008: Building an Audience and Recurring Revenue | Subscription Box Basics with Sarah Williams

Build your audience and they will come. On today's episode, you'll hear how one boutique started a subscription box and created even more connections with their customers.

Welcome to the Launch Your Box podcast with weekly tips, tricks, and strategies to start, launch, and grow your subscription box. Now here's your host, Sarah Williams.

Hey everybody, I am here today with my friend Brooke Riley from Refab and The Refab Boutique, and I'm going to let her tell you just a little bit about her business. It's really fun, and I can't wait for her to share that. Brooke, welcome to the podcast. Why don't you tell anyone that doesn't know about Refab what it is and what you do?

Okay. Hey Sarah, I'm so excited to be here and with your wonderful community today. Um, like you said, I'm Brooke Riley with Refab and The Refab Boutique. And just to give you a little background for those of you who don't know me, I started Refab 6 years ago. It was a blog, refab.com, still is a blog, and it just kind of grew and morphed from there into decorating, DIY, Facebook community, all the social media channels, coaching group, all these things that it entails. And along the way, as my platform was growing and I was reaching more people in my community, people kept asking, where'd you get your shirt? Where'd you get your earrings? Where'd you get your jewelry? And I'm like, y'all, you know, over at the local thrift store, because I love a good thrifty find. And nobody could replicate what I had because it wasn't available to them. So the more questions I kept getting, the more I realized that there was a need in my community that I could fill. And that was when The boutique, which is called the Refab Boutique because I'm very original with my name. Um, and that was when it was formed. So that was 2 years ago, um, when we formed that and it just all started from a need that my community had and wanted from me, um, to provide, you know, cute clothes and jewelry and accessories and all the things. So, you know, that's kind of how that part of the business got started.

So it went from Refab and then it went to the Refab Boutique and now you have the Refabulous Subscription box, right?

Yes. Yes.

I want to tell them the story about when we met. So Brooke and I met a little over a year ago and we were in a mastermind together. So we're learning, we're talking business stuff. And we were talking about subscription boxes and how, you know, it's grown in my business. And Brooke is sitting across the table from me and with her husband Brandon, who's part of Refab and the Refab Boutique. And Brooke's like, oh, I've been wanting to do a subscription box. And Brandon was like, No. And why was that? Do you remember?

Yes. Okay, so when, when I knew you were going to be here— or, you know, this was last year— when I knew you were going to be here and that you had, um, Launch Your Box and all that awesome stuff, I was like, oh yeah, because I already knew I've been wanting to do that for over a year for the boutique. And like you said, Brandon was just like, no, if they want to buy, you know, whatever, they're just going to buy it from the store. I don't know why we'd have to sell him on it. But he was not— he just wasn't seeing it like that, you know, that was not how his mind was working in it. So when we started getting to know you better, and we're over there sitting right across from you, and we're hearing about your business, and the recurring revenue, and I'm just sitting in my mind like, uh-huh, yep, that's what I've been saying, you know, and all of a sudden it kind of starts clicking for him.

He like sitting up in his chair, he's asking questions, he's tuning in. Okay, I could get in with this recurring revenue thing. I kind of like this knowing that The money's going to hit our bank account every month and we don't have to show up and sell the things every week.

Yes.

It's so fun.

It was a fun, I told you so moment. Any wives out there know that moment that you're like, ah, yeah, that felt good.

So that was early March. And then you went home and you got busy. And I know Brandon and I had some conversations about getting all of this started. And the first thing that you did was you started this waitlist because that's a huge portion of the strategy behind launching in your box. And you started this waitlist. And within just a few months, you were ready to launch your Refabulous Box. And I want you to tell me about that.

Okay. Yeah, as soon as we left, we're go-getters, we're action takers, you know, it's kind of like a lot of entrepreneurs out there. And, you know, as soon as we got home from our mastermind, it was like, okay, let's get busy. Let's get this waitlist started. Just like you said, let's start telling our page, let's start telling our community. What we've kind of got in mind and see who's interested. And there was a huge interest in that, like they wanted that. So that was exciting. So we started the waitlist, got it going, and then, um, started selling boxes at the end of April. So it was just over a little— about a little over a month, um, from the time we started the waitlist. And then our first boxes went out in May.

And how many were— of those boxes did you sell?

500. And we, and we limited it to 500. We could have sold more, which is really exciting.

You sold out within hours, right? Of you launching. And I just want you listening to know that that is not normal. Brooke has spent many years building and crafting an audience of someone that's just like her, that loves the things that she loves, and she has this successful boutique. And so it wasn't a new business, new audience. She has spent a lot of time nurturing her audience. So anyone in that position has the ability to launch big. And, and it's the audience building part of, um, having a, having a business is super important for that reason.

No doubt.

But you launched with 500 and there was some hiccups. You know, it's always like we're working out the kinks. And then a few months later you launched again and you added another couple hundred to that, and then a few months later you added another couple hundred. So you were at 1,000 within a few months of launching, within about 6 or 8 months. Yes, of getting started, you were at 1,000 monthly subscribers. You just finished a launch again, you added another 300 in. And so within a year you went from 0 to 1,300 monthly box subscribers. And you know, that's a good chunk of income. Not only, you know, for your business, but it's— it just stabilizes. Yes, you've added a lot of employees and you're really just finding your spot and stabilizing your business.

It's been a huge blessing for sure.

Yes. And I know that along the way, um, there, there's this situation where people cancel. And so as product-based businesses, we still have that product whether someone cancels or not. So let's just talk through a little bit of that. How does that work?

Okay. So what we do, and I mean, you know, whoever's listening, understand you're not going to have 100% retention. You know, you're just not, it does not matter how fabulous you are. I'm telling you, you're just not going to, and there's a million reasons for that. But you know, every month there'll be a few drop off, you know, and some months are higher than others and it just depends and all the things, but that waitlist in the background is continuing to be built all the time. So whether the box is full or not, you're still pushing people to that waitlist. You know, we don't have any for sale right now, but make sure you get on the waitlist. If there's ever an opening, that's where we're gonna communicate. You know, we're gonna send an email to that waitlist and say, hey, we just had a few boxes open up, and that's where we're gonna pull from. And so the boxes stay full simply from our waitlist. We very rarely would have to go outside of that waitlist to ever fill any spot.

So you're never declining, you're just taking this— just taking it steady, steady stair step up. And you could continue to do that as much as you want to grow that. And it's just such a great plan because you don't have the highs and the lows. Like, you know, the everyday sales are highs and lows. Like, am I gonna sell anything today? Am I gonna have a bad sales day? So you kind of get off that little revenue roller coaster of not knowing what's going to hit the bank account.

That consistency is super— like you said, I mean, it's just, it's a reliable source and it's just consistency. And we all want that. We all want that stability.

You know, we want to know that if we hire someone, multiple people, however many employees we have, we can pay their paychecks at the end of the week, right? That's— and having that money hit that bank account every single month really allows you to hire because you feel comfortable knowing that you can cover all the expenses of your business.

Absolutely.

Now there's, there's another, you know, there's another really thing about this that I love and it's you already had a successful boutique, like you're selling a lot of product all the time. And so like, why would you want to add a subscription aside from the recurring revenue? Why was it important to you to add this subscription box to that business?

Well, I'm going to tell you, there's a few different reasons why it was important for me. And why I wanted to even before Brandon was on board, the reasons that I wanted a subscription box. And then now that I have one, those reasons have even changed because I see even more positives to it. But originally it was simply because I felt like I knew my community so well because I have nurtured them. I communicate with them, I talk to them, I know them. I felt like I knew exactly what they would want, and that if I could curate that directly for them from me, it was like me giving them a gift directly from me that's exclusive to them, that they're feeling special, that Brooke picked this out for me.

When I open my box, I want to feel like, oh, look what Brooke got me, even though I'm paying for it. Exactly.

You're paying for it. It's not truly a gift. I mean, it's a gift to you from you. But, you know, that's, that's the feeling I wanted to evoke. And I knew that I knew them well enough and I knew my community well enough that I could totally knock it out of the park every month and they would feel happy and excited to get that from me. So that was one reason that I just, I just was excited to do that and be able to offer something exclusive that not everybody else could get. But also it was, we're local even though we're online only and we You know, we sell worldwide, really. We sell internationally too. But, um, it was the fact that we could offer jobs, we could offer local jobs that pay well, and having that recurring revenue made it feel that much more secure in offering people jobs. Like we were talking about before, you know, we could offer good incomes to people in our hometown And that was something really important too. And it would not depend on the fluctuation of sales. You didn't have to feel like you had to bust it all day, every day, nonstop, nonstop, just to make sure you can meet the payroll. You know, you still, you still bust it because you still want to do well in other aspects too. But that did not feel like as much of a have-to.

It takes the pressure off the pressure.

Yes.

As a business owner that you just feel this immense amount of pressure for a lot of of things. And if this is a huge financial pressure that you can take off of your business, and I love the way that you explain that, because when people start to build up their subscriber base, um, they're going to feel less and less pressure with the finances than when you're just starting out in your business.

Absolutely.

And a lot of people listening may have been thinking about starting a subscription box. Like they're the people that lay in bed at night thinking about all the fun things that they want to do or curate, but they just haven't started. And what advice would you give to them?

Well, there's several things. I mean, honestly, but if you are somebody who has a business already and you are wanting to incorporate a box of some sort, some kind of subscription box, I mean, there's so many varieties, as you know, um, into your business. I would say first and foremost, No matter what, make sure you're in tune with your audience and you know what they like, what they would want from you. Maybe you've asked them, talked to them. I mean, obviously that's very important. Make sure you've built that community to where you're liked, you're trusted, they, they're gonna want to purchase from you. You don't want to put something out there that's just going to be like, wait, what's this? Like, she's like, what in the world? You know, like, seems like it's so like odd. But, um, just making sure you know what your people want, that you've built that community and that, um, trust factor with them. And then just doing your homework. I mean, it's sometimes more than just a fantasy and a dream and what you want to do. You got to know the ins and outs, the nuts and the bolts, which is why I love your group, um, that you offer where you just teach the ins and outs. Because there's more to it than just, hey, I'm gonna do a box. Yeah, obviously. So, you know, I would say make sure you know your community and that they trust you and that you know what they like and then do your homework, like understand what it's going to take, understand what is doable for you. Not everybody's going to start with 500 boxes. And like you said earlier, that— but I knew what was doable for my size community and what I could handle. And even if we could have sold 2,000 boxes, I couldn't handle 2,000 boxes starting out.

You've got to figure it out.

You've got to know you're going to have to learn as you go. So I would just say, you know, be realistic too in your goals and, and just make a plan.

Make a plan.

Yeah, a plan is important.

Yeah, because you've got to have, you've got to have a roadmap of where you're going and then how you're going to— the steps on how you're going to get there.

Yes.

And you can find all kinds of information all over the internet and it contradicts yourself itself. And then yes, you're spinning your wheels and you're like, I don't even know where to start. And so absolutely, I love that you said that about just having a plan and knowing which direction you want to go and knowing your audience needs because that's super duper important.

And you know me, I'm fly by the seat of my pants. That's how I am in general. But this is one area that I just, I couldn't be that way. Like, I had to know what I was doing. You're out, you know, I can't just randomly get 500 of one item and be like, you know, tomorrow I need this. You know, you've got to know in advance.

So I love that. Brooke, where can they find you if they've not found you on Refabbed already? Where can they find you at?

Okay. Um, Facebook is a great place to go. Of course, I'm on all the social media, uh, platforms, but on Facebook you can find me at Refab, and that's R-E hyphen Fab, F-A-B-B-E-D, and then Refab Boutique. That's our two, um, Facebook channels. And if you go there, you're going to be directed and see all kinds of stuff. You'll be able to find all the other— all the things. Yeah, Brooke's all over the place, all over the place. You might get tired of me once you find me, but you know, I don't think so.

Brooke, thank you so much for joining today. I love your tips on subscription boxes and just, just get started.

Yes, that's all you gotta do. Just do it. Just go for it. That's what Nike says.

So thanks for listening, you guys. Wondering if a subscription box is right for you? Join my $10 coaching week from March 21st through 26th. I'm going to show you how to develop your idea into a plan. Sign up today at launchyourboxwithsarah.com.