Photo: Business Insider / Matthew Lynley
It turns out being a philanthropist is actually great for your business.That’s what the co-founders of SoJo Studios and Warby Parker found when they started running their business, they told the crowd yesterday at Social Commerce Summit.
Here’s how each one works: Warby Parker sells cheaper eye wear and provides a pair to someone in need. SoJo studios, the company that makes the WeTopia game, gives away a lot of its profit to social charities.
The results are impressive. Warby Parker met its first yearly sales goal in around three weeks. WeTopia now has more than 400,000 players.
Here’s why the companies were so successful, according to the founders:
Neil Blumenthal, co-founder of Warby Parker:
- We find that 50 per cent of the people coming to our site come from word of mouth, and because we do good, we feel like that’s a big part of generating that buzz.
Lincoln Brown, co-founder of SoJo Studios:
- We have around 450,000 players — around 2.5 per cent of them pay for goods in the game. We give around 50 per cent of our profits — but no less than 20 per cent of our revenue — to social good. It turns social games from a guilty pleasure into something gamers feel good about playing.
- When I started the company I was not opposed to it being a not-for-profit company. Then I saw how expensive it would be to run the company, so we had to show the integration of cause done well moved the key metrics. We got retention and virality out of it and can move from 2.5 per cent of the player base paying for goods in the game to 3.2 per cent.
Carol Cone, global vice chairman of Edelman Business & Social Purpose, also had this to say:
- Young people are looking for companies that provide a lot of social good. That’s letting companies like Warby Parker and SoJo Studios tap into a huge customer base that connects on a very personal level.