JustFab Shows How The Partnership Between Don and Adam Resulted To Success
Adam Goldenberg and Don Ressler are not the kind of people you expect to hang out with. However, after they founded JustFab, they are here to style you up and ensure you wear the latest fashion. They are the kind of people who know how to spot trends, grow new businesses, and develop industry-leading brands. The advantage of the two is that they do it with fun and passion that goes well with the industry.
The first company founded by Adam Goldenberg was Gamers Alliance at the age of 15. Adam sold the company three years later to Intermix Media in 1999, and he had to quit high school to join Intermix as the vice president of Strategic Planning. By the age of 20, he was already promoted to the role of chief operating officer and was famous for being the youngest to hold such a position in a publicly traded company. Intermix Media later acquired FitnessHeaven.com, a company that was owned by Don Ressler.
Don Ressler and Adam Goldenberg then became friends and established various brands in the beauty and health industry. Their biggest idea was when they started conceptualizing a new personalized shopping experience. They were aware that for fashion to work on an online platform, it needed to be fun enjoying and socially interactive. In 2006, Adam Goldenberg and Don Ressler established the e-commerce brand called Intelligent Beauty which owns JustFab. JustFab is a style community where the ‘VIP Members’ are given the privilege to receive a selection of handbags, shoes, and accessories that are tailored to their taste for $39.95.
Today, JustFab records over 95% of its sales from the 3.5 million VIP members on vbprofiles.com. Members are also allowed to take a break from shopping, or they can opt out of paying the monthly fee if they do their shopping within the first five days of the month. Adam is aware how expensive it is to acquire customers mainly because the company spent a third of its subscriptions trying to re-acquire the customers they had but opted out. The justification of the subscription is the discounted rates the customers gain from the store and JustFab obtain high degree of customer loyalty and engagement.
During an interview with Bambi Francisco, the founder, and CEO of Vator, Adam said that JustFab would not change its business model to fit what other companies are doing. His remarks were referring to the question he was asked by Bambi whether JustFab was considering a flash sale. Source: http://www.builtinla.com/2014/01/18/3-la-ceos-you-need-know-now-adam-goldenberg-justfab