Lot18, a flash sale site for wine, launched publicly last November with a $3 million Series A round.
While they won’t reveal exact numbers, cofounders Philip James and Kevin Fortuna say their company is generating 7-figures in sales every month.
We asked James how he’s scaled the company to millions so quickly.
Increase company-size at a rapid pace:
“We’ve only been around 5.5 months. We had six people at launch, and that’s including the two founders.
“Now we have 44 employees and 35 open positions. No matter how fast we hire, we have more openings than we can actually fill.”
Use word-of-mouth and virality to grow user-base:
“We’re up to 220,000 registered users. That number is growing by well over 1,000 new users per day. Most of it is happening via word of mouth. Some of it is virality.
Tap into a $30 billion industry:
“I know that wine is a big market, I founded Snooth. So many people are like, well it’s kind of a niche product.
“That’s fine, but it’s a $30 billion niche. It’s bigger than music, it’s bigger than Hollywood, and it’s bigger than DVDs and cinema. I guess you can call that a “niche.”
“Six out of 10 Americans drink wine every month, and in the demographic we cater to it’s more like nine out of 10. So Lot18 has really taken off quickly.
“Every day, we’re shipping half a truck worth of wine, which is about 200 to 300 cases.”
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