Byron Walker, founder of e-commerce brand Survival Frog, breaks down product unit economics and supplier margins for items sold on their storefront.
0:00 / 0:13exact quote · 13.3s
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“Probably 15 to 16 dollars goes to the manufacturer. Then three dollars goes to shipping, because we typically factor in free shipping. And then we'll keep 10.”
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Paid email sponsorships typically convert at 3% to 5%
“Conversions obviously depends on the offer, but conversions typically around three to five percent.”
Byron WalkerAug 23, 2016▶ 5:18EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
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Email list brokers secure better ad pricing than going direct
“It's better and far better to go to a broker. I'm a list broker and the list broker is going to get you better pricing. You would think the middleman would, Somehow increase prices. No, they're, they get you a much better price.”
Byron WalkerAug 23, 2016▶ 7:05EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
Insight
Drop shipping is great in concept but tough on profit
“Drop shipping great as a business model on concept, tough on profit.”
Byron WalkerAug 23, 2016▶ 9:32EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
AssertionNot checkable as stated
Survival Frog generated $4.7M in revenue in 2015
“So we sell physical products in the survival and preparedness market like an e-commerce site. And we did 4.7 million last year.”
Byron WalkerAug 23, 2016▶ 1:48EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
AssertionNot checkable as stated
Info product 'Sold Out After Crisis' did $20M in three years
“And we sold, I would say probably twenty million dollars worth over three years.”
Byron WalkerAug 23, 2016▶ 3:21EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
AssertionNot checkable as stated
Over 500,000 customers purchased 'Sold Out After Crisis'
“Well over 500,000.”
Byron WalkerAug 23, 2016▶ 3:38EP 395: Survival Frog Does $4.7M in 2015, 25% Gross Margin, 10% Net with Founder Byron Walker
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