Since announcing Cratejoy’s Prelaunch Program 2.0, we’ve received a wave of enthusiasm from the subscription-preneur community. And without giving too much away, it’s safe to say we are BEYOND excited to see this round of applicants come May 15th.
As promised, the Prelaunch team wanted to give you guys a little more context into what this program will look like from both the seller and Cratejoy perspective before applications open.
Let’s dive in!
First things first: What’s the goal?
We will pick 5 up-and-coming sellers to help prelaunch their subscription box on the Cratejoy Marketplace. Through a series of 1:1 virtual workshops and marketing campaigns, we’ll help take our partners from prelaunch to launch in 6 weeks.
What is required?
Application Due 5/21
We’ll release the full list of questions when applications open on the 15th, but here’s a primer on what you can expect to see:
Monthly Boxes Only
We’ve found subscription boxes are most effective on a month-to-month delivery schedule. Not only is Cratejoy set up to best support monthly recurring subscriptions, but Marketplace subscribers are more likely to commit to the regularity of a monthly product.
Short, Scrappy Video Pitch
We want to see you talk about your product and story as if you were having a conversation. Applications can get stuffy, and video lets you talk to us one on one about why your box is a great fit for this program.
Last year, Jamillah from Call Number submitted an awesome pitch where she talked about her story, her box, and what subscribers could expect to see month to month.
Pricing Breakdown
Partners selected for the Prelaunch program must have the financial logistics of their box planned out and be willing to share that information with Cratejoy.
The goal of the Prelaunch program is to help those sellers who are most ready to launch their box and gain subscribers quickly – and a major indicator of success is the financial planning of your business.
We’ve got two great calculators you can use to check your math with our subscription box calculator and our subscription box revenue calculator, as well as a great general startup cost calculator.
Items we’ll ask you to consider:
-
- Estimated COGS
- Shipping
- Box costs
- MISC costs
To learn more about subscription box pricing, check out our pricing webinar on Subscription School.
…And what’s nice to have, but not necessary?
Branding Done and Box Ready to Order
Though this is not required to be selected as a winner, those without their branding and boxes will need to move quickly to create these items if they are to move forward in the program.
What we’re looking for here is that you have a logo (like below), a voice for your brand and, an idea of what your packaging will look like. If you’d like to mock up a box to show us, we LOVE the BoxUp designer!
Products for Your Box
Again, not an absolute requirement during the application phase, but winners who are selected to move forward will need to put together products for a sample box to be photographed and used for Cratejoy’s marketing.
No, this does not need to be the exact product lineup for your first month, but it needs to be representative of the products your subscribers will come to expect from your subscription. That means taking price, value, and vendors into consideration.
Profit Margin of At Least 20%
We’ve seen time and time again sellers who price their box too low and burn out from financial frustration. A minimum 20% profit margin is more likely to ensure a seller stays motivated, excited, and optimistic about being able to scale their business.
Again, we’ve got two great calculators you can use to check your math with our Cratejoy calculator and our revenue calculator. Our general startup cost calculator is a stellar tool as well!
How will we pick winners?
The Viability of Your Idea
We run a Marketplace with thousands of subscription boxes, so trust us, we’ve seen some outrageous subscription box ideas succeed. When we say viability, we want to make sure that not only does your idea have legs to stand on, but that you are the person to execute that idea.
If we go back to Jamillah’s application video for Call Number, it’s clear that not only has she done her research in the book subscription niche to make sure she’s offering a unique product, but she’s also got the background to support her curation.
Jamillah used her experience as an African Diaspora librarian at Purdue University to influence her product choices and create a truly compelling book box.
How Prepared You are for a Prelaunch (and Subsequent Launch)
This comes down to timing. We want to work with people who are ready to dive in headfirst and prelaunch their box by early July – because you’ll be packing them just a few weeks after that!
If this isn’t you, don’t worry! We hope to run this program again in the near future and want our partners to be able to commit to this the right way, not just the fast way.
How Well We Think We Can Market Your Box + Where it Fits into the Marketplace
We’ve been running the Cratejoy Marketplace since October of 2015 and have a pretty good idea of what lands with our subscriber base. Moreover, we’re tuned into which niches have a sizable demand, but not a whole lot of supply. For this reason, we’re keeping a close lookout for box ideas in the Yoga, Date Night, Anime, and Planner verticals.
With that said, please do not go out of your way to create a box in a niche that you think will increase your chances of being selected for the program. At the end of the day, we will choose partners that we believe will find success by being passionate and knowledgeable about their niche.
What’s the Timeline + How Will We Market Your Box?
For full transparency, here is our estimated Calendar for the Spring/Summer 2017 Prelaunch Program:
5/15: Applications Open
5/21: Applications Close
6/5: Winners Announced
6/6 – 6/9: Virtual Workshop 1
6/12 – 6/15: Virtual Workshop 2
6/19 – 6/23: Virtual Workshop 3
6/26 – 6/30: Virtual Workshop 4
7/3 – 7/16: PRELAUNCH + Marketing
Other FAQ
I have a question that isn’t addressed in the FAQ, where can I ask about it?
E-mail community@cratejoy.com.
What is the application like?
Most of the questions are simple and should be quick to answer. The most time-consuming part of the application will be the 2-minute video introducing yourself and your product.
What should my video be like?
We’re modeling the video after the Y Combinator application video – it should be two minutes long and uploaded to YouTube. Mark it as unlisted. (Don’t mark it as private or we won’t be able to see it.)
The video should contain nothing except for the founders talking and showing off their product. No special effects, no soundtrack, and no post-production work. We are not judging you on the quality of your video skills, and in fact, they may take away from our ability to understand you and your offering. Spend your time on your product, not this video.
If you have any product progress, please show it. It doesn’t have to be exactly what you’ll ship. The goal is to help us understand your planned offering. Don’t obsess over little details, such as whether this is the exact drop slip or exact box type.
Please don’t script the video, just talk spontaneously… as you would in telling a friend about your subscription. Tell us what it is, and why you’re excited about it. Tell us why you know someone would be thrilled to receive this subscription on their doorstep.
Before submitting the video, watch it yourself; make sure you can hear, see, and understand what you’re saying. Make sure you’re clearly audible and visible.
Basically:
- 2-Minute Video
- Upload to YouTube
- Mark as unlisted
- Only Founders Talking
- If you have some product, show it
- No Effects
- No Script
- No Music
- Check Audio
Can I submit an application without a video?
Honestly, since we have received applications with videos and they are so much more insightful than just text on a screen, we’re unlikely to consider applications without a video.
When are applications due by?
5 PM CST on 5/21/2017
Why are you only allowing one week for us to submit applications?
The short time frame is meant to limit the applicants to those who are most ready for us to help, and allow us enough time to run this pilot in the summer. (This announcement was posted on 5/1, so technically, you’ve got 3 weeks to get your application ready.)
When will you choose participants?
We want to have completed choosing participants by 6/2. We will extend if necessary, but we think this should be plenty of time.
How do you define prelaunch?
A prelaunch is an email gathering campaign that is designed to create an interest list you can email to announce your launch. This is distinct from a pre-sale campaign, which allows customers to pay now for a subscription which will not ship until later. Either can apply for this program, although we’ll have a strong bias towards prelaunches.
What is the schedule, should I be accepted?
6/5: Winners Announced
6/6 – 6/9: Virtual Workshop 1
6/12 – 6/15: Virtual Workshop 2
6/19 – 6/23: Virtual Workshop 3
6/26 – 6/30: Virtual Workshop 4
7/3 – 7/16: PRELAUNCH + Marketing
Should I stop my existing prelaunch plans after applying and wait?
Please don’t. Proceed with your plans, and if you are part of the pilot, we’ll work with you to run the pilot in the way that best matches your current stage.
Will I need to recreate my existing prelaunch page on Cratejoy?
We’ll work with you to set up a prelaunch page on the Marketplace. You won’t need to redesign anything, but you will need to provide images and copy. Much of this copy will be similar to what you provide in the application.
How will you be choosing participants?
We’ll be choosing based on who we think we’re best positioned to help. This is a combination of where you are currently with your subscription, our knowledge of our existing marketing assets, and our previous experience with what works where. If you aren’t chosen, it doesn’t mean anything. We’ve just got a limited amount of bandwidth for this program.
What promotion will we be receiving?
We know that we’ll be leveraging our existing customer list, our partner network of bloggers, reviewers and influencers, our existing social channels, and our existing paid and organic marketing team and tools. We won’t decide exactly the tactics and in which order until we know the mix of boxes that are going into the pilot, and we’re likely to experiment with a variety of different techniques.
Is there any guarantee as to the success or the number of prelaunch signups I’ll get?
There is no guarantee. All we can promise you is that if we accept you, we’ll try our hardest, and we’ve gotten quite good at selling subscription boxes.
What if I can provide boxes and pictures, but they would only be examples, not the actual products in the first box?
As long as the example is representative of the types, number and value of product the customer will receive, that should be fine.
Will there be ongoing promotion after the prelaunch, or will we be normal Marketplace sellers at that point?
We don’t have particular plans to market your subscription over other Marketplace subscriptions. However, our onboarding account manager will help to make sure your first few cycles of shipments go well, and we’ll be available to help support you with any questions as they relate to your pre-launch.
Is it possible that I lose money on this?
Yes, it’s possible that you spend money and time putting together pictures and product for this program and that we are not ultimately able to help you achieve the prelaunch goals you have in mind. However, we believe that the majority of the work you’ll be doing for this program is work you’d be doing anyway – such as photographing your product and putting together sample boxes.
Do I need to have custom packaging?
Though not required, it is preferable. The reasoning here is that sellers who already have their boxes together are closer to being ready to launch.
Are there any fees associated with this?
There are no additional fees; however, this pilot will require you to have a paying Cratejoy seller account, and any purchases that ultimately come from this prelaunch will be attributed to the Marketplace and subject to our normal Marketplace fees: Understanding your Marketplace Fees
What if I’m outside the US?
Please, apply! We love our international sellers and will definitely consider all applicants. Make sure to indicate what countries you’ll be fulfilling to when filling out your application.
Do I have to use Cratejoy to participate?
Yes. This pilot is only open to Cratejoy Marketplace sellers, or those who intend to use the Cratejoy Marketplace.
Do I have to have a paying Cratejoy account to apply?
No, before we start your prelaunch we can help you set up your Cratejoy account.
What if I already have an existing subscription business but want to start another? Can I apply?
Of course!
What if I’ve already done a prelaunch that didn’t go so well and I’d like to do a relaunch?
Please submit an application! We’d love to see what you have to offer!
