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MagicJack Salesman: Your customers are already asking about my product, and I sold 2 million units alone in 2008. Not sure whose phone rang first, but here’s how we think it went down: GOING BIG TIME – HOW MAGICJACK LANDED THE BIG BOXES So it is no surprise that a product like this made its first tangible appearance at retail at The Shack. With 5000 locations they can put a product in front of lots of people and add retail credibility. This is the kind of product you’d expect to find at RadioShack. Radio Shack has its place in the world and they do certain things right. Direct Response is even better if you don’t have an ego to get over.Ģ008: Gained 2 nd Tier Retail Distribution: They had a story to tell and they used one of the best mediums to tell it. You’ve got to start somewhere, and for a consumer electronics / technology related product you don’t just call up 1-800-2BestBuy, sweet talk the receptionist to get thru to the buyer, and bam – your product is on shelves across the country. Instead all they had to rely on was their value proposition.
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MagicJack came up on TV the hard way – without Billy Mays or Anthony Sullivan. Follow along with us.Ģ007: Launched via Drive Response TV (aka infomercials):
While the path they have taken isn’t necessarily glamorous – it does make sense for the story that they had to tell. Challenger brand marketers / agency strategists – take note. So the essence of this article is to discuss how MagicJack got to where it is today – and provide inspiration that illustrates potential paths for others to follow. You can pretty quickly see the value prop. Compare that to what you pay monthly today – if you are lucky $33 via a triple play bundle from your cableco, or $40ish from AT&T. Do the math (or they’ll do it for you) – that’s under $2 per month for phone service. The hook to MagicJack is the pricing – Under $40 the first year, and under $20 each additional year. It is legitimate, and even Consumer Reports has weighed in on MagicJack, as is one of the most searched terms on their site. There are some technology and business model differences, but the end result is you are getting phone service via your high speed internet. I won’t bore you with the details of “what is” MagicJack beyond saying it is something similar to Vonage, or other voice over IP (VOIP) services out there.
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It is also hard to get a handle on their finances, but I’ve seen articles projecting over $100 million in revenue in 2009, based on estimates on their install base and quoted sales of over 250,000 new customers a month. Little is known about the company besides the fact that they’ve built a proprietary network that runs MagicJack – probably how their cost structure is able to work. Remember the 10-10 dialaround numbers? That was one of the founders early successes. While it isn’t a cultural phenomenon like Snuggie, MagicJack has pulled off something that any brand marketer worth their salt has to respect – let alone a challenger brand marketer desperate to break through.īehind MajicJack is a privately held company largely driven by the efforts of a handful of men with roots in the telecom industry.
How many other consumer electronics products have gained distribution in over 10,000 stores in the last 12 months? In fact they aren’t far from being on the shelves in 20,000 stores. I guarantee that if you haven’t seen / heard of MagicJack by now – you must have given up cable and are avoiding retail.
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HOW TO GET 250,000 NEW CUSTOMERS A MONTH – OVERNIGHT
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