Excellent way to make money: reinventing the wedding gifts buying process
WeddingChannel is a brilliant example of making money online success
Back in 1997 two friends: Ray Dhake and Tim Gray got together to discuss the matter of establishing a website targeted at weddings. Tim came up with the idea when he realized how much trouble there was to find the right wedding gift. As soon as he found out that so many other people have the very same problem, he talked to his friend, Ray. They came to the conclusion that the best way to address the issue would be to built the right e-commerce site. Solving a problem of each wedding guest was the right approach to start the business.
When Tim and Ray broke down the typical wedding gift buying process to the following tasks:
- drive to the store
- print out the wedding gift list
- find the product in the appropriate price range
- make sure the gift has not been purchased by another invited party
- buy the gift
- bring it with or ship it to the ‘just married’ couple
they were absolutely sure that there must be the easier way to do the wedding shopping!
For the guys moving the process to internet was the obvious way to go. They hoped that for wedding guests it would be a great help to find and purchase the gift online. Instead of putting lots of hours and effort into finding and buying the right gift, they could do it at home, in just 15 minutes. Obvious improvement.
WeddingChannel.com is making money in commissions on each purchase made through the website. Apart from this certain way of monetizing the business, another income stream comes from advertisement - the young couples are a very good consumer group, as they have big budgets to spend not only for weddings, but also for the wedding trip and furnishing a new house. This is why the website generates a lot of revenue from advertisers.
So the reasons for the website to become a great success were the following:
- a great idea: simplifying the daunting process of buying wedding gifts
- a very big audience - there were lots of people feeling the same way as Tim did (buying a wedding gift is a chore) - they were potential website users
- for advertisers soon to be married couples are an attractive target group; this is the first revenue stream for WeddingChannel.com
- second revenue stream: commission on sales
If you have any other examples coming to your mind, or simply have something to add, please write your comment.
And in my next post I will write more about WeddingChannel.com success.
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4 Comments on “Excellent way to make money: reinventing the wedding gifts buying process”
I am never know that weeding gift choosing is really complicated. If so, it is a good business to bring easiness in weeding gift choosing.
If you take into account that there are so many goods in shops and there is such an abundance of choices one can make, plus the fact that you do not always know what the couple would really like to have then you might have a problem with finding and buying the right wedding gift.