284: The Story Behind The SwitchPod With Pat Flynn And Caleb Wojcik
Today, I’m actually comfortable to have my buddies Pat Flynn and Caleb Wojcik on the present.
The cause why I’m having each of those 2 on right this moment is to speak about their extremely superior invention, the Switchpod. In truth, I’ve one on my desk proper now and it’s the principle handheld tripod that I exploit for all of my movies.
In right this moment’s episode, we’re going to interrupt down each facet of their invention from how they received the thought, how they manufactured it and the way they managed to exceed their Kickstarter marketing campaign in only a day.
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Intro: Welcome to the My Wife Quit Her Job Podcast we are going to train you find out how to create a enterprise that fits your way of life so can spend extra time with your loved ones deal with doing the issues that you just love. Here’s your host Steve Chou.
Steve: Welcome to the My Wife Quit Her Job Podcast. Today, I’m actually comfortable to have my buddies Pat Flynn and Caleb Wojcik on the present. Now Pat’s about on the podcast quite a few instances and I’ve recognized Caleb for a few years. And the explanation why I’m having each of those two on right this moment is to speak about their extremely superior invention the change pod, and I’m truly at my desk proper now and it’s sitting proper there. It’s the principle handheld tripod that I’m utilizing for all my movies right this moment. In right this moment’s episode, we’re going to break down each facet of their invention from how they received the thought. How they manufactured it and the way they managed to exceed their Kickstarter purpose in only a single day. And with that, welcome present Caleb and the way you guys doing right this moment?
Caleb: Doing nice. Thanks for having me.
Pat: Dude. Awesome. It’s nice to be again. And so we’re speaking a couple of bodily product now as a result of..
Pat: It’s bizarre. It’s completely different.
Steve: That’s truly my first query. So you guys are each very profitable within the digital product realm like, why bodily product? It’s much more work?
Caleb: You form of begin with that. I so, I make movies for a dwelling for shoppers and for myself and I’ve a lot gear. I’ve a lot gear on sitting in my storage proper now, which is simply my studio and there’s tripods and cameras and every little thing all over the place. And I’m the kind of particular person simply will get irritated by stuff. Like why doesn’t this do that factor the way in which that I need it to, and I feel it was simply form of Pat and I in the identical place on the similar time having the identical frustration seeing different individuals coping with it the form of led to our first bodily product collectively.
Pat: Yeah. I imply for me, I imply I’ve been in a digital area for a decade and I’d have by no means I by no means thought I’d have even entered the area the piggybacking off of what Caleb was saying was simply there was a really very obvious want there for each of ourselves personally. And the place this concept got here from is definitely, we have been at an occasion it was a video occasion known as Vid Summit and we simply observed all people with these flexible tripods and..
Steve: Is it known as gorilla or one thing like that?
Pat: Yeah, GorillaPod and we observed all people utilizing them in ways in which they weren’t actually constructed for. Loads of vloggers, Thanks to the inspiration from individuals like Casey Neistat and Peter McKinnon. They have been taking these gorillas pods placing the legs collectively and bending them in a technique to enable for the digicam to be slightly bit additional away from you so you may get a wider angle. I imply that’s not what they have been meant for and it was fascinating as a result of once we have been there, we observed all people like after they wish to put it down they might both simply lay it down on the desk and the digicam can be touching the desk which isn’t ever good for the digicam. Or they’d wrestle opening the legs and so they attempt to put the legs again collectively and it’s form of clunky within the arms and we have been identical to that is insane. There’s received to be a greater method, after which proper at that second our good pal Richie Norton who owns an organization known as Prouduct they assist entrepreneurs take their bodily product concepts and truly flip them into actual issues.
He helped John Lee Dumas create the Freedom Journal for instance, and we’re identical to Richie. Do we now have this concept? Like, what do you suppose? He’s like, let’s do it. And we’re like, like truly do it. And for me, I used to be like, I don’t wish to become involved with this as a result of that is that is going to be a load of labor. I like digital stuff as a result of I can change one thing in a single day after which it’s shipped and you already know, I don’t have to fret about you already know overhead or stock or something like that. But once more, the necessity was there and I noticed it in particular person. I feel that’s what impressed us and Caleb was the primary one to actually give you the thought of just like the legs of a tripod coming collectively to be a grip and like what if they simply swung out and you could possibly flip it into tripod mode tremendous quick and like from there. We simply began asking questions and speaking to individuals and that’s actually how it began.
Steve: So you met Rich at its Summit is that the place all of it got here collectively?
Caleb: Even earlier than that Richie was on Pat’s podcast. I don’t know what occurred earlier than that. But Richie received on to Pat’s podcast speak about bodily merchandise and he and Derral Eves who’s the Founder of Vid Summit, the occasion invited Pat to come back there and since I do stuff with patterns movies I Came as effectively.
Steve: And have you ever guys ever created something bodily earlier than or it’s simply all digital up till this level?
Pat: I imply for me it was all digital aside from like at a workshop. I’d have slightly booklet printed out after which it was solely like, you already know, 425 attendees, however I’d I had no thought what manufacturing was like I had no thought what the method was like by way of prototyping and not to mention find out how to promote this factor. Just we simply knew that we might probably give you product. Now, I had written a guide known as Will It Fly and I wished to include that course of with the Will It Fly course of which is what I used to show individuals find out how to create companies, which is like Taken Iterative Approach like don’t simply construct the product after which simply begin promoting it proper? I feel it was Seth Godin who stated don’t discover prospects on your merchandise discover merchandise on your prospects and we wish to take that method of like okay, let’s take it in a child steps and can solely maintain going if we get a inexperienced gentle each single time.
Steve: Yeah, let’s discuss concerning the course of as a result of it’s one factor to only give you one thing that you just wish to promote. Like I come up these concepts on a regular basis and making it as a very completely different ballgame. Okay, so let’s begin from the start so you already know you was I wish to create one thing. What was step one?
Pat: Hey Caleb, do you bear in mind what we did first?
Caleb: You know, the very first thing we did was we drew actually crude drawings of what this tripod might appear to be not crude in like inappropriate method..
Caleb: But identical to not in a gifted method. I imply, Pat has an structure background, however Pat, I feel he did most of that on a pc, proper? So
Caleb: Your little higher drawing than me so
Steve: You imply like a CAD drawing or only a photoshop form?
Caleb: No, it was simply form of like white boards at accursed and sketches and issues like that and the very subsequent step from there was we talked to an engineer, his identify is Cole Chamberlain and he works with prouduct and he took all of our drawings in addition to simply our concepts of what does this factor want? What is it not want what form is it in all that form of stuff. And I feel that was perhaps a half-hour cellphone name and he got here again with began to do CAD drawings and issues like that and making 3D printed prototypes and sending them to us and that was like months lengthy of simply sluggish regular. Trying various things. We nonetheless had no thought the place it was going to go at that time.
Pat: Yeah. I imply one of many first issues we received despatched again to us after speaking to Cole was like only a piece of plastic and even what sort of appear to be cardboard slightly bit however simply in a selected form and he was like, do you want the form or like perhaps it’s slightly longer perhaps we are able to make this curved Edge extra straight after which he’s like, okay like after which he received that suggestions from us after which he despatched us a 3D printed mannequin which truly labored prefer it, the legs open and shut after which I bear in mind opening and Like spring began coming out and I used to be like, that is ridiculous. But I imply it like I might see it now I might visualize it and we even like put our cameras on it to check what it could be like we shared it with a pair individuals we received suggestions instantly.
And that’s actually what the entire course of was prefer it was like, you already know start line get a prototype speak about it with individuals get suggestions make one other prototype with these little modifications after which speak about it with individuals once more, and I imply I feel over the course of two years, proper Caleb? We got here up with I don’t know what number of prototypes however with every one, We received suggestions from actually our buyer our future buyer. We went to video conferences. We went to VidCon. We went to vid Summit once more the subsequent 12 months with no matter prototype we had and so they weren’t good in the entire goal was we simply wished individuals to inform us what they preferred or didn’t like about it. And the great thing about this was even within the Prototype part. We had individuals go. Oh my gosh, like I want this proper now we even had different individuals go. This is essentially the most ridiculous factor I’ve ever seen I’d by no means use this.
And you’ll be able to you’ll be able to think about at some extent the place you’re providing your stunning thought to any individual and any individual says that that which may like deter you from to maintain going however no that’s that I knew from my on-line enterprise years, however that’s a very good signal as a result of then you’ll be able to go. Okay inform me why you don’t prefer it and now we are able to higher Define who this isn’t for and likewise, who’s it truly for. so we are able to hone in on who our Market is and all that. So we actually honed in on the vlogger or the Travel Photographer that the journey videographer. Who’s on the go and this factor turned over time this tremendous light-weight minimal very simple fast open easy-to-use not flexible legs as a result of most individuals who use the gorilla pod don’t want it to wrap round bushes and it simply you already know as a lot as we created. This was truly created largely by the individuals who provided us suggestions.
Steve: How did you discover these individuals for suggestions? I imply, I can perceive going to a convention however the place you simply form of like holding this factor on the market and simply asking random individuals or did you have already got like a group constructed there?
Caleb: I imply it was in personal for Initial thought was October 2017. And till June 2018. We form of saved it beneath wraps. We didn’t share it on social media. We didn’t inform anyone that wasn’t our pal. So it was simply if somebody got here to the studio to movie a YouTube collaboration with Pat, we’d present them we’d present it to YouTuber buddies of ours. I took it to a video convention known as NAB in April of 2018 confirmed it to my buddies which might be..
Steve: Is this the plastic prototype? or is that this like one thing near completed?
Caleb: No, these are these are plastic.
Steve: Plastic? Okay
Caleb: They’re completely different shapes. Yeah, the elements are breaking off of them as we’re exhibiting them to individuals, you already know, tremendous early. So it was it was Private till VidCon and that’s once we began sharing it publicly to whoever we might on the occasion by yeah carrying it round form of swing it out to the aspect opening and shutting it simply within the hallways and other people like me. What is that? Like, I wish to test it out. So that was form of the primary time we publicly shared it
Steve: supplying you with an thought of, what number of iterations you guys needed to undergo to form of get to the product that I’m truly holding on my desk proper now.
Caleb: If we versioned it. Like software program and every bodily factor we made was a brand new model someplace between 12 and 15. I’d say.
Caleb: Some modifications main like form modifications materials modifications. That’s form of early on then we form of honed in on the form. And from there. It was the minor issues. Like does it have magnets in it? Does it want an additional gap right here that kind of factor
Pat: And it was at VidCon once we shared it publicly we have been ready to try this. We received some I imply once more, we didn’t know what we have been doing. So at any time when I I wish to do one thing that I don’t know find out how to do. I simply go discover any individual who’s performed it earlier than me and you already know, see what I can do to assist them so I might get some some assist again to and we received a number of nice recommendation from people who find themselves like, okay, like you’ll be able to share this privately with buddies that you just belief. But till you have got a patent pending, you may wish to maintain it beneath wraps simply in case and so it was proper earlier than VidCon that we received our patent-pending going. Thanks to Caleb and the analysis that he did with that.
And then we have been like, okay, let’s simply share it and I knew that that was an vital second as a result of not solely have been we sharing it to get much more suggestions In a public discussion board with people who we didn’t know, That was the opposite half about this a number of us create merchandise digital or bodily and we share with our buddies, or like what do you consider like, that is superior such as you received this and naturally, they’re simply eager to be good versus precise suggestions from actual individuals who you don’t even know you who don’t have a relationship with you.
So that was vital however I additionally knew that sharing the story of it being created was going to be massively vital for the advertising and marketing of this and that’s one thing that I’ve at all times performed since day one was like Hey guys, let me take you in on our course of. Let’s not maintain this a secret. Let’s present you the place we’re at and what we’re what we’re fumbling by and the way we’re messing up. But what we’re making an attempt to do to get higher and over time. We began to note individuals actually rooting for us. It was it was actually wonderful to see that, you already know, even main into the kickstarter marketing campaign earlier, February 2019.
I imply, I personally had quite a few individuals who say hey Pat, I simply purchased the change pod. I don’t even want it. I simply actually loved following the story and and I knew that that was going to occur as a result of if you get individuals concerned within the course of, they are going to make investments. They really feel like they’re part of it and so they wish to root for you, which was actually cool.
Steve: Can I get an thought of how a lot you guys spent it within the design course of and form of what the price issues have been and truly fabricating them, the supplies and the method and that kind of factor?
Caleb: Leading all the way in which as much as the kickstarter Campaign, which was most likely in complete about fifteen fourteen or fifteen months and that timeframe you’ll be able to right me if I’m unsuitable, however I feel it was someplace round 25 to 30 thousand dollars in complete.
Pat: Yeah, It wasn’t all up entrance. It was fairly iteratively
Caleb: It was like just a few thousand for the, yeah just a few thousand for engineer work on it just a few thousand particular person prototypes get made 50,000 extra to do extra engineering. So it’s form of like sluggish and regular over that 12 months or so. And then in the direction of the top every prototype value about $1500 and we ended up having 4 of these once we launched the kickstarter marketing campaign. So as I vital chunk of our funding was simply these one-off completely machine items of aluminum in order that we might have them for taking images making movies delivery them to influencers in the event that they wished them that survey.
Steve: and right this moment is it created from a mould or
Steve: Okay and the way a lot did the mould value to really have that created?
Caleb: That was the preliminary funding purpose for Kickstarter was $100,000 as a result of that might have given us the cash again. We invested okay and the mould value so, you already know about $70,000 was the mould and that doesn’t rely making any of them at that time after which you need to pay for every one you make and getting it right here and tariffs and all that.
Pat: Ugh tarriffs. Yeah.
Steve: We’ll get into that slightly bit. So, Pat you have been simply speaking about marking slightly bit. Why did you each determine to do a Kickstarter of all issues? Most individuals don’t know that a profitable Kickstarter requires you to form of drive your individual site visitors. So I simply form of curious what the thought course of was there.
Pat: Yeah. I imply it was much less about probably getting a employees choose the place then you already know, the advertising and marketing begins to form of propel by itself however we actually like the thought of Kickstarter as a result of we knew that Kickstarter is a superb platform to not simply take a look at concepts and have individuals vote with their dollars. But once more is means that you can turns into a trusted platform to share your story on and to get virtually a group behind you on the similar time as a result of individuals can see that different persons are pledging and so they’re backing that turns into concerning the thought versus identical to hey, I wish to promote you one thing. It’s just like the journey that received you there too. And what this might do for you.
We additionally knew that video gear particularly carried out very effectively on Kickstarter to lots of people within the video area a really acquainted with different merchandise which have been pushed on Kickstarter and it’s performed very effectively. Along the way in which, We additionally linked with a few of these corporations within the video area who did very effectively on Kickstarter and so they offered a number of nice recommendation for us as effectively. But Kickstarter we knew can be an ideal place to only take a look at this on a trusted platform. And probably have it, you already know not essentially go viral, however get get some further love if it was doing very effectively what you probably did if it turned the primary digicam, I feel accent or Camera and Video accent for fairly some time through the marketing campaign due to the hope the rate that it had however that that’s the first cause.
And you already know, we didn’t use Kickstarter like many different individuals use Kickstarter a number of Products that come out have like 12 completely different pledge ranges with t-shirts to present away or you already know, hey if the At this bigger pledge degree you’ll be able to you already know get a flight come meet us and issues like that. We simply have been like, you already know what let’s make this straightforward. We’re not going to have a number of colours. We’re not going to have a number of sizes. Just one SKU one product. We’re going to make it one of the best product that may be over going to ship it or going to ship it hopefully on time and I feel we did fairly good when it got here right down to it.
Steve: Yeah. I’m at all times slightly anxious about kickstarters as a result of a number of them don’t ship ultimately. I knew you guys ship you have been going to ship. So I imply that added a bunch of additional credibility to it.
Pat: I nonetheless am owed issues that I purchased two years in the past. And humorous the humorous factor about Kickstarters, you’re proper there’s a little apprehension as a result of individuals have been burned earlier than and there’s no contract if you buy one thing on Kickstarter that’s required for the individual that you purchased from to provide the product. It’s virtually form of based mostly on the consideration System or belief and we wished to be sure that we communicated with the backers and delivered for them on time and you already know, we have been in a position to after the kickstarter marketing campaign ended on the finish of February or early March get it into all people’s Hands by early October which not having mould even created but at that time. I feel we did fairly good.
Steve: How did you guys determine on pricing for this?
Caleb: I imply you take a look at rivals you take a look at what different persons are charging for related issues in addition to revenue Margin. You understand how costly is it going to be to make this factor after which ship it and retailers are going to need their lower it when it’s in shops and also you’re promoting it to them for a lower cost. So a number of completely different a number of completely different issues additionally going with the place we are actually, retail at $99 is form of a candy spot, you already know, not too costly. Still is double digits that kind of factor after which we Backed off from that for the marketing campaign to present individuals a very good deal in the event that they have been early backers.
Steve: So you most likely had some margins in thoughts proper? And I’m simply form of curious how that factored into form of the design course of.
Caleb: For margins factored within the design course of?
Steve: Meaning like for instance, such as you use magnets or no matter sure elements are dearer. And so that you wish to maintain it beneath a sure value level proper with out compromising the standard of the product.
Pat: Under a sure value level not compromising high quality and likewise as few elements as attainable, that was the opposite factor. We had much more elements and issues that have been concerned earlier that we have been identical to, okay, let’s redesign this so we are able to make it simpler to mould and simpler to create and and simpler to ship and assist so there aren’t very Many elements of it. There are some issues contained in the the kind of head space of the tripod that you just see there that you already know are form of inner however there’s not a lot we eliminated rather a lot. So yeah, I feel you already know once more piggybacking off lots of people’s earlier expertise with going into Kickstarter.
We knew that if we might get the product to only the options that we actually would want to unravel the issue that we have been we have been fixing then we might have larger revenue margins for positive. I imply oftentimes with these sorts of merchandise and I see this on a regular basis within the digital areas, particularly with software program. You get what’s known as characteristic creep the place you get that suggestions and so they go I need this. Okay. Well I had that. Oh, I need this and I’ll okay. I’ll add that too. And then you have got like this, you already know, just like the distant that you just get from AT&T U-verse. It has like a billion buttons on it and also you solely truly use four, like we knew that we wished to go together with okay for like, analogously we would like the distant that has on, off, Channel, quantity, mute. Like that’s it.
Like how can we create that model of a tripod and I feel we did a very good job. So the They helped us with figuring out the worth pointing and being comfy with that as effectively as a result of typically we go. Oh, let’s undercut all people. But clearly the revenue margins play a task in that however we additionally don’t wish to be ridiculously costly and go tremendous premium. If we don’t must, we ask inquiries to individuals who we have been assembly like at VidCon like Caleb would simply, I bear in mind listening to our conversations that you’d be having and also you simply put you’ll simply go. Well, how a lot would you pay for one thing like this and we might actually simply hear the vary and the vary was between eighty and 100 fifty dollars, which was actually fascinating.
And we’d ask why? that’s one of the best an important query in order that once we select to determine to cost it at that we are able to assist it with issues that our target market truly needs versus stuff that we are able to simply make as much as make it look like it’s price that value. We can truly assist it with actual prospects reactions and it was actually cool to see or not it’s in that value vary. And you already know once more, we simply have fortunately the benefit of being in an area the place individuals usually pays for issues that they don’t want. And you already know,
Steve: Haha yeah.
Pat: If we might design one thing that individuals want and it’s superior and it really works and it’s sturdy then we knew it could be a winner.
Steve: So if you requested why I’m simply form of curious what solutions you bought like why would we do..
Caleb: They would say effectively the factor they’re holding value that a lot and so is straight away comparability
Caleb: As effectively as, they felt the standard of it. So at VidCon we did have the primary aluminum prototype and it was steel and durable and powerful made individuals put their cameras on it and they also might get a really feel for, Okay this isn’t some low-cost plastic factor. And in order that additionally form of offers individuals the sense of high quality to it.
Steve: I’m simply form of curious how a lot you Leverage The Spy viewers or have been these backers a number of them individuals that you just met by the video Community?
Pat: The SPI backers. I imply there have been fairly just a few as a result of once more, I’ve some raving followers who will form of purchase something I come out with which is basically wonderful and I’m simply tremendous grateful for that. But I do have lots of people who observe me who’re additionally entrepreneurs who do video and naturally Loads of them. I wished to assist and so they have been simply within the goal market as effectively. So that that was fairly, I feel truly they didn’t truly, they have been there however however it wasn’t nearly all of the backers. It was it was Caleb’s viewers for positive and Caleb has a number of ties to individuals from all ranges and experiences within the video area that have been very influential and undoubtedly wished to assist as a result of that’s his Niche. But I feel the most important pull for us Beyond simply the product itself and I say that as a result of the product is when you see it. You both go I’d by no means purchase that otherwise you go I want this proper now in my life. Right?
Pat: It’s that polarizing and I like that about it as a result of it form of sells itself. I bear in mind we have been at NAB earlier in 2019, and we went to this convention in Vegas and Caleb and I have been strolling round with our change pods and it hadn’t come out but. It was nearly to it had simply launched on Kickstarter and two guys got here as much as us and I like is that the change pod? I’ve been listening to all about this and we’re like, yeah like test it out and so they’re like, how did you guys get entry to this? We have been like, we’re the inventors and that was one of many coolest emotions you keep in mind that Caleb? Because like they didn’t know who we have been and that to me my enterprise has at all times been tied to me and now I used to be like who the product is basically doing all of the work
Caleb: Yeah. I really feel like that’s when you already know, it’s beginning to take off when different individuals you don’t know or aren’t in your viewers are assigned to speak about it and it occurred pretty shortly for just a few causes. One of them was, I had some buddies which have greater YouTube audiences that train Production or do digicam gear opinions and issues like that make movies after which we had one other greater influencer make a video and so proper on day one. It was already greater than us and our audiences.
Steve: I’m simply form of curious simply form of on the bodily product aspect additionally on the manufacturing aspect. Did you guys truly go to the manufacturing facility is every little thing assembled abroad or?
Caleb: So, I went visited the manufacturing facility in August of this 12 months. So a couple of month and a half earlier than we received our stock within the US simply form of the final minute Quality test as they’d the road all arrange about to do the run of ten thousand plus change pods, I went to the manufacturing facility. But earlier than that product of the individuals we’ve been working with to develop it over the past two years. They had been to the factories a number of instances
Steve: Okay, and by way of managing high quality, what have been some pitfalls that you just guys have skilled and I think about these are inspected on the road and on the finish as effectively, proper?
Caleb: Yes, and I additionally missed one in every of your earlier questions. Yes, they’re absolutely assembled in a manufacturing facility in China after which they’re shipped within the packaging that we ship it to individuals to prospects by our warehouse within the US. As far as high quality, I imply like Pat stated there’s solely so many shifting Parts however a few of them are so vital that if you happen to mess it up it might spoil the product. So if the screw is just too lengthy on the prime of the tripod, which we realized by growing it for 2 years both a digicam gained’t match or will match and that kind of factor. So, It was simply these last-minute issues to ensure every little thing was good. I might maintain it in my hand. Make positive it was functioning correctly. And to be trustworthy. There was one factor that if I wouldn’t have gone or if the product staff would have gone and caught one thing it might have been a serious concern.
So yeah, I feel if you’re making one thing no less than have them ship you them so you’ll be able to like give a last sign-off earlier than they make a number of them as a result of it’s simpler to make a product one off from, Okay, a CAD drawing to spec if you’re paying some huge cash and so they’re exactly measuring every little thing however after getting molds and also you’re making 10,000 of them and you’ve got lots of people on meeting line placing collectively, that’s the place small little modifications can occur and over a number of items that may be a serious headache.
Steve: You guys have any hiccups throughout manufacturing. I imply 10,000 items is a reasonably good-sized manufacturing run.
Caleb: I feel one of many advantages of how we did that is we trusted the individuals we’re working with we trusted prouduct to search out factories that might do the completely different elements to color them to package deal them that kind of factor. So we trusted professionals do it. Pat and I’d not have been in a position to go to China and discover factories that made tripods like you already know, Honestly, there’s no method and so far as points although. We had additionally been working with them for a couple of 12 months. So that manufacturing facility was making our prototypes for like virtually a 12 months.
Steve: Got it. Okay.
Caleb: For delivery, so They knew the product in addition to we did in addition to our engineer did and once I was there in China, I confirmed them like hey, take a look at this. This this may not be working. Okay, four engineers that I by no means met earlier than that stay in China and work on this Factory went to work within the subsequent day. I got here again and I like okay we mounted it. This is what we’re going to do. And in order that’s I feel simply the good thing about being okay to rent different individuals to do stuff for you.
Steve: Okay, let’s shift over to advertising and marketing slightly bit. We talked concerning the kickstarter already, however the kickstarter is over now and so how do you generate Great gross sales now and form of what’s the advertising and marketing plan going ahead?
Pat: Yeah, I imply, so earlier than we skip over it there was an important second that occurred and Caleb kind of touched on it slightly bit and it was one of many huge influencers on the market within the video area who truly created a video for us and that was a extremely vital element as a result of that I imply his attain and is unbelievable and the factor is we didn’t pay this particular person to do that. He did it on his personal however it was a, I wish to I wish to say it was strategic, however it was additionally simply natural on the similar time. I don’t wish to say like, oh, I’m the one cause we constructed this relationship was in order that this might occur however it was only a pure conclusion to the connection that we had constructed and we had met this man at a convention. I spoke at vid Summit 2018. This particular person was additionally a speaker and so we met one another on the VIP social gathering afterwards and that’s one in every of my favourite causes to talk isn’t just the time on stage.
It’s the time exterior of the stage and the individuals that you just get entry to. Anyway, I used to be launched to this particular person is his identify is Peter McKinnon, and clearly it could have simply been a dream for him to even like point out our product in a tweet not to mention create a video for it and we have been simply very very delicate to the truth that effectively we didn’t need him to ever really feel like he was being taken benefit of so once we shared the change physique with him, you already know again at this VIP social gathering, you already know, we did movie that however we by no means use that footage and we have been identical to very grateful that he actually preferred it. He truly wished to take it dwelling, however it was our solely prototype that we had we wanted it to get the kickstarter marketing campaign going and we have been identical to Peter we’re gonna get a prototype made for you have been going to ship it to you and we don’t need something in return. We simply need you to know. Enjoy it and use it. And we knew that if the product it could it could it was imagined to do he would actually take pleasure in it and you already know, hopefully at some point he would create a video and put it in his like what’s In My Bag movies or one thing that I often does and that might that might have been superior, however we despatched him one.
We put it in a very nice package deal. We wrote him a handwritten observe and we despatched a personalised video as effectively and simply stated Thank you and didn’t count on something in return. But we requested if he wished to join an associates program in case you wished to to market it for us and simply to present again to him if he did and you already know. We despatched him the video on wistia or is thru wistia, which is a video internet hosting platform. The cool factor about wistia is you’ll be able to kind of see what number of views there are and it was a non-public video and once we noticed one view on it, we’re like, oh my God, he watched it. What do you suppose he’s gonna do after which after which we didn’t hear something again after which, you already know six hours into marketing campaign midway to our purpose already on our personal $50,000.
He got here out with this video. It simply blew my thoughts. I used to be actually in tears watching it as a result of I used to be like an eight minute video all about how we love this even stated like these guys, Caleb and Pat they got here as much as me at this occasion. They didn’t pay me to say this. I simply suppose that is the subsequent huge factor for vloggers and we have been identical to, oh my gosh, after which after all the gross sales simply went by the roof. After that. We had reached our funding purpose of $100,000 in 11 hours and 26 minutes, which it was a 60-day marketing campaign. So we have been identical to wow, that is like Caleb stated a lot greater than us at this level. But then shifting ahead such as you stated the kickstarter marketing campaign ended. Now a pair issues proceed to occur individuals proceed to speak about it and seek for it even in Google and they’d The kickstarter marketing campaign web page and I feel you already know, even after the Sale, Caleb did some very strategic issues to level individuals from the kickstarter web page even after the sale to our Shopify web page.
We already had it prepared by the top of the marketing campaign and I feel Caleb I don’t know what the share is, however a majority of our gross sales no less than early on after the marketing campaign have been nonetheless coming from individuals discovering that Kickstarter marketing campaign, proper?
Caleb: Yeah, we nonetheless get site visitors that individuals sort in change pod on Google and it goes to Kickstarter after which they click on to Shopify after which they purchase.
Steve: If you promote an Amazon or run any on-line enterprise for that matter, you’re going to wish a trademark to guard your mental property. Not solely that however a trademark is completely essential to register your model on Amazon. Now, I used to suppose that any previous trademark registration service would work and that might even attempt to register my very own trademark on my own on a budget, however I used to be useless unsuitable. Securing a trademark with out a technique in place often ends in both an outright rejection or a nugatory unenforceable trademark. Now, that’s the reason I work with Stephen Wagner and his staff from Emerge counsel. They have a package deal service known as complete TM, which gives the identical consideration to element and course of that enormous regulation corporations do at a fraction of the worth. Now for me personally, I like Emerge Council due to their philosophy, their purpose is to maximise IP safety whereas minimizing the worth. So earlier than you determine to register a trademark by your self or file for different I might safety similar to a copyright or a patent, try Emerge counsel first and get a free seek the advice of. For extra data go to emergecouncil.com and click on on the Amazon sellers button and inform Steve that Steve despatched you to obtain a $100 low cost on the overall TM package deal for Amazon sellers. Once once more, that’s emergecounsel.com over at emergecounsel.com now again to the present.
I do know this has been a point out of change pod with a bunch of different YouTubers. Have you performed any handbook Outreach or has been just about natural?
Caleb: Definitely handbook Outreach.
Caleb: Yeah, I imply we had suppose we most likely had seven or eight individuals make movies through the marketing campaign that really had their arms on the change pod.
Steve: Are these buddies of yours. Like how did you get individuals to really point out them?
Caleb: Yes, and so all however one in every of them Peter being the one in every of them have been buddies I had earlier than we ever did this or buddies that Pat had so like Sean Cannell and Justin Brown and other people we had met at conferences and Levi Allen and different people who I knew that made movies about it. So that was just like the marketing campaign technique. And then since then we’ve made just a few extra prototypes earlier than we went to Mass manufacturing despatched these to some buddies of ours as effectively. But you already know now it’s natural. So we ship all of them in mid-october a couple of month or so in the past, then it’s natural. Then it’s all these people who have been again the mission at purchased it on Shopify and on the market speaking about it.
Pat: Yeah. I want the unboxing video. Like there are actually a number of unboxing movies that come out each week now from People who get it, which I feel is to begin with, we additionally put a number of effort in designing the packaging. It’s very it’s a really good expertise. We wished to be very apple-like and you already know, you open the duvet. It says like for, made for creators by creators. We wished to have individuals really feel like they have been part of this course of too. And we wished to honor them as creators and it is a instrument to assist them create extra and it’s you already know, we’re creators as effectively. The different factor is simply you already know, like I stated the unboxing movies and simply exhibiting an increasing number of people who an increasing number of persons are utilizing it. There’s like a social proof component to this and Caleb and his spouse Jen have been doing an ideal job of managing the Instagram Channel. If you go to our Instagram web page, I don’t know what number of followers we now have.
Steve: You received like 5,000 or 6,000 one thing.
Pat: Yeah, and that’s simply been we haven’t paid for any of that. And then once we see an unboxing video or any individual share their photograph of the change pod, we seize that we give him credit score, however we submit it and simply form of Honor them as a person and thank them for it and other people have been actually artistic with how they’ve been utilizing it as effectively and placing completely different elements on it and completely different rigs. We have some holes on the aspect that Allow you to place like lights and different arms and extensions on it and we’re simply tremendous tremendous stoked. We haven’t but even paid for promoting.
And we all know that after we stand up on Amazon, which is form of what we’re in the course of proper now. We can profit from some PPC campaigns and issues like that to hopefully you wrap this up and take it to the subsequent degree for positive.
Steve: Let me ask you this if you happen to didn’t have these buddies on YouTube. What would have been your technique for outreach?
Pat: I feel you already know for me and I’ll let Caleb communicate after, however I feel it could nonetheless largely be influencer based mostly advertising and marketing for me as a result of that’s what I do know I’m good at and I understand how to handle these relationships in a method the place individuals don’t really feel like I’m like I can I can serve individuals and have them serve me again and that’s what’s helped me get to the place I’m digitally and I knew that might assist me with with product, you already know bodily product stuff. So I’d nonetheless go to I’d pay for the power to go to those conferences and share it and permit individuals to make use of it and even movie with it. I’d be primary. And then quantity two, I feel a you already know, extra strategic Facebook advert marketing campaign that targets videographers or maybe even a YouTube advert marketing campaign.
I wouldn’t have minded to place slightly little bit of a little bit of a finances into some advertisements as a result of if you see this factor, it’s like oh my gosh. Yeah, so like, you already know a video advert would carry out very effectively. And once more, these are issues that we now have in our pipeline. But proper now we’re simply form of cruising and you already know, we’re wanting ahead to the vacations and seeing what occurs now as a result of we all know issues choose up round This time a 12 months and also you’re simply actually excited. I do know Caleb what would we now have performed in another way if we didn’t have these relationships?
Caleb: That’s I feel that’s exhausting for me to reply as a result of I’d simply return in time and meet individuals like you need to you need to community. You need to have individuals in your business in your buyer base which you can connect with it. You can get suggestions from as a result of not solely within the advertising and marketing method, but when we weren’t people who made Videos and we did know individuals have made movies. We wouldn’t have made a very good product as a result of we’d have recognized what they wished and we wouldn’t have gotten suggestions. We would have simply work silently and thought that they wanted one thing and so I feel it was essential that we did have connections and we had been constructing them through the years.
And there’s additionally had a extremely lengthy gestational interval of you already know, it took us a 12 months to get to our last prototype, our 99% prototype after which one other 12 months from that until it was in individuals’s arms. So we had two years and even when we had zero Network at first you discover the occasions to go to you determine the individuals you wish to meet and also you attempt to meet them in as natural method as attainable. Not in a chilly e mail, Here, Try my product.
Steve: Yeah. Yeah. That was the purpose. I used to be making an attempt to get to the listeners on the market as a result of lots of people come as much as me and so they go. Hey, so I received this product. How am I going to get individuals to market it now? It’s at all times a course of that the place you need to form of develop these relationships forward of time. Without asking for something to start with in any respect.
Pat: proper, so, okay.
Pat: So as I say you gotta dig dig your effectively earlier than you get thirsty as a result of if you happen to’re digging your effectively, you’re already thirsty your form of it’s not going to be a very good scenario.
Steve: So recording this proper now Black Friday is subsequent week to get some context. Do you guys have any plans?
Caleb: When is it popping out?
Pat: We had some plans and Amazon’s been a really fascinating factor to become involved with as a result of you already know, we now have our Shopify account and that’s performing very effectively. We even have our product in some retail shops already on-line together with B&H Photo Adorama.
Steve: How did you get them to hold your merchandise?
Caleb: Right now there’s 5 of them so I might discuss by every of them individually. Number one, B&H. I’ve been at B&H affiliate for a few years the place they ship me a product for 30 days. I could make a video. I exploit video hyperlinks. I ship it again that kind of factor. So I developed a relationship with my affiliate rep. Pat and I have been in New York City simply exhibiting individuals change pod and we tried to get a gathering with Buyer one factor led to a different we ended up assembly, whereas we have been there and so they have been . Adorama was natural truly, they reached out through the marketing campaign. So somebody on the staff was simply form of keeping track of Kickstarter merchandise and so they had heard about it. What Have You, Focus Camera was much like that simply chilly attain out second, which is an organization that makes smartphone lenses together with instances and different issues.
They even have a store the place they promote a bunch of video photograph gear. I had truly linked with them through the marketing campaign. To get recommendation as a result of I used to be utilizing their Kickstarter marketing campaign as form of a framework to find out how to make the web page find out how to present the supply pricing all that form of stuff. And then the final one which we’re at proper now could be DVE retailer and we met them in particular person at Vid Summit this 12 months and so they wished to order some and put some in inventory. So form of a case-by-case foundation and sure, there are greater shops and larger alternatives sooner or later, Target, Best Buy, Walmart, What have you ever. And DME the opposite day is like how will we even try this? We don’t know. So we’ll determine it out as we go.
Steve: How does the association work? Is it do you do they pre buy a bunch of items or like what’s the association appear to be?
Caleb: Yeah, so all of them purchase it after which they’ve the stock. So we’re not direct delivery for any retailers proper now.
Caleb: So they get it at a wholesale value as a result of they deal with returns delivery holding the stock that kind of factor and so they make their margins on that.
Steve: Can we speak about money movement for slightly bit appears to be like such as you guys are promoting on a bunch of various channels? So Amazon your individual retailer after which these stores presumably to make these, you already know tens of hundreds of items. It’s some huge cash concerned up entrance. So I’ve there been any points on the money movement entrance and what’s your plans for that?
Caleb: We’ve been protecting it tight.
Pat: Very tight.
Caleb: however it however in a strategic method. So we mainly, after the kickstarter marketing campaign you get a giant payout Kickstarter takes their share. There’s a bank card payment share. There’s churn, you already know, people who again the marketing campaign that didn’t again it. And so the $415,000 public quantity you see just isn’t what we received in addition to a big chunk of that someplace. I feel round 40 to 50,000 is only for delivery out all of those switched pods to the four,000 backers. So we had a giant chunk of money in our checking account. And we did the maths of what number of change pods. Can we make get them to the US Pay tariffs ship them out to our backers and never run out of cash and that was about ten thousandths Switch Pods and so we had solely bought at that time rather less than 5,000 change pods.
So we mainly double certain we took our chips from one desk, we stroll to the upper restrict. We set all of them down and we are able to fling and we’ve made a pair selections like that the place Pat and I haven’t taken any cash out of change pod but and we are attempting to degree this as much as the purpose the place for a bodily product to actually reach to be in a number of shops you want stock. If you don’t have stock, you don’t make any cash. So we’re making selections to repeatedly ensure we now have stock in addition to if you happen to get all of it made At as soon as, it’s cheaper as a result of I must ship it throughout without delay and also you get higher unit trigger and that kind of factor. So we haven’t made one other batch but. We’re most likely going to make one other batch within the subsequent few months, however that additionally comes right down to timing and money movement and retailers. Retailers take their internet 30 no matter to pay you as so it’s a number of it’s a number of timing.
Steve: So you’re going by this primary vacation season with mainly that preliminary I assume you have got 5,000 items left or what number of years you have got left and that’s what you’re dwelling with do these Holidays.
Caleb: right. Yeah, in order that 10,000 included the 5,000 or so Kickstarter after which what we’ve bought since then so we nonetheless just a few thousand. Yeah.
Steve: I simply wish to let you already know that tickets for the 2020 Seller Summit are on sale over at sellersummit.com. Now what’s vendor Summit? It is the convention that I maintain yearly that’s particularly concentrating on e-commerce entrepreneurs promoting bodily merchandise on-line and in contrast to different occasions that target inspirational tales and high-level BS. Mine is a curriculum-based convention the place you’ll go away with sensible and actionable methods particularly for an e-commerce enterprise. And in actual fact, each speaker I invite is deep within the trenches of their e-commerce enterprise entrepreneurs who’re importing giant portions of bodily items and never some high-level guys who’re overseeing their corporations at 50,000 toes. The different factor I can guarantee you is that the Seller Summit will likely be small and intimate yearly we lower off ticket gross sales at only a couple hundred individuals. So tickets will promote out quick, and actually, we promote out each single 12 months many months upfront now if you happen to’re an e-commerce entrepreneur making over 250Okay or 1 million dollars per 12 months, we’re additionally providing an unique mastermind expertise with different prime sellers. Now, the Seller Summit goes to be held in Fort Lauderdale, Florida. From May 6 to May eight. And proper now, we’re virtually bought out of Mastermind tickets already and I will likely be elevating the ticket value usually beginning the day after Cyber Monday for extra data, go to sellerssummit.com. Once once more, that’s SELLERSUMMIT.COM or simply Google it. Now again to the present.
Steve: Yeah, and I’m positive it’s going to promote it over the vacations, which implies I’m placing mine up on eBay child. No, I’m simply kidding.
Caleb: That was fascinating. They have been instantly on eBay as quickly as..
Steve: Is that proper? Haha
Caleb: Yeah, there was some on eBay for greater than what you could possibly purchase it from our website once we have been delivery from our website. So, I don’t know if individuals truly bought them or not, however he’ll do what they wish to do.
Steve: So I form of wish to conclude this interview by simply form of speaking about like the most important ache factors that you just’ve had in getting your bodily product off its toes in comparison with your experiences n the digital realm?
Pat: Yeah for me.
Caleb: I’d say value and endurance however go forward Pat.
Pat: Yeah for me is simply sufferers. Like I like issues to maneuver quick. I, within the digital area can movie a course and created and launched it and earn a living from it inside per week and a half and or two weeks and and to have this take so lengthy and each little iteration take so lengthy. Every little change needs to be very purposeful as a result of was meaning then the cad drawings have to vary after which it has to get remolded or like all that stuff is to be factored in after which you already know, even proper now this simply the affected person’s of working with Amazon’s customer support staff.
Pat: I simply I’m identical to pulling enamel and and pulling my hair out and having a lot enjoyable doing I feel that’s what’s gotten me by this the truth that in that is what I do on SPI is I construct new issues and I share the method and and it doesn’t at all times go completely and I like that as a result of it at all times turns into a lesson for different individuals so it has gotten me by is simply the true life case research that I can then share to assist others who perhaps are attempting to or occupied with doing one thing related however that’s been the most important problem for me for positive is that has been the endurance.
Caleb: For me. It’s been value and revenue margin as a result of like that was saying digital course, you’re taking a look at what 95 % 97 % revenue margin on that?
Pat: It’s ridiculous. Yes
Caleb: And bodily product. You’re fortunate you’re taking a look at 50 to 70 %
Steve: Well that’s gross. I imply, yeah, that’s gross too. But yeah, yeah. so which form of leads me again to my unique query, which I requested within the very starting so digital versus bodily. What are what are the principle Pros that maintain you guys going for this?
Caleb: I feel it’s simply enjoyable like doing one thing bodily could be very enjoyable. It’s very completely different. It’s challenged me to study a number of various things to study once more a few of the stuff I realized once I studied Supply Chain administration in school. So once we simply decks and packaging and all these various things in addition to it’s open doorways for Patton eyes Network that a digital factor simply merely couldn’t do. To get to fulfill sure individuals to be in shops to repeatedly simply study several types of enterprise that we are able to now share with individuals and and use no matter Ventures we now have sooner or later. That’s been that’s been one of the best half is the enjoyable the connections and it may well additionally simply be greater. I feel. Because of bodily product, Typically I feel can assist extra individuals. So they’re simply extra individuals concerned than your e book or your course or what have you ever.
Pat: For me. It’s the look that an individual has after they pop their digicam on there and so they use it prefer it’s like, you already know if you’re in a Tesla and also you any individual like simply throttles it after which you have got that like loopy smile. Oh my God, like that’s the second like there’s a second with bodily issues I feel could be very fascinating. That it’s simply not in existence within the digital world. Like I can’t give my on-line programs any individual and sure, they is likely to be enthusiastic about it, however they’re not going to have the ability to use it or get worth from it till they, you already know, do it till they take motion on it versus like I can hand any individual to change pod and so they simply that is precisely what I want. They put it on there like sure, and so they’re already utilizing it like inside 30 seconds.
It’s simply it’s simply so completely different and that to me is simply been actually particular and I that’s what retains me going and you already know as a result of any profitable enterprise on-line or offline, It’s concerning the buyer and to have the ability to create one thing and to serve them shortly and to only two individuals throwing away their previous tripods now as a result of they received what they actually wished or what they actually need is rather like, so cool. It’s I like that feeling
Steve: So having performed each myself. I discover bodily merchandise extra secure and fewer upkeep to a sure extent as soon as every little thing’s out the door, whereas digital merchandise. You continually need to re-film or maintain updated with All these issues whereas bodily merchandise that preliminary hurdle preliminary funding is basically giant. But as soon as it’s on the market it’s typically simpler to keep up.
Pat: so that you’re saying we’re in a great place now?
Steve: You are you guys have already met the biggest hurdle or one of many largest hurdles, I’d say and you then’ve received all these equipment which you can add on to it. I’m unsure if that’s in your future plans, however
Pat: Ah yeah
Steve: And sky’s the restrict man.
Pat: This guys and I’m actually excited and there’s undoubtedly extra upside right here within the bodily product area aspect as effectively. Not all digital is one thing that should at all times be maintained to I’ll battle again on that like a thoughts set course for instance, like stuff about mindsets are going to vary however if you happen to’re making a course about you already know, social media, I imply you modify that like each week so that you’re proper.
Steve: Yeah, and you then guys have an asset that’s much more sellable now to than a submit a digital course.
Pat: that’s right.
Steve: As effectively. So I’m excited for you guys. I actually love the product. I noticed that you just stood on it at did I see you final so I attempted standing on mine and it went nice and my children truly climbed on me. As I used to be I used to be like whoa whoa whoa simple children. I don’t know if he can deal with all you guys as method however it truly did. It’s very sturdy product and it’s now my go-to tripod.
Pat: That’s superior. Thank you, man.
Steve: I simply wish to shut, the place can individuals discover this in the event that they wish to purchase it?
Caleb: You can go to switchpod.co
Steve: Switchpod.Co and if it will get bought out in Ebay, is that the place the
Pat: Find, Steve.
Steve: I’m simply kidding guys, however glorious product. I’m wanting ahead to all of the New accent bulletins and every little thing and better of luck to you, and if you happen to guys ever want any assist, that is my realm, so you probably have any questions on Amazon what not be at liberty to hit me up.
Pat: Thanks, man. Appreciate that rather a lot.
Caleb: Thank you.
Steve: All proper. Take care.
Hope you loved that episode. Now if you happen to’re available in the market for a handheld tripod then exit proper now and choose up the change pod. I’ve one proper in entrance of me proper now. And it’s an ideal product I exploit for virtually all my movies right this moment. For extra details about this episode. Go to mywifequitherjob.com/episode284.
And as soon as once more, I wish to thank Kaviyo for sponsoring this episode, Kaviyo is my e mail advertising and marketing platform of alternative for e-commerce Merchants. You can simply put collectively automated flows like an deserted cart sequence a submit buy movement or win again marketing campaign. Basically, all these sequences that can make you cash on autopilot. So head on over to mywifequitherjob.com/klaviyo. Once once more, That’s mywifequitherjob.com/klaviyo.
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Outro: Thanks for listening to the My Wife Quit Her Job Podcast the place we’re giving the braveness individuals want to begin their very own on-line enterprise. For extra data go to Steve’s weblog at www.mywifequitherjob.com