During my first three years working as a web developer with Shopify, my team and I built over 100 Shopify stores for clients and saw consistent five-figure months. After dealing with demanding clients from my home country of Isreal, missing weekend events with friends, and generally feeling burnt out, I decided to switch gears.
While I slowly decreased my client load, I was working on a few Shopify apps. I was waiting for one of them to be able to pay my expenses, and when that happened - I sold my agency and started a SaaS product for the Shopify ecosystem called Shoffi.
I've made many mistakes and learned a lot on this journey—and wanted to share some of this lessons.
I offered it all in the beginning: Digital marketing, Store redesign, Store setup, Development services (and probably a few more). That was a huge mistake.
It was hard to compete with digital marketing agencies who were professional in that era or branding and design studios that were doing only that. You can't be an expert at everything.
Eventually, I broke it down into two services: Store setup and Development services, so I could build a reputation on specific things and not compete with too many other agencies.
That turned out as a great idea. The leads I've got were more focused, and I became a professional in selling those services. Another benefit was that many tasks were similar, so I could copy most of what I did from one store to another.
It's very tempting to start with targeting clients from all over the world, especially if they are from wealthier countries.
However, I would highly suggest starting local and then expanding as your business grows. It's easier to get word-of-mouth referrals, the competition is much lower, and you’ll be able to rank your website on search engines more easily. I saw this first hand with my agency, ranking #1 for many Shopify terms in Hebrew.
There will also be some unique services and tasks to this location, such as a specific shipping provider or payment solution that needs some code to integrate.
My agency mainly served Israeli clients initially, which began to fill out our client base. One of the tasks we were repeating was adjusting the Shopify themes to RTL layout (Hebrew is written from right to left), which turned later to be an app we developed to do it automatically, RTL Master.
After building our reputation and with a bigger team, we started to market globally and acquired non-Israeli clients.
I won’t list all of them, but the ones that worked best for me, and I recommend you to focus on include:
There are two sides to this, depending on your current portfolio.
If you're just starting - the more, the better. Even if your work consists of cheap clients or small tasks, this will help you build your portfolio and get a reputation.
Not many people want to work with someone who’s worked with only 2 clients before. For one of my first clients, I updated the product descriptions of 600 school backpacks, one by one. It still hurts, but it was one more client to the portfolio.
Once you have a reputation - Choose a few clients, and make the most of them. Work on long-term projects, with a focus on quality.
If possible, try to offer retainers. Retainers are a great way to ensure steady cash flow, which is what you need if you want to start hiring. Try to offer some monthly services with the retainer to make the client more likely to agree, like a Website speed report or a monthly summary of features you created and planned for next month.
The knowledge and connections you have from your work with your clients are worth gold for some people. It would be a crime not to make those connections into a revenue stream for your agency.
A few ideas for affiliate partners include:
Having our own app for the agency helped In many ways:
Shopify agencies are in the best position to make a Shopify app. They have the best knowledge of the pain points merchants have and what they will be willing to pay for. Even if it means hiring a backend developer or buying an existing app and improving it, I highly recommend doing it.
I ended up selling my agency after finding a buyer who was happy to pay what I was asking. The main reason is that I tried and failed to break the “time for money” formula.
The more the agency grew, I made more money—but also worked more. I hired a project manager and hoped this would be solved as I hired more people, but it never happened.
Oh, and I also just had enough of clients at some point. Jesus, they can be hell sometimes.
I always had a passion for the product and startup world. After I saw that our Shopify app “RTL Master” did pretty well and didn't require much of my time, I decided to go full-time on my new project, Shoffi.
Please feel free to ask questions if you have any :).
Solid article with good recommendations for any service or agency business. Thanks for sharing!
Thank you 😊
I second the "start local" part - so many opportunities can be found in your local area (especially if you don't live in a larger city). I think many of us think that everyone is as savvy as we are about website building, the internet, ecommerce, etc., but you can often find so many people to help just in your local area. Then, you can build from there.
How much did you sell the agency for? What was the multiple on your monthly revenue?
I can't say the number; the multiple was around 3.
I could have asked for more, as my website was getting good leads daily, but there are not that many buyers in that industry in a small market like Israel.
Thank you for the large number of useful, many of them I was not even aware of. All I know is that analysis is very important. For beginners, Google Analytics will be the best tool to track the effectiveness of your site. You need to be able to measure your store's performance at all stages, and this detailed guide will help you set up the tool and how you can better understand your reports. It also briefly explains how you can handle social media analytics. You can also create a wordpress site using https://www.templatemonster.com/elementor-templates.phpif your store becomes very popular.
Thanks for sharing and happy to hear how things work out for you!
Thanks for sharing this!
Thanks!
Thank for sharing! Did you ever try the customer acquisition route of identifying narrow market segments, followed by cold outreach. Would love to hear your experience.
FYI - I am building a market intelligence tool for e-commerce stores for market research (by app, keywords, install dates, geo, etc)
@chirayu That tool sounds interesting, do you have any more details?
Sure, you can visit https://app.stackbrain.in. The UI might get some getting used to...so let me know if you need help.
You will easily be able to run queries like:
"Shopify stores in UK selling activewear and have signed up with Klaviyo in the last month and are advertising on Instagram and Twitter"
Hi! I'm actually starting my dropshipping business through shopify and I was wondering, how long does it normally take to build a website through them? I'm just a little stuck on this part.
Thank you 😊
Building the website is the easy part of Shopify. It's pretty much ready when you open it.
Selling is the art 😏
I built my Shopify site in probably 2 hours max. It was awesome.
Thanks for your share. Just curious, I have a (non-Shopify) ecommerce store, the technical side was fairly easy but what killed it was that shipping and export fees to send anything outside of Canada was utterly horrendously expensive especially to the USA. Didn't want to do dropshipping as we have unique items here. How do you deal with that?
Find a fulfillment partner in the US... Like me. :)
TBH I was mainly building the stores and not dealing with this kind of issue.
However, I can say that when my clients were looking to expand to another country, they would start with paying the high shipping costs to check if there is a good market there.
Once they validate that, they will rent a warehouse in that country to avoid long shipping times and fees.
This comment was deleted 3 years ago.
Happy to hear you found it helpful!
And good luck :)