How MUD Organics turned ingestible skincare into a $3.2 million business in 18 months
In an oversaturated beauty industry, the Perth-based founders of MUD Organics have carved out a profitable niche in the anti-ageing market.
In an oversaturated beauty industry, the Perth-based founders of MUD Organics have carved out a profitable niche in the anti-ageing market. After less than 18 months in operation and with only three products in its range, the brand is forecast to earn $3.2 million this financial year.
Two of MUD’s co-founders, Imogen van Haagen and Wouter Sprujtenberg, chatted with SmartCompany Plus about how their ingestible skincare business has gained the trust of Australian women and retained them as customers.
Developing MUD Organics
When Covid-19 resulted in gym closures across Australia, Imogen van Haagen began seeking a new business venture. At that time, she was running a fitness business and a health coaching practice specialising in gut health. Understanding that her gym could be closed for some time and her capacity to help women was capped with her one-on-one offerings, she sought to expand her reach.
One of van Haagen’s employees, Courtney Thornton, came up with the idea to create an ingestible beauty product featuring fulvic acid.
“I was raving about the benefits of fulvic acid to all my clients. So one day, Courtney came to me and said, ‘I’ve had a look in the Australian market, and it doesn’t look like anyone else is selling fulvic acid.’ It was a no-brainer for me,” says van Haagen.
“I knew the product worked, and I really wanted to pivot and do something online so I could make a bigger footprint on the world.”
In August 2021, Thornton and van Haagen went into business together and began researching and developing MUD’s anti-ageing products. By October, Wouter Sprujtenberg joined the team as their e-commerce expert. Then, in December 2021, MUD Organics began offering a 20% discount on presale purchases. When the site went live on February 1, 2022, there were hundreds of presale orders.
“From there, the growth was just exponential,” van Haagen says. “We began with $20,000 months and now sit around $100,000-$110,000 orders monthly.”
Gaining trust
When marketing for the launch of MUD Organics, Sprujtenberg says they relied on the trust and following that van Haagen had earned through her previous businesses, and some “excellent” coverage from The Western Australian newspaper.
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Most of Sprujtenberg’s advertising was, and still is, targeted through Facebook and Instagram — the preferred platforms for their demographic. But they also use Google ads, email and text message marketing.
Sprujtenberg says that the tipping point for their business came once the products were out in the world and they gained social proof.
“About two months after the launch, I could tell that we really needed customer videos, and the scrappier the video, the better,” Sprujtenberg says. “I think it’s because of our target audience. We’re selling to women between the ages of 45-55, and they want to see the product being used by women like them. They want authentic reviews. And they need a little more support to gain trust… it takes about eight to 12 touch points to convert a sale.”
But, once converted, MUD customers stick around — the brand boasts a customer retention rate of around 35%.
To encourage customer retention, MUD’s ingestible products can be purchased as a subscription. And to keep those five-star reviews coming in, product incentives are offered.
“We get anywhere between five to ten five-star reviews on our website daily,” van Haagen says. “But that’s because the products really work. We have customers now buying for the seventh, eigth, ninth or even tenth time. Especially for the serum because it’s great for hypersensitive skin. I use it on my children who have eczema, and it’s the only thing that has gotten us off those over-the-counter steroids and prescription creams. When something actually works, women talk about it.”
At this point, about 80% of MUD’s sales come from the Sea Buckthorn serum, and almost all sales are made through their website except for a select few wholesale customers.
“The ’30-day’ and ‘Detox’ products are quite difficult to sell compared to the serum,” van Haagen says. “The serum is more of an impulse buy because it’s familiar. Ingestible products can be harder to sell because people need more education about gut health and its relationship to external appearance. But, when people sign up for the subscription, they stay on it.”
An expansive future
Like all new business ventures, the first year proved to be the most difficult for MUD Organics. Van Haagen was still running her other businesses then, and cash flow was difficult to manage because they were entirely self-funded. But now that the team has a strong foothold in the Australian market and more products due to be released this year, they have their sights set on the US market and plan to launch there in the year’s final quarter.
“The audience we can target in the US is much bigger than Australia,” Sprujtenberg says. “If we can make it in the US, we should be able to expand to the UK, Canada, and the rest of the world.”
To tackle the US market, the team has begun working with a specialised cosmetics PR company, and they plan to attend events in New York and Las Vegas later this year. Right now, they’re finalising their supply chain logistics.
“We’re currently working on having our mass production done between Australia and America and then shipping stock to both countries to hold, instead of assembling in Australia,” van Haagen says.
Source: Supplied
“Next-day delivery is a really big thing for Americans, so we need to be able to offer it. They won’t wait five to ten days for something to come from Australia.”
“For me personally, the best part about launching MUD Organics has been creating something that’s more aligned with my purpose,” van Haagen says. “Seeing that we are helping people, the products work, and people love them — that’s really exciting.”
Sprujtenberg agrees that he gets the most satisfaction from knowing the products work.
“I come from a background of doing really high volume orders in drop shipping,” he says. “But when you’re selling 3,000 orders a day, people weren’t always happy with the products they were buying. But with MUD, I look at the website and see the reviews, and I know they’re 100% legitimate. We’ve only got a few products but people rave about them. Imogen and Courtney have come up with a great offering.”
MUD Organic’s top tips for entrepreneurs
Stay self-funded for as long as possible
When you start a business with your own money, you’re much more mindful of every dollar you spend. It makes you go slower, but you become more aware of your products and audience. It also means you can build your company’s value so you don’t have to give away as many shares when you get to the point of seeking investors.
Be humble
There are so many incredibly skilled people you can call upon to ask for help if you don’t go into business thinking you know better. Speak to people, ask questions, and upskill yourself with podcasts, workshops and research.
Accept the fact that everyone is different
Going into business with someone is a bit like marriage and can be a gamble. You need to accept that everyone thinks and communicates differently and be prepared to practice communicating so you can grow together.
Take your time
Good things take time. Celebrate your wins along the way, but you will need to be patient.
