 youtube results, and 500 Instagram results... all when you type their company name in. Also, tons of Mainstream PR. I want to 10X that as I believe I have a better product that adds more value.

    For now, small tests. Then initial wholesale order. Then get more and more aggressive on the marketing front.
     
  2. Envision
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    Envision Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass Summit Attendee

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    You need a paid advertising model. influencer marketing and clickbank arent those. You'll run negative with little branding on the influencers especially cause the influencers you're paying are on a platform built for them to whore out products to their following and their followers being used to getting pushed bs.

    -Whats your profit margin on your product?
    -Why are you paying a fulfillment service when you don't have consistent sales? You should fulfill the products yourself.
    -Have you looked into selling on amazon that would be your best bet to getting in front of massive amounts of traffic on a low budget.
    - Note, you will have to pay capital gains taxes on the profit from your cryptocurrency.

    Is your business wholesale or subscription? It doesn't work both ways when you're starting out, either you're going for mass distribution or you're going for niche consumer who's into your brand and willing to subscribe.
     
  3. GetShitDone
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    GetShitDone Bronze Contributor

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    Hey Envision, thanks for the response!

    Answers below in bold:

    -Whats your profit margin on your product? - 75% (After paying shipping, packaging, and unit cost) aka $15 gross profit per unit (Keep in mind I want them to order it each month).
    -Why are you paying a fulfillment service when you don't have consistent sales? You should fulfill the products yourself. - I am using ShipBob which is a "pay-per-play" fulfilment centre that only costs me money every time I make a sale. Therefore, I'm fortunately not paying anything upfront.
    -Have you looked into selling on amazon that would be your best bet to getting in front of massive amounts of traffic on a low budget. - Not yet, but in the future I will. I wanted to have my own website/social media/fulfilment centre first and see the sales I generate. From there, I'll get into Amazon as another channel for selling.
    - Note, you will have to pay capital gains taxes on the profit from your cryptocurrency. - Noted.

    Is your business wholesale or subscription? It doesn't work both ways when you're starting out, either you're going for mass distribution or you're going for niche consumer who's into your brand and willing to subscribe.

    I should of explained this better. My business is purely an online retailer that sells a product that I am buying wholesale from my producer. I am not a wholesaler. Currently, I am simply an online retailer that sells 1 product that is a monthly supply product going for a niche (Males aged 18-35 into Fitness/Men's Style).

    --

    You need a paid advertising model. influencer marketing and clickbank arent those. You'll run negative with little branding on the influencers especially cause the influencers you're paying are on a platform built for them to whore out products to their following and their followers being used to getting pushed bs.

    Thanks so much for that insight.

    ClickBank does seem pretty crappy from what I've seen.

    Influencer Marketing wise, I think it depends on the product and the influencer. I have seen brands go from $0 to $100M/year through purely Instagram Influencer Marketing. I also know brands that have gone from $0 to 7 Figure Revenue from it alone too. It's a big thing for certain products and I think it suits my model well.

    There are 3 forms of payment you can do with an Influencer: 1) Free Product 2) Affiliate Commission 3) Flat-Fee (Upfront Payment)

    With that said, the most successful at this I've seen have done the above in the following chronological order, starting off with sending a free product as the influencer posts a shout out.


    I will get on Ninja Outreach and Scrunch (Influencer Platforms), source micro-influencers (under 50K followers), compile them into a list, blast them the same template message of a "free product offering", and see who comes back to me.

    That way, my only cost is $10 of acquiring each influencer (product + shipping) to post free for me. Say I get 10 influencers, my only advertising cost is $100 for large exposure and likely high engagement from micro-influencers.

    Nonetheless, (to your point) I am looking for multiple advertising models such as paid-advertising models. I imagine you mean Facebook/Instagram paid ads, PPC, etc?


    Once I gain enough revenue, I'll do these too. I'm also going to be getting journalists to write about my product to gain PR

    But I feel I need to master and nail the Influencer Marketing aspect down-pat early on of getting Influencers en masse to be my brand ambassadors from a free product and even affiliate commission.

    As I've seen so many companies similar to mine do so in the past.

    Let me know your suggestions.
     
    Greg R likes this.

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