2. About Wittlebee
• The kids clothing club
• Members get 6 items for $39.99
• 50/50 we pick vs. members pick
• Try to provide $100 of retail
value
• Goal: Save parents time and
money while reducing mall
meltdowns
Last Year
• Launched in Feb 2012
• 8000+ members peak in 2012
• $1.4MM in bookings for 2012
3. A few reasons to start a subcom business:
• You can realistically see 100K people signing up
• You can get 50%+ margin from day 1
• You know something about online marketing
• You can recoup any acquisition cost by month 2 or 3
• Can you sustain members for xx+ months on average
4. A few reasons not to start a subcom
business:
• You think it’s easy (no ecommerce is)
• You think funding is widely available
• You think it would be fun to pack all those boxes
• You’re thin skinned
7. Fulfillment
Your customer’s happiness over time due to shipping delays.
2-3 Days 1 Week 2 Weeks 4+ Weeks
Happiness
Thrilled
Excitement
Concerned
Frustration
Agony
Defeat
You Ruined Xmas
Suspicious
Anger
8. Marketing Channels
(friend get friend)
(gift with purchase or discount)
Best performance over time
Channels That Suck:
• Google Adwords
• Twitter
• Radio/Pandora
Secret Tricks:
• Sway Group
• Box Inserts
• Think CPL over CPA
9. Marketing
-Kick ass at Email Marketing
-Retargeting is dialed in
-Invested in SEO
-Strong community
• Annoyingly social
• Riding press hits
• Growing but slowly
• Lack paid marketing talent
• Need top talent/agencies
• Costly to maintain
• Dependent on funding
• Scaling paid is HARD
Organic (Too Cold) Paid (Too Hot) The Hybrid (Just Right)
