Paperless Post: James and Alexa Hirschfeld
1Digest
Paperless Post, a platform for digital invitations, was founded by siblings James and Alexa Hershfeld, who shared a passion for design. Despite initial skepticism from investors, they built a successful business model by focusing on user experience and adapting to changing consumer behavior. The company's beta version gained traction with real users, proving its value and leading to seed funding. Paperless Post pivoted from a ticketing model to a consumer-focused approach, charging for virtual stamps to send invitations. They later expanded into physical printed cards, but eventually shut down the print shop to focus on the core digital business. Paperless Post raised $25 million in funding, which initially led to some strategic missteps, but the company learned from these experiences and emerged stronger. The COVID-19 pandemic significantly impacted their event-focused business, but they navigated the challenges through cost-cutting measures, PPP loans, and investor support. The pandemic also led to a renewed focus on profitability and the launch of "Party Shop," a physical product line. The Hershfelds remain committed to Paperless Post, having resisted acquisition offers and focusing on continued growth. They attribute their success to a combination of hard work, luck, and adapting to changing consumer behavior.
Outlines
From Skeptical Investors to Viral Success
James and Alexa Hershfeld, siblings with a shared passion for design, built Paperless Post, a platform for digital invitations, defying initial skepticism from investors. They faced challenges, including the 2008 financial crisis and the COVID-19 pandemic, but their resilience and focus on user experience led to a successful business model.
Early Adopters and Viral Growth
Paperless Post's beta version gained traction with real users, proving its value despite initial investor doubts. A key investor was won over by the product itself, leading to seed funding. The company pivoted from a ticketing model to a consumer-focused approach, charging for virtual stamps to send invitations.
Expanding Beyond Digital: The Paperless Post Print Shop
Paperless Post expanded into physical printed cards, catering to users who desired a tangible option. The print shop initially thrived but was eventually shut down to focus on the core digital business.
Navigating Growth and a Pandemic
Paperless Post raised $25 million in funding, which initially led to some strategic missteps. The company launched "Flyer," a free and casual invitation platform, and faced the challenges of a global pandemic, which significantly impacted their event-focused business.
Resilience and Re-invention
Paperless Post navigated the COVID-19 pandemic through cost-cutting measures, PPP loans, and investor support. The company emerged with a renewed focus on profitability and launched "Party Shop," a physical product line.
The Future of Paperless Post
The Hershfelds remain committed to Paperless Post, having resisted acquisition offers and focusing on continued growth. They attribute their success to a combination of hard work, luck, and adapting to changing consumer behavior.
Keywords
Digital Invitations
A modern alternative to traditional paper invitations, allowing users to create and send personalized invitations online. Offers convenience, cost-effectiveness, and environmental benefits.
Viral Growth
A marketing strategy where a product or service gains popularity through user-driven sharing and recommendations. Often relies on strong user experience and a compelling product.
Product-Led Growth
A business model where the product itself drives user acquisition and engagement. Focuses on creating a valuable and intuitive product that users naturally share and recommend.
Event-Focused Business
A business that caters to the needs of event organizers and attendees. May offer services like event planning, ticketing, or communication tools.
Pandemic Resilience
The ability of a business to adapt and survive during a global crisis. Often involves cost-cutting measures, pivoting to new markets, and leveraging government support.
Physical Product Line
A business offering tangible goods in addition to digital services. Can provide a new revenue stream and expand customer reach.
Q&A
How did James and Alexa Hershfeld overcome initial skepticism from investors about Paperless Post?
They focused on building a strong product that resonated with real users, demonstrating its value through a successful beta version. This ultimately led to their first investor, who was won over by the product itself.
What was the key turning point in Paperless Post's business model?
The decision to pivot from a ticketing model to a consumer-focused approach, charging for virtual stamps to send invitations. This proved to be a more sustainable and profitable model.
How did Paperless Post navigate the challenges of the COVID-19 pandemic?
They implemented cost-cutting measures, secured PPP loans, and received support from investors. The pandemic also led to a renewed focus on profitability and the launch of "Party Shop," a physical product line.
What are the Hershfelds' plans for the future of Paperless Post?
They remain committed to the company, focusing on continued growth and resisting acquisition offers. They believe they have more to build and are the right people to lead the company's future.
Show Notes
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.
You can follow HIBT on Twitter & Instagram and sign up for Guy's free newsletter at guyraz.com.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Table of contents
United States
