For the past year I’ve been working at Cratejoy, a small venture funded startup in Austin. One of the most interesting aspects of the job has been learning first-hand what it takes to grow a small business into a much larger one. Specifically, I think the business model Cratejoy started with could work really well for many WordPress based businesses and consultancies. Cratejoy began as an ecommerce website solution for subscription box companies. The business model was a monthly platform fee (~$30/mo) and 1.25% transaction fee on all sales. At the time subscription box businesses like Birchbox, Barkbox, and Naturebox were taking off, but creating a website solution for recurring physical sales was still really difficult. The founders of Cratejoy raised $4 million from investors who were interested in exploring a potential new ecommerce market. The Business Model There’s two really nice aspects to the pricing structure Cratejoy started with. Recurring Revenue Monthly recurring revenue makes any business more predictable in terms of income. If you have 100 customers this month, you’ll likely have most of those same 100 customers next month (and hopefully a few more).
Share This