After 7 years of consulting and doing CRO for eCommerce stores, my company just signed it's 1st equity deal with a hot new jewellery brand killing it on TikTok.
These guys are grassroots at the moment and only doing about $15K per month in sales. But here are some reasons why we started working with them:
1) High margin product
2) Low shipping costs
3) Strong social media presence
4) 40% repeat purchasers
5) Founder is hardworking, knows their product/market, and we have good vibes together
Other than that, it's a tear down. The site is basic and converts at below 0.5%. Ads channels are not profitable. Email marketing is basic/none existent on many levels.
For those asking why I didn't just start the company myself and own 100% my answer is simple. I'm good at data, marketing, and conversion optimization. All the product stuff – sourcing, product design, customer service, inventory management, social media – are not my skill set.
But I'm still curious, did I miss anything? What else should I consider before making this move to partner with eComm founder?