Tuesday, November 29, 2016

We Quit Facebook and Google to Build a Children’s Book Startup

The story of my startup, Read Your Story, begins on a warm summer evening in July 2015, when my family was having dinner over at my sister’s house in Palo Alto, California.

While we were enjoying some wine, we watched our kids play in the backyard. As we were chatting, the conversation at some point turned to how much we loved storytime with our kids, since it’s an opportunity to bond and escape technology.

Like many other parents, we were concerned about limiting "screen time" for our own children.

The iPhone and iPad are magnificent devices, but they are also far too convenient as tools for zoning out unruly kids when we need a moment of peace.

My sister Jeanette — then a marketer at Google — asked an interesting question: is it possible to make books that are more engaging than an iPad for young kids?

We started to brainstorm and began to share some interesting observations about young children. We consistently noticed kids get excited when they see their own name in print, and also when they see pictures of themselves.

Why couldn’t we merge names and pictures into storybooks?

From this dinner followed several weeks of research, where my sister and I were surprised to discover that there were surprisingly few personalized children’s book companies that merged faces and names into books.

And the ones that existed were poor quality. We decided that we could do better.

As an experiment, we committed to a short-run book test test to validate market demand.

At the time, I was working at Facebook as a product manager and wasn’t ready to leave my job.

We kept this project on a slow and steady burn as a side project.

Validating the Concept Through a First Run

After brainstorming a few book concepts, we decided to go with an "ABC" book, since it was a straightforward and popular book format for parents.

Jeanette ran some hefty diligence through her network and was able to connect with Donna — an incredible children’s book illustrator who brought our book to life. Donna later became our third co-founder.

The goal for our first run wasn’t to make money, but to validate directional product/market fit.

We committed to making 50 books.

When we were ready to launch our test in October, we had a really solid product to test with — but a terrible user experience.

I constructed a crude SquareSpace website that featured an awful shopping experience.

If you wanted to buy a book, you had to:

  1. Fill out a form with your child’s details, shipping details, and your email.
  2. Give us your credit card information to make a purchase.
  3. Our team would see the order and then email the customer soliciting a photo of their child.
  4. Upon receiving the customer’s photo, our team would manually crop the face into each page of the book.
  5. Finally, the book was sent to a printer and drop-shipped to the customer.

Each book took 3 hours to create in Photoshop.

There was a ton of manual drawing that was required for every page of the book — it turns out that masking artificial hair on top of a real face is quite challenging!

Designing the books

After creating a customer’s book, we would then export a high-quality PDF and upload it to Blurb.com, a really great but expensive photo book tool.

We sold each book for $35 on our website, and Blurb would then charge us $45 to print and deliver.

Most importantly, my sister and I wanted to get unbiased data that real people wanted our books. Consequently, we didn’t let any friends know about our project. We shared news of these books to lists and parent groups under aliases.

We also ran some light Facebook ads to drive brand awareness and a little direct response. We purposely held off on being too aggressive with marketing.

We wanted to see what customers would do with the books.

Fortunately, the reaction was really positive, even with the poor user experience. Our customers shared our site and told their friends, and much of our sales turned out to be organic via word of mouth.

No profit was made from this test run, but we were able to prove some demand for our idea.

How to get 6,000 customer signups before you launch

After our successful mini-run test, we decided to proceed with testing a more scalable version of our business. But first we wanted to build a customer list to further validate demand.

Even before fingers touch code to develop your cool new business, I’m a big believer that you have to determine market validation so that you can sell your product.

List building is one of the best levers to both validate product/market fit, as well as line up customers from day one.

The co-founders at Read Your Story had a strong gut-feel that our customized children’s books would be received well in the market. However, we were starting a brand from scratch. How the hell were we going to validate scalability for our business?

For us, we did that through Facebook ads.

Step 1: Get Likes to your Facebook Page

Read Your Story Facebook Page

We kicked things off by setting up a simple Facebook page.

A nice logo, nice cover image, and a few cute posts. Then, we launched a Facebook ad campaign that was optimized for people to like our Page.

I’m a former Facebook Ads product manager, and do not generally recommend optimizing for Likes.

Basically what happens when you do this is that the audience that Facebook targets focuses more on people who are ‘Like-y’.

That is, you’ll get people who just tend to Like everything that they see. Thus, the audience that you attract via these kinds of campaigns may not be a true signal of actual people who are interested in your product, but it is at least some rough signal.

Didn’t matter for me though. My primary focus was a single number: 100.

I wanted to put together a rough audience that had a general interest in my company, and aggregate 100 of these people.

Once I hit that number, I would then be able to run a Lookalike audience off those fans (you need a minimum of 100 fans to run Lookalike ads).

Step 2: Run Better & Better Lookalikes

Setting up a Lookalike audience

Lookalikes are your best friend.

Continue reading %We Quit Facebook and Google to Build a Children’s Book Startup%


by Eric Bahn via SitePoint

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