The Pomp Podcast
#1067 AJ Agrawal On Building & Selling An 8 Figure CBD Business
- AJ Agrawal bootstrapped and sold Verma Farms (a CBD e-commerce business) for eight figures in two years by focusing on high-margin products (80%+) and affiliate marketing rather than paid ads.
- He used Pipe's recurring revenue financing platform to acquire a competitor (Penguin CBD) within 72 hours by pledging both companies' subscription revenue, then sold the combined entity to an Amazon aggregator.
- Privacy changes from Apple and Facebook have compressed paid advertising margins; affiliate marketing and performance-based partnerships with media outlets (Forbes, New York Times) now deliver better ROI than traditional paid channels.
- Micro-influencer partnerships with affiliate tracking links and subscription-based models (subscribe-and-save defaults) proved more cost-effective than macro-influencer spending.
- Post-acquisition, Agrawal allocated most proceeds to Bitcoin as a 10-year store of value, citing superior returns versus real estate or equities; he launched Pupper (customized pet supplements) with Pipe founder Harry leading the investment round.
- Entrepreneurs can start e-commerce projects with minimal risk using tools like Shopify, testing demand via pre-orders or waitlists before committing inventory capital.