Built Online Podcast: Episode 79 Summary

Title: Building $2.5M Online Businesses with Jay De Souza
Host: Cody McGuffey
Guest: Jay De Souza
Release Date: December 9, 2024

The 79th episode of the Built Online Podcast features an insightful conversation between host Cody McGuffey and guest Jay De Souza, a Canadian-born online entrepreneur who has successfully built multiple thriving businesses, generating over $2.5 million in sales through platforms like Etsy and Amazon. This summary delves into their comprehensive discussion, highlighting Jay’s entrepreneurial journey, strategies for online business growth, design philosophies, pricing strategies, and personal insights.

1. Introduction and Guest Background

Cody McGuffey welcomes Jay De Souza to the podcast, expressing excitement about their conversation. Jay introduces himself as a former bank employee who transitioned into print-on-demand and digital entrepreneurship. He shares his experience of moving from Canada to Belize, leveraging online business strategies to support his new lifestyle.

Jay [00:24]: "I'm a Canadian, former bank employee, turned print on demand and other things. Basically an online entrepreneur who has built multiple thriving businesses."

2. Transition to Online Business and Relocation to Belize

Jay discusses the pivotal moment when he decided to leave his stable bank job due to the toxic corporate environment. Despite making approximately $50,000 annually through freelance graphic design—a figure insufficient to sustain his mortgage—Jay felt compelled to prioritize his mental and physical health over financial stability.

Jay [14:44]: "If I had stayed at the bank job, which I was getting paid close to double with bonuses and stuff at the time, it, I wouldn't probably wouldn't be here today... I was trying to actually hurt myself on in a way that I just wouldn't have to go to work that day."

Jay's relocation to Belize was driven by a desire for a healthier lifestyle rather than financial gain. He purchased property three years prior but hesitated to sell his house back home, valuing the safety net it provided. His move to Belize resulted in becoming landlords, generating more income locally than he was investing.

Jay [02:23]: "We moved to Belize not because it's a golden ticket, but to take a step outside our comfort zone and do something we didn't think we'd be comfortable with."

3. Cost of Living and Lifestyle in Belize

Jay provides an honest assessment of the cost of living in Belize, particularly the keys (islands). While maintaining a good standard of living compared to local Belizean standards, expenses are higher than in North America. For instance, a two-bedroom apartment costs around $1,100 USD, and electricity adds another $300 USD monthly. Imported goods contribute to higher prices, with items like cauliflower priced at $15 USD due to inflation.

Jay [09:10]: "It's not cheap by any stretch... inflation, we're not immune to inflation down here and everything else, right."

Despite higher costs, Jay highlights the benefits of Belize’s lifestyle, such as healthier food with shorter shelf lives, encouraging better eating habits. The absence of cars on the island promotes walking, contributing to significant weight loss and improved health for Jay.

Jay [11:04]: "Walking everywhere, eating better food... I dropped 30, 32 pounds."

4. Building an Online Empire: Print on Demand and Beyond

Jay recounts his foray into online business beginning in 2012 on Etsy. His initial success came from freelance graphic design, which evolved into print-on-demand (POD) ventures. Collaborating with a T-shirt designer allowed Jay to focus on creating unique designs while his partner handled production. This collaboration introduced Jay to passive income, laying the foundation for his $2.5 million sales milestone.

Jay [17:17]: "I had no idea what passive income was, but that was the first kind of thing where I could create something once and have it generate perpetual income."

Jay emphasizes the evolution of POD, making digital entrepreneurship more accessible by eliminating the need for substantial upfront investments typically required by traditional businesses like Amazon FBA.

5. Design Philosophy: Prioritizing Product Over SEO

A significant portion of the discussion centers around Jay’s design philosophy, which prioritizes product quality and customer resonance over solely optimizing for search engine visibility. Jay argues that while SEO is crucial for visibility, exceptional design is paramount for conversion.

Jay [21:53]: "It's the whole package there. Your design has to look good and hit and resonate with that customer."

He criticizes the common advice of focusing exclusively on low competition keywords, suggesting that fear of competition can hinder creativity and growth. Instead, Jay advocates for embracing competition and using it as a catalyst to refine and enhance one’s designs.

Jay [24:52]: "It's about the perceived value... the customers that are willing to pay more are looking for higher quality."

6. Pricing Strategy: Leveraging Perceived Value

Jay discusses his pricing strategy, highlighting the importance of perceived value in commanding higher prices. He advises against underpricing products to lure initial sales, as it can devalue the brand and attract low-caliber customers. Instead, Jay recommends setting prices that reflect the quality and uniqueness of the design, thereby attracting customers who appreciate and are willing to invest in superior products.

Jay [31:48]: "Charge like significant $12 more. There's now why in, in your... the higher prices command a higher quality and caliber customer."

Jay shares his approach to pricing T-shirts, ensuring a substantial profit margin even during sales. By maintaining a robust pricing structure, he minimizes customer complaints and enhances overall profitability.

Jay [32:42]: "It's not about you... it's about the customer."

7. Income Streams and Platform Optimization

Jay elaborates on his multiple income streams across various platforms. While Etsy and Amazon constitute the primary sources of revenue, other platforms like Redbubble and Teepublic contribute supplemental income, especially during peak seasons like Christmas. He maintains a strategic number of listings—under a thousand across all stores—to prioritize quality and intentionality over sheer quantity.

Jay [41:16]: "It's not a numbers game. It's not quantity over quality... across four of my stores combined, I have less than a thousand listings."

Jay leverages EverBee’s tools, such as Chrome extensions, to efficiently validate niches and optimize listings without getting bogged down by excessive metrics. He emphasizes the importance of understanding the target market and creating designs that resonate deeply with them.

8. Mindset and Overcoming Personal Challenges

Throughout the episode, Jay candidly discusses personal challenges like imposter syndrome and ADHD. He underscores the importance of pushing beyond self-doubt and embracing discomfort to achieve growth. Jay shares how his mindset shift—from resisting competition to leveraging it—has been instrumental in his business success.

Jay [14:20]: "Imposter syndrome is real and you can't beat it. So don't let it stop you."

9. Rapid Fire Insights

In the rapid-fire segment, Jay shares personal preferences and lessons learned:

• Favorite Business Book: The Four Hour Workweek.

  Jay [43:45]: "It's a perfect group for you... I just keep getting distracted."

• One Thing He Wishes He Knew Before Starting: Recognizing and accepting imposter syndrome.

  Jay [44:11]: "Imposter syndrome is real and you can't beat it."

• Worst Business Advice Received: Encouraging low pricing to secure initial sales, which can devalue the brand.

  Jay [44:29]: "You should price low to get initial sales in the door... it's one of the worst."

• Hours Worked Per Week: Over a full-time job, driven by passion and the fulfillment of helping others.

  Jay [45:21]: "I work a lot. I work a lot. I love it."

10. Closing Thoughts and Contact Information

Jay concludes by emphasizing the symbiotic relationship between helping others and financial success. He encourages entrepreneurs to focus on delivering value and fostering emotional connections with customers rather than merely pushing products.

For listeners interested in connecting with Jay or accessing his resources, he provides various channels:

• Facebook Group: Jay’s Way Print on Demand
• Website: jsway.works
• YouTube Channel: jsway
• Inner Circle Membership: jsway.works/forward/Inner-Circle

Jay [49:54]: "I'm around, man, I'm around. I'm an open book and I'm gonna shoot you straight."

Cody McGuffey wraps up the episode by expressing gratitude for Jay’s candidness and insights, suggesting future collaborations and updates.

Key Takeaways:

1. Prioritize Design Over SEO: While SEO is essential for visibility, exceptional and resonant design is crucial for conversion and customer retention.
2. Value Over Volume: Focus on quality and intentionality in product listings rather than indiscriminately expanding the number of listings.
3. Embrace Competition: Use competition as a catalyst for refining and enhancing your offerings instead of fearing it.
4. Perceived Value Drives Pricing: Setting prices that reflect the quality and uniqueness of your products attracts customers willing to invest in superior items.
5. Mindset is Crucial: Overcoming imposter syndrome and embracing discomfort are vital for personal and professional growth.
6. Customer-Centric Approach: Designing with the customer’s experience and emotional connection in mind leads to brand loyalty and organic promotion.

For entrepreneurs looking to emulate Jay’s success, his journey underscores the importance of blending creative design, strategic pricing, and a customer-focused mindset to build a profitable online business.