The Desire Company Startup Case Study: “Expert Reviews for E-Commerce”

The Desire Company

The Desire Company is a Chicago-based startup that focuses on providing high-quality, expert-driven product review videos for brands and retailers. By leveraging genuine expertise over traditional influencers, they aim to combat the rise of fake reviews and enhance shopper confidence in online purchases.

Founding Year: 2019

Headquarters: Atlanta, Georgia, United States

Industry: Information

Status: Active

Business Model

• Type: B2B, One-sided, Service
• Clients: Brands and retailers, particularly those in the e-commerce space, seeking to enhance their online sales and customer engagement through expert-driven product videos.

It’s Like: MasterClass but for product reviews.

The Desire Company provides high-quality educational videos from experts, similar to MasterClass. However, instead of charging for subscriptions, they focus on product reviews and generate revenue through commissions from sales driven by those reviews.

• Focus: MasterClass centers on broader skill development, while The Desire Company hones in on specific product recommendations within those skills.
• Monetization: MasterClass relies on a subscription model, whereas The Desire Company utilizes a commission-based approach tied to product sales.
• Content Type: While both offer educational content, The Desire Company emphasizes shorter, product-focused videos integrated directly into retail platforms.

Key Problems in the Market

• Lack of Trust in Influencer Marketing: Consumers are becoming increasingly skeptical of traditional influencer marketing, perceiving it as inauthentic and unreliable.
• The Proliferation of Fake Reviews: The rise of fake reviews has eroded consumer trust in online product information, making it difficult for shoppers to make informed purchase decisions.
• Low Shopper Confidence and Engagement: Product pages often lack engaging and trustworthy information, leading to low shopper confidence, cart abandonment, and reduced conversion rates.
• Difficulty Replicating In-Store Experience Online: Brands struggle to bridge the gap between the online and brick-and-mortar shopping experiences, particularly when it comes to providing shoppers with the product education and expert guidance they might receive in a physical store.

Solutions Offered

• Expert-Driven Product Review Videos: The Desire Company creates high-quality videos featuring industry experts providing authentic and trustworthy product reviews, directly addressing the issue of trust in influencer marketing.
• Retail Media Integration: Their Retail RMEDI 360 platform enables the seamless integration of these expert videos into product pages and retail media networks, enhancing shopper engagement and providing valuable information at the point of purchase.
• Expert Network: They have curated a network of vetted professionals across various industries, ensuring the credibility and expertise of their content creators.
• Measurable Results: The Desire Company provides brands with data-driven insights and case studies demonstrating the effectiveness of their videos in driving sales, increasing conversion rates, and improving other key performance indicators.

Founding Story

When and How Founded: The Desire Company was founded in 2019 by husband-and-wife team, Judith and Eric Sheinkop.

Founders’ Problem Experience: Eric, with his background in music licensing and technology, noticed that many skilled professionals outside of celebrity circles were overlooked for brand partnerships. Judith, having managed celebrity endorsements at Coca-Cola, saw the value of credible recommendations.

Founders’ Backgrounds:

• Eric Sheinkop (Co-Founder & CEO): Serial entrepreneur, previously co-founded Music Dealers (a music licensing platform), recognized for innovation in Billboard’s 30 Under 30 and Crain’s Tech 50.
• Judith Levey Sheinkop (Co-Founder & COO): Former Head of Global Brand PR at Coca-Cola, experienced in securing authentic celebrity endorsements.

Why They Started: They combined their expertise in media, marketing, and tech to create a platform for these overlooked experts to connect with brands, ensuring genuine partnerships and monetization of their knowledge.

Problem-Solving Approach: They focused on creating high-quality, expert-driven product review videos, ensuring authenticity by not disclosing to experts which products brands would pay commissions for.

First Results: Early success came from partnerships with major retailers like Best Buy and positive client feedback on increased sales and engagement due to their videos.

Continued Growth: They secured multiple funding rounds, expanded their offerings to include how-to videos and expert-led classes, and developed the Retail RMEDI 360 platform for broader retail media integration.

Innovation/Technology for Success:

• Expert Network: Building a curated network of vetted professionals across various industries.
• Video Production: Focusing on short, engaging, expert-led videos tailored for product pages.
• Licensing Model: Enabling scalable content distribution by allowing brands to license expert imagery.
• Retail RMEDI 360: Developing a platform for seamless integration of expert content into retail media.

Key Growth Milestones

• 2019: The Desire Company is officially founded.
• 2021: Raised $8 million in Series A funding to expand production capabilities.
• 2024: Closed Series B funding led by Cleveland Avenue, reaching a $97 million valuation, and launched the Retail RMEDI 360 platform.

Market & Competition

Target Market

The Desire Company primarily targets the retail media market, specifically focusing on brands and retailers seeking to enhance their online sales performance through expert-driven video content.

• Brands: Companies that sell products online and aim to increase conversion rates, boost shopper confidence, and improve overall sales.
• Retailers: Both online and brick-and-mortar retailers looking to enhance the shopper experience, provide reliable product information, and drive sales.
• Retail Media Networks (RMNs): A key and growing target market, encompassing platforms that connect brands with retailers for advertising opportunities.

Market Size and Growth:

• Global Retail Media Market: Projected to reach $179.5 billion by 2025, growing at a 15.4% year-over-year rate.
• Retail Media’s Share of Global Advertising: Accounted for 20.6% in 2024, expected to rise to 23.2% in 2025.
• Retail Media Platform Market: Estimated at $16.20 billion in 2023, projected to grow at a CAGR of 8.4% from 2024 to 2030.

Potential New Markets:

• Online education and e-learning platforms.
• Healthcare and wellness industries.
• Financial services and technology sectors.

Growth Trends in Potential Markets:

• Online education is experiencing significant growth, with the global market size expected to reach $325 billion by 2025.
• Healthcare and wellness are also seeing increased demand for reliable information and expert advice, driven by factors like an aging population and rising healthcare costs.
• Financial services and technology sectors are constantly evolving, creating a need for expert insights and educational content to guide consumers and businesses.

Competitor Landscape

The Desire Company operates in a competitive landscape with various players:

Online Learning and Expert Knowledge Sharing:

• Craftsy: Offers online classes and resources for various crafts and hobbies.
• Kinnu: Provides expert-led online courses in parenting and child development.
• CLASS101: Offers a platform for creators to teach online classes in various categories.

E-commerce Solutions and Digital Marketing Services:

• Dreamworx Communications: Specializes in e-commerce marketing and technology solutions.
• Gorilla Group: Provides e-commerce consulting and digital agency services.
• Curated For You: Offers personalized product recommendations and shopping experiences.
• Adeia: Provides digital content protection and monetization solutions.

Marketing & Sales

Main Positioning Values: Quality

Website & Socials

The website, TheDesireCompany.com, attracts around 1,500 monthly visits that are primarily direct users.

All reported traffic is from the United States, indicating a primarily domestic user base.

On social media, Instagram has the most followers (111k followers), and few subscribers on YouTube (4k subscribers) and Facebook (5k followers).

Media Coverage

• Athletech News: Featured the company in an article about fitness and wellness brands shifting their marketing strategies from influencers to experts.
• Bugy: Interviewed co-founder Eric Sheinkop, providing insights into his entrepreneurial journey.
• Bootstrapping with Dylan Ratigan: Interviewed founders Judith and Eric Sheinkop.
• Built In Chicago reported on The Desire Company’s $8 million Series A funding, highlighting plans to expand their expert network and content offerings.

Marketing Strategies

• Target Audience: The Desire Company primarily targets brands and retailers aiming to enhance online sales through expert-driven video content. Their audience includes:
  • Brands: Companies seeking to increase conversion rates, boost shopper confidence, and improve overall sales.
  • Retailers: Both online and brick-and-mortar retailers looking to enrich the shopper experience with reliable product information.
  • Retail Media Networks (RMNs): Platforms that connect brands with retailers for advertising opportunities, representing a significant and growing segment in the advertising landscape.
• Customer Acquisition: The Desire Company employs a multifaceted approach to attract and engage its audience:
  • Expert-Generated Content (XGC): They produce high-quality, expert-led product review videos that build trust and drive conversions.
  • Retail Media Integration: Their content is designed for seamless integration across various platforms, including product detail pages (PDPs), social media, in-store displays, and digital ads.
  • Performance Metrics: Their videos have demonstrated a significant impact, including a 12x sales lift, a 25% increase in average order value, and a 62% increase in time spent on site.
• Content Marketing: The Desire Company focuses on creating authentic, expert-led content to educate and inform consumers:
  • Educational Blog Posts: They publish articles that provide insights into retail media trends and content strategies.
  • White Papers: Their “Expert Brief” series offers in-depth analyses of the retail media landscape, highlighting the role of expert content in building trust and reducing returns.
  • Podcasts: Their “Tap Into An Expert” podcast features discussions on retail media networks, eCommerce trends, and FTC compliance.
• Digital Marketing Channels: The Desire Company leverages various digital channels to distribute its content and engage with its audience:
• YouTube: Their channel showcases expert-led product demonstration videos that drive consumer engagement and conversions.
• Instagram: They share insights into the evolution of retail media and the effectiveness of expert-driven content.
• LinkedIn: They provide updates on company news, industry trends, and thought leadership pieces.

Product & Innovation

Expert Generated Content (XGC)

By leveraging the credibility and authenticity of industry experts instead of traditional influencers, The Desire Company pioneers a new approach to product recommendations.

Retail RMEDI 360 Platform

They developed a platform that streamlines the integration of expert-led product education throughout the entire shopper journey, bridging the gap between online and offline experiences.

Focus on Product Page Conversion

Unlike broader online learning platforms, The Desire Company specializes in creating short, engaging videos specifically designed to increase conversion rates on product pages.

Data-Driven Approach

The company leverages data and analytics to track the performance of its videos and provide brands with insights into shopper behavior and preferences.

Financials & Metrics

Revenue Sources

• Licensing Fees: The Desire Company generates revenue by licensing the image and likeness of experts featured in their videos to brands for use across various marketing channels.
• Video Production Fees: The company offers end-to-end video production services, creating high-quality, expert-led product review videos. These videos are tailored to drive conversions and can be utilized across multiple platforms, including product detail pages, social media, and in-store displays.
• Streaming Channel and App Revenue: The Desire Company has a streaming channel and app offering expert-led classes, which are possible revenue channels.

Metrics

• Funding and Investments: The Desire Company has raised a total of $20 million across multiple funding rounds. In December 2021, the company secured $8 million in Series A funding, which valued the company at $78 million. Subsequently, in June 2024, The Desire Company completed a Series B funding round, elevating its valuation to $97 million. These funding rounds were led by Cleveland Avenue and supported by Valor Siren Ventures.
• Employee Count: Estimates vary between 11 and 50 employees.
• Valuation: $97 million, following their Series B funding round.

Structure & Culture

Key Leadership

• Eric Sheinkop: Co-Founder and CEO
• Judith Levey Sheinkop: Co-Founder and COO

Cultural Values

• Authenticity & Transparency: Deeply ingrained in their approach to product reviews.
• Empowerment: Committed to providing shoppers with unbiased information for informed decisions.
• Expertise: Value practical experience and knowledge from various fields.

Impact & Success

Customer Feedback

• Brands using The Desire Company’s services have reported significant increases in key metrics, including a 12x conversion boost, a 62% increase in time spent on their websites, and a 25% growth in average order size.
• Time on Site: Shoppers spend 62% more time on websites featuring The Desire Company’s content, and 25% growth in average order size for brands incorporating their videos.

Success Stories

• Ergo Impact: By integrating The Desire Company’s expert-led videos, Ergo Impact experienced a significant boost of 40% jump in conversion rates.
• KitchenAid: A neuroscience study revealed that The Desire Company’s expert-led video for KitchenAid outperformed other videos by 3x in terms of attention and trust metrics.
• ReAthlete: The brand reported increased transaction volumes and a lower Cost Per Acquisition (CPA) after partnering with The Desire Company.
• Best Buy: The Desire Company’s videos outperformed other video content more than half the time at a significantly lower cost.

Growth & Future

Challenges and Risks

• Increasing Competition: The retail media landscape is rapidly growing, with more companies vying for market share.
• Maintaining Authenticity at Scale: As their expert network expands, ensuring the continued credibility and trustworthiness of all experts is crucial.
• Adapting to Regulations: Staying compliant with evolving FTC guidelines and maintaining transparency in marketing practices.

Future Plans

• Expand Expert Network: Onboard more diverse and specialized experts across various industries.
• Enhance Production: Increase video production capabilities to meet the growing demand for expert content.
• Strengthen Retail Partnerships: Forge stronger relationships with both online and brick-and-mortar retailers.
• Retail Media Dominance: Become the leading provider of expert-driven content solutions within the retail media ecosystem.

Key Takeaways for Entrepreneurs

• Honesty as a Business Model: In a world saturated with influencers and skepticism towards traditional marketing, The Desire Company demonstrates that authenticity and trustworthiness can be powerful differentiators. By building a platform on genuine expert opinions and transparently disclosing any brand affiliations, they tap into a growing consumer desire for reliable product information. This approach not only builds trust but also drives conversions, proving that honesty isn’t just ethical—it’s profitable.
• Reimagine Expertise in the Digital Age: The Desire Company challenges the traditional influencer model by shifting the focus to genuine expertise. Instead of chasing large followings, they curate a network of vetted professionals whose credibility stems from their experience and knowledge. This approach elevates the value of genuine expertise in a digital landscape often dominated by superficial metrics.
• Pivot When Opportunity Knocks: The company’s shift from a B2C to a B2B model, capitalizing on the burgeoning retail media market, highlights the importance of adaptability. Recognizing the explosive growth of retail media, The Desire Company smartly repositioned itself to seize this lucrative opportunity, demonstrating that staying agile and responsive to market trends is crucial for sustainable growth.
• Content that Converts is King: The Desire Company’s laser focus on creating high-quality, expert-driven video content designed specifically for product page conversion underscores the importance of targeted content. By understanding the specific needs and pain points of their audience at the point of purchase, they create content that directly addresses those needs, leading to higher engagement and conversion rates.
• Don’t Underestimate the Power of Free: Offering free educational content might seem counterintuitive, but The Desire Company leverages it brilliantly to build trust and showcase their experts’ credibility. This strategy not only attracts users but also establishes their platform as a go-to resource for reliable information, ultimately driving conversions through their paid product review offerings.