The Koerner Office - Business Ideas and Deep Dives with Chris Koerner - He Made $800K in 2 Months From a $40 Start - Ep. #320

Episode Date: July 24, 2026

beehiiv is the newsletter platform I’ve used for over a year and a half because their data shows you exactly what’s working. Get 30% off three months at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠�...��⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠beehiiv.com/chris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠━Check out my newsletter at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://TKOPOD.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and join my community at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://TKOwners.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠━I sat down with Spencer, the founder of Printer Pet, to break down how he turned a roughly $40 investment and one weekend of work into a seven-figure custom pet gift business. We talked about launching on Shopify, scaling through Etsy, managing 80 remote artists, and generating more than $800,000 in just two holiday months. Since sales have slowed down, we brainstormed new growth ideas involving fresh Facebook ad creative, AI-generated artwork, influencer marketing, TikTok Live auctions, and tools like HeyGen and Nano Banana.Enjoy!---Watch this on YouTube instead here: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠tkopod.co/p-yt⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Ask me a question on or off the show here: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-ask⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Learn more about me: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-cjk⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Learn about my company: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-cof⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow me on Twitter here: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-x⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Free weekly business ideas newsletter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-nl⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Share this podcast: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-all⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Scrape small business data: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://tkopod.co/p-os⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠---

Transcript
Discussion (0)
Starting point is 00:00:00 So I knew that I could start up for close to nothing. Got on Shopify, built out the whole website. No coding experience. No coding experience whatsoever. That was our first full year, ended up closing out at just over a million dollars in revenue. I had a whole weekend to myself. I was like, I wonder if I just put my head down
Starting point is 00:00:17 how far I could go on a website for this. We ended up doing over 80,000 revenue. And those two months alone, I launched in 2019, literally months before the world shut down. And people did one of two things. I feel like they either got a pet or had a baby. Printer Pet absolutely skyrocketed. So this guy built a seven-figure business
Starting point is 00:00:38 from a $40 investment, but sales are down and he's out of ideas. So today, we're gonna come up with some new ideas so both he and you can profit from it. Let's dive in. Spencer. Chris? How are you doing, man?
Starting point is 00:00:54 How you see ya. Good. Tell me about your business. So Printer Pet is a custom pet gift company where we put your pet's face. this is my dog grew on different products and skews that we have on the website. It was actually born by accident. I've always had some sort of entrepreneurial drive to start things. And prior to print our pet was working on a pet band dana and scarf company.
Starting point is 00:01:18 It was like these weird little infinity scarves and bandanas for pets that I had manufactured here in Dallas. And as I was running, trying to run profitable ads for that, trying to run all the marketing. My whole Instagram Explorer page was just inundated with different pet businesses. And I remember scrolling one day and I saw a competitor that had pet portraits like this. Only it was your pet in an old time you like Renaissance. I've seen those. Yeah, yeah. So I saw that company and I had seen this style of artwork on different websites for like houses, things like that.
Starting point is 00:01:58 And after seeing the Renaissance portraits, I was like, this style of artwork would work with really well for like a custom pen thing. And it just so happened that I had a free weekend where I had a whole weekend to myself. I was like, I wonder if I just put my head down how far I could go on a website for this. Because I'd already known about outsourcing manufacturing with a print on demand services were really new at that point. But I spent all my days on YouTube just looking up like running profitable ads, different business types, everything I had heard about print on demand. So I knew that I could start it for clear. close to nothing. And the business I was running at the time with the pet scarves and been
Starting point is 00:02:36 bandanas was making money, was not making near enough for me to live off of. I was teaching, this was after I quit my full-time job in commercial real estate. And I was teaching fitness classes. And that was actually what was where I was getting the majority of my money to be able to live. And I was like, you know what, we'll just try spinning this out. So I spent one whole weekend, got on Shopify, paid the $30 for the Shopify membership at the time. And, and built out the whole website. No coding experience. No coding experience whatsoever.
Starting point is 00:03:07 Just a lot of the University of YouTube and trial and error and really rudimentary. Not even not even Photoshop skills ended up being Canva. So at that point, I didn't even know what Photoshop was. I was like, I'll figure it out on Canva. I'd used Fiverr and Upwork before for different services. So if it really got down to needing some photos, did that, took some of my own photos, ended up launching that next week. And I launched in 2019, literally months before the world shut down.
Starting point is 00:03:38 When all of that happened, people did one of two things. I feel like they either got a pet or had a baby. Yeah. And printer pet absolutely skyrocketed. The pet band-in and scarf company stayed constant and ended up shutting down that business, running this full time. By complete chance, I was talking to a friend who said, that type of product would do really well on Etsy.
Starting point is 00:04:02 And so we were already running sales directly through our site and the business was doing well, well enough for me to be able to pull money from it. I don't have to invest in any inventory, anything like that. It was a pretty cash flow heavy business and I was able to supplement my rent, everything, low overhead at that time. And I put the products on Etsy,
Starting point is 00:04:23 and that's where everything really just hockey-sticked and blew up. 2020 ended up being seven figure a year in revenue. Holy cash was insane. And trying to figure out how to scale with that was a whole thing in and of itself. At the end of 2020, we had 80 artists on staff that were not full-time artists. They're paid commissions for per and per artwork coming in. And then three full-time employees at that time, all of which were remote. So I was leveraging kind of remote employees to be able to take care of everything.
Starting point is 00:04:58 So what month did you officially launch to the public? November of 2019. Okay. Super late 2019, November. Okay, and did you have paid ads when you launched? Like, you had paid ad experience or no? So I had paid ad experience. I had wasted a lot of funny on meta ads.
Starting point is 00:05:14 When I launched PrinterPet was completely organic and me posting about it, telling people about it. So your launch was just you, like, personally posting. Me, personal. Facebook. Yeah. I got my thing. Yep. And what was your first month like with regards to revenue? First month was low. First month was just over $1,000 in revenue, and a lot of that was attributed to friends and family. I had told about it.
Starting point is 00:05:39 So it was a low first month. Second month, we saw that climb as soon as we started implementing some ads, which was month two. I was like, okay, I think this thing has legs. I thought the business model was really attractive. The fact that I didn't have to stock up inventory, because with the previous business, that had been a whole not. nightmare learning all that, finding a group of people to be able to sew all these bandanas and scarves and source fabric and do all these things was just a little bit of a nightmare. So I was like, you know what, let's put some money into meta ads and everything. That's when we started running our basic Facebook ads and we were able to get up to $3,000 to $5,000 second month. And then can we sketch it out? Yeah, yeah, yeah, absolutely. So three to $5,000 second month. Yeah, so month one, we were around $1,000 in revenue. And all that was just, friends, family, you know, and luckily we launch right around Black Friday, Cyber Monday,
Starting point is 00:06:34 so we're able to, you know, kind of piggyback on that a little bit, which helps with the launch. I call these like unsustainable sales, right? Completely, yes. You're not doing much, especially because there's, we have a lot of repeat customers, which is awesome, but it's not a product that lends itself to having a lot of repeat customers. Or like a subscription. Exactly. It's no subscription, it's no supplement, anything like that. that, you know, you can get a lot of repeat customers. So month two, this is when we started running Facebook ads.
Starting point is 00:07:05 One of the social platforms I used with the most success was Pinterest at the time. Prior to doing all this when I still had my full-time job, I had learned how scale Instagram pages to 10,000, 20,000 followers. And then I was flipping them and selling them. That was all done through like telegram groups and stuff. That was back when all engagement pods used to work well. So I was using that when I was posting. So it wasn't just like me posting to my personal Instagram.
Starting point is 00:07:33 Like, hey, look at this. I was kind of strategically going about that. All that doesn't work at all anymore. But back then, you could kind of utilize down. Cruise outs and things like that. And like you like 10 of these people's posts. And then you post the link to your most recent post and all these different pages with authority.
Starting point is 00:07:53 If Instagram saw big pages, liking your content. They would suggest your content to the followers of all the people with big pages. So you're able to get some explore page visibility and stuff. So I was kind of utilizing that a little bit
Starting point is 00:08:06 as well as paying for that's back when different interest pages like a pet page. You could pay like 50 bucks and get a post. So that's why I started utilizing with Facebook ads, pay posts, stuff like that. But it was like pay 20 bucks
Starting point is 00:08:20 and get a page with 400,000 followers to post that product, which was awesome. doesn't happen anymore. And that's when we were able to climb to anywhere from 3 to 5K. And then month 3 was when we started seeing a lot of trash in month 3. was when we kind of implemented all the Etsy sales on the Etsy channel itself. So from there on, we started seeing about like anywhere from 10 to 20,000 up until the end of October. Our business is very, very seasonal.
Starting point is 00:08:55 At this point, I didn't know that. But now I know that we'll do anywhere from 65% to 70% of our revenue is done in just the months of November and December. So we sustained that 10 to 20 all the way from month three down to month 10. It was about that same. Yeah. And so the nice thing about the business is through leveraging overseas labor, which, by By the way, I couldn't say good enough things about the employees we had. They work so hard.
Starting point is 00:09:28 Communications, awesome. We primarily, a lot of our employees are in the Philippines, so much so I was actually looking at an office in the Philippines for them to be able to go and work from. But anyways, through scaling through labor overseas, and then the fact that we were dealing with all these different screen printing facilities, that we would pay a premium for product too. so we could save a little bit on margin if we were to do it in-house, but they took care of fulfillment, shipping, everything else,
Starting point is 00:09:57 and we paid them a flat rate where they kind of boiled that into one cost. And so our margin, and at this point, the only skews that we had were posters, frames, portraits, and digital files that we would sell. Obviously, digital files had really, really good margins because all we're paying for is the labor for the artwork to be done. The portraits, the margins were not as great. We were for certain portraits depending on the size, anywhere from 40 to 50% margins. So pretty low on those.
Starting point is 00:10:31 But overall, our margins were anywhere from 60 to 70% margins, which were pretty awesome in that point, especially when there's no investments necessary for reinvesting inventory, anything like that. So at this point, we are making profit. My gross profit margin was anywhere from like 23% a month. So 23% this a month that I'm making a profit. So on a really good month, like $8,000, $9,000, on a month it's not as good. We're making like $3,000, but luckily my overhead at the time was not very high. So that was your net profit.
Starting point is 00:11:12 Yeah. Gross is 50 to 60, netting 20 to 30. Yeah. Yeah. ecom, like if you really want to push with paid ads, you kind of have to have a 60 to 70% gross margin. You do, yeah. No, and that's why I started realizing with ads, which is why the Facebook ads as soon as we launched Etsy scale down became non-existent. Etsy ads ended up being such a godsend, but for anyone that has ran ads on Etsy, there's no guaranteed
Starting point is 00:11:39 spend no matter what your budget is. So for example, right now our budget on Etsy is $1,000 a day on that ad spend. We'll be lucky to hit anywhere from $100 to $200 a day in ad spend because Etsy determines yeah. Yeah, and it's a pay per click, which is really nice where you're only paying for actual visits to your listing, but because of that, they don't have enough traffic to guarantee that you're able to spend your whole budget. And beyond that, you can't get very granular with any of your ads. You literally checkmark a listing and say, yes, we want to advertise this list. and you have a list of a couple listings that you want to advertise and they choose where that ad spend is allocated, who it's shown to.
Starting point is 00:12:23 Like, they take care of all that, which is nice if you're looking for hands off. But if you're looking to actually be able to scale something and grow it, very, very difficult. And then in those holiday months, so as soon as we got to November, that's when the ad started spending at $1,000 a day. that's where conversion rates went through the roof because we have a very giftable product. We see probably 30, 40% of our sales are for people buying them for themselves personally.
Starting point is 00:12:57 The other 60% is people buying as a gift for someone that has unfortunately had a dog pass. They want to celebrate a new puppy that they got. It's their birthday and they love their dog and they want something to, you know, have them around the house, something like that. very giftable product, which lends itself really well to November, December time of the year. December with Christmas and then November with all the Black Friday, Cyber Monday sales going on.
Starting point is 00:13:23 A lot of people will buy gifts then to be able to give to people. So in month 10, this year, we ended up at just over a million dollars in revenue. So up these 10 months until then, we're at like just over $100,000. So I'm like, $100,000 is awesome. That was always my goal to be able to, yeah. No, for that first. For that first year, I was like, if I can do $100,000 revenue, that's like six figures is such a big, you know, like that's what you want to aim for. And keep in mind that month one was November of the previous year, December.
Starting point is 00:14:03 So we had another couple months where we were just seeing about like $150,000 revenue that we'd done in 2020. And then end of Q4 2020, November and December, absolutely exploded. We ended up doing over 800,000 revenue in those two months alone. When I say working 12 to 16 hour days, it was me sitting on my computer. I had to learn how to create all the raw files for the products themselves because I wasn't able to hire employees at the rate I need to hire them. there was a moment where we had to turn off the Etsy shop because we couldn't handle the influx of orders that were coming in.
Starting point is 00:14:45 I was hiring new artists trying to do everything. And that was our first full year, ended up closing out just over a million dollars in revenue, which incredible was insane. Something just happened with Beehive that I think you might have missed. You can now connect your Beehive account directly to Claude, Chat, Jupetee, Gemini, or whatever AI tool that you used through something called MCP. So last week, I connected my newsletter to Claude.
Starting point is 00:15:10 And now I can sit in Claude and say, look at my open rates from the last 30 days and tell me which subject lines perform best. Or draft next week's newsletter based on the topics my audience clicked on the most this month. And Claude does it. It can see my real Beehive data, subscribers, engagement numbers, automations, revenue, everything. And I've already cut my weekly production time because I stopped guessing what to write about and started letting the data decide for me. So instead of using AI to just write generic content, use that. AI to plug into your actual newsletter to make decisions based on what's already working. Beehive built this MCP so your favorite AI tool can be your newsletter strategist and your data
Starting point is 00:15:47 scientists all in one. So move your email list over today and try Beehive 30% off for 30 days with code Chris 30 because this might be the simplest, highest leverage business you can build right now. How big is your email list? Email list now is 24,000. Nice. And that's after we prune it every whenever. with like flow people yeah we have like a midnight flow and stuff like that if people end up not
Starting point is 00:16:13 interacting with any emails for a while but the cues we have now are so the portrait and this is actually this whole flow this checkout flow is a lot different than it was initially and we've actually customized the lot so now we don't just have the normal block style portrait option we have line art which is more of a minimalistic look. And then in an effort to cut back on, to make things a little more streamlined and more automated, we also have this Vogue style, which you get to put some text about your pet,
Starting point is 00:16:46 and it has like more of a modern kind of, and it just uses the photo you send in of your pet as opposed to using our own artwork. So do you not need artists for that style? No, no, no, this is all automated completely. I have an employee that goes through and creates the raw file that we send to the print on demand supplier. but outside of that, there's no labor.
Starting point is 00:17:06 And that takes him a couple of minutes, ends up costing less than dollar to be able to make that, which is nice. And then as far as all the framing options, we've expanded past just framed posters and digital files. We now have canvases. We have hanging wall art that is kind of those magnet poster things. What about? So posters and digital file. What about AI, like image generation tools? So I've gone back and forth because it's definitely an option,
Starting point is 00:17:35 but one of our differentiators in the market right now is that we are hand drawn by people. And there are people that will want things removed from certain portraits. For example, if you have your dog wearing a bandana and you're like, I don't want having a bandana in the portrait, we're able to go in and our artists are able to just remove that with any AI. It's tough to be able to specify, hey, remove. that bandana while keeping everything, you know, the same with our work without looking really off. So we've gone back and forth with it. And right now we're kind of using as a differentiator because there are competitors that are just using AI for everything.
Starting point is 00:18:14 Yeah. But, you know, AI is also advancing extremely quickly. And the image generation just in the past year has significantly. Like when I started using any AI image generation just a year ago, they couldn't even get tech. Like text was something that was really tough for all the different generators. But now they can get text perfectly. We actually use AI image generation for a lot of our blog posts and stuff. But as far as the artwork, that's all done by our artists right now.
Starting point is 00:18:46 And because we are leveraging labor overseas, our costs for artists is significantly less than it would be here in the U.S. So it hasn't gone to the point where it makes sense for the business quite yet. But it's definitely something we've looked into. I feel like AI agents could be good too for all the back and forth of the customers. I'm actually just, I just bought a Mac for. Yeah. For like orphan club claw. Yeah.
Starting point is 00:19:12 So did I. Yeah. Did you? Nice. Yeah. And that's another thing. I mean, I think one of the coolest things about entrepreneurship in general is you are a constant student.
Starting point is 00:19:21 And there's all these new. Like, I have no idea how to work cloud. But I guarantee I could go on YouTube. Yeah. And if I spend a week really diving into it, I can figure out how they get it out and get it working. So I think that's one of the things that makes me love entrepreneurship so much. But that's actually funny you mentioned. Yeah, is I've been looking into it for sourcing influencers, customer support via email and live chat.
Starting point is 00:19:48 And then just image generation for a lot of, and we already use it for a lot of our blog posts, but using it for like email marketing itself. Yeah. Yeah. Which has been super fun to dig into. So the checkout for just the pet portraits has the first page is just choosing your portrait style. How many pets are in it? You can go up to five pets. So we see a lot of people with multiple pets and they like to be able to have all their pets in one portrait. So we'll do that.
Starting point is 00:20:14 And then the next step is going to go to the different frame styles we have. So we have three different frame styles. And with the business to get our AOV up, we've been adding in a bunch of different services. that we add that are extra cost to us. But for example, the red oak frame is an extra $8 for us. We've just round out to an extra 10. So that's an extra little bit of margin that we get with the order, which is nice. And we have other upsells that you'll see later down the line that are more convenient
Starting point is 00:20:46 for the customer. And if they're willing to pay for it, we're willing to do like we have one where you skip the artist queue and you go to the front of the queue, not to the detriment of any other customers, you're still going to receive it along the same time frame. It'll just, depending on volume, be towards the latter end of that time frame. Then, yeah, other people can pay to have that moved up. And then we have these premium design backgrounds where we hire an actual artist to go in and they design those.
Starting point is 00:21:14 So this second step, you get to choose the size, the framing, background color, whatever it is. And then this is where you get into the weeds with a lot of customization. You upload all the photos here, your pet name. want or don't want it. You can add a halo to your pet. We have a printed font. We have a script font. You get to choose from those. You can also go with no font. Notes for your artist, if you have anything specific. And then that you have to upload files to be able to do it. But the very last step is going to be those final customizations you can make to the portrait and everything. So building out this whole flow was something that really changed everything for, we saw our AOV rise
Starting point is 00:21:53 20% with being able to. What is for AOV? Right now, it's a $90. are, yeah, for the online store and for Etsy, excuse much lower because we sell a lot of digital products there. It's $65 limit. Okay. So Etsy and Etsy is significantly lower just because the bulk of customers are buying a digital file, not framed portraits where the majority of our sales are direct side are framed portraits. And, you know, even this two-pad portrait is $105 because it's our, all the shipping of the portrait is we offer free shipping. and that's a cost we take on our sales, but shipping's pretty expensive for all these portraits
Starting point is 00:22:31 to make sure they get to their destination all in good shape, and then obviously the labor with all the artists. Our work has to be done and then the product. So yeah, so. Did you have any specific questions? So I think right now I've proven out that there's a demand for the product, which is nice and helps me to sleep a little easier a night. But as far as driving traffic, finding a consistent,
Starting point is 00:22:54 Because like you said, like in month one, that's, you can't rely on that $1,000 from friends and family. Just like I can't rely on holiday season every year. You know, I need to find some consistent way to drive traffic. I've yet to find what that is. So I don't know if I just haven't given ads enough time. I have never really tried influencer marketing to the degree that I know I need to be able to attack it, to be able to see that difference. And then honestly, I'm not very good anymore at making content on my own about my business and raising awareness because I don't like feeling like I'm peddling product to people that follow me. It's just, it's weird for me.
Starting point is 00:23:38 I don't like selling to people. So any ideas, anything. Yeah. So look up custom captain. That's my buddy's company. He does over $10 million a year with this business. And if you just look, that's what he started with is simple boat. in car artwork.
Starting point is 00:23:56 Wait, no way. It's very similar to what you're doing. But he gets all of his business from Facebook ads. Really? Yeah. And with my e-commerce business, Texas Snacks, we have relied on Google ads since day one. And we've kind of forayed into Facebook ads every six, 12 months. And it just wasn't quite profitable enough.
Starting point is 00:24:19 And we just kind of abandoned it until a few months ago, we cracked the code. We were profitable on Facebook ads like four years ago. And I think we were spending $7 to acquire a $50 cost store, which was great. So if we don't have great margins, so we need to be like below 10. Okay. Right. But then it just got less and less profitable. We'd try every six or cold months and didn't see much.
Starting point is 00:24:42 But I've got a new ads guy now and he just kept like pestering us for more creative, more creative, more creative. And that's the name of the game. Like the harder way is the better way. And it's not harder as in you got to spend more money. You got to, it's like you need more creative. You need to test more things. And have you ever used Hey Jen?
Starting point is 00:25:02 No. So Hey Jen, like, it's an AI avatar. Yeah, you could like you could test 100 different UGC ads, user generated content ads with AI avatars. And it looks almost real, but you don't have to pay anyone or you don't have to go back and forth. I've been hit with their ads so many times on Instagram and like the stuff they create. Yeah. Okay.
Starting point is 00:25:23 That's good. But we don't even do that. Like with, we don't even use any AI in our Texas snacks ads. And our ROAS, our return on ads, Ben, today is 10x at scale. We're spending like 500 a day on Facebook ads and we're a 10X ROAS. And it's just because we just feed it more creative. We keep the creative fresh. And it's hard.
Starting point is 00:25:44 It's not super expensive, but it's just hard. And time consuming. We have someone there like, look at this new product. Oh, they have this new St. Patrick's Day shirt. How are you gathering a lot of the EGIS here? And you're from our release. No, there's no UGC. There's our employees are just filming content like in the store or in the warehouse with
Starting point is 00:26:00 the products. Really? And just talking about it in different ways. And we'll try a 10 second video and a 10 minute video. And we just try everything. And then we just put all the ads spend behind the ads the work. And then after a week or two, you know, the performance dips. And then we test new creative.
Starting point is 00:26:14 And like, that's what we're going to have to do forever. But that's okay. Yeah. Like we're doubling our sales. That's awesome. And our sales have been growing. You know, but now there's. like doing this.
Starting point is 00:26:24 That's so all from Facebook, I've. So I guess my might follow up question. With the strategy of actually running the ads from what I've gathered thus far with the research I've done, meta pretty much takes on their own as far as targeting audiences.
Starting point is 00:26:43 Because I remember when I initially started, it was like targeting down to interest and age. Don't do any of that. You just really, audience, advanced insights. you just worry about creative and they'll find the people. Are you guys pretty much using just CBO ad group? That's okay. Yeah.
Starting point is 00:27:01 Then how much time have you spent in the meta ads library looking at competitive? Recently? Yeah. Little to none recently. Two years ago, I was spending hours a day going through the meta ad library for, we have a really big competitor called West and Willow and they do a, they're pretty much an exact same product. is when they crush it.
Starting point is 00:27:24 I mean, I would just copy them. I would pull your audience, and I would pull them and say, hey, like, if you could buy this product for $90 and it was drawn by a human, where the same product that looks, you can even send pictures of each. Yeah. This was drawn by a human and it's $90. This was made with an AI model, and it's $65. Which would you prefer?
Starting point is 00:27:45 Because sometimes we assume, like, they want it to be drawn by a human. Like, that's why they don't always want that. Yeah. just want cheaper. And if all of your competitors are using AI models and just printing money, and it's like, do we want to be like dogmatic about our mission or we want to be profitable? Because there are, and that's one of the reasons that Etsy's become so much more competitive, is that there's people now that will offer digital files for $10 a file. And they're just using AI. Yeah. To be able to do all of it. So they cut out any of the overhead. It's pretty much 100% profit
Starting point is 00:28:19 outside of whatever their labor is for generating the image itself. And I've been really back and forth on how much does that differentiator actually help us and is it worth the money we're leaving on the table? Because I can use open-seater generator. Like it's not tough anymore. Maybe a year ago would have been difficult. Now it would not be terrible at all. And then we'll have people that accuse it.
Starting point is 00:28:45 Like, we'll have customers if they get the artwork back and it's not their style. This looks like it was just AI or something. I'm like, I wish it was because we want to save money. Yeah, yeah. But it's actually not. Have you played with Nano Banana at all? Have you rid of that? No idea what that is.
Starting point is 00:28:59 So you've got to play with Nano Banana. It's a Google product. It's Google Image Generation. They're number one in the image. So Riley was just telling me about that an hour before you walked it. Yeah. That's awesome. Okay.
Starting point is 00:29:12 Because I've been using OpenC here, just chat. Yeah, for pretty much all damages. So. I posted a. video about how people should start like a lead generation business for home service business where you just take like pictures of homes from the zillow API or redfin or google maps and then you run it through nanobanana and just say like make beautiful landscaping native to north texas landscaping right and then you send that lead to the house and it's like hey we could make your yard
Starting point is 00:29:39 look like this and it doesn't look like an animation or a drawing it looks like a picture of their exact house with perfect landscaping and then you get leads and you sell them to lay landscapers. So you don't have to start a landscaping business. But there are other, there are real estate agents doing this. And I posted that video and I've had people reach out saying, hey, I started that business. It's working. I posted another video about, hey, take nano banana and go to real estate listings that don't have nice pictures or at least that don't have pictures of homes that are selling. Yeah, they're not. Yeah. And then send them all the, you send the listing agent, the staged pictures. Yeah. And say, hey, did you know that homes on average sell for 7% more or, you know,
Starting point is 00:30:18 23 days, they're on market for 23 days instead of 42 days if they're staged. Well, why didn't you have a staged? Because it costs $4,000 and it's annoying. You know, furniture is heavy. So here, you can pay me a dollar for photo per photo. Just upload your photos into my web app and you'll spit out a staged version of it. And what do you have to lose? It's 20 bucks and you could sell your home for 20 grand more. So our point is like nanobanana is that good that when you see that image it puts out, it looks to them. They have video animation as well or and just... I think they do.
Starting point is 00:30:50 Yeah. I would think very seriously about live selling. And everything I'm about to tell you, I learned from this guy behind the camera, Braden, he is a live selling master. On TikTok, like,
Starting point is 00:31:00 Instagram. Whatnot and TikTok Live. I am really into Pokemon cards. Yeah. I own... I spent way too much right now go. And I have, like, all the vintage cards and everything. And so I get ads for whatnot all...
Starting point is 00:31:12 Yeah. So it's whatnot and what else? And TikTok Live. TikTok Live just launched auctions. And it's very early. early. And so basically the first movers to any given category on TikTok are getting pushed like crazy to the algorithm. So Brayden, my friend slash that guy right there holding the camera, breaking the fourth wall here. He sells food. He sells protein bars on whatnot. What Protein and TickBilt
Starting point is 00:31:36 bars, What Not and TikTok live. And tonight we're doing a live show. We're going to make a video about it. And he's buying these bars for 75 cents and selling them for like at or above retail. That's right And he sells them for the most on TikTok Because it's so new and people are just excited They want to bid Like they might even know it's above retail But they just get caught up
Starting point is 00:31:58 What you could do is you could just have some physical prints And you could sell one of two things You could just do digital stuff Yeah digital only five bucks It doesn't matter You use AI to generate all of them You don't need any of your team in the Philippines Or you could do physical ones
Starting point is 00:32:13 You could do drawings, different styles You could just pull up like 20 different styles I was like, yeah, golden doodle Frenchie. Like, just get like the most common breeds. Yeah. Because that's going to be the broadest for people that are watching. And do an auction. Like for a 8 by 12 or whatever, for the drying style, French.
Starting point is 00:32:29 Oh, seven bucks, 850, 850. And like, you will make money. But the point is to bring people to your website. So where. Yeah. Okay. There we go. That's what I have my marching orders.
Starting point is 00:32:40 All right. A ton of UGC. Need to look into everything with AI and need to start some TikTok lives. because that's fun. Like, I like doing stuff like that. And Darren, I like yapping that you have noticed. Hey, guys, if you're still listening to this, it's probably because you haven't had a chance to take your AirPods out. You're still mowing the lawn.
Starting point is 00:32:59 You're still driving. What have you. If you're still here with me, I would really, really love and appreciate a five-star review on Spotify, Apple, or wherever you get your podcast. It would mean a lot. If you want to go the extra mile, share this episode with a friend that might have an interest in starting a business. It would mean a ton. Hope you have the best day of your life. today.

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