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Re: Sharkey post# 103597

Wednesday, 02/12/2014 12:45:11 PM

Wednesday, February 12, 2014 12:45:11 PM

Post# of 136071

I am all for having 1,000 websites, but first I would like to make sure that the leggings websites and vivavuva are successful websites.
I would much rather have 3 successful websites than 1,000 that aren't successful.


I agree with you there, and I'll add this hopeful thought.
I recently interviewed at a company called Wayfair (wayfair.com)
They started just over 10 years ago with a site selling TV stands, with "stands" in the website name. The name of the website helped them get top search engine rankings for that product, on a small budget. They did the same thing for other home furnishings and goods, making over 300 different sites, each for a specific home good, each one offering better selection for that type of home good than anywhere else.

Sound familiar? I hope Danny doesn't make THAT many sites. His goal of 10 should be enough. But the concept can work.

That company grew to almost $400 million / year in revenues that way. Almost 3 years ago they rebranded everything as "Wayfair" and combined all those small sites into one big one, with advice and articles on decor and planning a house. They took a temporary hit in search engine rankings, but by doing the conversion in 4 stages, they were OK. With the common branding and added TV advertising (only in the last 2 years!), they're now up to $915 million in sales. They're still pre-IPO. They only used small amounts of venture capital to grow, and no TV advertising until recently.

If Danny can do for women's fashion what Wayfair did with home furnishings and decor, it'll be huge. The 2 markets are not that dissimilar. So Danny's stategy has worked before in a similar market. Long-term, this could be huge, if done right.

HOWEVER, I worry about Q1. I think Q1 will be very low revenue, due to all the attention on expansion. However, I think things will ramp up strongly at the start of Q2, once the network is established and TV ads are aired. By this summer, PPS under .01 will be a distant memory.