I Spent 7 Years Building a Brand With a Sh*tty Product — Transcript

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1. 0:00Hopefully that was inspiring.
2. 0:03At least it was clear.
3. 0:04>> I didn't realize when Ed gave me this
4. 0:06card it was going to involve public
5. 0:07speaking, but let's do this.
6. 0:09>> Opportunities for growth.
7. 0:11>> I'm Jessica. I sell badass women's
8. 0:13clothing to badass women.
9. 0:15>> Sweet.
10. 0:15>> We do we did 2 million revenue last year
11. 0:19up from 1 million and I'm on track for 3
12. 0:20million this
13. 0:21>> Amazing.
14. 0:21>> this year.
15. 0:23I'd like to be at 10 million in revenue.
16. 0:25Um the way I went from one to now going
17. 0:29to be three is by basically I went from
18. 0:31printing on t-shirts to creating my
19. 0:34actual cut and sew product line and
20. 0:36manufacturing everything overseas.
21. 0:38>> Okay.
22. 0:38>> Um so I think what's stopping me is
23. 0:42scaling my ads and I'm also not sure if
24. 0:44I should be focusing on products because
25. 0:47that's what helped me grow so much over
26. 0:48the last year.
27. 0:49>> Mhm.
28. 0:50>> Um I feel like
29. 0:51>> You mean just making good stuff?
30. 0:53>> What was that?
31. 0:54>> Making good stuff.
32. 0:55>> Yeah, I mean I I spent I've been
33. 0:58building this brand since 2015. I pretty
34. 1:00much spent 7 years building a brand with
35. 1:02a really shitty product.
36. 1:03>> Yeah.
37. 1:04>> And now I have a great product. And so
38. 1:07you know it seems to be going well, but
39. 1:09I just I want to know how to scale to 10
40. 1:12million.
41. 1:13>> Yeah. So
42. 1:15there's kind of the I'll say the
43. 1:16short-term way and the long-term way.
44. 1:18I'm guessing you want to do the
45. 1:19long-term way. Um
46. 1:21No, cuz the short-term way doesn't get
47. 1:22you there long-term. That's kind of the
48. 1:23point of that. Yeah.
49. 1:25Cuz the short-term way like you can go
50. 1:26from zero to a million a month in 60
51. 1:28days in a business that's e-commerce if
52. 1:30you're just a straight
53. 1:31called direct response, you know,
54. 1:32marketing media arbitrage specialist,
55. 1:35right? You're just looking at paper
56. 1:37click and looking at all the different
57. 1:39percentages across the funnel and you're
58. 1:40just arbitrage like what's my cost and
59. 1:42you're just running and you're just
60. 1:42blowing traffic through a funnel where
61. 1:43you turn a dollar into a dollar and a
62. 1:45half and you just run as much as you can
63. 1:46throw.
64. 1:47There's for sure a speed path.
65. 1:49Those businesses never really get to the
66. 1:51big numbers because at scale CAC has to
67. 1:54have some force that makes it go down
68. 1:56cuz CAC only goes up over time unless
69. 1:58you have strong word of mouth, repeat
70. 2:00business.
71. 2:02And so you need the brand like the the
72. 2:04reason that I in my opinion, I think the
73. 2:06e-commerce guys are the best at branding
74. 2:07because they have to be cuz the ticket's
75. 2:08so low. And so they have to figure out
76. 2:10ways to get revenue retention, have
77. 2:12lower CTRs at scale, and a lot of that
78. 2:14obviously depends on the product. And so
79. 2:16if you're just selling a bunch of
80. 2:17I'm not saying you are, but I'm saying
81. 2:18if you were
82. 2:19No.
83. 2:20Um
84. 2:22then the person buys it and they never
85. 2:23buy again. And so you just acquire like
86. 2:25you made We don't get customers to make
87. 2:28sales, we make sales to get customers.
88. 2:30That's the shift.
89. 2:31And so if we think about it from that
90. 2:33perspective, then the cool long-term
91. 2:35play we talked about TikTok Shop earlier
92. 2:36for supplements, the exact same playbook
93. 2:38applies for you, which is you need to
94. 2:40have a very large cuz the way that
95. 2:42Andromeda works now, which is the new
96. 2:43Facebook update or meta update for ads,
97. 2:46is you need a ton of creative,
98. 2:47which right now you probably aren't able
99. 2:48to create or keep up with, I'm guessing.
100. 2:51And so you need to have an army that's
101. 2:52making that for you. And so my
102. 2:54recommendation would probably be finding
103. 2:56like two to three people that really
104. 2:58embody the badass women values that you
105. 3:02have, do some sort of deal with them so
106. 3:04that now collectively you've got many
107. 3:07badass women that are kind of
108. 3:08figureheads, and then you can use them
109. 3:10to leverage to get the affiliate army of
110. 3:13the people that you'll reach out to that
111. 3:14are micro nano creators. So we're
112. 3:15talking to like 10 to 50k in terms of
113. 3:18followers on like TikTok, and then have
114. 3:20them
115. 3:22go live, pitch the stuff, make content
116. 3:24about it because they love it.
117. 3:26That's the play.
118. 3:27>> I was thinking that I shouldn't try to
119. 3:30do an additional channel until I hit
120. 3:32that 3 million, but do you feel like
121. 3:34it's worth building it out now even just
122. 3:36cuz that's where I'm headed?
123. 3:37>> So the additional channel meaning you're
124. 3:40on meta right now and it's
125. 3:40>> Like I'm getting 80% of my sales from
126. 3:42ads currently, especially cuz we're
127. 3:45scaling and growing. So you know, it's
128. 3:47>> Yeah.
129. 3:48>> It's more higher percentage now.
130. 3:49>> It's a it's an interesting It's a great
131. 3:51question. Um Um
132. 3:57You could
133. 3:59In order to scale the ads on the current
134. 4:01channel, you need more creative.
135. 4:03So, either you're going to have to build
136. 4:04out the creative yourself and then you
137. 4:05hit the next wall once you cap out on
138. 4:07that creative. Uh
139. 4:09or you partner with a mondo influencer
140. 4:11like Kim Kardashian does, starts
141. 4:12promoting your and all of a sudden
142. 4:13you're everywhere, right? That works.
143. 4:15Um or you create an army that's
144. 4:16horizontal. So, either you go like
145. 4:18vertical strategy, horizontal strategy,
146. 4:20but it's very likely that one of those
147. 4:21is going to have to be the next path. Um
148. 4:24so, you're getting to where you want to
149. 4:25go assuming that the product is good and
150. 4:26you're getting good repeat purchases. I
151. 4:28would say the big red flag above all
152. 4:30else is make sure that you have repeat
153. 4:31purchases and that your email back end
154. 4:33is dialed.
155. 4:34What percentage of revenue is coming
156. 4:35from email?
157. 4:38>> 20.
158. 4:39>> Probably and you're
159. 4:43It's a little on the low end.
160. 4:45You could have like you probably want to
161. 4:46be at like 35.
162. 4:48Um cuz if you're going like this and I
163. 4:49can understand it, but you're not going
164. 4:50like that fast. So, it should be a
165. 4:53little higher than it is right now, and
166. 4:54all of that's incremental margin.
167. 4:57So, that would like I like if I was to
168. 4:58get order of ops, it's like I want to
169. 5:01fix email marketing on the back end to
170. 5:02make sure that we're getting more sales.
171. 5:05I want to make sure that we're actually
172. 5:06getting revenue retention, so people are
173. 5:07buying or buying again. Do you have a
174. 5:08sort of drop schedule that you do?
175. 5:10>> Yes.
176. 5:11>> Okay, so you have that. So, I want to
177. 5:12make sure that we're getting repeat
178. 5:13purchases so we can look at how many
179. 5:14people like what percentage of people
180. 5:15are buying second and third items.
181. 5:17Big thing number two.
182. 5:18And then big thing number three is now
183. 5:19that I have these two kind of things
184. 5:20dialed, now I know my my trail TV is, my
185. 5:23lifetime gross profit per customer, and
186. 5:24now I can be very strategic about what
187. 5:26my incentives are to bring more people
188. 5:28in to make more content so I can feed
189. 5:29the brand.
190. 5:30>> Okay. Thank you.
191. 5:31>> If you're a business owner and you're
192. 5:33not growing as fast as you'd like, I'd
193. 5:35like to give you a free gift. So, my
194. 5:37team and I put together the $100 million
195. 5:39scaling road map, which is basically 200
196. 5:41hours of us looking over all the
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198. 5:44stages of growth they went through and
199. 5:46more importantly where they got stuck
200. 5:47and how they got past it. And so we
201. 5:49broke it into these 10 stages and we
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204. 5:53information, it'll tell you where you're
205. 5:55at and the most important part for you,
206. 5:57what to do for each of functions of the
207. 5:58business across product, marketing,
208. 6:00sales, customer success, recruiting, IT,
209. 6:02human resources and finance. And so no
210. 6:04matter what you're struggling with,
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217. 6:16de-constrain the business and you're
218. 6:17trying to scale, we'd love to help you
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220. 6:20book a call with my team and we will
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