Posted on September 10, 2012 by Joshua Rivera
I spent some time talking to Yeray Diaz, an empirical mind in the world of art. Mr. Diaz will soon open ArtCrypto to the public. ArtCrypto is an online art gallery. Through this gallery, Mr. Diaz will showcase a new approach to acquiring artwork. I spoke with the enthusiastic entrepreneur, and this is what he had to share.
Your work experience and formal educational background are quite different from your business. What inspired you to start a business in the art industry?
I definitely agree. I have spent the last six and a half years of my life in the extremely structured military world and now I am entering the puzzling world of art.
This is a short version of ArtCrypto’s story. My brother, Jonay di Ragno, has been an artist for as long as I can remember. And just like any other artist, sometimes it is difficult for him to reach his audience. To help him out, earlier this year I offered to represent him as an art agent. I offered to do it at no cost, but he insisted on paying for my services. This led me to redirect my idea and implement a more formal business approach. For months I conducted research to acquire a better understanding of the industry so I could provide him with a better service. During those months I was introduced to other artists and had the opportunity to share my story with them. Almost every artist I spoke with asked me to represent them as well. ArtCrypto turned into an artists agency. Time flew by, and after grasping a significant understanding of the industry, I turned the artists agency into an art gallery. And that is how ArtCrypto online art gallery came to be.
Back to your original question; even though my background is not in art, I am still able to transfer most of the strategies that I have utilized in the military. Furthermore, most values remain the same: integrity, discipline, reliability, consistency, simplicity and loyalty to name a few.
Much can be said about the name of a business, what made you create the name ArtCrypto?
Visual art seems to be an intimidating and complicated concept to most people. I believe that traditional galleries are the biggest contributors to this matter. Their typical formal setting makes some people uncomfortable and by default scares them away. ArtCrypto deciphers art concepts for customers in a comfortable environment. The gallery’s simplistic approach to art gives clients the access to buy their favorite artwork from the comfort of their home, coffee shop, etc. I promise that no one will be staring at you while you stare at art. There is no art educational background required to shop at ArtCrypto and you can sport your choice of attire every time you visit. From inexperienced art buyers to the art industry’s connoisseurs, the gallery will provide the customer with multiple features to make their experience simple and enjoyable.
ArtCrypto deciphers the complexities of art, so the client does not have to.
Do you pattern your business after another business or someone?
No. I do not pattern my business after any other. I do evaluate online galleries constantly as part of my industry research, but it is just for educational purposes. What ArtCrypto delivers is a unique experience that I have not encountered in any other online gallery.
Who do you see as your two biggest competitors in your industry?
There are some admirable larger scale online galleries out there, but I do not consider them my competitors. By larger scale I mean galleries representing a substantial amount of artists, let us say 400 for example. Due to their small scale nature, it is difficult for small online businesses to identify their respective competitors. I believe that if an online business is not successful enough to gain a significant amount of presence on the Internet, I should not consider them my competitors. Therefore, I should not be molding my business strategies around them.
Once ArtCrypto pays its dues and transforms into a bigger enterprise, then those larger galleries will become relevant competitors.
How can you differentiate yourself from your competitors?
There are multiple answers to this question and they are quite simple. ArtCrypto offers many advantages over other online art galleries. Among these advantages are: a very user friendly website, simplicity by not overwhelming the customer with thousands of choices to choose from, incorporating unique product filters, and donating a significant percentage of profits to charity without compromising prices.
My Web Developer, Ryan of GORILLA ONE MEDIA, is putting a lot of effort into making an extremely user friendly online store. He is doing an incredible job of implementing his technical skills to enhance every aspect of the shopping experience.
Most online galleries offer extensive selections which tend to fatigue customers. This gives customers a “super store” feel throughout their shopping experience, instead of a small scale art gallery feel which tends to be more of a unique experience. A smaller art gallery makes customers feel special about purchasing original artwork or limited edition prints and not “Print # 692”. These ridiculous inventories also lead customers to question the gallery’s quality control.
ArtCrypto offers distinctive product filters. This feature assists customers by informing them of other aspects of the gallery’s artwork. They go beyond color, type, style, medium, etc. A customer might need something more than these traditional filters. Through these tailored filters, ArtCrypto offers a way to further assist customers in their shopping experience by increasing their chances of finding the perfect art piece. This feature adds a practical and functional aspect to the gallery.
Furthermore, ArtCrypto is committed to the community by donating a significant percentage of its profits to charity projects. ArtCrypto is committed to its artists, the community, and most of all, its values. These values include: simplicity, integrity, commitment, loyalty, consistency, reliability, and uniqueness.
What do you feel is your single biggest barrier to getting a foothold in the industry?
My budget. I am ArtCrypto’s sole-investor. No other investors or even bank loans. Other online galleries tend to start with a significantly large budget. Some galleries start with $100,000 budgets or more. By not having a large budget, I am quite limited to what I can do to compete in this industry.
It all comes down to the things that I can do without a relatively large budget. From conducting extensive research, to becoming a graduate student of an entrepreneurship program; I have to utilize the sources I do have to make every cent count.
There are qualities which I do possess which give me an advantage. I possess a mathematical background, a meticulous attention to detail and a relentless strive for excellence. Additionally, I understand my possibilities of failure and I respect them, but do not fear them. This allows me to try innovative strategies that other online galleries might not be willing to attempt.
What is your estimated startup cost?
I intend to open ArtCrypto to the public with less than $20,000. Of course, this is just an estimate. But I am on the right track so far.
It is my understanding that you are active duty military; if you get stationed some place different, even outside of the continental United States, how easy will it be for you to move your business? How would you deal with storage, inventory, etc.?
The complexity of my business comes from piloting all operations without ever having possession of the artwork. This is where the innovative portion of my entrepreneurial mindset comes into play. Due to the nature of the military, I am constantly moving. So I have to be able to create a business which can operate flawlessly without my physical presence. It is a very difficult task if you take into consideration that I do not possess an e-commerce background. But again, my Web Developer, Ryan, is continuously assisting me by keeping me up to date with the latest technologies available out there to make my business run smoothly.
How much or little does your family support your business?
That is a very common question which has a very uncommon answer. Most of my friends and family members are very excited for me. They constantly support my decisions and cheer for me. On the other hand, I happen to have an incredibly beautiful wife who is equally intelligent. I believe that the more educated and knowledgeable a person becomes the harder it is for them to be subjective. That being said, I guess that her two bachelor’s, a master’s, and four languages unable her to be subjective. She is quite honest about her opinion and is not shy when I request it. I guess it is tough love. I hope.
You mentioned that you want to give a portion of your earnings to charity; can you please describe the types of charities you would be willing to support?
The specific type of charity, or charities, which ArtCrypto will be supporting have not been determined yet. I will continue to research different organizations until I find one that suits my values.
I do have a favorite but I cannot disclose information until further notice. I hope you understand.
Are your donations to charity an altruistic pursuit or is it a way to gain goodwill toward your business? Or is it both?
That is a very bold question. I like it.
I began this journey with the intentions of helping my brother. It did transform into something way bigger than my initial plan. More artists got involved, charity organizations came into play, etc. By default ArtCrypto will generate more profits. But this does not mean that I have deviated from my original intentions. It is still about helping other people.
So yes, being involved with a charity or charities will gain goodwill toward my business. But that was not the intention. Nonetheless, this will be beneficial for the gallery, the artists it represents, and the charity organizations.
I guess you could call it good Karma.
Can you describe who you believe is your target customer?
My target market is very wide. Usually the art industry targets people between the ages of 35 and 54. But since ArtCrypto will provide relatively affordable art, it will attract a younger crowd as well. A price range has not been established yet, but I know it will be somewhere from $300 and up. Maybe even lower. I am not certain at this moment.
Is this strictly a domestic company or will you also attempt to reach international buyers? If so, how will you prepare for overseas shipping, any customs issues, etc.?
ArtCrypto will open its doors internationally. I believe most customers will come from the United States.
I am currently working with UPS to address all domestic as well as international shipping matters.
Have you thought of using mobile applications for your business?
At first I wanted to have a website, a mobile version of the website, and applications. But my Web Developer guru figured out a way to create a website which can be accessed through most popular mobile devices and tablets without needing to create a separate mobile website or application. Customers will be able to access ArCrypto from their desktops, laptops, tablets, and smart phones; this will give the user the flexibility of ordering artwork from anywhere at any time. He did go into further details, but I could not keep up with his tech talk.
How will you handle payments on your website? Will you include PayPal?
Customers will be able to choose their favorite payment method. All major credit cards, PayPal, etc.
When your business becomes more successful, it would be quite difficult for you to handle ArtCrypto’s entire operations; sales, customer service issues, artist recruiting, etc. At what point do you hire a second employee?
I agree with you. ArtCrypto was created as a small scale online art gallery. This allows me to have a better quality control, a closer relationship with the artists I will be representing, and a higher level of customer service. But growth is inevitable and I will have to adapt accordingly. In order to keep my business standards, I will eventually have to hire personnel.
I am not sure at what point exactly this will happen. But as soon as I feel that I can no longer manage my business singlehandedly, I will hire employees. ArtCrypto’s values can never be compromised.