The Secret to Building a Subscription Empire – Insights from Fab Fit Fun Co-Founder Daniel Broukhim
Living The Red Life
Deep Dive
Why does FabFitFun use a subscription model, and how does it benefit both the business and customers?
The subscription model allows FabFitFun to place large purchase orders with confidence, knowing they have a recurring customer base. This enables them to secure deep discounts on products, which they pass on to their members. It also enhances the customer experience by offering curated, high-value items at lower prices.
What is the core offering of FabFitFun, and how has it evolved over time?
FabFitFun started as a newsletter and blog, then evolved into a subscription box offering. Today, it provides a curated menu of 50-60 items per season, where members pick six items worth $300 for $70 per season or $220 annually. The platform also includes exclusive sales, proprietary products, and has expanded into owned brands, B2B services, and a permanent e-commerce store.
What are some key lessons Daniel Broukhim has learned about building a subscription business?
Daniel emphasizes that not every product is suited for a subscription model, but it can be a powerful tool when it enhances the customer experience and benefits the business. He highlights the importance of repeat customers, which allows for confident bulk purchasing and deep discounts. Additionally, integrating marketing into the platform and offering digital components like community access adds value to the membership.
What marketing channels have been most effective for FabFitFun's growth?
Meta (Facebook and Instagram) has consistently been the most effective channel for FabFitFun. They have also experimented with influencers, TikTok, and podcasts, with podcasts being particularly successful due to their trust-building nature. Snapchat and CTV (Connected TV) are emerging channels they are optimistic about.
How does FabFitFun approach hiring, and what lessons has Daniel learned about building a team?
Daniel prefers hiring for potential and attitude over perfect resumes. He values loyalty and aptitude, often hiring friends or individuals early in their careers who are motivated to prove themselves. He believes that smart, hungry individuals can grow into roles and contribute significantly to the company's entrepreneurial culture.
How does Daniel Broukhim personally handle setbacks and failures in business?
Daniel maintains a healthy perspective on setbacks, influenced by his experience as a cancer survivor. He views business as a game and prioritizes health, family, and enjoying the entrepreneurial journey. He acknowledges that money and success are cyclical, and setbacks are part of the process, which helps him stay resilient.
What advice would Daniel give to his younger self about entrepreneurship?
Daniel would advise his younger self to start entrepreneurial endeavors earlier in life. He believes that more 'at bats' (opportunities to try and fail) increase the likelihood of success. He also reflects on the energy and willingness to take risks that come with youth, which can be advantageous in building a business.
What role does FabFitFun play in helping brands grow, and how does it benefit from these partnerships?
FabFitFun acts as a two-sided business, serving both consumers and brands. It provides brands with exposure to a large, trend-forward customer base, similar to a 'Super Bowl for CPG.' The platform helps brands gain visibility through unboxings and social media shares, while FabFitFun benefits from offering exclusive and proprietary products that enhance its membership value.
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