Chirply Brings Crowdsourcing—and Good Art—to Greeting Cards
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what can we do that would satisfy the artistic stuff we want to do, but would also be an interesting business from a market size perspective?” Gagan says. “What is a consumer product that we use personally but that lacks great design? And for us it was obvious—it was print.”
Gagan says consumers in North America spend $10 billion a year on greeting cards. If you throw in wrapping paper and notebooks, the number rises to at least $30 billion. And those figures seem to be growing: e-cards put a dent in sales of paper cards in the mid-2000s, Gagan says, but they’re coming back now as consumers realize that the very ease of sending an e-card subtracts from the act’s sincerity.
From a salesperson’s point of view, all three product categories have the advantage of being short-lived; you can’t use any of them more than once, which makes repeat purchases inevitable. The only problem—and the opportunity, for Chirply—is that few people think of printed greeting cards as good art. “We are sort of programmed to accept the fact that cards are bad,” Gagan says. “But I think people want illustrative, artistic cards. And I think design is more important in our daily lives today than it ever has been. We’re trying to take the effort out of finding beautiful design.”
Artists who come to Chirply can download a submission kit with the specs for the designs that work as greeting cards, notebook covers, and wrapping paper. Designs get posted to the voting section of the site, where Chirply members get 30 to 60 days to vote for their favorites. At the end of each month, the designs with the most votes graduate to the shopping section of the site. But if you’re an artist, don’t count on winning just by having your 10,000 Twitter followers vote for you. “Our voting is weighted based on who is active in the community,” says Gagan. “It’s not about who has the most friends but whose design is best.”
All winning designers get a $300 up-front fee in return for an exclusive license to use the artworks in print, plus a $100 royalty on each $1000 in sales. Gagan says Chirply orders print runs in advance to reduce costs (hence the piles of boxes in its office) and that it needs to sell about 100 cards to break even. Most customers buy several cards at a time, in part because the site offers a discount on packs.
I commented to Palrecha that he and his brother must have felt somewhat out of place at Y Combinator, given Chirply’s focus on physical stuff, rather than software or services. But he says he and Neel understood supply chains, given their history running a record label, and that it has found ways to economize. “If you look at the unit economics of our business, it’s pretty amazing, even though in many cases we’re prepaying,” Gagan says. “Printing paper goods is almost like printing money, because the costs are pretty low.”
And as with Etsy or Threadless, buying a card from Chirply is supposed to be more than just a transaction—it’s an experience, with a built-in social component. (The average Chirply member has voted on 60 designs, Gagan says.) “I know it sounds like marketing jargon, but we don’t consider ourselves a marketplace; we consider ourselves a community,” Gagan says. “I could care less at this point whether we sell 100 cards this month or 10,000. What I care about is that the people who are coming to the site and admiring the designs and voting for their favorites feel an emotional connection to the designs and the designers.”