A couple months ago I made a commitment to “show my work” more frequently. After publicly asking what I could show, I received a lot of great feedback and questions.
And, of course, I promptly did nothing. Because… me.
But I really want to figure out this whole sharing thing. So here’s a small experiment for me…
I decided today to try and build a 6-figure / mo. business in just 7 days. From scratch. Doing something I’ve never done. And then share what I’m doing and why.
When I write, I tend to write a lot. So these will either be a handful of lengthy posts, or a lot of smaller posts. I don’t know how it will look… I’m making this up as I go (both with the business and these posts).
Be prepared to slog through a lot of stuff. Especially since, early on, I won’t know what’s important and what isn’t. Starting a business is messy. Writing about it is even messier.
Also, the most likely outcome is that I fail. I’m aware of that, and it is what it is. To me, that’s the scariest part of this. Statistically, it won’t work. I’ll learn a ton and be better for it… even as I fail publicly. So, be kind.
Alrighty… let’s go!
I did something similar earlier this year. I went from $0 to $102,892.21 in 4 weeks in June. But I did that with no team.
I don’t think I can do this on my own. So this time, I’ve got a team. If you know me, you know them. But I’d still like to keep them at least a little anonymous. So I’ll call them C, J, and H (my 18-year-old daughter).
I’ll be selling physical products (mostly arbitrage). I don’t know what. I don’t know the audience. I don’t know the price points.
I do know that Facebook will be heavily involved. Native advertising may be involved.
Landing pages will start on ClickFunnels.
Merchant processing will be Stripe.
The Head Start
Even though I’m starting at $0, having never done this before, and with no existing creatives or assets, here’s what I have going for me…
- Education: I spent a good chunk of change (probably somewhere in the $10k range) learning about physical product sales this year. From the $100k Factory, to Physical Product System, to Jon Mac, and others. I won’t be following any of them exactly, but they definitely help.
- Facebook: My personal spend on Facebook advertising in 2016 is over $450,000. I’m very, very comfortable on the platform. My learning curve will be flat. To offset that somewhat, someone else on the team will be managing Facebook. That’s not to give myself a handicap, it’s because my job will be to experiment and remove obstacles. That will be full time+.
- Experience: In the past 6 years, I’ve built (with great teams) 4 7-figure businesses. 2 of those were 8-figure businesses. As an added bonus, I also built 5 failed businesses in the same timeframe. 1 of them very painful and very personal. That’s a lot of ground covered in just a few years.
- Timing: I can’t emphasize this enough, but if this experiment works, it will be heavily influenced by timing. I’m starting this 2 days before Black Friday, and 5 days before Cyber Monday. That’s HUGE. Of course, if this experiment fails, it will also be heavily influenced by timing. I’m starting this 2 days before Black Friday, for heaven’s sake!
Because I have some great things going for me, I selected an unreasonable goal. That’s what makes this fun. I have almost no idea how it’s going to happen… but I’m excited to find out.
We started everything off with a 3-hour meeting after lunch to get clear on our outcomes and strategies.
We also picked a couple dozen products for our initial tests. We don’t want to overthink this part. The reality is, we don’t know which products, prices, audiences, etc. will work. It’s counter-productive to sit around and either pretend like we do or prognosticate about what will or won’t work and why.
At this stage, I simply want to expand my surface area and coverage as quickly as possible. I need to give myself the best chance of finding a winner by going broad and shallow, not narrow and deep.
I want a variety of products across several obvious audiences. I definitely want to have multiple products that can be sold to women over the age of 35 (best buying audience on the internet). I want a handful of men’s products. I’ll do some children’s toys. And I want some pet products.
I may experiment with some light electronics, but I’m concerned about the support requirements on the backend.
I also want products with a simple sales process. That means staying away from sizes, colors, and options. That said, I have a couple of these products waiting in the wings in case we get some free time to pursue some complications.
Past experience tells me that we’ll have plenty of unexpected challenges in the process of doing this. So my up-front requirement for the products we select is that only 1 thing needs to be proved true in order for it to be a success.
Note: This is one of the huge reasons that new businesses fail. Founders often don’t understand that uncertainties in a business plan are not additive. They are multiplicative. And if you ever start a business with 3 or more things which must prove true in order for you to succeed, it will be very difficult for you.
I also only want products which have mass appeal. That’s going to make my job harder. But it’s also going to make it faster. Given the unreasonable 7-day commitment, time is my scarce resource. I’m willing to trade difficulty for speed.
The reason it’s faster is that I don’t spend much time researching audiences and interests. For the sake of speed and scale, I need to paint with a broad brush. Tactically, this decision has a high likelihood of submarining the business. I’ll need to keep an eye on this as we move forward.
Since we’re going to be selling to holiday shoppers, and we’re primarily going to be arbitraging our products (i.e. I will not hold inventory, and I won’t buy a product until after I’ve sold it), I’m limiting myself to epacket shipping for products from China (until the first full week of December), and US-based products on eBay stores (not auctions).
(If it sounds like I know what I’m talking about, it’s only because of the previously mentioned trainings… not because I actually know what I’m talking about. But it seems reasonable.)
For the sake of speed, I will not sell any products on day 1. Sales pages take time. I don’t have time.
Instead, J launched 40 ad sets on Facebook. We came up with a standard image strategy for our ads. In the name of time, we’re looking for easy and obvious wins. We’ll certainly leave money on the table with our lack of subtlety and depth, but if we can get a couple early wins, we’ll more than make up for it with scale.
Note: If I were starting this on a shoestring budget (which wouldn’t work for a 7-day sprint), I would go the other way and niche down to start and scale up and out from there. That’s the smarter strategy, although it doesn’t work for my goals.
Each ad set has 1 templated product image. We pulled the image straight from our arbitrage listings on eBay and AliExpress. Although I wouldn’t normally do this, I’ve got all 40 ad sets in a single PPE (pay per engagement) campaign.
The thinking behind this is simple, but not necessarily intuitive. Contrary to popular belief, speed and scale virtually require inefficiency and mess. I’ll probably talk about that more in the coming days. But just know that speed doesn’t come through perfection or clarity or systems or automation. Instead, it comes through inefficient action, feedback loops, and quantum leaps.
Creating landing pages for all our selected products will take time. We don’t have time. And, statistically, I already know that most of the products will be losers. I just don’t know which is which. So I throw up a simple PPE ad asking for feedback and shares.
It’s not guaranteed, but it’s a reasonable proxy I can use to make decisions about where I’ll invest my time next. So the products with the highest engagement will earn landing pages and links.
From there, products with initial sales will earn upsells and funnels. But that’s another day.
Since I need data fast, I’ve done something odd with my ad budgets. I acknowledge that this will skew the data I receive, but I’ll live with that to accelerate my data flow.
I set each ad to a $50 budget, even though I have no intention of spending the entire $2,000 budget on PPE ads. Instead I let each ad spend $5 – $10 and then I disable them. So the $50 budget is only a data accelerant.
It’s 10:20PM right now. About 8 hours after I started my experiment. I spent $331.47 on my 40 PPE ads. Here are the initial results…
As you can see, we’ve got 1 ad that’s really cleaning up. In fact, all of the top 4 ads are targeting the same demo with similar products. It looks like, if we can pull off a decent ad, we’ll have plenty of options there for both landing pages and upsells.
I’m not entirely sure how I’ll use this data to make decisions, yet (this is the first time I’m seeing the data… I wrote this post while I was waiting for the ads to spend). But I assume I’ll choose a threshold for a few of the engagement types and graduate all products that cross the threshold.
I can tell you that, based on the bottom of the list, I’m going to chop a whole mess of jewelry.
Now I’ve got to go try and sell some stuff.
Post questions, comments, or feedback below or on Facebook. I’m obviously time-crunched right now, but I’ll respond when I can. I won’t talk specifics about any winners, but I’ll try to be as open as I can and answer as many questions as I can.
I will remove comments that don’t contribute to the conversation.