Marketing Operators: Scaling to $20M+ in 2 Years With a Team of Six: Dan McCormick of Create Wellness

Release Date: December 24, 2024

Introduction

In Episode E039 of the Marketing Operators podcast, hosts Connor Rolain, Connor MacDonald, and Cody Plofker welcome Dan McCormick, the founder and CEO of Create Wellness, a rapidly growing company specializing in creatine products. This episode delves into Dan’s journey of scaling his business to over $20 million in just two years with a lean team of six, exploring strategies, team dynamics, marketing innovations, and future plans.

Guest Overview: Dan McCormick and Create Wellness

Dan McCormick introduces himself as the co-founder and CEO of Create Wellness, a company that began with Creatine Gummies and has since expanded into various creatine-forward products. With over eight years in e-commerce and experience at notable D2C brands like Away and Parade, Dan leveraged his expertise to build a modern creatine brand aimed at demystifying and popularizing creatine supplementation.

Dan McCormick [04:47]: "Create was a combination of my personal passion and all the learnings I had built up over the last almost decade around building a CPG brand."

Scaling Strategies: Revenue and Team Growth

Dan shares insights into scaling Create Wellness from its inception to generating $20-22 million in net revenue within two years. Initially relying on outsourced agencies, the company transitioned to a small in-house team to maintain control and drive growth more efficiently.

Dan McCormick [15:07]: "About two years old. We'll do about 20 to 22 million in net revenue this year. We've six full-time employees now."

Team Structure and Roles

The core team consists of two co-founders—Dan handling product and operations, and his fiancée overseeing finance and operations—and four additional employees. Key roles include an SVP of Marketing, a video editor, a head of operations, and an influencer/social media marketing manager. This lean structure allows for high efficiency and rapid scaling.

Dan McCormick [16:27]: "The SVP of Marketing oversees growth and brand. She's probably worth four or five full-time employees in and of herself."

In-House vs. Outsourcing: Pros and Cons

Dan discusses the strategic shift from outsourcing to in-house operations, emphasizing the benefits of having team members deeply invested in the company’s success. While agencies offer expertise, in-house employees provide greater accountability and alignment with company goals.

Dan McCormick [22:40]: "Employees generally have a bit more skin in the game, care a lot more, and can go more all-in."

D2C Evolution and High Leverage Operations

The conversation highlights the evolution of Direct-to-Consumer (D2C) businesses, moving towards high-leverage, lean operations. Dan compares his approach with traditional D2C 1.0 (large teams, high spending) and D2C 2.0 (bootstrapped growth with increased headcount), positioning Create Wellness within the emerging D2C 3.0 framework—maximizing efficiency with minimal personnel.

Cody Plofker [43:20]: "This new phase of DTC is really fun and cool to watch."

Product Expansion and Market Positioning

Initially launching with creatine gummies to differentiate from commoditized creatine powders, Create Wellness expanded into single-serve creatine powder sticks. This strategic move addresses consumer preferences for convenience, precise dosing, and improved taste, further solidifying the brand’s position in the market.

Dan McCormick [62:57]: "We're putting creatine powder in single-serve sticks. There's a dearth of single-serve creatine products on the market right now."

Marketing Tactics and Innovations

Dan elaborates on innovative marketing strategies, including personalized landing pages and leveraging influencers. A notable experiment involved listicle landing pages, which, contrary to initial expectations, outperformed traditional formats by allowing targeted, niche-specific content.

Dan McCormick [77:53]: "Listicles have been outperforming any other landing page format we're doing."

Challenges in the Supplement Industry

The supplement market poses unique challenges, including saturation and the prevalence of counterfeit products. Dan underscores the importance of maintaining product quality and adhering to rigorous certifications to build consumer trust and brand integrity.

Dan McCormick [41:32]: "We have to fully commit to certifications and health and safety to ensure our products are trustworthy."

Future Growth and Hiring Plans

Looking ahead, Create Wellness plans to achieve 2-4x year-over-year growth by adding three to five full-time employees. This expansion aims to sustain high revenue growth without proportionally increasing headcount, leveraging the company’s scalable business model.

Dan McCormick [32:45]: "We're expecting 2 to 4x growth year over year. From a headcount perspective, adding three to five more full-time people."

Communication and Culture in the Team

Effective communication and a culture of high leverage are pivotal to Create Wellness's success. Emphasizing transparency and efficiency, the team utilizes tools like Slack for streamlined communication and fosters an environment where employees are empowered to make decisions and drive results without micromanagement.

Dan McCormick [49:45]: "The correlation between how someone communicates in Slack and how good they are at their job is very strong."

Test of the Week: Landing Page Personalization

Dan introduces their latest experiment with personalized listicle landing pages, tailored to specific demographics and use cases. This approach has yielded surprisingly positive results, enhancing user engagement and conversion rates by providing relevant, targeted content.

Dan McCormick [75:45]: "Listicles can pump out a ton of them super quickly and make it super targeted to whatever the ad is focused on."

Influence and Marketing Insights

The episode touches on the impact of influential figures like Joe Rogan in amplifying brand visibility. Dan recounts how organic mentions from Rogan significantly boosted awareness and credibility for Create Wellness, illustrating the power of influencer partnerships.

Dan McCormick [69:15]: "We've been sending him gummies forever now, and recently, he called us out by name and confirmed he's been taking our product."

Conclusion

Dan McCormick’s journey with Create Wellness exemplifies how a focused, high-leverage team can achieve substantial growth in the competitive supplement industry. By prioritizing product innovation, strategic marketing, and a lean operational structure, Create Wellness stands as a testament to the evolving landscape of D2C businesses.

Dan McCormick [71:32]: "We're building the modern creatine brand by listening to consumer needs and delivering products that meet those needs effectively."

Notable Quotes

• Dan McCormick [04:47]: "Create was a combination of my personal passion and all the learnings I had built up over the last almost decade around building a CPG brand."
• Dan McCormick [15:07]: "About two years old. We'll do about 20 to 22 million in net revenue this year. We've six full-time employees now."
• Dan McCormick [22:40]: "Employees generally have a bit more skin in the game, care a lot more, and can go more all-in."
• Dan McCormick [62:57]: "We're putting creatine powder in single-serve sticks. There's a dearth of single-serve creatine products on the market right now."
• Dan McCormick [77:53]: "Listicles have been outperforming any other landing page format we're doing."
• Dan McCormick [41:32]: "We have to fully commit to certifications and health and safety to ensure our products are trustworthy."
• Dan McCormick [49:45]: "The correlation between how someone communicates in Slack and how good they are at their job is very strong."
• Dan McCormick [75:45]: "Listicles can pump out a ton of them super quickly and make it super targeted to whatever the ad is focused on."
• Dan McCormick [69:15]: "We've been sending him gummies forever now, and recently, he called us out by name and confirmed he's been taking our product."
• Dan McCormick [71:32]: "We're building the modern creatine brand by listening to consumer needs and delivering products that meet those needs effectively."

Key Takeaways

• Lean Team Efficiency: Scaling significant revenue with a minimal team requires strategic role allocation and leveraging both in-house and outsourced expertise.

• Product Innovation: Introducing novel product forms, such as creatine gummies and single-serve powders, can differentiate a brand in a commoditized market.

• Marketing Strategies: Personalized marketing tactics, influencer partnerships, and innovative landing pages enhance brand visibility and conversion rates.

• Operational Flexibility: Balancing in-house control with outsourced services allows for agility and scalability without excessive headcount growth.

• Authentic Communication: Maintaining clear and efficient communication channels fosters a productive and engaged team environment.

Final Thoughts

Dan McCormick’s experience with Create Wellness provides valuable lessons for entrepreneurs aiming to scale their businesses efficiently. By focusing on product differentiation, strategic marketing, and maintaining a lean yet effective team, Create Wellness has successfully navigated the challenges of the supplement industry, setting a benchmark for future D2C ventures.

For more insights and strategies on scaling your business, subscribe to the Marketing Operators podcast and stay tuned for upcoming episodes.