StartUp / Founder Story
Explore founder stories, leadership decisions, startup building strategies and entrepreneurial lessons through curated summaries and business intelligence.
She Makes $1k/Day Sending Letters
Summary
Hannah Gustafson founded The Tiny Project, transitioning from corporate America to entrepreneurship by creating a community-focused farmers market and a newsletter. Her initiatives have successfully engaged local residents and generated significant organic customer interest.
Hannah's snail mail club experienced rapid growth, increasing from 50 subscribers in the first month to 3,200 by November. The surge was largely attributed to a viral that garnered 1.1 million views, effectively humanizing her brand and engaging potential customers.
Hannah's subscription service utilizes a direct mail marketing strategy called 'chunky mailers' to enhance customer engagement through tangible items. Each envelope includes personalized content aimed at fostering connections and inspiring creativity among recipients.
Hannah's subscription service incorporates elements of junk journaling, allowing subscribers to creatively engage with her letters and various paper goods. The rising interest in junk journaling suggests a potential market for her letter subscriptions.
Perspectives
Analysis of Hannah Gustafson's entrepreneurial journey and the dynamics of her snail mail subscription service.
Support for Snail Mail Subscription Model
- Highlights the emotional connection created through tangible mail
- Emphasizes the community-building aspect of the subscription service
- Proposes that the model can be replicated in various niches
Concerns About Sustainability and Market Viability
- Questions the long-term demand for physical mail in a digital age
- Raises concerns about market saturation and competition
Neutral / Shared
- Notes the initial success driven by organic growth and social media engagement
- Acknowledges the potential for creative expansion within the subscription model
Metrics
revenue
$30,000 USD
monthly profit from the business
This indicates a successful business model with rapid financial growth.
she's been running this business for six months and she's making about $30,000 a month in profit.
vendors
33 vendors units
number of vendors at the Tiny Farmers Market
This reflects the market's growth and community engagement.
we have, now we have 33 vendors that normally pack into the front and back yard of my house.
subscribers
3,200 units
total subscribers by November
This number indicates significant market interest and potential revenue.
we hit 3,200
subscribers
50 units
subscribers in the first month
This initial figure shows the starting point of her business.
50 people the first month
subscribers
1,200 units
subscribers in the third month
This jump reflects the impact of viral marketing.
we got 1,200 people
subscribers
3,700 units
subscribers in December
This shows continued growth and interest in her offering.
December, we hit 3,700
subscribers
4,100 units
projected subscribers for February
This projection indicates ongoing growth potential.
we're prepping for 4,100
waitlist
3000 units
number of people on the waitlist
Indicates strong demand and interest in the service.
our wait list had over 3000 people on it.
Key entities
Timeline highlights
00:00–05:00
Hannah Gustafson founded The Tiny Project, transitioning from corporate America to entrepreneurship by creating a community-focused farmers market and a newsletter. Her initiatives have successfully engaged local residents and generated significant organic customer interest.
- Hannah Gustafson, founder of The Tiny Project, transitioned from corporate America to entrepreneurship by starting a small tutoring company and selling jams in her front yard for creative fulfillment
- Her front yard sales connected her with more neighbors in three hours than in three years, leading to the establishment of the Tiny Farmers Market, which featured 33 vendors and focused on community engagement and charity
- Recognizing demand for her market model, Hannah launched the Tiny Post newsletter, a snail mail club that included her art, recipes, and stickers, marketed primarily on TikTok
- The first month of the Tiny Post resulted in 50 sign-ups at $11 each, showcasing the potential for organic customer acquisition without the need for paid advertising
05:00–10:00
Hannah's snail mail club experienced rapid growth, increasing from 50 subscribers in the first month to 3,200 by November. The surge was largely attributed to a viral video that garnered 1.1 million views, effectively humanizing her brand and engaging potential customers.
- Hannahs snail mail club began with 50 subscribers in the first month, aiming for 200 by December at $11 per letter. By the second month, subscriptions grew to 107, and by the third month, they skyrocketed to 1,200, reaching 3,200 by November
- The significant jump from 107 to 1,200 subscribers was due to a viral video with 1.1 million views, showcasing her journey and resonating with viewers. This personal touch helped humanize her brand and connect with her audience
- Hannahs video clarified what snail mail is and why it matters, allowing her to engage with potential customers and explain her concept further. She drew inspiration from a TikTok creator who sends poetry through the mail, which helped frame her unique offering
10:00–15:00
Hannah Gustafson launched her snail mail subscription business inspired by a TikTok poet, quickly gaining subscribers through a viral video. Her focus remains on connecting people through art rather than prioritizing financial growth.
- Hannah was inspired to start her snail mail subscription business after seeing a poet on TikTok who offered affordable poetry in the mail. She loved the idea of providing access to creativity and art through tangible goods
- She launched her business quickly, starting just a week after the idea struck her, with a focus on connecting people through her art rather than financial growth
- In her first month, Hannah gained 50 subscribers, and by the second month, she had 1,200 subscribers, largely due to a viral video that showcased her journey and the concept of her snail mail club
- The viral video reached 1.1 million views and featured Hannah explaining her new business idea to her husband, attracting subscribers and sparking discussions about snail mail
- Hannahs growth continued, reaching 2,500 subscribers in the fourth month, driven by her consistent content and engagement with her audience
- She emphasized the importance of staying true to her artistic vision while drawing inspiration from others, aiming to develop her unique style and maintain her creative integrity
15:00–20:00
Hannah Gustafson's snail mail subscription service experienced significant growth, with a waitlist exceeding 3,000 people. However, fewer than 1,000 ultimately converted to paying subscribers due to a communication error regarding costs.
- Hannah initially panicked at 1,200 subscribers and considered capping it at 400, but her husband encouraged her to keep it open. This led to a waitlist of over 3,000 people, although fewer than 1,000 ended up paying due to a communication mistake about the services cost
- Despite the initial waitlist, Hannah has maintained a low turnover rate of around 5%, indicating strong customer satisfaction. She has never received complaints about the price of her subscription service
- The cost of sending each letter, including high-quality stationery and stamps, is about three dollars, allowing for a gross margin of approximately 70% without considering labor costs
- As the business grew, Hannah standardized the packing process and brought in more help, which significantly improved efficiency. They can now complete about 1,000 letters in two and a half hours with a team of six
20:00–25:00
Hannah's subscription service utilizes a direct mail marketing strategy called 'chunky mailers' to enhance customer engagement through tangible items. Each envelope includes personalized content aimed at fostering connections and inspiring creativity among recipients.
- The speaker discusses chunky mailers, a direct mail marketing strategy that includes sending tangible items like straws or figurines to increase open rates. This approach leverages the idea that people are more likely to open mail that feels substantial or unique
- Hannahs subscription envelopes contain a postcard that doubles as an art print, a recipe card, two to three stickers, a surprise paper goody, and a personal letter. This personal connection shares her experiences and encourages recipients to feel inspired
- Hannahs business approach is rooted in vulnerability and authenticity, aiming to connect with her audience through personal stories. This connection inspires others to start their own small ventures, reinforcing the value of starting small
25:00–30:00
Hannah Gustafson's snail mail subscription business can operate effectively with as few as 10 to 50 subscribers, allowing for creative growth. She emphasizes the demand for affordable subscription services, with many willing to pay between $8 and $11 monthly to support small artists.
- Hannah emphasizes the scalability of her snail mail subscription business, noting it can thrive with as few as 10 to 50 subscribers. This allows for a creative process that can evolve into a larger venture
- She highlights the demand for affordable subscription services, stating many are willing to pay $8 to $11 a month to support small artists. This makes it a viable side hustle that can generate significant extra income
- Hannah has recently started using Pinterest for marketing, indicating a shift towards owning her brands presence on that platform. This move reflects her adaptability in leveraging social media for growth
- She discusses potential collaborations with businesses like realtors and financial advisors to include personalized letters in her subscription packages. This enhances the tangible connection with clients and adds value to her offerings
- Hannah believes that small, thoughtful gestures in business communication can lead to significant returns. A little extra effort can create lasting relationships and drive customer loyalty