Originally Posted by gypsiemagic
I think this isn't fair assessment. for the past 26 months the samples have been both large and small, in sort of a random way, since it really depends on the marketing budgets of the companies they partner with that month.
And the subscription service is what makes up the bulk of their earnings. They have received 12 million in funding, and I believe they have somewhere upwards of 200k subscribers, at $10 a month, is 2 million a month, 24 million a year, I highly doubt the e commerce end of things makes even close to that.
I didn't realize all the samples were given to BB for free. 12 million in funding?
I'd say it's a close call between the revenue of the sub service and their direct commerce business at this point. I've read that half of the 200k subscribers buy full-sized items. If that 100k is anything like me, I've definitely spent more in the shop than I have on the subscription service alone. I imagine their goal is to keep increasing the shop, giving us incentives to spend and to ultimately make that their biggest source of revenue.
The box is like a fishing tackle to get us to buy. I've read that since they started they've become the leading retailer of Benta Berry in the states and even one of the leading retailers of Color Club. They charge $8 a pop for one of those polishes you could probably find elsewhere for cheaper, but you buy it in their shop because you want to reach the limit to get their promotions, and it's a low priced item.