This listing is for a new eCommerce store, but it is already generating an incredible amount of profit. Started by a master of Google Advertising, he found a bit of white space in the world of electric skateboards and went to work building a store and starting to build an audience through clever search console ad campaigns. Take a read and see if this might be the one for you!
Tell us a little about yourself. What’s your background?
I’m originally a Chicago native that decided to head his way out west for college where I attended Arizona State University, #1 in Innovation (#2 Stanford, #3 MIT). (that’s a huge inside joke around the community since everyone knows ASU is a joke). There, I attended the W.P. Carey School of Business where i studied Global Politics, which led me to a study abroad program in Barcelona where I took a course on e-commerce.
It was then that I realized the power behind digital advertising and the freedom it would create. In 2016 I started my first company, Toro Luna (www.toroluna.com) which is an e-commerce watch brand I still run. After college I started working for advertising agencies in Palos Verdes (remotely) and an agency in Scottsdale.
I was managing up to $1.5 million annually in ad spend before I left the last company I worked for and am now managing my own book small to medium sized businesses with some fraternity brothers. I love traveling the world, snowboarding, going out to socialize/network, go to clubs, etc.
What is your return on ad spend for your Google ad campaigns?
690% (I have spent $3,750 in ads and have had just under $26,000 in revenue). In Google Analytics, half of the revenue is categorized in other places for reasons I can explain on the call. Google Analytics has a poorly integrated attribution system with Google Ads for conversion value.
How much time does it take to run the business, who else is needed on the team, and what is automated?
I would say I spend 5-6 hours a week on the business. Some weeks much more (like when I was creating it), some hours less. I oversee all the blog creation, come up with the brand ideas, set the framework for the store, and I manage the Google Ad campaigns. I hired someone to handle all the Klivayo e-mail funnels, abandoned cart funnel, etc. The products can be easily ordered through Oberlo and Sm7rt Fulfillment (shopify app) but I do have a spreadsheet as well with all the products, pricing, margin %, as well as the link to the product on Aliexpress (I prefer to do all ordering manually, this was my first dropping store and don’t fully trust automation haha). I would say a strong marketing person is needed on the team to scale this company, it has tons of potential
This is a young business, why are you selling so soon?
My friends and I started a marketing agency two months ago and that is taking up just about all my time with some of the projects we’ve been taking on. I was never passionate about electric longboards, or this business, but I am great at branding and e-comm. This was also my first sting at dropshipping. I saw an opportunity on Google for low CPCs, and knew that even with a low conversion rate the electric longboard idea was a definite win. I know that to make this grow into the multi million dollar dropshipping company it can be, it is going to take a lot of time. I would rather exit and when the time comes for someone I’m passionate about, use the money from this sale to fund that.
Can you list a few opportunities for a potential new owner to continue growing the business?
Facebook and Instagram Ads. Primarily dynamic product remarketing, video marketing, etc. The remarketing list is fairly large, so once the new owner starts building out video content and marketing to users who have been to the site via Paid Social I’m sure that’s when it will really accelerate. I never took the time to learn Facebook, as I’m a Google guy and I never got around to hiring someone to build out the campaigns.
Another opportunity is SEO. I have also tons of blogs in the “depository” related to “electric longboard” “electric skateboard” “boosted board”, and other related keywords that should be posted once or twice a week to help grow organically in the search engines.
I had generated full lists (shops name, store owner, e-mail, phone number) of skateboard shops in the USA. If the new owner was to hire a virtual assistant to reach out to the stores for wholesale, there could be some big money in that.
Amazon ads. I have no experience with Amazon PPC ads, so I never got around to that.
Expanding on product listings, maybe adding a line of regular longboards (since the domain name is so strong) or helmets, accessories, etc