In 2018, Rainfactory client CLIQ chair took the crowdfunding community by storm, raising more than $1.7 million to fund its development and production. The campaign alone—which was in the top 1% of the most successful crowdfunding campaigns of all time— facilitated the sale of more than 22,000 chairs. Today, CLIQ chair is available to buy from their official website at just $89.99.
With over $1.6 million in revenue for 2019, CLIQ’s next big growth milestone was expanding their sales front to the online retail giant Amazon. Then came COVID-19.
As you could expect, the pandemic had a negative short-term impact on the business. With all businesses shifting to a near-complete reliance on online storefronts, advertising online became more expensive—it was just a natural consequence of how the PPC economy works.
Luckily for CLIQ Products, they are a business with very low operating expenses, enabling them to react quickly to scale back and still operate profitably. For instance, they were selling roughly 1,000 chairs per week on their website prior to COVID-19. When marketing costs went up, they quickly scaled back their marketing investments to maintain profitability. This translated to fewer chairs sold, but it allowed them to continue to enjoy a return on investment hovering around 400%.
With manufacturing operations in China having recovered from COVID-19 and once again fully functional, CLIQ is ready to launch on Amazon. The new challenge they face with this move is that they need to buy inventory 8 weeks in advance before recovering that investment in the form of revenue. That’s where Kickfurther comes in.
Working with Kickfurther:
A Rainfactory partner, Kickfurther has revolutionized how businesses can finance their inventory. Rather than connecting businesses with a financial institution, Kickfurther helps brands grow with inventory fundraising from its supporters and fans. And when inventory is sold successfully, brands pay their buyers; not a bank.
In CLIQ’s case, there was high confidence that an arrangement like this would pay off. After all, they’ve earned a tremendous number of fans in the form of satisfied customers, and reviews for the product have been stellar across the board since its first batch of shipments.
Above you can see CLIQ Products’ Kickfurther page. Over the course of three months, they’ve generated more than $57,000 in restocking funds. With a 6.45% co-op profit margin, buyers (who are essentially investors) can expect to net $2.47 per pack for which they fronted the cost. They get to see that money once the Kickfurther campaign reaches its Percentage Sold for Completion (PSC) threshold, which in this case was 80%.
Thanks to Kickfurther, CLIQ Chair investors have seen a collective return of $61,110 while supporting a product they love. It’s a win-win-win scenario!
Contact Rainfactory to Help Amplify Your Shopify & Amazon Sales
Even well after crowdfunding, Rainfactory is committed to ensuring that the most innovative products can get in the hands of people everywhere. We knew CLIQ could have a meaningful impact on even more peoples’ lives, and, in large part thanks to the relationships we’ve built with like-minded partners, we made it happen. If you’re an inventor or entrepreneur with a vision for a similarly gamechanging product, drop us a line here and we’ll get started.