Strategy Hour | Online Marketing for Business Growth Episode 942: Growing a Viral National Brand with a $0 Marketing Budget with Lindzi Shanks Release Date: April 10, 2025
Host: Abagail Pumphrey, CEO of Boss Project
Guest: Lindzi Shanks, Co-Founder of XO Marshmallow

1. Introduction to XO Marshmallow

Lindzi Shanks joins Abagail Pumphrey to discuss her journey in building XO Marshmallow, the world's first gourmet marshmallow cafe. Starting with a modest investment of $200, Lindzi and her business partner transformed a simple idea into a multi-seven-figure business with a 10,000 square foot production facility and 30 employees over nearly a decade.

Notable Quote:
Lindzi Shanks ([03:10]): “We started with each putting $100 in a bank account, and now we're a multi seven figure business with a 10,000 square foot production facility and 30 employees.”

2. Building a Viral Brand Without a Marketing Budget

Social Media Strategy and Content Creation

From the outset, XO Marshmallow leveraged Instagram as a primary platform, focusing on vibrant, eye-catching food photography dubbed "food porn." The brand differentiated itself with colorful backgrounds and visually appealing products that stood out amidst more traditional, muted food images.

Notable Quote:
Lindzi Shanks ([06:49]): “We knew we wanted to be a colorful, vibrant brand because that was eye catching. A lot of the food photography you'd see was very like brown and black and white.”

Community Building

XO Marshmallow emphasized creating a community around their brand, referring to their customers as "troop XO," inspired by the origins of s'mores by the Girl Scouts. This sense of belonging encouraged customers to become brand ambassadors, sharing their experiences organically without incentives.

Notable Quote:
Lindzi Shanks ([06:49]): “We were really able to tap into those customers we were seeing, come back again and again and send them out extra freebies and really just kind of use social media to find new customers.”

Evolution of Content Strategy

As social media platforms evolved, so did XO Marshmallow's content approach. Initially focusing on static images, they transitioned to video content, discovering that behind-the-scenes and satisfying process videos garnered higher engagement. The introduction of TikTok in March 2020 was a pivotal moment, with their first video achieving 1.6 million views, highlighting the power of video in driving virality.

Notable Quote:
Lindzi Shanks ([06:49]): “Our first TikTok ever in March of 2020, got something like 1.6 million views. It's like, okay, there's something here to the video game when it comes to XO.”

3. Engaging Customers Authentically

Genuine Interaction and User-Generated Content

XO Marshmallow prioritizes authentic engagement with their audience. They consistently respond to and share customer content, expressing genuine excitement and appreciation. This authenticity fosters trust and encourages more customers to share their experiences without the need for paid influencer partnerships.

Notable Quote:
Lindzi Shanks ([11:09]): “We made it very clear from the beginning that we were over the moon when people shared our products. We engage with it. We're like, this is amazing. Thank you so much.”

Influencer Collaborations Without Compensation

When collaborating with influencers, XO Marshmallow maintains transparency by not compensating them. They embrace genuine reactions, whether positive or critical, which adds credibility and fosters a trustworthy brand image.

Notable Quote:
Lindzi Shanks ([11:09]): “We have no rules. We want your genuine reaction, for better or for worse.”

4. Adapting to Social Media Trends and Algorithms

Content Consistency and Adaptability

XO Marshmallow balances creating evergreen content with adapting to platform-specific trends and algorithm changes. They employ A/B testing to analyze video performance, adjusting their content structure to enhance viewer retention and engagement.

Notable Quote:
Lindzi Shanks ([15:04]): “It's about finding evergreen content that works for you, but then being willing to adjust that content based on what the algorithm is looking for.”

Handling Algorithm Changes

The shift from audio-only videos to those with voiceovers and captions exemplifies XO Marshmallow's adaptability. They recognized the need for enhanced audio and text to cater to audiences consuming content without sound, ensuring continued engagement despite changing algorithmic preferences.

Notable Quote:
Lindzi Shanks ([15:04]): “People need to hear the audio. They want to hear us talking about it.”

5. Balancing Time Between Marketing and Management

Time Allocation Using the 80/20 Rule

Lindzi dedicates approximately 20-25% of her time to marketing, focusing on high-impact activities that drive the majority of results. This strategic allocation ensures that content creation receives the attention it needs without overwhelming other business operations.

Notable Quote:
Lindzi Shanks ([26:08]): “I believe in the 80/20 rule. I know that because content is the main driver for us and social media is the main driver for us, I need to make sure that 20 to 25% I spend on social is focused.”

Cultivating a Supportive Team Culture

XO Marshmallow fosters a collaborative and supportive work environment, reducing the need for excessive managerial oversight. Practices like the "fist of five" check-ins ensure that team members receive the support they need, enhancing overall productivity and morale.

Notable Quote:
Lindzi Shanks ([26:08]): “We have a team that supports each other well, so I don't need to do a lot of managerial support.”

6. Expanding Through Strategic Partnerships

Collaborations with Major Brands

Partnering with well-known brands like Strawberry Shortcake and Care Bears has been instrumental in legitimizing XO Marshmallow. These collaborations not only enhance brand visibility but also signal to consumers and potential partners that XO Marshmallow is a credible and established player in the market.

Notable Quote:
Lindzi Shanks ([35:19]): “It's really helped for us legitimize ourselves as a true candy brand and not just like someone making candy in their house.”

Leveraging Brand Partnerships Over Traditional PR

XO Marshmallow prioritizes brand partnerships over traditional press engagements. They find that partnerships offer a more authentic and mutually beneficial relationship, providing organic content and exposure without the constraints of paid press opportunities.

Notable Quote:
Lindzi Shanks ([36:54]): “Not only to your point does it legitimize you to the customer and people are excited about it and they want to be part of it.”

7. Future Directions and Evolving Strategies

Introducing Advertising Efforts

Acknowledging the benefits of paid advertising, XO Marshmallow plans to initiate ad campaigns to support their transition into national distribution channels. This strategic shift aims to enhance brand presence in retail stores while preparing for potential mergers and acquisitions.

Notable Quote:
Lindzi Shanks ([40:51]): “We are going to start running ads for the first time in the next month and a half.”

Expanding Product Lines and Lifestyle Branding

Looking ahead, XO Marshmallow is set to launch their first-ever cookbook and explore partnerships beyond the food industry, such as home decor. These initiatives aim to position the brand not just as a product provider but as a lifestyle choice that evokes joy and nostalgia.

Notable Quote:
Lindzi Shanks ([44:48]): “We're thinking about what sort of partnerships can we do from a brand perspective that maybe we're not partnering with other food companies, maybe we're partnering with like a home decor company.”

Personal Growth and Future Endeavors

As XO Marshmallow contemplates mergers and acquisitions, Lindzi is also planning for her future beyond the brand. She envisions transitioning into business coaching, consulting, and speaking engagements, leveraging her entrepreneurial experience to mentor others.

Notable Quote:
Lindzi Shanks ([44:48]): “From my perspective, now that we're talking about potential mergers and acquisitions for the next five years, I'm thinking about what does my life beyond XO look like.”

8. Conclusion

Lindzi Shanks' journey with XO Marshmallow exemplifies how creativity, community building, and adaptability can drive significant business growth without a substantial marketing budget. Her strategies highlight the importance of authentic engagement, consistent content creation, and strategic partnerships in building a viral national brand.

Final Notable Quote:
Lindzi Shanks ([47:06]): “I hope to see you guys soon.”

Connect with XO Marshmallow and Lindzi Shanks:

• XO Marshmallow:

  • Instagram, TikTok, YouTube: @exo.marshmallow
  • Website: xomarcimalo.com

• Lindzi Shanks:

  • Instagram, TikTok: @lindzi

This summary encapsulates the key discussions and insights from Episode 942 of the Strategy Hour podcast, offering a comprehensive overview of Lindzi Shanks' approach to building a successful national brand with a zero-dollar marketing budget.