James and Alexa Hirschfeld, co-founders of Paperless Post, share their journey from a simple idea to creating a digital invitation powerhouse. They discuss the unique blend of elegance and technology that defines their brand. The duo reflects on overcoming skepticism from investors and navigating the chaos of the COVID-19 pandemic, which challenged their business model. Their sibling bond plays a pivotal role in their resilience, inspiring innovative pivots and a commitment to customer engagement as they celebrate 15 successful years.
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Quick takeaways
James and Alexa Hirschfeld created Paperless Post to provide stylish yet affordable digital invitations, transforming traditional invitation costs into accessible options.
The founders faced investor skepticism about consumer willingness to pay for digital invitations, showcasing their perseverance amidst doubts and challenges in the early stages.
The COVID-19 pandemic prompted strategic pivots for Paperless Post, leading to new product launches and necessary financial adjustments for long-term sustainability.
Deep dives
The Journey of Paperless Post
James and Alexa Hirschfeld co-founded Paperless Post, a digital invitation platform, after recognizing the high costs associated with traditional paper invitations. Their idea was to create a more affordable yet stylish alternative, allowing users to send beautiful digital invitations that captured the sentiment of paper stationery at a fraction of the cost. However, their journey was met with skepticism from investors who doubted that consumers would pay for digital invitations. Their persistence paid off when they launched in 2009, following a careful two-year development process, ultimately leading to the brand's success.
Marathon vs. Sprint Entrepreneurs
The Hirschfeld siblings exemplify the 'marathon' style of entrepreneurship, taking time to refine their product and strategy rather than rushing to market. They conducted thorough research and used incremental progress to build a solid foundation for Paperless Post. Their approach allowed them to adapt and adjust their plans based on user feedback and market demands, emphasizing thoughtful execution over quick launches. This strategic patient approach ultimately helped them secure funding and establish a loyal customer base.
Navigating Challenges During COVID-19
The COVID-19 pandemic posed a significant threat to Paperless Post, as events were canceled and sales dropped drastically. The company faced an 85% decline in sales at its worst point, which forced the Hirschfelds to make difficult decisions regarding staff and finances. To survive, they implemented pay cuts, renegotiated contracts, and sought additional investment from their supportive network. These efforts helped them not only survive but also pivot towards launching a new physical product line, the Party Shop, enhancing their business model post-pandemic.
Innovative Business Models
Paperless Post's original model shifted over time as the company sought to monetize its digital invitations effectively. Initially, the plan was to offer paid features, but the founders realized their users preferred a model based on purchasing virtual stamps to send invitations. This insight led to significant revenue growth, including notable monthly sales figures shortly after launch. Their adaptability in exploring various revenue streams, including the mass appeal of printed invitations, showcased their keen understanding of customer needs.
Future Aspirations and Company Culture
As Paperless Post celebrates its growth and resilience, the Hirschfelds remain focused on further expansion without compromising the core values that fueled their success. They emphasize a culture of hustle, collaboration, and a strong relationship as co-founders, allowing them to innovate and respond effectively to challenges. Although they have explored acquisition opportunities, their commitment to building a sustainable business remains a priority. Looking ahead, they aim to continue enhancing their digital offerings and capitalizing on the evolving landscape of event planning and communication.
In 2007, when James Hirschfeld got the idea to start an online invitation company, the first person he turned to for help was his older sister, Alexa. Together, they were inspired to create a brand that combined the ease of digital correspondence with the beauty of paper.
Along the way, the founders faced myriad challenges: convincing investors that people would pay for virtual paper, settling on the right business model, and—worst of all-- the existential threat of Covid. 15 years after launch - Paperless Post has sent over 650 million invitations, and has even been parodied on Saturday Night Live.
This episode was produced by Kerry Thompson with music composed by Ramtin Arablouei. It was edited by Neva Grant, with research by J.C Howard. Our engineers were Robert Rodriguez and James Willetts.