Bootstrapped to a successful exit with the power of Email Marketing
About The Episode
Show notes:
This week we have EComm brand founder Israa X here to tell the amazing story of how she took a bootstrapped drop-shipping brand from scale to exit within 3 years, by focussing relentlessly on her email marketing. Hear how she prioritised community and deliverability to make sure her emails reached and resonated with her audience, and how investing in her email list as an asset made for an easy sale when she needed to pivot her business due to a difficult pregnancy.
In this episode we cover-
Why market research is so important to create a good brand
How to understand margins to make sure your store stays profitable
Why is copy writing so important for adsImportance of having a face for your business
Why is the technical part of email deliverability important - SPF, DMARC and DKIMHow to build a community around your brand
Why look at your business data regularly
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Full Episode Transcript
Hi Israa. Welcome along to the podcast. It's so exciting to have you here. Hi. Thanks Jesse. I'm excited to be here. Yeah. So my first question to you is, why don't you introduce yourself to our audience? Tell us how you got into e-com, and kind of a little bit about your journey and, and, and how it got you to where you are today.
Yeah, absolutely. I always knew that I wanted to co become part of the online marketing world and I needed to pivot into it. So in 2017, I just jumped in. I you know, I actually had a. Somebody pop on an ad on my Facebook selling a mentor e-com, how to like start up at an e-com store and scale it.
And I actually went ahead and invested in it. And yeah, so I started my store.
It was a cat apparel for cat lovers. And I found a winner and it, and I was able to scale it within like two to three months.
It was a bootstrap store. I actually. Only had what I invested in it money-wise. I did not take on any loans or borrow money or anything like that. So, as you know, with stores and cash flow became a big thing where I needed to learn how to become profitable quickly I used a lot of ads to bring in.
Customers, but I wasn't focusing too much on retention at that point. In 2018, you know, the ads, Facebook ads started breaking, things weren't working well. So I was kind of struggling and I went into focusing on email marketing a the most because I needed to stay afloat during those months before quarter four rolled in.
So how long did you own the store for you? You actually had a successful exit, if I'm not mistaken. Absolutely. So I had, I started the store in 2017, July, July of 2017 is really when we picked up, started ads.
It was scaled. I scaled it to mid, like 300 k figure within those three first three months. And then we found another winner. We were able to scale it even further in 2018. And then at the end of 2018, I was hitting about a hundred k a month. We added, we added Google ads in there, so that helped as well.
So that's kind of like where the store one went. We did about, by the time I completed, we were closer to a million in Revenue when I exited. Yeah. And what I did was I, I actually reached out to a bigger cat store and, you know, the, the selling point was that our retention was strong.
Our email mar our email list was strong and they really liked that. And we were able to like easily transition. The stores asset to them. So they kind of like absorbed it into their business. And I, you know, went on my way to become an email marketer for e-commerce stores. That's amazing. So yeah, a successful exit, within a few years, your labor paid off and you didn't have to take any loans to get there.
That's pretty impressive. And so the success really came down to being really focused on the email side. When you say you hit on some winners, are you saying you hit on some product winners or did you mean you hit on some ad creative that was working? So it was a, it, it was a, I saw a potential in some products, but like I really went heavy on copywriting.
I one of the biggest books I read during that time, cuz I needed a shortcut. I was doing everything myself, was cash advertising. And I actually have like couple of notebooks where I would take each chapter and each, like, cuz there's like eight, I feel like there's eight headlines that you can do. And I would just write and write and write.
Like, I would spend days writing and redoing ads that way until we hit like a scalable ad. And honestly it was a copywriting and it was a product and the social proof that really scaled the ads versus having a nice creative, or my images, I just used still images at that time cuz I, I was not very graphic savvy or video.
So copywriting was big for me. And really speaking to the customers and, you know, appeal, creating that appeal for the product. Yeah, so that's where really took off. Yeah, so we'll link to that book in the show notes. I'm actually a real fan of that book. Also, it has a, a kind of like sleazy sounding name, cash for izing.
But I would recommend anyone in the digital marketing space read that book. It will change your. It will revolutionize the way you approached your copywriting, both on page as well as in your ads and any other marketing you're doing. And it really, the book, the, the premise of the book really is about bringing, I guess, psychological frameworks into how you approach copywriting so that you are pushing those buttons that get people to act and, and take action on an ad or on a page.
We're actually doing a little book club of that. Actual book in my agency at the moment. So it's quite interesting that you brought it up. So, yeah, so I guess what you're saying is that copywriting applied to, I guess, your email marketing as well as your product pages and your ads themselves was how you were able to kind of turn around even without great creative.
Now I know people talk a lot about great creative at the moment, and maybe back then the actual ad creative wasn't as much of a competitive space, but. Anytime you add really great copywriting to an ad, you're gonna elevate the potential for performance. And I've seen, gosh, I remember it was a huge, pivotal moment in my career when I was still freelancing, running ads for a brand, and I wrote some copy.
I didn't use a particular framework that I knew of having analyzed it afterwards, I was doing agitate, pain point solution. But I pushed, I hit a real nerve for customers and I launched the ad. Went away, went, you know, went out for the evening, looked back in the morning, and the ad had gone viral. It was insane.
There were like hundreds of comments. It was like c p a was like this, the lowest that had ever been. And I was able to scale their ad and. And draw like millions of dollars of revenue outta that one ad, just cause the copy was so good. So do not sleep on copywriting, guys. You've heard it from asray.
You've heard it from me. It definitely works. So yeah, I definitely think that's so true. So, okay. Awesome. So you found some winners in terms of crea. So you, you hit on a good product in the start. How did you go about coming up with the idea for your product? I actually did a lot of, Research, you know, market audience, inside market research.
I joined a bunch of groups. I start talking to people. When I launched my store and like, you know, sold only like five or 10 a month, what I would do, I would get on phone calls with those customers and just talk about the experience, talk about what they like, talk about, you know, their actual life because that helped me formulate.
The actual avatar for my store. Like who is my audience, who am I talking to? And I ac and I had I actually had a entire Google sheet with like names and personalities and you know what, they like to show all of that stuff. And back then audience insight was very detailed, right? Yeah. It was great.
So I was able to really create my audience and know who I'm talking to by the second. By the time we hit the second winner, it was, that's the funny part, I actually posted it on our page, our Facebook page, no ads to it, and it went viral. The product, it was just a picture of like, this is coming soon. We posted it the next day went live and it just blew up.
Wow. And then we took to an ad and I was able to create variations of that product for people and it, it actually expanded and create, brought in a different audience than just cat lovers. It was more of it was sunglasses, but it, but it was a different to that, it's a different type of sunglasses that attracted an even bigger audience, which is why we were able to do.
Scale so fast with that. And also the margins were better, you know, as you have to understand your margins. I did not, I did not grasp that at the beginning, but the profit margins, you know, once you understand what you need to do for your store to stay profitable it just becomes easier cuz then you know which products you wanna sell, which products are not gonna be, you cannot like, you know, run ads too, because it's just not gonna.
Yeah, help you be profit award at the beginning. So yeah. Surprising. Well, maybe it's not surprising, but a lot of founders go into this game not realizing that the margin is gonna be the most kind of important deciding factor for how much they can scale that particular product. Yeah. Okay. Cool. So you did.
You did some research, well, you did a good amount of research. It sounds like you were quite detail orientated with that. And then once you started selling products, you started interviewing your customers, which is so key. And that's something I repeat often to listeners, to my people that I mentor and our clients interviews are so important.
And you tailored your copy and your creative around those particular avatars that you'd created. Who for your product. That's awesome. And, and. The store. You had it for a number of years. What was the reason for you deciding? You know, this is, I wanna take a new direction. I wanna pivot towards not being an e-com store operator, but actually working more on the marketing side.
Yeah. So actually in 2019, I, in late 2018, I became pregnant with my third kid and I hit a wall in, I, I was very sick. I was in, in and out of the hospital a lot and it was a very hard pregnancy. And I just knew that the pressure of the past two years really kind of hit home for me at that point, and I just wasn't able, I, I knew that I wasn't in a position to be able to continue at the moment.
But I did wanna stay in the e-commerce world, and I wanted to do what I enjoyed really, and that is to bring awareness and really help small business owners who are starting and scaling at the moment really become profitable and really solidify their, you know, Business and continue to grow. And I feel like that's very, that's really missing, especially with the email marketing.
You have a lot of agencies that will take you on and send you emails, but what I did differently for my clients is I really integrated into their team and, and it was more of like a whole, like a holistic approach to your entire business. How do we get you from point A to z? Profitably and keep you there.
So that's kind of what I really enjoy doing. I love like finding problems and solving them. And, you know, I worked really well with a lot of my clients and it's just what I wanted to pivot into. And now I'm, I'm actually doing more of an educational as well, so, That's interesting. So I love that you successfully managed to exit at the point when you wanted to and needed to.
I think many founders get stuck unable to exit in the way that they want to, like unable to sell their business and they have to either walk away or or they stay stuck in a business they don't wanna be in cuz they can't get out of it. So, yeah, congratulations on that. Thank you. Okay, awesome. So I'd love to talk more about About your new kind of specialism, the email marketing, and especially around deliverability.
So do you wanna tell, like for the audience, what were, what are the what are the problems that. That companies are facing and getting into the inbox and, you know, what's stopping email marketing from being successful in, in the, in the area of deliverability? Yeah, absolutely. So with e-commerce, I always say E-com has it very easy compared to other industries that are doing email marketing because most of the time.
We are opting in because we do wanna hear from these businesses, right? A lot of times, even when you buy a product from somebody, you most likely wanna see them again in your inbox. So it's not, it's not typically like, Hey, you're spamming me. It's more of like, did you set up your authentication correctly?
You know, do your signatures on the backend, you know, match your domain and all that, and, and helps the ISPs like Google, Gmail Yahoo and a o l identify you as the sender and all of that. So, That's like the technical aspect. The reason I touch a lot on that with my clients is because email service providers like MailChip and Clavio, when you sign on, they don't help you.
They don't help you. They have the documents. They just don't put it forefront. Like, they don't say You need to do this first before you start sending. It's more of like a suggestion than a requirement where for me mm-hmm. It's like, no, we have to, we have to do this first before you start sending and, you know, start warming you up correctly.
So can you tell us, for our audience's benefit, what are these technical tasks that you've mentioned that are important for deliverability? Yeah, so the first task is au you know, setting up a dedicated domain, which means you are sending from your actual domain and not the email service provider's domain, right?
So like cla, instead of doing cla clavio mail, you do actually your domain.com. And with that comes your authentication, your DNS records, which is your. Spf F Dkm, and then an added layer of d a C. And those are basically authenticating who you are, saying the signature is yours. This domain key is yours.
It's co the email's coming from you. You know, it allows you to go through the filters at the ISPs, the Gmails and Yahoos a bunch easier. So that's like the top one. The second one is your lists. You should never be using static lists, so people will like, you know, create a. An overall timeless. So you know, you filter people into your newsletter and you're using that same newsletter to send to four years later.
So you have people four years back on there where you should always be doing a dynamic segment, which is based on behavior. So that's a, another big one. And then the third one is really, I've seen this and I was saying that e-commerce are big offenders in email engagement is because they try to follow big brands where, you know, big brands have the budget and they kind of, you know, they're using probably enterprise, they can do much more than you.
Where as, as a small business, you only have so much to get attention. You need to be more personable. You need to really start. You know, using copy that speaks to your audience. Stop hiding behind your business. I always say, if you can put your face to the business, it's so much better for you in the first, you know, when you're first starting out than just trying to be this big brand that you're not.
So those, yeah, I love that. Those top three, those are the top three that I see. Clients really mess up right off the get go. Yeah. So talk to me about when you had your your own econ business. Like what were the kind of big, big changes you made that turned things around for you in terms of your, your email marketing?
I. I, like I said, I stopped trying to, so when I started email marketing, I was doing the same thing everybody else was doing because that's what everyone tells you, just go look at your inbox and do what these big stores are doing. I, I, I realized that, you know, the first couple emails made thousands of dollars and then the, the revenue started dwindling and I realized, This is not how you communicate with your audience, you know, so I, I, with my email marketing, we got more personable.
We added in a lot more feedback loops. Like we did surveys, you know, we a lot of my strategies went away from like, here's more discounts, here's more sales to how can I help you? Make your life better. Like, are you a cat mom who you know loves her cats and stays home with 'em and adores 'em? Or are you like somebody who volunteers at a shelter or something like that?
So, you know, how can we like help your organizations spread the word? I actually had a campaign behind my store and I. I was very passionate about it. The declawing banning declining declawing in the us. That was a big passion project and we donated often to help get it banned. And we, I believe we were part of couple of states that banned it during the time my store ran.
So that was like big attaching a purpose and really following through. And email was pivotal for me because I was able to communicate straight to my audience with that information. So I kind of, I mean, I use email more as a communication first, revenue second, and I mean, that was like the big change for us.
So, interesting. So you build a community around your brand. So tell, I'm curious, I know it's got nothing to do with econ, but Declawing, why do people do that? They think it's just like cutting the nail where it's really cutting the second knuckle on the cats. Mm. And, and a lot of people don't know that.
So there's a big camp, educational campaign out there, I think. Her name the, the campaign is called City Kitty and she actually leads these legislations of trying to ban it right when I was, yeah, when I was there. I think they banned it in New Jersey and some other states and I believe in Canada as well.
But yeah, it was a, it's a big thing. People don't know about it. People really think, you know, cuz doctors are telling 'em it's just a nail, but it's not. And it causes problems as they get older, the cats. And it's painful for them. So. Oh, poor kitty cats. Right. So, yeah, no, I love that. I love that getting behind a cause and creating a sense of kind of purpose around the brand.
That's awesome. And what were you doing kind of like surveying your customers, asking them questions so that you could like segment them based on their kind of interests? Yes. So we, we did a monthly survey through campaigns where we'd asked them, you know, What are, what are their passion projects?
Where can we or they can like vote on. Which project we should donate to next. So one of the other projects we actually donated to was like a no-kill shelter. A whole thing about like suspicious and black cats not being adopted. So during October, that was a big one that we did. Just like they, I mean, if you talk to your audience, they'll tell you exactly what they want.
And you just serve it back to them. And that's how you create like a very happy overall system, you know, between your business and customers. I and like I said, people, you know, rack their brains trying to think, how do I get customers? And I'm just like, ask them. That's it. Yeah, ask them. Like, even if you run an ad survey, just ask them.
People will tell you. It's not, it's really not that hard. Like I think we're. As business owners, we get scared sometimes, especially like, do I wanna hit this first send? Am I gonna get replies? Are people gonna be mad at me? And it's, you gotta get used to that. You know, that's a very uncomfortable thing.
But if you're gonna be a business owner, I think you need to be able to speak to your customers. So, yeah. And what did your email program look like? How many emails a week were you sending? Like campaign wise, how many flows did you have set up? Yeah. How much revenue was coming through email. So flows were we did about 10 flows.
Some of 'em were customized, like to surveys or tests, but I mean quizzes, but other ones were the main ones, like a pop-up flow. If we were driving audiences from social media, we would have an opt-in there as well, like, If you enjoyed this content, you know, sign up to our newsletter or sign up to our email and we'll send you more of it, kind of thing.
We had the abandoning card, the browser abandonment, the post purchase nurture, the winbacks, the replenishment. All of that was you know, set up for us. I, I mean, I had all that set up. I'm, I'm a big, I'm a big person with automations flows, so that's like one thing I really focus on because I believe.
That's how you really find out from the get go what your audience are interested in and what offers to keep going. As far as campaigns, we did about four to five email campaigns a week, but it varied. You know, we did some giveaways, we did some quizzes. It wasn't always like a sale. You know, testimonials.
Product lights, all of that lovely stuff. So yeah, and I presume of course not everyone on the list is being sent all of those five campaigns, they might be one campaign to one segment, one campaign to another, one campaign to like you're engaged or your VIPs, so you're not actually bombarding people Right.
As much as maybe that sounds, but I love that. Right? Like five times a week. And here's a really successful story and what's so interesting about your story is you were able to sell even in a very kind of tough moment. Because you had such a robust email marketing program with committed customers, you owned that.
No one owns that audience on Facebook that you bought to buy ads. And that can go away in an instant. As we know, your email marketing is an asset that like makes your business more valuable, so I love that. Yeah. And we were doing about 20 to 25% on a, I mean, and, and I wanna mention that it wasn't drop ship to private labeling, but.
Drop ship still works if you do it right, is all I have to say. Yeah. I know people are, you know, get iffy about it, but getting your, you know, getting everything aligned and doing it correctly and setting expectations. Any business model works is just the communication aspect has to be there. Yeah. So your drop shipping model, were your products unique deal or could they have bought them somewhere else?
So we started, I actually found my, you know, just like everybody else on Alibaba or whatever, I found my products there. But what we did was whatever products we found and people liked, we improved them. So like, Hey, I like this purse. But here's the things that I would rather have in it. And I took all that and I made my own, basically.
Yeah. So we kind of like fit it into like how do we make this product even better? How do we get people to buy more of it? So that's kind of what I did. I went from drop ship to like private label. You know, using a three PL and all that, so. Okay. Yeah. So private label being, when you, for the benefit of the audiences, that's when you have your products are produced for you specifically.
And they might just be a tweak on something mainstream, but it's something that they can only get from you. Yeah. Okay. Awesome. And I guess the reason why successful, even with Drop, because you were still essentially creating a brand. That people trusted with a human being behind it that understood its customers that cared about its customers.
And that's where I think drop shipping gets a really bad name, is because there's these bros, as you said, that come along, they think they can just flog a whole lot of shit. They don't care about their customers. They don't build, they're not building a brand. They're not there for the long term.
They're just trying to make a quick buck by selling something for more than they bought it for. And that's always gonna be a race to the bottom, isn't it? Yeah, absolutely. Yep. Yeah, that, that was a big issue. It was, it was bad because it puts a bad rep out there. But the, you know one thing, the email did what for us is I actually had a flow set up where I set people back to my ads to put their testimonials.
Hmm. Amazing. I was like, Hey, you love this product, go to this ad and put it down, because it's social proof and it really, it like boosted our ads like crazy. Wow. I think I was like, our. Our can, you know, acqui acquisition was like $5 at that point because that's insane. People were like, ok, it's a legit business.
You know, people are saying they're showing their products on there. So that is a nugget. Everyone write that one down. So let, let me understand how you did that. So in the email flow to a post, a post-purchase email flow to someone, you're asking them for a review, but instead of sending them to your site, you are giving them the ad link.
The Facebook ad link, which will then load up that ad on their, on their, if they log into Facebook and then they can like directly comment on the ad. Wow. That I've never actually heard of anyone doing that, but that's amazing. Yeah, and the way I did it is I set up an email where at like in CLA view, you can do like a property question.
So like, are you satisfied with your purchase if they clicked yes. They went to that floor and I said, Hey, you're satisfied. Here. Go put the positive ad up. You know? Yeah. Where if you're not satisfied, we kind of send them to a, how can we help make it better? Yes. So that's kind of mitigating the risk of them trolling your ads.
That's so awesome. Yeah, and like I guess the messaging, again with you having built this kind of strong relationship with customers, the messaging can be along the lines of help our small business grow. You know, help us make more happy customers like you. We, we wanna, you know, we are just a small business.
Help us out. That kind of thing makes people more willing to wanna help than they would if it was Nike or whatever. Love that tip. That's awesome. What else have you got Any other cool tips like that, that you kind of discovered that were like nice little hacks that worked well? I. I mean, for me, like, like when I said when I go into email marketing and I love, I enjoy doing it is because it helps me enhance the other platforms.
It helps us enhance our seo, it helps us enhance ads, it helps us enhance your organic social. So nothing that happened on email did not make it to our. Other platforms because if it worked in email, it's gonna work outside. And that's something people miss. You know, you have a lot of businesses on like Instagram and they're doing so much organic content.
They're like, I'm growing, but nobody's buying. And I was like, why aren't you sending this to your email like your email is? So it's the same thing, like everywhere. The messaging should be the same. Even if you, I'm like, don't give everything away on organic cuz. Yes, people see it, but you don't have a clue who's seeing it.
There's a lot of lurkers who don't click, you know, they don't love your contact or comments, but they're, you know, watching it. Why are you giving everything for free? Put them back into your system where you can actually control your data and know what's going on. So for me, Anytime you are advertising organically or paid on any platform, there is some type of opt-in form for you to come back into the email system because that's the only data you truly own in your business.
If everything shuts down today, that's all you have. And my other tip for you is you should download your email lists often because you can get kicked off of esp. Or your account shut down and you are not able to access your email list. So my biggest, you know thing that I teach people is download your list.
Often. If you don't drive a lot of traffic once a month, it's fine. If you're driving like thousands of people, you should download it every week. Wow. So that is an awesome tip. I'm gonna go and do that straight after this. Love that. Okay. What's that? It's your business. I said keep it in a safe spot. It's your business.
Totally. Yeah. So anything else you would advise for our listeners before we jump in? I think, you know, for, for econ, if you're starting out or if you're scaling There's a lot of noise online. There's a lot of people that can derail you quickly. Your data is your best friend. Stop. Like, even if you feel like PO imposter syndrome or whatever it is, you, you are paralyzed in your decision or you think you're failing, don't compare yourself because there's so much behind the business that no one talks about.
You know, try to understand your, your money first, like how everything is set up, your profit lost sheets. Try to become profitable, figure out, like be money smart, be math smart, be technical and just look at your data and, and your audience, like what works for your business is not gonna work for everybody else's business and vice versa.
Cuz I see a lot of people on Twitter. I just joined Twitter a couple months ago and everybody's, you know, doing these amazing things and I'm just like, yes, but our lives are so different. You know what I mean? Our businesses are different. Totally. My success is not compared to yours at all, and I feel like a lot of small businesses fail because they quit too soon due to this like online facade of too much information.
Yeah, I think that's so interesting. Like, I think they call it toxic positivity, and I think it's, it can be really, it can be really difficult for businesses where you've just had. You know, you might have suffered some kind of setback or failure, and you go on Twitter and all you see is people's successes.
And actually, I tweeted about this today. By definition, doing well in business requires failure. It requires you to get stuff wrong so that you can get stuff right later. Like if there's any business that's done well, it's because they've learned from their failures, not because they got everything perfect straight away, time after time.
That would just be one hell of a lucky streak. And I, I would, I would believe that by the time they got to the top, once something went wrong, they would just crumble cuz they wouldn't know what to do. So, yeah. But by definition, social media has to share. People have to share their successes so they can win more clients.
They can't always tell those failures, but actually it's their failures that have probably got them the success in the first place. So I think we should all remind ourselves of that. And yeah, I see that with founders, the ones that are willing to keep failing, dusting themselves off, learning from it.
Those are the ones that ultimately succeed. The ones that just freak out and switch stuff off and run away when the first sign of failure, they're the ones that end up ultimately quitting. So, Yeah. Yeah. And I mean, a lot of these founders sometimes forget to mention they've been in the, in this game for like 20 years.
Exactly. And you've been in it for six months. There's no way we don't even talk about failure. I'm like, this is a learning lesson. Like, yeah. How do you pivot? How do you go on from here? This is you, you learned a way that it doesn't work. How do we go on and make it work like, Yeah, that's all it is.
Yeah. I think we get, perspective is big and I, I, you know, with my clients, I always guide them with that. Like every time they're like, oh, we didn't do so great this month. I was like, Let's look back to last year. How do we compare? Mm-hmm. And just looking at that, you know, puts things into perspective and people are like, okay, we are, you know, we are growing, we are doing better.
But yeah, when you're in thick of it, it's just everything is muddy. Yeah. And we are constantly moving those goal p goalposts further and further away, rather than focusing on how far we've come. It's so true. Absolutely. Yeah, we could definitely talk for a while about this topic. I'm definitely aligned with you on this.
It's it's one of the biggest things, really, mindset in business and like how you kind of navigate those failures. But we will leave on that note. So where can our listeners find you, follow you, et cetera? We'll, we'll link these in the show notes. Yeah. So I do have an educational platform for e-commerce.
If you wanna learn about email marketing or deliverability or maybe you just need help, it's called the win box.com, T h e W i n b o x.com. We also have an Instagram page at the_winbox, and I put out a lot of information on there. I also have in the link in the bio ask me anything so you can submit your.
Email questions there. I'm more than happy to do videos and post them for everybody. And I'm also on Twitter, so you can find me on all those platforms. Twitter's is at esra underscore the inbox. And yeah. Awesome. Will everyone go and follow Esra? And she's the real deal and her content is awesome.
So go and follow her and. Consider yourself better informed for having done so. Thanks for coming along, and we'll look forward to chatting to you again, Israa thank you for having me.