In a world that often feels pigeonholed, it's refreshing to see a story that defies the odds. Paul Geller’s journey from politics to religion, and finally to the alcohol industry is a testament to adaptability, passion, and strategic thinking.
As the founder of BASBAS, a liquor brand that is steeped in tradition and craftsmanship, Geller has navigated a path that showcases the importance of understanding history, tradition, and the necessity of smart, strategic planning in a competitive industry. This article will delve into Paul Geller's journey, highlighting the key moments that led him to create BASBAS and the lessons learned along the way.
Yeah, so my background is primarily in marketing and tech, with a bit of politics as well. I worked on a presidential campaign in 2016, but my candidate didn’t make it. After that, I got into spirituality and became the CMO of the Kabbalah Center. So, I transitioned from politics to religion, and then, somewhat facetiously, the only place left to go was alcohol. But, in all seriousness, I enjoyed being around people doing interesting things, and the adult beverage business is full of passionate people. It’s been a fun journey.
I have a photo of the exact moment I discovered Hierbas, the category of our product. It was originally created by monks in the 16th century in the Balearic Islands - Ibiza, Majorca, Minorca, Formentera. I was transitioning from my role at the Kabbalah Center and wanted to do something I loved. As I pondered over a bottle of Hierbas, I realized I loved Hierbas but couldn’t get it in North America. That’s when it hit me – I’m the customer, and there’s a need not being served.
Alcohol has unique constraints in the U.S., with the three-tier system disempowering direct-to-consumer e-commerce entrepreneurs. So, entering this business, I wanted to make direct-to-consumer work better for alcohol businesses. This required custom programming and trial and error with fulfillment companies. The pandemic resulted in two lost years for us, with products stuck at the Port of New York for months due to backlogs.
Once we were back in stock, we leveraged our scarcity. Many brands are going direct-to-consumer with high CPAs, which isn’t sustainable for a low-margin product like alcohol. We opted against performance marketing and capitalized on our legitimate scarcity, which led to us selling out every time. It’s a luxury product that is genuinely scarce, so our constraints are production and getting the product to the U.S.
The challenges were mostly in import-export. The product itself has been produced for centuries, and we worked with a family with a generations-old recipe. The hard work was in the logistics and selling direct-to-consumer in a technically challenged industry. We had to deal with customer support issues but had no control over them. It required custom coding and a willing fulfillment partner to innovate in the industry.
Initially, we tried performance marketing with Meta and Google. Although our CPAs decreased, they plateaued around $25, which wasn’t sustainable in a world of profitability-focused investors and operators. Our first successes came from morning newsletters, which was a risk since there’s no testing or iteration. But we got lucky, and it converted wildly, leading us to repeat the process. Eventually, diminishing returns set in, but by then, our mailing list had reached critical mass, and word of mouth fueled our growth.
Staying motivated is a challenge, but I’ve realized that I struggle with authority unless I deeply respect the person. I can’t help but see ways to improve things, even if it’s not wanted. So, in a way, entrepreneurship is the only job I can have because I can’t stop myself from wanting to improve things.
Short-term, I aim to be profitable this year as we pivot from growth to profit. Long-term, I expect major brand extensions and partnerships, transforming BASBAS into a household name, and competing with the giants. Ultimately, we aim to build an LVMH for the next generation of consumer – authentic, mission driven and good natured.
Trust your gut. Entrepreneurship looks fun and exciting from the outside. But when you're in it, there's a lot to navigate. So, if you have a conviction, even if it's contrary to what someone you look up to is saying, trust your gut.
Chris Choi: Great advice. Thank you, Paul, for sharing your insights and experiences with us today.
Paul Geller: My pleasure, Chris. Thanks for having me.
