100 Percent Bootstrapped 10 Million Dollar E-Commerce Company: WaterFilters.Net CEO Jamin Arvig (Part 5)

Sramana: When did you start reselling and begin to pick up commercial clients?

Jamin Arvig: From 2003 to 2005, we were largely a consumer reseller. Developing a commercial clientele was a gradual process that occurred between 2005 and 2008. We really focused on commercial and reseller accounts in 2008, which was a big step because we essentially became a distributor. Manufacturers want to deal with players in the industry, not random e-commerce companies. Some e-commerce sites have come up and developed some relationships with manufacturers, but our position in the industry remains a key differentiator.

Sramana: As you moved from a B2C business to a distributor, did you preserve the consumer business?

Jamin Arvig: We preserved it, but it is in a state of transition. We are focusing more and more on B2B strategies because of our position in the industry. It makes sense for us to help those who really need the best sourcing. That is where we can really come into play and make a difference and why our growth continues to be exponential.

Sramana: What is the revenue split today in terms of B2C and your distributorship?

Jamin Arvig: It is about 50/50. Both segments will continue to grow. We are not trying to shrink our B2C business and we will continue to support our old customers, and we get new customers because of our reputation.

Sramana: Is your distribution business e-commerce driven as well?

Jamin Arvig: For the most part it is. We have some customers who prefer to call, fax, or e-mail. We do not try to discourage any of those methods. We will always be a great e-commerce company because we feel that is the future. We would love it if that platform was available to us when it came time to make purchases from the manufacturers.

Sramana: What drives B2B customer acquisition?

Jamin Arvig: Lead generation and customer acquisition is primarily through Web channels, although we do get a lot of word-of-mouth clients.

Sramana: Where were you working out of? From your home, or did you have an office?

Jamin Arvig: In 2007, we began construction on our 20,000 square foot office warehouse in southern Minnesota. We got a lot of interest from various towns in Minnesota that wanted job creation in their town. We were offered a lot of tax exemptions from towns because they wanted the jobs there. We found a town that we really liked located right off the freeway. The location gave us good logistics as well as a good potential employee base.

Sramana: How many jobs were you looking to create?

Jamin Arvig: We were looking at five to ten additional jobs. The towns we were looking at had populations of 2,000 to 5,000. We have actually delivered more jobs than that.

Sramana: How did they hear about you? Did you approach them, or did they approach you?

Jamin Arvig: It was proactive calling on my part. I called the different towns. They began offering incentives on their own accord. I would call the economic development council of each town. In some cases, I went to some planning commission meetings which look at real estate development.

This segment is part 5 in the series : 100 Percent Bootstrapped 10 Million Dollar E-Commerce Company: WaterFilters.Net CEO Jamin Arvig
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