How to Leverage Shopify and Reach 2.000 Customers.

Erman Küplü is a growth expert and for the last 3 years he has been focusing on the Shopify apps he built. He knows how important it is to leverage marketplaces from his previous experience on Upwork and now applying this strategy to Shopify.

Below, you will learn;

• the importance of leveraging marketplaces like Upwork and Shopify,
• how to get customers from YouTube videos,
• the importance of support,
• why did they move with an alternative pricing models like one-time fee,
• the mechanism of how a new type of VC - CalmFund works.

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Can you provide background information on how you started building Shopify Apps?

I'm Erman, and my journey in digital marketing commenced around the age of 17, starting with SEO and the creation of basic websites. As I delved into online advertising, my co-founder and I embarked on small web projects, eventually leading to the establishment of our own agency in our early 20s. Specializing in SEO and ads, we operated as a boutique agency in Turkey, later expanding globally.

Around five or six years ago, we founded Solverhood, driven by a desire to redefine the conventional agency-client relationship. Unhappy with the retainer model, we introduced productized services with fixed durations, emphasizing delivering our best within a specific timeframe. Our approach involved providing focused services and educating clients during the engagement.

Focusing primarily on Upwork, we successfully completed over 500 projects, generating close to a million dollars in revenue. The turning point came when Shopify merchants began seeking solutions related to data, such as GTM and Google Analytics integrations. Unimpressed with existing solutions, we contemplated creating our own data layers and GTM containers. Initially, the plan was to utilize these solutions for our Upwork clients, but as demand from Shopify merchants grew, we decided to develop dedicated solutions.

Around two and a half years ago, we initiated the development of Shopify Apps, aiming to address common issues like errors and discrepancies present in existing solutions. The success of our apps can be attributed to their timely introduction and unique features. Through various promotional channels, including YouTube and articles, we are content with the progress and satisfaction derived from the evolution of our Shopify Apps.

So Erman, regarding Analyzify, I'm curious about the time you launched the project three years ago.
Were you the only solution providing what you offer at that time, or did you have any competitors around?

Yeah, when we launched Analyzify three years ago, we faced three serious competitors and several others in the market. It was a competitive landscape, and we positioned ourselves strategically to find our unique spot in the market.

Can we say that your strongest asset is related to your previous background in Upwork?
Do you forward your clients to your new solution?

Actually, that's interesting because, if I remember correctly, we almost didn't make any sales from Upwork. Maybe one or two. Because that transition, when that transition happens, I mean, Analyzify, we took so much time building it, and in Shopify, clients weren't our clients.

But what happens, I think, is our service experience. It's very hard to succeed on Upwork. You need to be so good at customer success, client management, and all those things. We moved naturally all that, let's say, experience in Shopify as a software support. We provided support that anybody cannot.

We offered integration at no extra cost, onboarding calls at no extra cost, and a really comprehensive service package without even defining these, but we would just be so willing to help when somebody buys our product. We were so thankful, and we would even help them with their SEO, even though it was super irrelevant.

I think that's helped us a lot because nobody can come close to the service that we provide. That's why even today, our reviews are more often than not mentioning our services, and support. So those were the things we can say define as our strengths, as far as I understand.

That was very nice. And we made it part of our offering. We said, okay, when you buy Analyzify, you also buy this integration service, almost an audit service, and then the validation. So all these things are included in the price. Our competitors charge quite a good amount of dollars for those. In that sense, I think, yeah, that's played out well for us.

Can we affirm that the Shopify app store played a vital role in acquiring your initial customers?

Absolutely, without a doubt. The Shopify app store was instrumental in connecting us with our initial users. At that time, there were only around 4,000 apps available, providing us with visibility. Although the app count has increased to around 9,000 or 10,000 now, our app managed to attract a specific segment of users.

These were individuals facing significant technical challenges, often resorting to apps with minimal reviews, seeking assistance. Dealing with these initial clients was challenging, but it allowed us to provide effective solutions. As we successfully addressed their issues, we began accumulating positive reviews, setting the stage for our continued growth.

Regarding the marketing side, your YouTube channel, where you provide insights on analytics integration with the Shopify platform, seems to have gained a substantial following, exceeding 3.000.
Given the niche nature of this space, these videos likely contribute significantly to expanding your customer base. Could you share insights on the strategy behind your YouTube channel?

Certainly. Initially, I recognized the potential of YouTube for our marketing efforts, as I have a passion for teaching and previously engaged in educational roles. Little did I anticipate that it would become our primary marketing channel for almost two years.

We were fortunate that during this period, Google announced the new version of Google Analytics, causing some panic among users about integration with Shopify. My early content focused on providing tutorials on setting up Google Analytics 4 on Shopify without using an app. We adopted a strategy of offering an open-source version along with a premium version, providing part of our data layers for free to the community.

This free version, combined with my instructional videos, became our top channel for nearly two years. Some videos reached impressive view counts, even up to 25,000 or 27,000, considering the technical nature of the tutorials. These videos also significantly boosted our SEO efforts. While I wish I could produce more videos, the ones we have created have proven highly effective in promoting our brand, attracting clients, and enhancing our SEO presence. YouTube has become a powerful resource for us, and its immediacy in visibility makes it a valuable asset in our marketing strategy.

What is your current primary resource for driving growth?

Our current primary resource for growth is a combination of SEO and Shopify. Our focus has shifted from YouTube to broader marketing and brand building. Emphasizing the importance of creating a brand that people actively search for, we invested significantly in SEO. While videos are impactful, maintaining a consistent growth mechanism on YouTube is challenging due to the permanence of outdated content.

SEO, which has been my lifelong favorite, is now our main focus. The synergy of SEO and YouTube, along with visibility on the Shopify app store, contributes to our growth. We have achieved a prominent position as the top app in our category, boasting the highest review count and customer satisfaction. This achievement is a result of our dedication to providing exceptional service, making it challenging for competitors to catch up.

How did you manage to accumulate such positive reviews? Did you actively seek feedback from clients or did it happen organically?

We didn't follow any specific tactics beyond the usual practices. There's no secret to our success; people don't expect a software company to provide service almost like an agency. What makes the difference is the unique value and superior service we offer compared to traditional agencies.

Clients often express surprise at the level of value, responsiveness, and willingness they receive, questioning the disparity between what they pay and the exceptional service provided. Many of our clients, particularly early ones, discover us through our YouTube videos, establishing a connection as they learn from our content.

When completing a service, whether it's integration or validation, we simply ask clients if they would consider leaving a review on the Shopify app store. This request is coupled with an explanation of how their review can benefit other merchants. Apart from these practices, we don't have any specific secrets for garnering reviews.

Can you elaborate on your decision to adopt a one-time purchase pricing model instead of the more common monthly or yearly plans seen in the SaaS industry?
What factors influenced this choice, and do you believe your service is better suited for one-time fees?

Certainly, we are among the few apps in the vast Shopify app store that offer a one-time purchase option out of the thousands available, as most follow monthly or yearly pricing structures. While our new products embrace yearly pricing, we initially opted for the one-time purchase model due to specific market conditions.

At the time of our launch, there was already a one-time purchase solution in the market, and our competitor had initially followed the same model. This presented an opportunity for us to leverage as a competitive advantage. Additionally, our product, not heavily reliant on server usage, allowed us to sustain a one-time purchase model.

The appeal of one-time payments resonates with users who are generally averse to recurring costs. In a recent customer survey involving over 2,200 respondents, a substantial majority (over 50-60%) expressed a preference for one-time purchases, citing it as a key reason for choosing our service.

While this pricing model has its downsides, we are content with our decision and do not currently intend to change it. We have introduced some add-ons with yearly payments, but the core service remains on a one-time purchase basis. Our solution works efficiently without incurring ongoing costs, allowing us to provide an extensive and in-depth service to our users. The upfront revenue from one-time purchases enables us to focus on delivering high-quality service rather than being solely reliant on monthly subscriptions.

Given your one-time purchase pricing model's success, do you anticipate leveraging your existing customer base to promote and integrate new products into the Shopify market?
Could this potentially lead to changes in your pricing strategy for upcoming products?

Absolutely, our existing customer base has been instrumental in the launch of our second product - Risify - which follows a yearly pricing model. Analyzify has already introduced an add-on with yearly pricing as well. The decision on pricing for new products is influenced by their specific requirements, such as server usage.

While our current approach aligns with yearly pricing for certain products, we may continue with the one-time purchase model for others, depending on their unique characteristics and user needs. The success of this strategy has been evident, and we aim to tailor our pricing plans to best suit the nature of each product.

You mentioned receiving funding from CalmFund, known for its unconventional approach compared to typical VC companies. Could you provide more insights into the CalmFund, the application process, and the resources or community they offer?
Certainly, CalmFund has been a valuable partner in our journey. Unlike traditional VC firms, CalmFund focuses on supporting calm, profitable businesses rather than those aiming for explosive growth like 10 times. This aligns perfectly with our mindset of sustainable and steady progress. We received funding from CalmFund approximately a year and a half ago, utilizing it to enhance our existing products, expand our team, and develop new offerings.

Their approach involves providing support to businesses to help them maintain and improve their current trajectory, emphasizing stability over rapid expansion. For bootstrappers seeking funding with a preference for a calm and measured growth strategy, CalmFund is a recommended option. We appreciate being part of their portfolio and benefiting from their support in our journey.

I'm curious about the expectations from CalmFund as a VC. Since they provide funding, they likely anticipate some returns. Could you elaborate on the arrangement, such as the type of return they expect?
CalmFund operates on a Revenue-Based Financing (RBF) model, specifically using a structure called a Shared Earnings Agreement (SEA). This agreement is outlined clearly on their website. The repayment is profit-sharing-based, meaning they receive a portion of your profits annually. After deducting founder salaries, 10 percent of the remaining profits are allocated to repaying the investment. While they don't initially hold equity, if certain events like fundraising or a company sale occur, their interest can convert into equity. It's a unique approach, resembling a hybrid of equity and debt.

What are your plans for the company?

Our focus remains on building within the Shopify environment, where we are currently thriving. We've already introduced our second product, an SEO growth app called Risify, expanding beyond SEO to encompass growth kits. Next year, our emphasis will be on both Risify and Analyzify.

As a software development company, we continually explore new ideas, developing small features and testing them with existing clients. There are ongoing prototypes, and we may introduce third and fourth products to the market. While Shopify is our primary starting point, we design products for easy integration with other e-commerce solutions like WooCommerce or BigCommerce. Our goal is to maintain steady growth and continue serving the e-commerce community.

Any advice for aspiring bootstrappers or those starting their own business?

These SaaS stories may seem glamorous, but reality is not always as picturesque. While I'm grateful for where we are, it's crucial to acknowledge the challenges behind the scenes. Success narratives tend to highlight the positive, but we faced tough times last year, battling constant stress and uncertainties in the competitive SaaS market.

Entrepreneurship is inherently challenging. It's vital to be mentally prepared, especially when scaling a business with 2.000 clients, a team of 30, and significant revenue. If you're not ready for such challenges, it might be better to start small.

Another key aspect is leveraging existing markets. We found success by aligning with platforms like Upwork and Shopify. Catching a trend, being a marketplace plugin like Wordpress / Semrush / Zendesk / ChatGPT, or tapping into an existing power dynamic can be more advantageous than creating something entirely from scratch. Our experience launching a B2B sales product illustrates this point.

In the initial stages, businesses should seek a leverage point, whether it's a marketplace or a community. This strategic attachment can significantly ease the launch and sales process.

Lastly, prioritize marketing. As a full-spectrum digital marketer, I believe our products wouldn't be where they are without brand visibility and effective marketing. Many founders underestimate the importance of marketing, and it's a pitfall, especially among tech enthusiasts.

In conclusion, while success stories are inspiring, the journey is filled with challenges. Mental preparedness, leveraging existing markets, strategic attachments, and robust marketing is vital for sustained growth.