Earn $140 million a year from the idea of ​​a part-time job

 Earn $140 million a year from the idea of ​​a part-time job

Tori Gerbig likes to surf the Internet to find trendy, cheap clothes, but can't find what she wants and decides to open a store selling this item on eBay.

Tori Gerbig co-founded Pink Lily - an online women's fashion store. They are currently one of the fastest growing online retailers in the US. On CNBC, Gerbig shares his startup story and secrets to success.

In 2011, when I wasn't working or spending time with my family, I shopped online. I was 24 years old then, and liked to surf the Internet to find clothes that were both trendy and cheap. But unfortunately there aren't many options out there. This led me to the idea of ​​selling more women's clothing on eBay, in addition to a full-time job in the insurance industry earning $25,000 at the time.

At first, this was just a hobby for fun. I also did not expect that 10 years later, me and my husband - Cris will be spending full time with Pink Lily. Last year, our online fashion house generated $141 million in revenue. Currently, our social networking sites have 3.6 million followers.

Tori Gerbig - co-founder of Pink Lily. Photo: Thrive Global

Tori Gerbig - co-founder of Pink Lily. Photo: Thrive Global

When we first opened our eBay store, we only spent $300 on clothing and accessories on wholesale sites. Since I'm not familiar with pricing strategy, I set the prices of products according to what I would like to buy if I were a customer. We work from the comfort of our own living room, so there's not much to worry about other than shipping.

In the first few years, profits fluctuate a lot. Normally, we make 300 – 1,000 USD per month. The two used the money to pay off college debt and reinvest it in their businesses.

I'm flying to Los Angeles to meet the seller and place an order. I also participate in trade shows to expand the product line.

Two years later, I opened a Facebook page to advertise my stuff. We have many loyal customers, especially back home in Bowling Green, Kentucky.

By the end of the year, we had saved $20,000 from the profit and used it to open the official website for Pink Lily. That's when business really boomed.

In May 2014, monthly revenue exceeded 100,000 USD. After 3 years of treating Pink Lily as a part-time job, I quit my job in the insurance industry to focus entirely here. A few months later, so did Chris. He manages the finances and operations of the company. By the end of that year, we had $4 million in sales.

In 2019, when we reached $70 million in revenue, we sold some shares of the company in exchange for an investment to support rapid growth. This has helped us to expand our product line and increase our staff.

We now sell more than 11,000 products on our website every day, have a brick-and-mortar store, have 250 full-time employees, and are one of the biggest job creators in Bowling Green. Pink Lily also has a core group of sales partners to create its own designs.

Co-founding and running Pink Lily with her husband has come a long way. I think these are the secrets to help me start a successful business

1. Find a gap in the market

I know you've heard this a lot. But it is still true and very important. When I started this part-time job, I just thought I couldn't find the right dresses for $50 or less. I knew I could meet that need in my own way.

2. Reinvest profits

If you want fast growth, you need to reinvest all or most of your initial profits into the company. The first few years can be very cash-strapped. That is our experience. We had to work 60 hours a week, live frugally, and reinvest profits to grow the company.

3. Find a fun, unique way to gain followers on social media

Being active on social media is the key to our success. We regularly ask our 1.4 million Instagram followers how they would like to purchase products. For example, we post photos of products we're considering for sale and look at customer comments to decide.

4. Find something you can really own

We usually buy the entire inventory of a single seller when we find specials, so that no other retailer has access to them. This way we have collections that can only be found in Pink Lily.