Threadless was started by two guys that decided to invest in the prize money they won from an online contest. They created a business that allowed its community of diehard followers to create, hype and decide what products get made. There are a lot of things that indie brands can learn from the Threadless model, here, I present five things we can learn from the Threadless story.Â
1. You Can Build A Business With Minimal Startup Funds. Threadless Co-Founders, Jake Nickell and Jacob DeHart started Threadless using the $1000 prize money won from another online design contest. If you have extra cash lying around, invest in it wisely, Jake and Jacob did and now they run a multi-million dollar business whose model is built on handing out cash to design winners. The point is, in the grand scheme of things, you don’t need large sums of money to start a business. If you are driven and you Â have a solid idea then you will be successful – in one way or another.Â
2. Community Can Drive A Business. The Threadless model is entirely built around it’s community of dedicated users. People submit designs and people vote. All the while, free hype and publicity for these designs are generated by the community itself. Threadless is a self-sustaining business, unlike old-school fashions brands like Levi’s, Guess and Quicksilver, that spend millions of dollars in marketing and print ads to generate hype, Threadless let’s it’s community take care of that for them.
3. Make It Fun and Stick With It. Everything about Threadless screams fun. From the designs they select to the layout of the website. The point here is, if you have a theme to your business, push that theme hard and follow through. Even though the ongoing design contest is a constant, they still have smaller “theme” contests, like the current Threadless Loves Travel contest. Their product shots keep with the fun theme as do the weekly videocast. If your brand has a theme, stick to it ad push it hard.Â
4. The Appeal of Limited Edition is Hard to Resist. Whenever things have the “Limited Edition” moniker slapped on it, people buy it up. I think that having a design available for purchase on a limited basis and then marketing it as such was a brilliant move by Threadless. “Limited Edition” provides a sense of urgency whenever a potential customer is deciding whether or not they should buy a tee and instills the idea of “I should buy it now or else it won’t be available next time I visit.” I’m surprised that there aren’t many indie tee designers that market their tees as being a limited prints when in fact they are, especially when they print just 50 or 100 of a particular design. I think independent designers should take advantage of the “Limited Edition” moniker. If you do, let me know if people start to buy your stuff up.Â
5. The Physical and Online Worlds Can Mesh. Threadless was able to build a physical store from the success of its online store. Johnny Cupcakes did the same thing. The physical and online worlds can mesh if there is value in both. The online community is the strong point of the online Threadless store. The physical Threadless store is able to incorporate things that they otherwise would not be able to do on the online store, for instance, the Threadless Art Gallery. Building and maintaining an online store is relatively cheap compared to opening and managing a physical store. A physical store might not always be necessary, but, if your brand can grow and if there is added value to the physical store than it might be something to consider.
Was this article helpful? Let me know. Have your incorporated in Threadless techniques into your own business model? If so, how?Â