Dan Oliver, the founder and developer of Dan-Os Seasoning was compelled to depend on social media when the COVID-19 pandemic shut down occasions the place private advertising had helped him construct gross sales. Decided to not lose floor, Oliver turned to social media. When his educational recipe posts started going viral, he knew he was on to one thing. Then, a partnership with a Louisville advertising company introduced success pitching the product to Kroger, Walmart, Lowes and different retailers. Now, Oliver is rising the product line and promoting it throughout the nation.
Mark Inexperienced: You have been profitable promoting everytime you interacted with folks. What was it that was actually connecting?
Dan Oliver: After I repackaged, I recognized some issues, No. 1 being a better-for-you product. I wished to indicate folks what was within the product. I might not solely have my bottle there with the seasoning in it, I might have one other bottle empty aside from the salt within the seasoning, which was only a small quantity. I might give them a pattern first, and as soon as they tried it, theyre like, Wow, that is good! Then I might maintain up this bottle and say, Lookthats all of the salt thats in it. So its good and its good for you. Thats all. What youre tasting is all these pure elements, and we use actual sea salt.
I used to be simply actually passionate in regards to the product and exhibiting people who heres a seasoning product thats by no means existed as a result of most all of those different seasoning blends are stuffed with salt and sugar, the No. 1 and a pair of elements. I knew I had one thing as a result of its a greater product than all the opposite seasonings on the market.
At first I puzzled, Am I doing one thing mistaken? Why is no one else doing this? Is it OK to place low sodium? Right here I’m, Dan-O in Louisville, Ky., figuring out an issue and creating an answer. It’s a must to use seasoning, in my view, to make meals style good. And all people has to eat, so my market is all people.
MG: While you determined you wanted to pivot to social media, did you’ve got any clear expectations of the way it was going to go?
DO: I by no means had a Plan B. My plan was sink or swim with Dan-Os from Day One. I by no means gave up. When COVID hit, it was March 7 (2020) and Im up in Michigan. I used to be at this looking present and it bought shut down. So, I needed to drive all the way in which dwelling. Im listening to speak radio and Im pondering, Im by no means going to have the ability to do a flea market ever once more. So, my complete forecast for 2020 modified. Now there needed to be a Plan B and that was social media.
I used to be listening to Gary Vaynerchuk on the time and I bear in mind him saying, TikTok is that this new app that everybodys going to, all of the younger crowd. If youre not on TikTok youre dropping the ball. I already had Fb, Instagram, YouTube going and possibly had 30,000 followers mixed on all of them. I used to be most likely averaging $1,100 a day in on-line income between Amazon and my web site. I advised myself on the drive dwelling, If I can do $200 a day, I can survive for some time and see how lengthy this COVID factor lasts. I simply must go kick *** on social media and do that TikTok factor.
I already had a TikTok account; I simply was getting no traction on it. However I got here dwelling and I began making TikToks. It was simply nonstop as a result of it was sink or swim. I had no different possibility. I couldnt fall again to bartending; bars werent open. I had one thing I may attempt to save my enterprise, so it was TikTok, TikTok, TikTok. Within the first two weeks of the pandemic, I used to be doing $200-$300 a day. However I used to be at all times making an attempt.
Instagram, YouTube and Fb by no means did it for me. At some point on TikTok I bought this video to 500,000 views. It was crab muffins. I virtually didnt even make the video as a result of I used to be discouraged, somewhat depressed, nothing was working. I did it with one hand filming, one hand cooking. And it labored. It offended a bunch of individuals. Individuals from Maryland have been saying, Wheres the Previous Bay (seasoning)? Whats this Dan-Os? Thats not the way you prepare dinner a crab cake! However guess what? I hit $1,000 in gross sales that day and I believed, Bingo!
The following day was equal or somewhat bit higher, and it simply stored stair stepping. On that first video the place I did $1,000, 80% of the feedback have been unfavourable. All I might reply is, You dont know till you dont know. You dont know till you Dan-O. I believed that was humorous. Then, after folks began receiving their product every week later, all these feedback began to show in direction of my facet. I might make a video, and it could go viral and all people was saying, Oh, its Dan good.
Swiftly, anyone whos studying the feedback is seeing all these folks saying, It truly is Dan good!
I make it enjoyable. Im only a regular dude. I’ve a solution to join, I suppose. And it simply stored going. One of many subsequent movies I posted, I went from averaging $1,500 a day and it jumped to $3,000 a day, after which a couple of months later it was $10,000 a day. It was loopy.
MG: Theres a sure type to your movies. Theres a tempo, the lighting, the sound, the modifying, the style of speech. The place does that come from?
DO: It goes again to my childhood. I had two older brothers, two older stepbrothers, three older stepsisters. I used to be the youngest. All the things was at all times a contest to me; my complete life I used to be making an attempt to win. Ive at all times paid consideration to particulars and Ive at all times been good at educating others issues, like after I was bartending. I truly I believed I used to be going be a golf pronot like on the PGA Tour however giving folks golf classes. I like educating folks issues and I really feel like Ive at all times had a knack for cooking. My household used to inform me I must be a chef, however thats not the job I wished to do.
With my Dan-O Seasoning, all of it merged into the place I can train folks about this higher product. Im additionally competing with the remainder of the world, making an attempt to win.
MG: Whos creating the concepts? Its work simply to provide you with 12 concepts every week.
DO: We’ve got a complete teamabout 10 folks whole. We attempt to hit sure pillars. Our objective has been 12 new movies every week currently. For the final six months I havent been on trip or something. Each week Ive been pumping out 10 to 12 movies.
If have been going to make 12 movies this week, effectively attempt to have one or two based mostly on valuethis meal solely prices $10. A pair extra are pushed in direction of exhibiting folks the place you may get it: Kroger, Walmart. A pair that convey up the dietary worth of Dan-Os. If have been making 12 movies, effectively make six of them hit these sure classes, after which the opposite six are simply no matter I provide you with.
MG: You now have 3.3 million followers on TikTok and 170,000 on Instagram. Do you get income straight from TikTok as a result of you’ve got so many viewers?
DO: Again in 2020 when TikTok was younger and contemporary, I had gotten into the half the place you get monetized for views. Then we began to comprehend: Is that this $1,000 have been getting a month value our views maybe being manipulated by TikTok? We all know if theyre going to pay for views, possibly theyre not supplying you with as many views. We are able to do $500,000 in gross sales. If we get $1,000 on this fee, its not even value it. Lets simply eliminate it and lets not take any cash. Proper now, we dont get it from any platform, and even on Fb we’ve got 1,000,000 followers. Have been virtually 700,000 on YouTube and we dont get a dime from any of them.
MG: Is {that a} professional tip? Dont give attention to getting cash out of the platform however give attention to pushing your gross sales?
DO: When you have a model, I might (try this). People who find themselves influencers, who get all these folks watching and receives a commission from these platforms, dont have a enterprise to handle, dont produce other people who must generate income, and make payroll and stuff, then yeah, receives a commission from the platforms. However have been a enterprise, so we dont need something to skew our views. The main target is on the enterprise.
MG: You now wholesale product to retailers with hundreds of places. How arduous was it to get into the system with Kroger and Walmart?
DO: Not straightforward. Theres numerous advertising technique. Again in 2020 we have been exploding on the web after I made my partnership with my companion. He owns the advertising firm. He stated, Have been going to take all of our on-line gross sales and all this knowledge and put it on this pitch deck. Have been going to indicate them that have been sponsoring Tremendous Bowl commercials and Spencer Boyd, the NASCAR driver, and we stand behind our model. We put all of this into these pitch decks and confirmed it to Walmart and Kroger. Certain sufficient, a yr later we go on the cabinets.
However that stuff takes some time and its not straightforward as a result of what they have a look at shouldn’t be solely are you a profitable productanybody may get fortunate in a single day on TikTok and have a product take offbut are you able to again the enterprise? Do you’ve got a checking account that may fill $1 million orders? Do you’ve got the suitable folks in place? They need to know the place youre manufacturing. They must ensure you can stand as much as an order thats $2 million. You could present you may get the orders processed, get the product in place. While you begin coping with the Walmarts and Krogers of the world, if youre late on a cargo theyll advantageous you $10,000.
MG: What number of retailers do you’ve got? Kroger and Walmart are the massive ones, however what number of others?
DO: We simply went in 1,600 Lowes shops and have been going into our first batch of Costcos now. Have been going into an enormous batch of Sams Golf equipment now. Have been in Greenback Basic and there are 18,000 Greenback Generals. Have been able to launch small little greenback packs on the Greenback Generals; thats an enormous deal for us.
MG: At what level did you get a advertising companion?
DO: I met my companion proper after I bought dwelling from that looking present in Michigan. A good friend of mine stated, You want to discuss to this man. Hes owned the advertising firm for 20 years. Hell do issues for you that no different advertising corporations would. Hes the kind of man who will construct your web site and convey in additional gross sales and allow you to in advertising only for a share of income. I stated that feels like my man; I dont need to pay him, simply give him a share of development principally. We had a chat and made an settlement to take 10% of income. We made that settlement most likely every week after COVID hit and began working collectively two weeks later.
He, being a advertising firm, had been investing in different companies and placing in his assets and time to assist them develop. However on the finish of the day, he didnt personal any fairness within the enterprise and so they may depart and rent their very own advertising. He was bored with getting that achieved to him. He advised me he actually wished to be part of one thing. He wished a partnership with me and I agreed. I knew I wanted assist. I knew that I had simply taken a product from level A to level B and I wanted someone to assist me take this to the subsequent stage. I do know what I’m so far as educating folks and being the face of the model, however Im not the enterprise man. So it was virtually an ideal things-happen-for-a-reason sort of factor. All the things was falling in place.
MG: Is it uncommon {that a} marketer will work for a share of income?
DO: They often dont. If I had simply began my enterprise, Im certain he would have stated, No thanks. I would like some form of retainer. However I used to be already established. This was 2020. In 2017, I believe I did $40,000, then it was like $120,000 in 2018 and in 2020 I used to be going to do $500,000. Then COVID hit and my world was falling aside, however I had to do that to outlive. Then heres this nice man to come back in, saying, Lets take this to the subsequent stage.
MG: Who was the advertising companion?
DO: Phil Crosby and Crosby Interactive. We nonetheless have Crosby Interactive, however its primarily all centered in direction of Dan-Osthat and clients we purchase which might be in our similar subject so far as consumer-packaged items. Have been so good at what we do at Dan-Os that we might help these different merchandise which might be much like us.
MG: Louisville has had a big meals and beverage sector for many years. Was {that a} profit to you? Did you faucet into a few of the assets and experience there?
DO: Im at all times watching movies. A number of mates personal eating places; early on these eating places have been a few of the first folks to ever put Dan-Os on their menu (as an ingredient). What actually put me on the map was going out at flea markets.
MG: What about Louisvilles meals enterprise facet, the manufacturing, the distribution, the manufacturing items? Did you faucet into experience there? Or did you work that out your self alongside the way in which?
DO: In 2016, after I had my authentic packaging, I used to do this myself. I used to package deal it at night time with my buddy who owned a restaurant. They might shut down at 5 p.m. as a result of it was a breakfast restaurant. I may go in there with all my provides and blend the elements, put it within the bottle and seal it. I did that for about six months or so. It didnt take me lengthy to comprehend it took me eight hours to make 200 bottles that I may promote in two hoursway extra time making the product than promoting. I wanted to discover a copacker. And thats when someone launched me to David Ochoa at Bluegrass Superior Meals. Bluegrass Superior Meals is how I began.
MG: The place do you produce?
DO: We nonetheless have Bluegrass Superior Meals, however we’ve got others. We’ve got two in Kansas Metropolis and a pair have been speaking to unfold all through the nation, as a result of why ship it to the West Coast from the East Coast? Lets discover a producer on the West Coast so we are able to minimize some cash on logistics. Have been at all times searching for new copackers and someone to deal with that facet of the enterprise.
MG: You reportedly have 70 staff. Is {that a} right quantity?
DO: It was at one level. We needed to make a change and removed our warehouse so now have been just under 50. We outsource the logistics now. I believe it was too early for us to get into the true warehousing. While you go down that highway you may as effectively begin manufacturing too.
MG: At what level did you rent a CEO?
DO: The CEO is my companion, Phil. After we made our partnership I stated, I would like you to handle the enterprise. Youre the CEO. Im the founder. He takes care of the enterprise features.
MG: How did you financial throughout your development?
DO: Mainly, we made our partnership. It wasnt that my companion had a bunch of cash to dump in. He had commerce. He had a advertising workforce that he may put into Dan-Os. After we began getting Kroger and Walmart lined up, thats once we stated, We’d like cash. We have been producing cash from on-line, but it surely wasnt sufficient to have the ability to fill orders of a few million {dollars}; we needed to exit and search our first buyers. It’s actually arduous to get cash from banks for those who dont present good income, so we needed to elevate cash by promoting fairness. Thats once we introduced in our first investor, which was Eric Woods, who performed for the Louisville Cardinals and Buffalo Payments. Shortly after he got here on board, we had extra clients come on board. We needed to elevate like one other $2 million.
If you wish to develop, it’s a must to have cash but it surely takes cash to generate income. It’s a must to have capital. You will get all these letters from Walmarts and Krogers and go into 30,000 shops, however for those who dont have the cash to supply, how are you going to do it? Theres a factor known as useless mans valley: Listed below are your buy orders, however it’s a must to get all this cash to fill them. Then you definately ship all that product out, however you dont receives a commission for 60 days. Then you might be on this valley with no cash, ready to receives a commission. One of many hardest elements of the enterprise is the way you get the cash.
MG: Do you’ve got a financial institution companion now?
DO: We’ve got a couple of, however this yr have been making an attempt to indicate revenue so going ahead effectively by no means must promote any extra fairness. We needed to promote fairness as a result of we didnt look that good on paper. You may present them $100 million in gross sales, but when youre not making a revenue, youre not making any cash. Hopefully that is the yr the place we get in good standing with the banks. We did get some financial institution loans, however they wouldnt give us what we would have liked so we needed to promote fairness to lift the capital.
MG: What has this acceleration of gross sales and income allowed you to do?
DO: Going all the way in which again to 2016, each greenback Ive made Ive put again within the enterprise simply to develop. Even with all of the success, its gone proper again into the enterprise. I’ve somewhat bit extra wage. Aside from that, theres not a bunch of cash to go round. Have been very a lot watching each greenback we spend and watching budgets. When it was me managing the enterprise, it was robbing Peter to pay Paul and simply getting by. Now that I’ve a CFO and CEO, every thing is run correctly and we’ve got completely different advertising budgets. Its an excellent factor to see. After I was engaged on beginning my enterprise, I watched The Secret and it talks about manifesting your concepts. All the things occurs for a purpose. For those who visualize it, itll occur. All the things about Dan-Os simply got here collectively for me.
MG: What are your targets for the subsequent a number of years? New merchandise or partnerships or different issues?
DO: Have been on the point of launch a brand new product known as Cheese-oning. Its cheese blended with seasoning. Nicely be launching that within the subsequent two months. Have been going attempt to come out with a number of productsone each two or three monthsand be on-line solely. Possibly we current all of them to the grocery shops, and in the event that they decide them up that may be superior. What we need to do is develop the model. Now whenever you go to Kroger, particularly in Kentucky, you see two sorts of Dan-Os on the shelf. Have been engaged on increasing the model to the place you see a block seven or eight broad of Dan-Os on the shelf, completely different flavors. Thats our objective by 2025. We need to have eight merchandise on the shelf, a block of seasonings. At that time we could have a look at different merchandise like chips or peanuts or sizzling sauce.
