The 7 figure merch business

Hey, it's Guy & Farzan,

Sydney summer's arriving and it's absolutely lush. My daughters land back from 4 months of Euro adventures tomorrow. Luna messaged before her flight: 'I'm looking forward to seeing my creators.' Made me chuckle. Let's get on with some founder stories.

Reading time: 8.5 mins

In the mail today. 3 founder stories, 2 founder notes

 Founder story 1 

Natasha Marcello & Rory Boyle: From waste to 7-figure worth with for keeps merch

From Disposable to Desirable: How Natasha Transformed the Merchandise Industry and Built a 7-Figure Business by Creating Branded Products People Actually Want to Keep.

The Journey
- Started in Melbourne with a journalism background at Swinburne
- First major success: helped grow a corporate gifting company to $28M acquisition
- During COVID lockdown: launched and sold Snacks With Bite for $1M within first year
- Bought into Promotions Warehouse and saw the industry's waste problem firsthand
- Rebranded to For Keeps Merch in 2024 to align with sustainability mission
- Hosts The WIBS Podcast advocating for women in business

The Evolution
- 2020s: Recognised the massive waste problem in corporate merchandise
- 2021: Experienced success with Snacks With Bite, proving business-building skills
- 2022: Identified opportunity to transform merchandise from disposable to desirable
- 2023: Developed end-to-end merch partner model beyond just product supply
- 2024: Rebranded to For Keeps Merch with focus on sustainability and design
- 2025: Achieved 7-figure revenue with 30 employees and 4.9-star rating

Overcoming Obstacles
- Witnessed firsthand the environmental impact of disposable corporate merchandise
- Had to shift industry mindset from "cheap and cheerful" to "quality and lasting"
- Competed against established suppliers focused solely on lowest prices
- Built systems to manage end-to-end process from design to fulfilment
- Educated clients on value of investing in fewer, higher-quality items

Today's Impact
- 7-figure annual recurring revenue
- 30 team members across operations
- 4.9-star product review rating Industry awards for excellence
- Thousands of clients choosing sustainable merchandise options

Growth Strategies That Worked
- Show, Don't Tell: Sent mockups and samples before contracts were signed
- LinkedIn Strategy: Built strong presence where HR and marketing teams actively search
- Partnership Model: Positioned as merch partner, not just product supplier
- Over-Communication: Kept clients informed throughout entire process
- Referral Network: Leveraged satisfied clients for word-of-mouth growth

Key Milestones
- Built corporate gifting company to $28M acquisition
- Successfully launched and sold Snacks With Bite for $1M
- Acquired stake in Promotions Warehouse
- Rebranded to For Keeps Merch with sustainability focus
- Scaled to 30 employees and 7-figure revenue
- Earned industry recognition and 4.9-star rating

The Philosophy

"Connection outlasts transaction. Everything I do, whether it's For Keeps or The WIBS, comes back to that. Relationships, trust, and community will always be more powerful than a quick win. When you build with people at the centre, everything else follows."

"We don't compete to be the cheapest; we compete to deliver the best value. For Keeps isn't about pumping out bulk products that end up in the bin; it's about creating merch people actually want to keep."

Founder story 2

How Lily built a $5K/month business - Lily's Wellness Brand Journey

The Story: Lily built a $5K/month wellness business starting with just £3,000 in savings from her care home job. What began with a simple Amazon candle-making kit became a profitable workshop business in 2.5 years.

Key Steps:

1. Start Small - Made first candle, sold to mom for £5.99 on Shopify

2. Test Locally - Did gym pop-up, made £850 in one day

3. Think Bigger - Applied to Westfield despite being only 6 months old (got accepted)

4. Pivot to Profit - Discovered workshops had 85% profit margins vs. physical products

5. Scale Smart - Built home studio, hired help, replaced her salary

Growth Advice from Simon Squib:

• Scaling: Don't just build more locations - consider franchise partnerships with spas, at-home kits

• Partners: Find co-founders with opposite skills, approach brands by solving their problems, offer influencers equity partnerships

• Community: Focus on giving value first - behind-the-scenes content, WhatsApp groups where customers share their creations, build 1,000 true fans

Bottom Line: You only need one customer to start. Say yes to opportunities, embrace rejection as redirection, and focus on high-margin services over physical products.

Founder story 3

Steve Huffman & Alexis Ohanian: From college dreamers to $80M Reddit empire

From a Rejected Food App to the Internet's Front Page: How Two University Friends Built a $9.5B Social Media Giant with $80M Revenue That Changed How the World Shares Information.

The Journey
- Met at the University of Virginia, bonding over gaming and entrepreneurial ambitions
- Flew to Boston in 2005 to hear Paul Graham speak about startups
- Created "Redbricks Solutions" - a food-ordering app concept
- Applied to Y Combinator but got rejected for their original idea
- Received life-changing call: "We don't like your idea, but we like you"
- Pivoted to building "the front page of the web" with $12,000 funding

The Evolution of Vision
- 2005: "Let's build a food pre-ordering app to skip restaurant lines"
- 2005: "Create the internet's unified front page aggregating all content"
- 2006: "Merge the best of Delicious and Slashdot for quality curation"
- 2018: "Move away from 'dystopian Craigslist' aesthetics to user-friendly design"
- 2024: "Maintain community-centric approach while scaling to billions in value"

Overcoming Obstacles
- Initial startup idea rejected by Y Combinator
- Had to completely pivot their business concept mid-stream
- Worked grueling coding schedules with only World of Warcraft breaks
- Faced pressure from Paul Graham's challenging email about delays
- Navigated major leadership transitions when founders left in 2009 Survived controversies over content moderation and community resistance
- Overcame data breaches and security challenges
- Balanced community values with monetisation pressures

Today's Impact
- 73.1 million daily active users worldwide
- 18th most popular website globally
- $9.5 billion market cap at IPO
- $80 million revenue in 2023
- Thousands of active communities (subreddits)
- Democratic content curation through upvote/downvote system

Growth Strategies That Worked
- Community-Centric Approach: Built around user-generated communities and discussions
- Democratic Curation: Implemented upvote/downvote system for content quality control
- Anonymity Protection: Encouraged open, honest discussions through anonymous participation
- Platform Evolution: Continuously adapted technology from Lisp to Python to mobile apps
- Strategic Acquisitions: Integrated companies like Dubsmash for video capabilities
- Content Partnerships: Secured $60M annual deal with Google for AI training data

Key Milestones
- Became first Y Combinator company to launch (2005)
- Merged with Aaron Swartz's Infogami (2006)
- Sold to Condé Nast for $10-20 million (2006)
- Founders returned as leaders (2014)
- Major website redesign launched (2018)
- Raised $200 million at $1.8B valuation (2017)
- Filed confidentially for IPO (December 2021)
- Went public with $6.4B valuation, closed at $9.5B market cap (March 2024)

The Philosophy

"Reddit has thrived for nearly two decades primarily due to its community-centric approach, where users find and engage in subreddits of diverse interests. The platform's content is democratically curated through a system of upvotes and downvotes, allowing users to control what content is highlighted."

"For any business to do well, other than passion and commitment, there are so many things that it has to do right. A tech company like Reddit, in particular, has to evolve with time and make itself safe, relevant, and valuable. Reddit users are the most loyal users on the internet... Reddit has a deep understanding of what its users and what the internet in general want, which at the core is a community."

 Founder note from Ryan Elliot

I’m 35.
In the last decade, I’ve bootstrapped, I've raised VC and built SaaS companies, had cofounder breakups, learned how to sell, ship, and scale - and burned out more than once trying to do it all.
 
Here are 11 of the 11,111 lessons I’d give to 25-year-old me, building from his laptop in a café, wondering if it’ll ever work.
 
Treat your attention like capital
What you pay attention to either compounds or cannibalises your future.
Social feeds, Slack messages, shiny ideas - most are sugar.
Focus is protein.
 
The best marketing is founder-led
Nobody tells your story better than you.
Your vision, your scars, your why.
It builds trust faster than any paid campaign.
 
Don’t wait to ‘feel ready’
Start the podcast. Launch the product. Message the customer.
Clarity comes from doing, not waiting.
 
Success is subtraction
Removing distractions, unscalable services, unnecessary features - this is where speed lives.
Build lean. Operate lighter. Move faster.
As my man Nassim says: Via Negativia.
 
Build distribution before product
If you can’t get 100 people to care about the idea, you’ll struggle to get 1,000 to pay for it.
Audience first. Always.
 
Write like your career depends on it
Because it does.
Writing is thinking.
It’s how you sell, recruit, raise, and lead - at scale.
 
Co-founder alignment is everything
Not values on a pitch deck - actual alignment.
Find someone who'll "chew glass and stare into the abyss" with you.
 
Momentum trumps motivation
You don’t need to feel inspired.
You need to move. Build one thing a day. Post once a day. Talk to one customer a day.
That’s how you win.
 
Run experiments, not businesses
In the early days, your startup isn’t a company.
It’s a series of bets.
Run 5-10 small tests before you commit to the big swing.
 
Your identity is a trap
You’re not a “technical founder” or a “content person” — you’re just someone trying to solve problems.
Adapt.
Learn fast.
Reinvent yourself.
Alan Watts — 'You're under no obligation to be the same person you were 5 minutes ago.'
 
Burnout isn’t a badge
You’re not weak for needing rest - you’re human.
Rest isn’t what you do after work. It’s part of the work.
 
It’s simple: Show up. Ship often. Think long-term.
 
If you’re building something real; don’t just work harder.
 
Work clearer.

 A founder note we loved

See you next week.

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See ya.

Guy + Farzan
Founderoo