He Built This Business in One Weekend for $40

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 $1 million in revenue. 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. We ended up doing over $800,000 in revenue in those 2 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. Print Our Pet absolutely skyrocketed.

So this guy built a 7-figure business from a $40 investment, but sales are down and he's out of ideas. So today we're going to come up with some new ideas so both he and you can profit from it. Let's dive in. Spencer?

Chris? Hey, how you doing, man?

How you? See you good. Tell me about your business.

So Print Our Pet is a custom pet gift company where we put your pet's face. This is my dog Rue on different products and SKUs 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 bandana and scarf company.

Hmm.

We were, 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 Explore 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-timey, 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. And after seeing the Renaissance portraits, I was like, this style of artwork would work 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 close to nothing. And the business I was running at the time with the pet scarves and 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 built out the whole website.

No coding experience?

No coding experience whatsoever. Just a lot of University of YouTube and trial and error and really rudiments free, 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. 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 Print Our Pet absolutely skyrocketed. The pet bandana 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. 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 inventory, anything like that. It was a pretty cashflow-heavy business and I was able to supplement my rent, everything, low overhead at that time. And I put the products on Etsy and that's where everything really just hockey-sticked and blew up. 2020 ended up being a 7-figure year in revenue.

Holy cow.

Which 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, per artwork coming in. And then 3 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.

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 money on Meta ads. When I launched PrintnRepap, it was completely organic and me posting about it, telling people about it.

So your launch was just you like personally posting?

Me personally.

Instagram, 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 that I had told about it. So it was a low first month. Second month, we saw that climb as soon as we started implementing some ads, which was month 2. 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 on inventory because with the previous business, that'd been a whole 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 $3,000 to $5,000 second month.

Yeah, so month month 1, we were around $1,000 in revenue and all that was just friends, family, you know, and luckily we launched right around Black Friday, Cyber Monday. So we were 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. Exactly. It's, it's no subscription. It's no supplement, anything like that, that, you know, you can get a lot of repeat customers. So month 2, this is when we started running Facebook ads. One of the social platforms I used with the most success was Pinterest at the time. Prior to doing all of this, when I still had my full-time job, I had learned how to 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, 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— Exactly. Yeah. 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. 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 as well as paying for— that's back when different, uh, interest pages like a pet page. You could pay like $50 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 and get a page with 400,000 followers to post a product, which was awesome and doesn't happen anymore. And that's when we were able to climb to anywhere from $3K to $5K. And then month 3 was when we started to see a lot of traction. 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 $10,000 to $20,000 up until the end of October. Our business is very, very seasonal 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. Wow. So we sustained that 10 to 20 all the way from month 3 down to month 10. And you were— it was about that same.

Yeah.

And so the nice thing about the business is through leveraging overseas labor, which by the way, I couldn't say good enough things about the employees we have. They work so hard. Communication's awesome. We primarily A lot of our employees are in the Philippines, so much so I was actually looking at getting 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 to, 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, 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 SKUs that we had were posters, framed 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. But overall, our margins were anywhere from 60 to 70% margins, which were pretty awesome at 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 20, 30% a month. So 20 to 30% this a month that I'm making a profit. So on a really good month, like $8,000, $9,000. On a month that's not as good, we're making like $3,000, $4,000. But luckily my overhead at the time was not very high.

Yeah. So that was your net profit. Gross is 50 to 60, netting 20 to 30.

Yeah. Yeah. Yeah.

And in e-com, 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 what I started realizing with ads, which is why the Facebook ads, as soon as we launched Etsy, scaled down, became nonexistent. Etsy ads ended up being such a godsend, but for anyone that has ran ads on Etsy, there's no guaranteed spend no matter what your budget is. So for example, right now our budget on Etsy is $1,000 a day on ad spend. We'll be lucky to hit anywhere from $100 to $200 a day in ad spend because Etsy determines, yeah, where it, and it's a pay-per-click, which is really nice where you're only paying 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 listing. 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 showing to, 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 ads 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. 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. A lot of people buy gifts then to be able to give to people. So in month 10 this year, we ended up at just over $1 million in revenue. So up these 10 months until then, we're, 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 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. So we had another couple months where we were just seeing about like $150,000 revenue that we had done in 2020. And then Q— end of Q4 2020, November and December, absolutely exploded. We ended up doing over $800,000 revenue in those 2 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. I was hiring new artists, trying to do everything, and that was our first full year. Ended up closing out at just over $1 million in revenue, which— incredible— was insane.

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Email list now is 24,000. Nice. And that's after we prune it every— whenever— with like flows— people— yeah, yeah, we have like a midnight flow and stuff like that. Yeah. End up not interacting with any emails for a while. But the SKUs 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 it a lot. So now we don't just have the normal block style portrait option. We have line art, which, oh, 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 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, um, outside of that, there's no labor and that takes him a couple cents of cost. I mean, less than a dollar to be able to make that, which is nice. And then as far as all the framing options, we've extended, 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—

and then still posters and digital file.

What about AI, like image generation tools?

So I, I've gone back and forth because it's definitely an option, 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 him having the 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 the artwork without looking really off. So we've gone back and forth with it, and right now we're kind of using it as a differentiator because there are competitors that are just using AI for everything. 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 text. Like text was something that was really tough for all the, 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. And because we are leveraging labor overseas, our cost for artists is significantly less than it would be here in the US. 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 with the customer.

I, I'm actually just, I just bought a Mac 4. A mini? Yeah.

I feel like Orphan Clock. Yeah. Yeah. So did I. Yeah.

Did you?

Yeah.

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 and there's all these new, like, I have no idea how to work club, but I guarantee I could go on YouTube. Yeah. And if I spend a week really diving into it, I can figure out how to get it up, 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. As I've been looking into it for sourcing influencers, customer support, uh, via email and live chat, 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, it's, 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 5 pets. And 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. And then the next step is going to go to the different frame styles we have. So we have 3 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 and we just round up 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 for the customer. And if they're willing to pay for it, we're willing to do like, uh, 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. That, 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. 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 if you 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 20% with being able to— what is your AOV right now? It's $90. Yeah, for the online store and for Etsy, excuse, much lower because we sell a lot of digital products there. It's $65. I mean, it's 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 or framed portraits. And you know, even this 2-pack 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 ourselves, but shipping's pretty expensive for all these portraits 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 or—

So I think right now I've proven out that there's a demand for the product, which is nice and helps me sleep a little easier at night. But as far as driving traffic, finding a consistent— because like you said, like in month 1, 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. I don't like selling to people. So any, any ideas, anything? Yeah, I would.

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 and car artwork. And wait, no way.

Yeah, it's very, he even has the line drawing.

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 6, 12 months, and it just wasn't quite profitable enough, and we just kind of abandoned it until a few months ago. We cracked the code. We were profitable on Facebook ads like 4 years ago, and I think we were spending $7 to acquire a $50 customer. Which was great. So we don't have great margins, so we need to be like below 10.

Okay.

Right. But then it just, it got less and less profitable. We'd try every 6 or 12 months and didn't see much. 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 gotta spend more money. You gotta, it's like you need more creative. You need to test more things. And have you ever used HeyGen?

No.

So HeyGen, like, is it 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.

And I've been hit with their ads so many times on Instagram, and like, the stuff they create—

yeah, okay, it's good. But we don't even do that, like, with We don't use any AI in our Texas Snacks ads and our ROAS, our return on ad spend today is 10x at scale. We're spending like $500 a day on Facebook ads and we're 10x ROAS. And it's just because we just feed it more creative. We keep the creative fresh and it's hard. 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.

And how are you gathering a lot of the UGC?

From our early— no, there's no UGC. Just our employees are just filming content like in the store or in the warehouse with 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 ad spend behind the ads that worked. And then after a week or two, you know, the performance dips and then we test new creative and like, that's what we're gonna have to do forever. But that's okay because like we're doubling our sales.

That's awesome.

And our sales have been growing at, You know, but now they're like doing this. That's so all from Facebook ads.

So I guess my, my 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. Because I remember when I initially started, it was like targeting down to interests and age and 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.

Well, yeah. Then how much time have you spent in the Meta Ads Library looking at competitors recently?

Yeah, little to none recently. Um, 2 years ago, I was spending hours a day going through the Meta Ad Library for— we have a really big competitor called Weston Willow and they do A, they're pretty much the exact same product. It was, and they crush it.

I mean, I would just copy them. I would poll your audience and I would poll them and say, hey, like, if you could buy this product for $90 and it was drawn by a human, or the same product, uh, 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? Because sometimes we assume like they want it to be drawn by a human, like that's where they don't always want that. They just want cheaper. And if all of your competitors are doing, using AI models and just printing money, and it's like, do we want to be like dogmatic about our mission or do we want to be profitable?

Because there are, and that's one of the reasons that Etsy has 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 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, I can use OpenSea to generate all that. Like, it's not tough anymore. Maybe a year ago it would have been difficult. Now it would not be terrible at all. And then we'll have people that accuse us, 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, 'cause we wanna save money.

Yeah.

Yeah. But it's actually not.

Have you played with Nanobanana at all? Have you heard of that?

No idea what that is.

You gotta play with Nanobanana. What is it? It's a Google product. It's Google image generation. They're number one in the image generation market.

So Riley was just telling me about that. An hour before you walked it. Yeah, that's awesome. Okay. That— because I've been using OpenSea or just ChatGPT. Yeah, for pretty much all the images.

So I posted a video about how people should start like a lead generation business for home service businesses 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 person. It's like, hey, we could make your yard look like this.

And you just automate.

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 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 they don't have pictures of homes that are—

sell for shit. They're not for shit. 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, for 23 days they're on market for 23 days instead of 42 days if they're staged. Well, why didn't you have it 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 and you could sell your home for $20 grand more. So my point is like Nano Banana is that good that when you see that image it puts out, it looks—

to them, they look like— video animation as well, or is it just—

I think they do. 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 TikTok, Whatnot, and TikTok Live.

I'm, I am really into Pokémon cards.

Yeah.

I own, I spend way too much money on Pokémon and I have like all the vintage cards and everything. And so I get ads for Whatnot all the time.

Yeah.

So it's Whatnot and what else?

And, and TikTok Live. TikTok Live just launched auctions and it's very early. And so basically the, 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?

Built Bars. Whatnot 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 $0.75 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. 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, $5. Yeah.

$10.

It doesn't matter. Use AI to generate all of them. You don't need any of your team in the Philippines, or you could do physical ones. He like, you could do drawings, different styles. You could just pull up like 20 different styles. 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 an 8x12 or whatever for the drawing style. French— oh, $7, $8.50, $8.50. And like, you will make money, but the point is to, is to bring people to your website. Yeah.

Okay, there we go. That's all. I have my marching orders. 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. Yeah, I like yapping. Yeah, that you have noticed.

Hey guys, 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.