Video can help entrepreneurs raise capital, businesses attract new customers and hotels garner more customer loyalty. As exemplified by the story of the Dollar Shave Club, the power of video is compelling.
Video can sell anything – just ask the Dollar Shave Club
Inc. Magazine reported on the Dollar Shave Club’s humble beginnings and how video helped the company become recognized and grow. Owner Mike Dubin started the company with a funny, low-budget YouTube video about a man expressing his excitement over his razors. Due to the funny nature of the video, it went viral on YouTube and quickly earned 19 million views in 2012. The Dollar Shave Club is essentially a subscription service for razors. Dubin started the company with his life savings of $35,000 and soon found himself with 12,000 orders overnight.
Today, three years later, the Dollar Shave Club just finished its fifth round of financing for $75 million, bringing the company’s total valuation to $615 million. The Wall Street Journal explained that the valuation is high because of fast revenue growth. The company earned sales of $65 million in 2014 – three times what it made the previous year.
“We have two million members that get a shipment every month or every other month,” Dubin said, according to the news source. “Men’s grooming is exploding, and we think we have a role to play.”
What made this video so successful?
According to Inc., Dubin has a background that made him well-suited to create digital content. He worked as a page at NBC in New York and also took comedy classes at Upright Citizens Brigade. After that, he worked in digital marketing at Time Inc. In his new position, he participated in marketing efforts for companies like Nike, Gatorade and Nintendo.
“I’ve never worked for an agency, but I’ve always created content,” Dubin explained.
When Dubin met his future partner Mark Levine, they discussed the possibility of starting a company that focused on men’s grooming products. They filmed the aforementioned video, and it went viral soon after. That video was instrumental when Dubin and Levine were trying to attract capital from investors.
“I think once they saw that video, they understood that I was a guy who understood brand and marketing and how to speak with a clear voice about our core offer,” Dubin said.
While the Dollar Shave Club faces competition from major companies like Gillette and Harry’s, their ability to create entertaining digital content is sure to serve the company well going forward. Business 2 Community advised companies to consider using a video to showcase their products and services. How-to and introductory videos show potential customers that they can develop a relationship with a brand. The more consumers find out about a company, the more trust is established early on.
Thanks to new technology, quality video production is now easier and more affordable than ever before. Consider using enterprise video solutions at your business and think about the things you can achieve.