You’re reading edition #7 of the LaunchBoom Newsletter, which is sent every Tuesday to thousands of product creators.
I’ve currently writing this newsletter while taking a break from reading the book Sapiens. It’s not new, but wow – it’s so good. It’s fundamentally changed my understanding of human psychology.
Have you read it?
Actually, don’t answer me just yet.
First, check out what I have for you today:
- How Pepper Cannon went from Kickstarter to Indiegogo to Shopify and built a 7-figure e-commerce brand.
- Why pricing literally changes our perception of reality.
- The commonality between artists and entrepreneurs.
Enjoy!
Contents
1. Short Story
Pepper Cannon’s journey to a 7-figure e-commerce brand.
In November of 2020, Cleve launched the Pepper Cannon.
One month later, we had raised 1.1 million dollars on Kickstarter.
Eleven months after that, we had raised another 1.9 million dollars on Indiegogo InDemand.
One year more, we had driven 3.7 million dollars in revenue on his Shopify store.
Here’s how we did it.
Cleve Oines is the founder of MÄNNKITCHEN and creator of the Pepper Cannon – a pepper mill that produces 10x the output of normal pepper mills.
He launched the Pepper Cannon on Kickstarter on November 4, 2020.
As you can see in graph below, revenue growth was consistent throughout the entire campaign. The traffic came almost entirely from Meta ads.
By the end of the campaign on December 3, 2020, Cleve had driven $1,104,732 in presale revenue.
When the campaign ended on Kickstarter, we immediately transitioned to Indiegogo InDemand.
Indiegogo InDemand allows you to continue your crowdfunding campaign. There is one main difference between a regular Kickstarter or Indiegogo campaign and an Indiegogo InDemand campaign – on InDemand there is no end date.
That means you can continue to take pre-orders indefinitely using Indiegogo InDemand.
Another major perk of InDemand is that it will start your campaign with your funding amount from your main crowdfunding campaign.
As you can see below, Pepper Cannon’s Indiegogo InDemand campaign started at $1,104,732, which was the total funding amount on Kickstarter.
While Cleve was busy manufacturing inventory of his Pepper Cannon, we continued to take pre-orders with InDemand – running it from December 3, 2020 to October 5, 2021.
We drove an additional $1,912,922 in presale revenue through InDemand, bringing the total presale revenue up to $3,017,654.
Like the Kickstarter campaign, the revenue was driven almost entirely from Meta ads.
After Indiegogo InDemand, we transitioned to e-commerce.
After twelve months of presales, we knew how to advertise profitably for the Pepper Cannon.
We took those learnings and did the following:
- built an e-commerce website using Shopify
- built email automations using Klaviyo
- drove traffic using Meta ads
We didn’t reinvent the wheel.
We used much of the same imagery, copy, and ads that worked on the crowdfunding campaign to build up our e-commerce strategy.
By the end of the first year on Shopify, we had driven $3,760,615.60 in revenue.
If you want to create a 7-figure e-commerce business, this is the path you will likely follow.
- Launch a crowdfunding campaign.
- Continue taking presales on Indiegogo InDemand.
- Leverage what you learned and scale through e-commerce.
If done right, the result will be a 7-figure e-commerce store like Cleve.
Ready?
Talk to a LaunchBoom Expert about launching your product.
You can check out our Masters of Crowdfunding podcast interview with Cleve here:
2. Marketing Tip
How price affects our perception of reality.
The easiest way to change the perception of a product is to change its price.
That’s because a product’s price point has a huge effect on someone’s experience of that product.
There have been many studies that support that claim:
- Better taste: in 2008, researchers found that participants reported greater enjoyment of wine when they believed it was more expensive, even though the wines were identical.
- Better performance: in 2005, researchers found that participants performed better on a cognitive task after consuming a more expensive energy drink, even though the drinks were identical.
- Better effectiveness: in 2008, researches found that participants reported greater pain relief from a more expensive placebo pill compared to a cheaper one, even though both pills were identical and contained no active ingredients.
Price has a significant impact on our perception of a product’s quality.
Price your product accordingly.
3. Favorite Content
Entrepreneurship is art.
My first true love was guitar.
Even though my dreams of becoming a rockstar transformed into becoming an entrepreneur, I’ve always considered myself an artist.
Because I believe that business is a form of art.
Learn to launch your product in 5 minutes per week.
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