Business & Tech

Doing Well by Doing Good

DoGoodBuyUs founder Zack Rosenberg talks to us about starting and growing a social enterprise business.

DoGoodBuyUs is an online marketplace for charity-made products on a mission to change the world through consumerism. The sites sells everything from clothes to makeup to home decor, and for every purchase made, 50%+ of the proceeds go toward charitable causes.

Founder Zack Rosenberg shares how he and his team have grown and marketed the business in its first year and how offline events have helped to drive online sales.

How did you get the idea for DoGoodBuyUs? Why and how did you get started?
The idea for DoGoodBuyUs started where all good stories do--in the cereal aisle. I was shopping with my three-year-old son, Chris. Being three, Chris wanted all the usual sugary suspects. I picked up a box and looked at the ingredients. There were ninety ingredients and only four I knew how to pronounce (including the toy). Then I picked up a box of Paul Newman's Own cereal. I recognized all the ingredients and saw that profits went to charity--something that was good for you and good for others. I went home to search for similar products, and when I had trouble finding them, I figured others must be struggling as well. I decided, if a marketplace for goods that do good doesn't already exist, I'd create one and DoGoodBuyUs was born. I started do-gooding full-time June 1st, 2012 and co-founder Elise King started a month later.

What is the current size of the company?
We have four full-time employees and two interns. Alison Berg is our VP of retail and Alexandra Rosenberg is our event planner. Our interns, Lara and Emily, help with marketing and everything in between.

How do you choose the merchants you work with? What do you look for in these partnerships?
We work with merchants that have a mission woven into their DNA: Is part of their core social? Our nail polish is free of carcinogens and gives back to the NY Food Bank, our tanktops support animal shelters, and our wallets are made by women in Uganda who line them with the recycled water packets that litter their streets. Contrast this with something like a Gap Red t-shirt. It's one of many items in the Gap's collection, not ALL of which give back.

How have you gotten the word out about DoGoodBuyUs, and what have you found has been the most successful?
We've found that offline drives online, so we do a lot of events and pop-up shops to tell people about what we do and what our products do. As in everything, it's all about who you know, so our advisers and contacts have done a tremendous job helping us improve and spread the word.

The most helpful has been press. A realsimple.com feature on our all-natural bug repellant two weeks ago is still driving sales and empowering victims of domestic abuse.

How has using social media played a role in the promotion of your business?
Social media has helped the most post-purchase. People will share what they got and why they like it so their friends will be interested in DoGoodBuyUs as well. It's been more helpful building our brand and less in creating direct sales.

What are some things you’ve learned through trial and error while growing the company?
Just the learnings from today would be a novel! We started with a cry-and-buy philosophy thinking that if we told people how much a [particular] group was suffering and how your purchase could help, everyone would buy it. That didn't work. You need a great product that looks nice on [your] website AND supports a great cause. We've also learned a lot about the importance of pop-up shops, especially when to have them, where to have them and to schedule them close to payday.

What has been your toughest challenge?
Funding. There is a stigma around social enterprise that continues despite the success of social enterprises like Tom's Shoes and Warby Parker. Investors sometimes see it as niche consumerism when a huge share of the market is buying goods that do good. If the world wants to see more businesses like us, that's got to change.

What was something unexpected that you didn’t plan for, good or bad?
The people who have volunteered to work for us and been so passionate about what we're doing. People want things to mean something and we're thrilled to provide that.

Is there something you feel makes your business stand out from the competition or other companies with a similar model?
Our business is purpose-driven and mission-driven at its core. We are not here to sell the most widgets at the cheapest price. We truly believe we can change the world through what we buy. We also standout because we're about more than gifts. While many people shop for birthday and client gifts, you can also get soap, yoga bags, tea and everyday items that do good.

What is your advice for someone starting their own business?
Entrepreneurship is moving forward when most people would have stopped. It's a long and uncharted road but you have to trust yourself and trust that, even in the lowest moments, you will pull through.

What have been your keys to success?
Transparency. People understand the stories behind our goods and see the change we're making. Our team is crucial. Everyone understands what they bring to the business and is ridiculously committed to the cause. In 2011, 18% of consumers searched for gifts that give back. In one year, that grew to 56%. We truly believe we're in the right place at the right time.

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