I Built A Brand For $500
In this article, we will recap the process of building a brand from scratch with a budget of $500. The goal was to create a million-dollar brand and teach entrepreneurs how to do it themselves. Over the course of six months, we learned many lessons and faced various challenges. Let's go through the steps we took and the insights gained along the way.
Finding a Product
The first step was finding a product that had potential. We used an ad spy tool to scrape Facebook and gather product ideas. Additionally, we explored TikTok for similar products. Eventually, we stumbled upon a cleaning paste that worked well on stoves and surfaces. This seemed like a great opportunity as there were already successful brands in this niche on TikTok.
Supplier and Minimum Viable Brand
Once we identified the product, we searched for a supplier on Alibaba. We had a rough idea of what we wanted, such as a yellow color and a lemon-based scent. We convinced the supplier to do a sample run instead of a large order upfront. This allowed us to test the product and its market fit without significant investment.
Writing Direct Response Copy
To promote the brand, we needed to create effective copy. This involved writing for our Shopify site, Facebook ads, email marketing, Google ads, and even an advertorial. Advertorials are increasingly important in Facebook marketing, and we tailored ours to target moms, our main audience.
Building a Shopify Store
We documented the process of building a Shopify store step by step. However, our focus was primarily on the advertorial, assuming it would convert better. In hindsight, our Shopify store design and conversion rate were not optimal, teaching us the importance of continuously improving this aspect.
Leveraging TikTok for Organic Reach
Instead of relying on paid ads, we aimed to leverage organic reach on TikTok. All we needed was our product and a camera to create compelling videos. Fortunately, one of our TikTok videos went viral, leading to a surge in sales. However, there were limitations due to website conversion rate and lack of credibility as a new brand.
Assessing the Results and Facebook Ads Optimization
Despite having 3.7 million views on our viral TikTok video, the sales conversion rate was relatively low. We evaluated the data gathered through our post-purchase survey, which indicated that TikTok was the main driver of sales. In the Facebook ad account, we analyzed the performance of different ad sets and identified winning creatives that resonated with the audience.
Scaling Strategies and Future Considerations
With $958 in sales during the launch week and stock selling out, we analyzed different scaling strategies for the brand. We discussed two main approaches - interest-based targeting with multiple ad sets and broad audience targeting without retargeting. While the former offers more control and scalability, the latter relies on Facebook's algorithms to optimize targeting.
- Brand building
- Budget constraints
- Product research
- Supplier sourcing
- Shopify store development
- TikTok marketing
- Organic reach
- Facebook ads optimization
- Scaling strategies
- How long did it take to build the brand with a $500 budget?
- What were the main challenges faced during the process?
- How important was the viral TikTok video in generating sales?
- Can this brand be scaled further considering thin margins and potential limitations in organic reach?
- What resources are available for entrepreneurs to learn and improve their brand-building journey?
Note: The FAQs are generated based on the content of the article and may need further refinement for accuracy and relevance.