From $600 to $5 Million: The Smoke Cartel Success Story

In early 2014, 23-year-olds Sean Geng and Darby Cox used their modest savings to launch a small online store called Smoke Cartel, selling cannabis smoking accessories. Just three years later, their humble garage startup had grown into the largest dealer of bongs, vaporizers, and other cannabis smoking accessories in the United States.

At the beginning, the young art college students from Savannah didn’t have much money to start a business. Using all their savings—just $600—they bought their first batch of smoking devices and set up their store’s headquarters in a rented apartment. By 2016, their company could afford a real, comfortable office and a massive 40,000-square-foot warehouse, shipping out $5 million worth of products in a single year.

The young entrepreneurs say the secret to their company’s success comes down to five key factors, which they’re happy to share with other aspiring business owners looking to open their own shop.

Identify Your Target Market

“One day, we just sat down and realized there wasn’t a convenient online store in the U.S. offering a wide range of smoking devices,” says Cox. “The first test run of our store showed us that people were really interested in this kind of service, so we kept going.”

According to the founders, Smoke Cartel stands out from many other online headshops, which is what allowed it to become a multi-million dollar business. The company focuses on quality customer service, fast delivery straight to the customer’s door, and, of course, honesty with both business partners and buyers.

“Although we don’t work directly with marijuana or marijuana-containing products, we don’t hide the fact that we sell devices for consuming the plant,” adds Geng. “Because of this, we couldn’t rely on online advertising, but our satisfied customers have spread the word for us over the years.”

Engage in Social Activism

Since the new store couldn’t rely on advertising on social media or in the press, it had to depend on its customers to spread the word. As a result, Geng and Cox became not just online store owners, but also activists promoting responsible, therapeutic cannabis use.

“At the very beginning, Google and Facebook refused to run ads for a store selling devices specifically for cannabis use. On top of that, many banks refused to work with us for the same reason,” recalls Cox. “So we started working more closely with our customers and people who use cannabis for medical purposes. That way, we showed those who saw us as drug dealers that the legal industry isn’t the monster opponents of reform make it out to be. Now, these organizations use us as an example for other up-and-coming cannabis businesses.”

Pay Attention to the Details

It’s clear that part of Smoke Cartel’s success comes from the convenience of its website. Thanks to Geng’s background in programming, he developed the site himself, focusing on small but important details for users: the store features an easy-to-use search system to quickly find products, and a well-optimized engine that keeps the site running smoothly.

“When you’re selling anything online—especially products people are used to buying in person and with cash—you can’t ignore details like interface convenience or page load speed,” explains Geng. “A big part of our success is that our store is easy to use, even for customers who have never bought anything online before. We paid attention to these details, and in the end, our efforts paid off.”

Hire Motivated and Qualified Staff

At first, the company had just two employees—the founders themselves. Geng handled technical issues and website development, while Cox managed purchasing and customer feedback. Now, the company employs dozens of people who work together as one big team. The founders note that motivated and engaged employees are the most reliable and valuable resource for any business.

“We’re very careful when hiring staff. Besides work experience and product knowledge, we look at our candidates’ motivation: we want people who are ready to support the team and help the company grow,” says Cox. “Above all, motivation and trust between employees are most important in our company.”

Don’t Settle for Less

Finally, ambition and energy from the leadership are crucial for any truly successful business. Despite their company’s impressive growth, Geng and Cox continue to look for new ways to improve the store and find new markets for their products. Thanks to this healthy ambition, the staff stays motivated and the company keeps growing day by day.

“Of course, you should never forget about your customers’ needs and demands,” advises Geng. “There’s no such thing as a perfect product, which means we can always keep improving what we already have.”