Karthik Shanadi - He Turned $500 Into $10M

Last updated: Jun 4, 2023

The video by Starter Story is about Karthik Shanadi, who turned $500 into $10 million by building four different e-commerce companies without any funding while working a full-time job, and he shares his secrets to success and how he made millions in sales without spending a dime on ads.

The video is about Karthik Shanadi, who turned $500 into $10 million by building four different e-commerce companies with no funding while working a full-time job.

He invited the interviewer into his New York City apartment to show how he made millions and revealed the secret to why his newest company has become one of the biggest brands in college sports.

Karthik also shared how he made millions in sales without spending a dime on ads and discussed the different niches within the apparel industry that his businesses cater to.

The video also covers Karthik's journey to building his businesses, including starting multiple businesses with his co-founder while in college and working a full-time job at Amazon while building his e-commerce companies on the side.

Karthik built four different e-commerce companies.
He started with custom fraternity and sorority merchandise.
He expanded to doing custom merchandise for colleges and departments on campus.
Karthik built his businesses without any funding.
He had a full-time job while building his businesses.
Karthik saw an opportunity when the name image likeness Supreme Court ruling came out.
Karthik's secret to making millions in sales without spending a dime on ads is to get into marketplaces for free marketing.
Karthik's family has humble beginnings and instilled the value of hard work in him.
The company does not manufacture anything in-house, but works with print and production partners throughout the US.
The licensed industry has many hurdles to get through, which limits competition.

He Turned $500 Into $10M - YouTube

Karthik's E-commerce Companies

Karthik built four different e-commerce companies.
He started with custom fraternity and sorority merchandise.
He expanded to doing custom merchandise for colleges and departments on campus.
He got 300 college licenses to do all the merchandise for campus organizations and departments.
He launched Threadly, a custom apparel business for businesses, fundraisers, and non-profits.

Building a 10 Million Online Business

Karthik built his businesses without any funding.
He had a full-time job while building his businesses.
He worked from 8 AM to 5-6 PM at his job and worked on his businesses until midnight.
He hustled and worked hard to build his businesses.
He built Tech to manage his different brands and all the back-end processes.

Athletes Thread and NCAA Changes

Karthik saw an opportunity when the name image likeness Supreme Court ruling came out.
Student athletes can now monetize on their name image and likeness.
Karthik got into making merchandise co-branded with the college and the athlete.
The brand is Athletes Thread, and it focuses on custom branded merchandise and licensed merchandise.
Karthik built different niches within the apparel industry.

He Turned $500 Into $10M - YouTube

Making Millions in Sales Without Spending a Dime on Ads

Karthik's businesses are on different websites where people can buy merchandise.
One is custom, and the other is direct to consumer.
For Athletes Thread, people can buy one item for the athlete in college through Shopify.
Karthik's secret to making millions in sales without spending a dime on ads is to get into marketplaces for free marketing.
He hustled and worked hard to build his businesses.

Motivation and Background

Karthik's family has humble beginnings and instilled the value of hard work in him.
He wanted to make his parents proud and is grateful for the opportunities in the US.
Entrepreneurship runs in his family, with over 24 restaurants in India.
Started Greek House in his fraternity house by hustling and pitching to friends and student organizations.
Encourages college students to start a side hustle or business while in school.

Obstacles and Challenges

Received a notice from a licensing organization for not paying royalties and had a $40,000 bill four months into the business.
Had to negotiate with the licensing agency and make payments over 12-14 months.
Building a licensing business can be complicated and requires approvals and paying royalties.
Had to work long hours and grind away in a small apartment in LA.
Started with only $500 and had to hustle to get sales.

Building a Supply Chain

Built out a supply chain to manage the operation.
Has a team that manages the orders and shipping process.
Uses technology to streamline the process and make it more efficient.
Has a large number of SKUs but manages it through organization and technology.
Has a system in place to manage inventory and restocking.

Secrets to Success

Focus on building a great product and providing excellent customer service.
Use social media and word of mouth to market the product.
Build a strong team and delegate tasks to them.
Be persistent and don't give up when faced with challenges.
Stay true to your values and don't compromise on quality.

Building Relationships with Production Partners

The company does not manufacture anything in-house, but works with print and production partners throughout the US.
Building relationships with good manufacturing partners is difficult, but necessary.
The company has built a Vendor Portal to help partners manage orders effectively.
The company provides technology to partners to keep everything organized and streamlined.
The company has helped automate and streamline workflows on the production line.

Differentiating in the E-commerce Space

The licensed industry has many hurdles to get through, which limits competition.
The company has been focusing on building a true brand, including custom packaging and neck labels.
The company has a young team that creates engaging content for social media.
The company has amazing customer service and fast turnaround time.
The company has an affiliate or ambassador program to spread the word about the brand.

Marketing Strategy

The company started with outbound email marketing and outbound sales.
The company has an affiliate or ambassador program to spread the word about the brand.
The company uses paid search on Google to target customers with high intent.
The company invests in paid marketing to get more products in front of customers on social media.
The company uses content from ambassadors to repurpose and build the brand further.

Success Tips

Start small and focus on one thing at a time.
Be persistent and don't give up.
Be willing to learn and adapt to changes in the market.
Build relationships with partners and customers.
Provide excellent customer service and fast turnaround time.

Skills for Building a Successful Business

Effective communication is key, both internally with your team and externally with customers and clients.
The ability to learn anything or teach yourself something is crucial, as there are many resources available online.
Surrounding yourself with good co-founders, advisors, and mentors who have experience and can provide honest feedback is important.
Hiring a good team is crucial for success.
Having a genuine curiosity and a willingness to learn is important for entrepreneurship.

Advice for Starting an E-commerce Business

Don't overthink it, just get started and learn as you go.
Develop parts of a business plan and start implementing them right away.
Humility is important, as there is always more to learn.
Engulf yourself in the industry or market and learn from the ground up.
Utilize marketplaces like Etsy and Google shopping for free marketing.

Watch the video on YouTube:
He Turned $500 Into $10M - YouTube