In this episode, Matt Lady shares how he overcame personal struggles to launch Civitas (shirts for DTC marketers) An experienced Paid Social marketer, Matt identified a gap in the market, catering to the niche of direct-to-consumer marketers. He invested in great design, high quality product (forgoing the ease of a print-on-demand option) and bought 450 shirts in 8 styles. He has already started to sell through his stock and planning his next release. 9 months ago, he was in a different position, overcoming physical and mental challenge. Matt shares his journey to launch and grow Civitas in this episode of Cart Overflow. Check out his collection at www.shopcivitas.com (use code PODCAST15 for 15% off at checkout)
LINKS MENTIONED:
Civitas Website: https://shopcivitas.com/
Use Discount code at checkout for Civitas tees: PODCAST15
Connect with Matt on Twitter: https://twitter.com/mattladydigital
Brands and marketing that Matt likes:
HIGHLIGHTS:
2:05 - How Matt overcame personal challenges and struggles to launch a niche Direct-To-Consumer clothing brand
9:23 - How he built an audience from scratch and built hype for his pre-launch
14:31 - How Matt strategically builds profitable paid ads campaigns
19:58 - How Matt finds success using paid ads to increase repeat purchases and Lifetime Value
Welcome back to another episode of Cart Overflow, the no fluff podcast for e-commerce marketers. today we catch up with Matt Lady. He's at a very exciting moment in his journey, as he's about to launch his new brand, Civitas. I initially came across Matt because he's very active on Twitter ads, a lot of value shares his process and journey in launching his own e-commerce brand.
But not too long ago, Matt was where many of us have been, without an idea of what to sell no audience to sell to, but an itch to start something.
Fast forward nine months to today, and Matt is officially launching his new brand. So it's a super exciting point. He's already sold through some product, which are graphic tees for the Direct To Consumer community.
In this episode, Matt shares how he overcame these personal challenges and struggles to launch his niche brand, how he built his audience from scratch and build hype for us pre launch , and how Matt finds success using paid ads to increase, repeat purchases and lifetime value.
So I hope you really enjoy this episode. There's a lot here, so let's start.
Gen Furukawa: [00:01:07] all right. Hey everybody thank you. And welcome! And today we have Matt Lady from Civitas and today is a really special day, actually, because I think it's a day before last I checked, it was about 12 hours from the launch of Civitas. So we have Matt here today and thought that we could learn a little bit more about the process of what he's going through to launch and how he actually came up with the idea. Matt, thanks for joining!
Matt Lady: [00:01:33] Thanks a lot. I really appreciate it. I'm excited to
Gen Furukawa: [00:01:36] be
so I did want tostart with a tweet at you. You're active on Twitter and you have a lot of interesting content for DTC and e-commerce folks, and it went something along the lines of "things are really great. Now I'm excited trying not to be too. Ecstatic about it. However, nine months ago, things were very different..."
so can you just kind of walk us back to where you were at nine months ago, what you were doing and what your state of mind was?
Matt Lady: [00:02:05] That yeah, that tweet was, short and brief, but is quite impactful and got a lot of attention. Last year I was going through a lot mentally and physically, a lot of mental health challenges and struggles, and, I wasn't fulfilled with my current job and was, Not in a great spot and was recovering from two herniated discs from powerlifting.
So no, no state of mind, a part of my life, physical, mental, emotional was really there It was all bad. and so I was luckily enough able to, quit that job, focus on my physical therapy and health and good mental therapy. And start freelancing. And that would, that got the ball rolling and got me headed in the right direction.
And I'm just very grateful and happy and in a much better space than I was last year. And, because I started freelancing, I was able to meet, have people, have connections, get more opportunity and capital quite frankly, to like, actually start my own brand, which is something I always wanted to do, but wasn't sure what that was and what that looked like.
But now I'm not, I have an idea now.
Gen Furukawa: [00:03:21] Super exciting and congrats. And, that's really great to hear that you came back and bounced back. In terms of your freelancing though. Just for context, it was marketing specifically paid ads acquisition?
Matt Lady: [00:03:33] That's right. Paid social, even more niche within a customer acquisition. So Facebook and Instagram. I worked with small clients spending $2$ to 5,000 a month, all the way up to $150 grand. So quite a wide range and all sorts of different niches and industries. I didn't have a specialty of, Oh, I work with "skincare or makeup" or anything that particular, it was a across a wide variety like that.
Gen Furukawa: [00:04:02] right, but specifically e-commerce or SaaS as well?
Matt Lady: [00:04:06] Specifically e-commerce for freelancing. Yeah, but when I was working at a few different agencies before it was quite mixed, but once I started freelancing, it was strictly eCommerce in DTC. Yep.
Gen Furukawa: [00:04:19] Awesome. So you kind of found your way towards what product you wanted to sell. You ended up on Civitas. There's a lot of mystery there. The landing page. There's not a whole lot in terms of product. I know, just because I dug in a little bit, but can you describe a little bit of the niche that you're targeting and the product that you're selling with Civitas?
Matt Lady: [00:04:38] Right, right. So, it's been an honor. So Civitas originated. Back in April of 2020, finally had an idea and it was an idea, a phrase, a reference for like a graphic tee shirt. And I'm like, huh? That sounds funny. That sounds cool. Like, wonder if anyone has thought of this before? And I went and looked it up and I was like, "yeah, there's not really anything there."
And then I looked in further, there's not really too many people doing graphic tees for our community in our niche, and it's not super big, but, Well there's no brand to doing it. There's a few designs and some cool ones on like Teespring and these other print on demand stores, but there's no brand that is kind of stepping in owning that space that I found in my research.
so it's graphic tees for the DTC community and there's some that are more text-based, some are more graphic and design oriented. the first launch, which is, again, tomorrow, like you had said is a lot, there's eight designs, but there should be nine, but we can get into that later. and the, a lot of them are because of my experience are heavily focused on media buying specifically.
So it's a niche within a niche, and within DTC it's within the ad buying.
Gen Furukawa: [00:05:56] So you made a significant investment in the design part of it. Also in terms of inventory, it sounds like you're not doing print-on-demand that you actually decided outright. I will buy X number of product of this many SKUs of eight different designs.
Matt Lady: [00:06:13] Yeah, that's right. I'd gotten to DTC and e-commerce like media buying. So I was really focused on that and I know that space pretty good, but just operations and logistics and especially with t-shirts there's and product there's so much that goes into it. So when I came up with the idea I researched and I was like, well, print on demand would be much.
Easier logistically fulfill it. I don't have to buy inventory up front, but the more and more I looked into it. And what I found is that generally, generally speaking the screen printing is typically a higher quality and lasts longer than the print on demand. So, If anyone wants to refute me, please, that's fine.
Like, there's just, that's what I found and people I spoke with and all that. So I made the decision, like you said, I started with 50 shirts of each design. So not huge, but that's 450 shirts and no one could look at it beforehand and like buy one ahead of time.
Gen Furukawa: [00:07:17] And so what's the strategy there where you're doing things behind the scenes. People can't really see, but on your Facebook page, you do have the designs, but you're not really pre-selling anything. And you've waited until August 12th to actually launch. What's your strategy there?
Matt Lady: [00:07:34] So there was a bit of a presale time and it just recently got taken down. I did have a little bit of like early access pre-sale list. And so that email list got to about a hundred people. so not large, but not, it's not like my 10 closest friends, like right. It's, there's some interest there. and i was keeping people up to date with the designs as I came up with as they were designed and I released them, but not actually, I didn't have the shirts yet until actually a few weeks ago.
So I wanted to own the whole experience from design, it's a local screen printer and like go pick up the shirts and pack the orders myself and learn that whole process. And I could surprising delight if I wanted to and like handwritten notes and all that, but things that don't scale later wanted to just own it and learn it for myself first.
And so I did have, a bit of action before, launch tomorrow. And so. Between some freebies to friends and mentors. actually I had one bulk order come through with an agency I've worked with before, of like 22 shirts and then another, quite several dozen let's just put it that way, more orders pre-sale and some use the VIP discount code and some just wanted to buy it straight out.
So there is a little bit of hype and interest in people are starting to post, like they've got their shirts and they're sharing it. So that's really cool. It's, it's just really neat experience. Also. Like I made that like, that's my product on people and they bought it. it's just different. It's just much different than when I'm running ads for clients.
And I'm just like, not as close to the product.
Gen Furukawa: [00:09:16] Totally. How do you actually start? So, yeah, zero. You got the idea. How did you build your list to a hundred?
Matt Lady: [00:09:23] I, had been. Building my, I don't know. It's a weird to say, like following on Twitter for the last year, I was at 90 followers, January 2019. and that was it's leftover from like high school and like college of like sports and video games. It wasn't even like DTC ecom-related. I found the, to see Twitter and all these great people here and just started posting and asking questions and learning and, Over time, the more time I invested into it.
And as the more I got out of it, it was cool. So, I had before, when I started promoting the presales that VIP list emails as around 900 followers. So now I'm at like 1200 or so. so I've gained Twitter following and the email access. I would just say, Hey, like joined now, get you get the designs before everyone else.
and you actually get a discount code and early access, to buy befo launch. And I literally didn't even have the site ready yet. Well done. so for the bulk order, I had to do a typeform. So I got every angle, another twist to this people aren't at. Offices. Mostly a lot of people are working from home.
So the agency that did a book order, I can't just send all, I didn't want to send all 22 shirts to them and then they deal with logistics. So I got all their info and then shipped it out to each one of them. and that was through type form. And then I input it into Shopify later. so the presales, I finally opened up once the site was mostly done and I heavily warned ""hey, it's still a work in progress. You can, you can buy now, like it's fine. It'll work and go through. I have the shirts, but just like, just know that it's not perfect. Like if there's things missing or typos or like my post-purchase flows, aren't dialed in perfectly and all that." And people didn't seem to care.
They're just like, cool. I'll buy shirt. So I'm a little bit of a mix there on the Prehype pre sales strategy.
Gen Furukawa: [00:11:32] I think part of that's because you have been sharing your journey on Twitter, right? So there's the vulnerability, there's the transparency and authenticity. So there is people, are they feel like they're part of the journey, particularly because as you mentioned, it's a relatively tight small niche and people know each other.
And so maybe that's where some of the forgiveness comes or the excitement, which I think is really cool.
Matt Lady: [00:12:00] Yeah, definitely. I think I was okay with being not perfect. And again, perfect is like never achievable and relative and it's relative and it's always going to be adapting and changing over time. The site will make adjustments, but I'm like, And just to be transparent. And Frank, like, I was still freelancing the whole last few months and I still am today.
And I had planned on around $5,000 worth of deals coming in that were guaranteed and that they didn't. So my cashflow $5,000 went missing. And for me investing into this project and the grand scheme of things, it's not a ton, but having that be another part of just go missing at the last second. I'm like, okay.
Okay. Well maybe I just opened it up and start making some money back right away and like, keep it going rather than keep holding on. and that way I can get some UGC and reviews and feedback so far. so that helped with my cashflow and confidence, that this idea is going to, work out.
Gen Furukawa: [00:13:11] e-commerce is going to be capital intensive regardless. But if you bootstrap it you fund the cause for a really good graphic designer, the 450 shirts you're out, it takes you a little bit of time to make that back. So. It's hard, and kudos to you for doing it. At what point do you say, "yeah, this is a success I can see expanding into more designs into other product lines." Like where is your growth trajectory that you say, this is why I want to be an X number of months?
Matt Lady: [00:13:44] Yeah, man. It's a great question and something I should probably be thinking about, but it's the day before launch. Everything goes as smooth as possible for tomorrow. so for me, I have some of the sizes are sold out already on some designs.
But, the interest and hype. And once people, I don't know, started buying them, that's when I knew I was like, okay, there's something here. I haven't actually done any paid ads yet. And that's like, that is my thing. So I'm generating this attention and hype all organically. so that was there's something here I don't to the scale in which it will get.
Gen Furukawa: [00:14:29] Can you put on your freelancer hat for a minute though, just to give yourself some arms length from the product. So if say a freelance client came to you we're a niche t-shirt brand. Our product is 30 bucks. You know, it costs us 15 bucks to manufacture and ship. And we want to use paid ads to scale it.
It's, it's hard because your AOV is going to be probably around 30 bucks and you have limited money to spend. How would you approach that type of problem?
Matt Lady: [00:15:02] Yeah, no, it's a freaking great question and I'll do my best to. coming at it from Civitas, founder, Matt and B freelancer, Matt, with those specific numbers, you mentioned if it was 15 in cost, and 30 for the price, you're you have to raise the AOV. There's no way you can acquire a customer sustainably,
and at scale at that 10 or five to 10, like CPA target, like there's no way. So I wouldn't take them on and I wouldn't take me on as a client. I didn't even start yet. Like I don't have the budget. Wouldn't be high enough for them to charge their normal fee or even worse, which I've seen sometimes happen to people in the industry,.The fee outweighs the budget number. And it's like, that blows my mind that like people do that. Both on the brand side and the freelancer or agency side. So I wouldn't take me on as a client right now. luckily my numbers are a little healthier and different than that. So, for, even on one off, t-shirts like, if someone just buys one, I have more wiggle room.
and then I'm looking into things like. "Buy three for 80 bucks", rather than three for 96. So you're losing a little bit of profit on each one, but you're pushing them that way to the higher AOV, right? Also, for now I'm doing free shipping, but I might play around with making that threshold at 50 bucks at $75 and trying to push the AOV up that way too.
For me, the interest in conversion is the highest priority because I'm not going to just light, like pour all this fire on my gasoline with paid ads right away. I'm going to go up or as organic as possible. I'm not because it's a challenge to me, but just because of finances.
Gen Furukawa: [00:17:08] Sure. Yeah. Interestingly, I think it was yesterday. Facebook announced that they're going to allow a sponsored posts in groups. Which is perfect for you. You can find however many Shopify or e-commerce groups and then definitely get in front of the right audience.
Matt Lady: [00:17:23] Yes, absolutely. That would be, that'd be huge. and there's some, luckily I've done a little bit of research already, even though I haven't run ads yet. If there's some pretty cool interests that are big enough and available to target. And again, like this is relatively niche. I can't, I'm not going to scale this. I think to like any absurd amount. There's a finite number of e-commerce in DTC related people. it's only so many jobs and brands like that, so that my customer base is not like Nike or some other much broader, brand. So the riches are in the niches. So we've all, those, that groups will be very interesting to see.
Gen Furukawa: [00:18:09] Yeah is Twitter than one of your main channels. Like more of an organic approach. You've created a following and it's not just a vanity metric, but real like 1200 people that you've engaged with. So that's your audience and then using Twitter as your channel,
Matt Lady: [00:18:24] Yeah. Organically, definitely Twitter for sure. And just even on the shop account, there that's out a hundred followers too. So that's kinda neat. I'm not going to do paid Twitter ads, that just have never had success with Twitter ads. again, I have all the other organic channels, but my main focus will be Twitter and then Slack groups as well.
there's a interesting one that we're both in, in how we connected. and I'm in talks with people to do partnerships and sponsorships and more like that approach and even, sponsored newsletters or podcasts. And so that is paid, but it's not Facebook paid a direct one to one, because there's. And this is tough for me to say, as a performance marketer before I'm now trying to be a brand owner.
There's some level of brand awareness that needs to happen. And I hated that term before, but now, like I get it, like, I just do need to get this in front of people, whether it's for them or that they see it and share it with a friend or buy a gift for their, a person, their coworker. So, there, there is more channels I'm actually trying to save paid for last. Just because of, again, my, my financial situation I'm in and slight challenge to like explain and my horizons and not just rely on Facebook to build a brand.
Gen Furukawa: [00:19:54] Yeah, I think that's a smart move, but you are a Facebook expert, paycheck paid social. So I'd love to learn a little bit more about your strategy and let's assume that it's more of a full fledged product line like hats, shirts, pants, and so not Civitas at all, but more if you were working with a freelancer and I'm curious about how you extend lifetime value and how you might approach a brand that wants to improve retention, repeat orders, and they have a good list and some budget.
How do you approach that problem?
Matt Lady: [00:20:30] Sure. So for me, I have to, as the marketer or the freelancer for hire, it's my responsibility to ask and communicate and get all these details and work through with the client of, are you willing to pay for repeat customers? Some folks are dead set on never spending another advertising dollar on a current customer.
Because then that like actually messes up your costs and your CAC and LTV like over time, whatever, because then it's not truly, you just paid for the first purchase. So I have to make sure they're okay with actually spending money on remarketing to their current customers.
So if they're cool with that, then it's.
One tactic that is quite common and effectiveness varies by client, but quite common is the like selfie thank you from the founder video. "Hey, thanks so much for being a customer. I really appreciate it. Here's $15 off your next order. Like use this code" or whatever. So you would just. Your audience is your past customers, whether it's that super pixel or through a customer list, there's multiple ways to do that.
Bt that's just one quick tactic that people, if you spend a few dollars, I'm not saying anything outrageous, a few dollars a day to remark it to your past customers, you would be surprised on the return. This is for one brand they've seen 10 to 20 times return on that remarketing ad spend.
So on prospecting and retargeting to actually acquire customers, they're in that two to four range, but on remarketing to past customers to come back and buy again, because they don't have a full focus on their email, like text programs, they need that remarketing budget. That 10 to 20 X row has some, like, I can justify spending five bucks a day for that smaller brand.
Right. So it, cause they're going to lose them, their email and their text is not built out. So, and that's not, they're not paying me to do that. So, that five bucks a day goes a long way.
Gen Furukawa: [00:22:49] My last question, Matt is what marketing do you like right now?
What e-commerce bran of any vertical, do you think that's doing an amazing job in marketing right now?
Matt Lady: [00:23:02] this is a good question. I haven't bought, I haven't bought and I probably won't buy from them, but I'd like, so it's kind of weird. Right. but I like what, Judy is doing like disaster preparedness kits and that sort of thing. It's really unique. Their branding is just really different on their site. I got, I got retargeted for five or seven days, so they're not, I guess they found out if they don't buy in that window, then it's not worth continuing to retarget beyond on that.
But. I just don't have an, I don't want a disaster preparedness survival kit. That's not to say that their ads or their product isn't good. I just, I'm not that person. but that's always really a good one. I like what Black Wolf Nation I believe is doing.
Gen Furukawa: [00:23:51] okay. did they do?
Matt Lady: [00:23:53] they're men's skin care. And they recently raised a decent round, couple million pretty recently. So their ads are pretty cool and he, he's pretty transparent and cool on Twitter and shares like his ad. And then a few months later, other brands are in this space are trying to copy his ads.
That's not when you know, things are working when people are trying to copy your stuff. So, those are two that come to mind, but, I could, I'm sure there's many more out there that are doing great. I just not thinking of too many off the top of my head.
Gen Furukawa: [00:24:26] So where can we learn more about Civitas and follow you on Twitter?
Matt Lady: [00:24:31] Yeah. So
Gen Furukawa: [00:24:32] shopcivitas.com.
Matt Lady: [00:24:34] By the time this podcast comes out, the site will be live and you can follow me at Twitter @mattladydigital. So give me a shout there, or while you're shopping on civitas, you can use, PODCAST15 as the discount code, for listening to this podcast15. And that will be good for a few weeks.
So, go tries to t-shirt out and let me know how I like it.
Gen Furukawa: [00:25:01] Matt Lady, Civitas, thank you so much for sharing everything and offering so much value and insight!
Matt Lady: [00:25:07] Yeah. Awesome. Thanks so much. I ended up really appreciate your time.