Jason (02:42):

So it started e-commerce about eight years ago, um, just selling clothes and then eventually evolve into different ventures and currently working on Dell, which is a Korean beauty brand, um, started about a year and a half ago. We mostly revenue through organic and influencer marketing, not much harm paid, uh, pay is really just to support our other efforts. So that's kind of where we're at right now. And we're looking to grow five, six X from last year, this year.

Zach (03:13):

Nice. That's awesome, man. So what do you, uh, what do you attribute the growth to? Like what, uh, was it, was it the offer? Was it the product? I mean, how did, how did you even get into selling product?

Jason (03:26):

Yeah. Uh, I ended up product itself surface the main focal point here, secondary support by the brand. The product is, uh, is drastically different than anything else that's offered in the market today in a sense that we very much focus on the benefit of it being weightless. It's, you know, the way to explain it to people. It's like high heels versus seniors, a lot of lashes on the market today, or high Humes where the peer seekers they can wear every single day. And that was kind of the gap that I like was in the industry. And I want to create a product to solve that gap now onto the branding. A lot of the brands that you see on a shelf at support, an alternative, even target are very much black and white, their theory, in my opinion, bland, it doesn't really draw people's attention. So if you take a look at our website and our visual touch points, it's, it's using Pacelle colors, soft colors and things that makes people feel the experience of comfort. You know, it makes you a feel the softness of our product through our visuals. So I know these two things combined com and a couple with are they're very passionate, loyal customer base. Uh, it just drove a lot of the growth.

Zach (04:37):

That's amazing, man. That's amazing. So let's get into it. What is this rich ad? What is the ad that's working for you right now in this space?

Jason (04:54):

[inaudible]

Jason (04:54):

You see ads are crushing it, we, we actually, it's funny because I spent, you know, five to $10,000 per photo shoot for, for these ads and like, you know, even photos, like what we'll do a loss of together in one single day. And those would never outperform any of the stuff that we shoot on our I-phones. And you'll probably hear it as like over and over again from smaller brands, but we are really seeing UGC, just doing phenomenal on the organic and a PSI on a pay site. The best ad creatives are, um, usually see mashups. So, you know, a couple of tech slides here and there. Um, and we'll, we'll clip in these UGC ads in between to showcase how many normal people, just like you and art are using this type of product and the audience here that do the best for us on pay.

Jason (05:44):

Actually isn't on prospecting. Isn't on, you know, retargeting as on the website visitors or even BDO. Typically people get a lot of success from is actually from Requist. Um, we have a shot book quiz on our website that tells you what product you should get based on the questions that you answered. And before we generate the answer, we actually asked you for your email and we get a ton of email lead gen through that quiz. And we funneled that data back into Facebook to create audience. And that is by far the best performing audience. We get outperforms, anything else we have forgotten? Uh, so that's kind of like the surprising thing that I found over the past few months,

Zach (06:29):

Quizzes. Amazing. I don't even know what kind of eyelashes I need here, but I'm just not going. Uh, uh, yeah. So you, you UGC quizzes and how do you go about making your, your UGC ads? Like you guys use any tools, software, what's the work

Jason (06:51):

With a series of influencers that we feel like has that look and that personality that fits what we're looking for. Someone who's energetic, someone who's able to be thorough and clear on what they're saying. And we send them briefs, campaign briefs like, Hey, we want to showcase, pardon me? You lashed out or need pimple patches. Can you do this? These are the examples. And we just pay them per video or there's services like below that you can buy it. UGC ads run for about $60.

Zach (07:23):

How's bill at work. We've had a couple other people mention it. I've checked it out, but is it like, do you have to, you can kind of go two fold, right? You can bring your own influencers or you can pretty much kind of source it from their network of folks. That'll also just want to create a review for your product.

Jason (07:41):

Yeah. We look at bill as like a supporting calling for us. You know, we do the traditional things that I just mentioned, but bill is just like, here's a campaign brief. You listed out there into the forum and people bid on it. It's like a bidding contract. They come on and they show you their profile. They show you what they can do, what they want to do with your product. And you select the people that you want to work with. And a few days later you get your video. Well, a few days after you send them the product, you'll get your video. That's usually what we've seen so far. I mean, granted, this was the very first few months that we'll work more below. This is not sponsored either. Like, this is just what we use. Um, yeah, so far so good. I do like the quality of the stuff that they produce.

Zach (08:23):

That's awesome. And it's like a hundred bucks or a couple hundred bucks,

Jason (08:26):

60, $60 per video. You can like do some, you can do some add ons, like subtitles of props or whatever for a little bit extra. But the stuff that we get 60 bucks,

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Zach (09:59):

It's awesome. Yeah, that's definitely a theme of, you know, guests on the show is, um, just like very little, very little input, very little production, right? Like, are you saying you guys would use to throw down five or 10 K on photo shoots, highly produced and it's got nothing on UGC, right. So, um, makes sense. All right, man, let's get into your poor ed. What's something that you were absolutely confident that it was going to crush and it totally bombed. I spent a lot of time on

Jason (10:38):

The highly qualifying videos that the stuff that you see from billion-dollar makeup brands and we're like, you know, if they're doing it, we'll do the same thing too. And I didn't copy. And it was probably the worst idea with fabric ad totally different audience. That's one thing that we had to embrace that they're their selling point and their AOV are very different in the audits that their targets are different as well. We cannot use the same type of asset that they're doing. And in a sense, by copying them, we steer away from our main focus in our main creative direction. And that fell drastically. A lot of my put into those ad campaigns. They all really flopped. Um, what else? Stories for some reason, never really worked for us. The story formats, not just like a format issue, but for some reason, our FICO scores from stories, what else text-based campaigns like entirely graphic type of creative, never worked for us.

Jason (11:34):

They always need to see some people wearing the product into the video. We've tried something like, here's like an animate text buy. Now here's a promotion. They don't really work for us. Um, those are like in terms of creative, what we've seen, um, in terms of like audience audiences, you know, you would think that you can do a lot of prospecting on beauty lovers, clash lovers, or lashing insurance and letting you know, the usual targeting that people use. They never worked for us either. Uh, in a sense we do kind of know that it's because we are competing against other lash companies, the magnetic lash companies, for example, who works totally crushing it on pay. They're definitely getting a lot of the audience that we're getting, oh, that we're targeting. So our strong point is still going to be organic. That's how we're able to catch up.

Zach (12:23):

Yeah, no, that's awesome. Okay. Are you haven't they, I think like any graphic design that's solid tip right there. Like don't, don't, don't, don't try to over manufacture your ad designs. That makes sense. Um, last, last question, you know, what is a phenomenal growth, uh, growth strand really consumes quite a bit of cash. So, uh, why don't you share some of the guiding, you know, financial principles of how you've financed and paid for the growth, um, this last year?

Jason (12:57):

Yeah. So a couple of things that we do, uh, we do our supply chain and logistics in-house, so that saves a lot of money. Uh, on a side, I do supply chain logistics myself. I service that to other merchants. A lot of e-commerce merchants, whether they're drop shipping, they're branded or their affiliate marketers, they come to us to get us to the BX century, that extension of their supply chain team. We help finance lots of inventory to, uh, and the second of that, we do work with companies like clear bank or sell settle.co is an amazing platform that finances your inventory for you if you're a US-based company. So those are the two softwares that we use internally, but we also offer the same service to other merchants to help them with the curation, the sourcing, the logistics process of the supply chain.

Zach (13:47):

And how does settle.co I don't think they get priced out compared to clear bank on, uh, some of the inventory financing.

Jason (13:55):

So Claremont really focuses on marketing expenses. That's really their main strong point. There's typical fees, 12% on top of whatever you get, but by be spending it on Facebook, Google, Snapchat, et cetera, is 6% fee set on the other hand focuses almost entirely on accounts payable. So invoices, and usually that will be inventory increases. They charge you 1% for every 30 days, which is drastically better than any other offers that we've seen. So we used settled for inventory, and then we use clipping for marketing. Those are the two things that we've done to really stretch our dollars.

Zach (14:32):

And how does that work for you with, with clear bank? I mean, it's kind of a, it's kind of an interesting product, right? It's like a six month term, um, on most clear bank advances, the kind of give it to you all at once. So how does that, how do you kind of manage that for your spend, which is kind of happening on a daily basis on a monthly basis?

Jason (14:55):

Yeah. They essentially give us a line of credit. It's not really like a lump sum deposit, so they give us a credit card. We spend as much as we want on that line of credit. And if we don't want to spend entire amount, we don't spend the entire amount. So it's really flexible in that sense. Although I would say, um, for the most part, our Aspen has been, has been okay because it's always been positive return. Once you spend a dollar, we always get the dollar back and more to pay back for inventory. So when that always gets me nervous, because once you buy four months of inventory, you're not going to sell it tomorrow. You're going to sell it, you know, in four or five months and sometimes less, really fast. So that's really where most sort of money's tied up and she didn't do it Tori. And that's why I settled for a partner. Uh, Kirby gets there when I need them for like emergencies. But typically I like to try to use settle as much as I can

Zach (15:52):

And to settle, do fundraising for ads or not so much. So

Jason (15:58):

In terms of financing for ads, if the ad comes into the form of an invoice, like they, Facebook sent you an invoice for a hundred thousand dollars because you have a line of credit with them, then, then settle can pay that. But because Facebook's payment methods are typically credit card PayPal or some other method. So it doesn't really work with that setup when he really works with the invoices that you can create as a PDF.

Zach (16:21):

Yup. Yup. Jason killed this podcast, man. I love all the specificity, tons of great tools you're recommending, uh, love having you on the show. Tell everybody a little bit about, uh, how we can support you and how they can get in touch.

Jason (16:38):

Yeah, if you guys are looking for cheaper and a better supply chain logistics, go to sauce, house.com as S a U C H a U s.co we'll take care of all your supply chain logistics,

Jason (16:55):

Easy ZPZ. Thank you, man. Appreciate you. Yes, sir.

Speaker 5 (17:05):

Thanks so much for listening to another episode of the rich ed or ed podcast. If you're like me and listen to podcasts on the go, go ahead and subscribe on apple podcasts, Spotify, YouTube, and rich dad, poor dad.com/podcast. And if you absolutely love the show, go ahead and leave a review and a comment share with a friend. If you do take a copy screenshot of it, email me zach@funneldash.com. Show me you left a review and I'll give you a free copy of the rich add or add book to learn more about the book. Go to rich dad, poor dad.com to leave a review that a rich ed or ed.com/review. Thanks again.

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