Podcast Summary: Coffee N° 5 with Lara Schmoisman

Episode Title: The Digital Grind: How the Internet Shaped Beauty Subscriptions with Corey Weiss
Host: Lara Schmoisman
Guest: Corey Weiss
Release Date: December 10, 2024

Introduction

In this insightful episode of Coffee N° 5, host Lara Schmoisman dives deep into the evolution of the beauty subscription industry with Corey Weiss, a seasoned entrepreneur with a rich history in digital media and the beauty sector. Corey shares his journey from the early days of the internet to co-founding IPSY, and his latest venture, 213Deli, which innovates beauty product discovery through text messaging.

Corey Weiss's Early Career and Digital Media Pioneering

Corey begins by recounting his beginnings in Southern California and his initial foray into the entertainment industry with Disney. At Disney, he worked in marketing, promotions, and PR, gradually moving into the burgeoning realm of digital media. He highlights the challenges and opportunities during the early internet era, emphasizing the hard work and a bit of luck that defined his career trajectory.

Corey Weiss [01:34]: "I identified an opportunity to jump into what was known as new media, which now we call digital media."

He details his experience building one of the early websites for Disney, the Miramax Cafe, during a time when creating a website was far from plug-and-play. This hands-on experience with AOL and early web technologies positioned him well for the dot-com boom as broadband internet became more widespread.

Corey Weiss [04:00]: "The company ultimately didn't make it because there also was a bubble that burst and everyone took a step back in digital media."

Transition to the Beauty Industry and Founding IPSY

Corey's transition into the beauty industry was serendipitous, stemming from his innovative approach and knack for disruption. After moving through various roles in entertainment and ad agencies, he collaborated with Michelle Phan, a pioneering beauty YouTuber, to monetize sponsored content. This collaboration led to his recruitment by the founders of Myglam (later IPSY).

Corey Weiss [07:44]: "I wore every hat within the company and was very fortunate. That allowed me to be a pioneer with the creator economy content."

Under his leadership, IPSY evolved into the world's largest beauty subscription service, scaling from shipping 7,500 glam bags in its first month (December 2011) to three and a half million monthly by 2022. Corey explains the innovative strategies that enabled this exponential growth, including subsidizing product creation to make participation affordable for brands without charging them fees.

Corey Weiss [10:32]: "When we scaled, it made it difficult for brands to participate. We developed a program to help subsidize the creation of products so that brands could afford to be in the glam bag."

Founding 213Deli: Revolutionizing Beauty Product Discovery

Building on his experiences with IPSY, Corey launched his new venture, 213Deli, aiming to transform how consumers discover and purchase beauty products. Unlike traditional subscription models, 213Deli leverages SMS commerce to deliver personalized beauty product drops directly to consumers' phones.

Corey Weiss [08:15]: "I left IPSY and started my new venture, 213Deli, taking the learnings from IPSY and applying it to a new way to discover and purchase beauty products."

Innovative SMS Commerce Model

213Deli differentiates itself from standard SMS marketing by facilitating complete transactions via text messages. Corey emphasizes that instead of bombarding customers with frequent promotional texts, 213Deli sends curated product drops once a week, making the purchasing process seamless and engaging.

Corey Weiss [17:04]: "We are SMS commerce. The entire transaction happens on the phone. We do only text you once a week."

Personalization and Consumer Trust

Addressing the importance of personalization, Corey discusses plans to tailor product drops based on consumer preferences gathered through quizzes. This approach aims to enhance user experience by delivering relevant products, thereby increasing conversion rates.

Corey Weiss [18:15]: "It's all going to be about personalization. We can send you hair and lip products, or skin care and body care, based on what you've indicated you're most interested in."

Establishing trust is paramount for 213Deli. Corey explains that partnerships with trusted beauty creators and offering irresistible welcome offers help build credibility and encourage initial sign-ups.

Corey Weiss [23:17]: "Word of mouth and leveraging our networks was a big focus in the early months when we launched."

Navigating Challenges: Regulatory Compliance and Market Competition

Corey addresses the complexities of SMS commerce, including strict compliance with FTC and FCC regulations. He contrasts 213Deli's approach with typical SMS marketing tactics, highlighting their commitment to adhering to laws and maintaining high open rates through trusted, value-driven messages.

Corey Weiss [19:05]: "We adhere to those laws. It's very strict and possibly more strict than email."

Despite the recent surge in unsolicited texts, particularly from political campaigns, Corey explains how 213Deli maintains high engagement by ensuring their messages are anticipated and valued by subscribers.

Corey Weiss [20:24]: "People trust that when they get that text from 213Deli, they know that there's something good in there."

Target Audience and Market Positioning

Corey elucidates that 213Deli primarily targets women aged 35 and above—demographics that are often overlooked by brands focused on younger generations. This group tends to have higher discretionary spending and values time-saving, trusted services.

Corey Weiss [24:45]: "Our primary target are women, 35 plus. These are women that are attached to their phones but aren't spending hours on social media."

He also acknowledges the potential for expanding into other demographics, including men, by offering personalized product selections that cater to their specific interests.

Corey Weiss [27:01]: "When we hit personalization, men who might want skin care, hair care, beard care... will have drops tailored to their preferences."

Building and Sustaining Brand Awareness

Word of mouth and leveraging existing networks have been crucial for 213Deli's brand awareness. Corey emphasizes the importance of maintaining strong relationships and acting as ambassadors within their communities, ensuring sustained growth and trust.

Corey Weiss [31:22]: "Word of mouth and leveraging our networks was a big focus in the early months when we launched."

He underscores the value of supporting others and fostering a collaborative environment, which not only aids in personal growth but also strengthens the brand's community presence.

Corey Weiss [32:14]: "What goes around comes around. We always put our best self forward and always be kind to people."

Conclusion and Final Thoughts

Lara and Corey conclude the episode by reflecting on the importance of relationships and continuous learning in business growth. Corey’s journey from early digital media to shaping the beauty subscription landscape exemplifies the power of innovation, trust-building, and strategic partnerships.

Corey Weiss [32:32]: "When we work with someone, it's not about what can you do for us, it's also about what can we do for you."

Lara encourages listeners to take their time, build relationships, and learn from others as they navigate their entrepreneurial journeys.

Lara Schmoisman [33:09]: "The lessons that you learn from others and the relationships you have, that's what is going to let you grow 100%."

Key Takeaways

1. Innovation in Business Models: Corey highlights the importance of disrupting traditional models—transitioning from IPSY's subscription boxes to 213Deli's SMS commerce illustrates adaptability in evolving market landscapes.

2. Trust and Personalization: Building consumer trust through reliable partnerships and personalized experiences is crucial for sustained engagement and conversion.

3. Targeting Overlooked Demographics: Focusing on demographics like women aged 35+ can uncover untapped markets and drive significant business growth.

4. Regulatory Compliance: Adhering to strict SMS marketing laws ensures legal compliance and maintains the brand’s reputation.

5. The Power of Relationships: Strong, supportive networks and positive relationships are foundational for business success and community building.

Notable Quotes

• Corey Weiss [01:34]: "I identified an opportunity to jump into what was known as new media, which now we call digital media."

• Corey Weiss [10:32]: "We developed a program to help subsidize the creation of products so that brands could afford to be in the glam bag."

• Corey Weiss [17:04]: "We are SMS commerce. The entire transaction happens on the phone. We do only text you once a week."

• Corey Weiss [23:17]: "Word of mouth and leveraging our networks was a big focus in the early months when we launched."

• Corey Weiss [32:14]: "What goes around comes around. We always put our best self forward and always be kind to people."

Final Thoughts

This episode of Coffee N° 5 offers a compelling look into the intersections of digital media, entrepreneurship, and the beauty industry. Corey Weiss's experiences provide valuable lessons on innovation, the significance of trust, and the impact of targeted marketing strategies. Listeners are left with actionable insights on building and scaling a business in today's competitive environment.

Listen to the full episode and discover more business wisdom at LaraSchmoisman.com or in the episode notes below. Don't forget to subscribe for your next dose of actionable strategies and inspiring success stories.