I have to say Toms Shoes is a great example of what entrepreneurs can do. Blake Mycoskie was traveling in Argentina and saw all of these children with no shoes. Their feet were torn up and he decided he needed to make a difference. He started Toms Shoes where for every pair of shoes he sold he would give a pair to a child in need.
He started the business by taking 200 samples of an Argentinian shoe back with him to the US and started going door to door. He made it in a few botique shops in LA, but the real break came when he made the weekend edition of the LA Times. By the end of the weekend he had $88,000 in orders.
From there the company has exploded. It’s such a good story that it’s been covered by Time, Elle, Vogue and even Oprah. This has led them to sell over 60,000 shoes since May 2006 and they’re looking at selling 200,000 shoes this year. At about $48/shoe that’s $9.6 million in revenue in their second full year of business. Great growth and it’s all based on a model that will give back to the world indefinitely.
They’re now selling t-shirts and even a tote bag that if you buy will support a child to go to school and eat for a year. And they’re making money doing this. And having a great time. So this all brings up the question can you build a profitable business while helping the world. Absolutely. I’ve been trying to think of ways you could mimic this model, but it’s difficult.
Originally, I thought you could replicate it by selling LED lights. They’re low powered and last for years so they are being used in location rife with poverty so people can study at night. However, they are expensive and you can’t differentiate them enough. That’s the key I’m sure to this model. You need a product that you can differentiate. Toms Shoes are similar to a lot of shoes made out there, but they’re branded and come in different styles so people will spend a lot more to buy them.
If you have any ideas on products that could support this model leave an idea, or let us know what your experiences have been with social entrepreneurs. I can’t think of a better mark to leave on the world than an organization that supports itself and helps the world.
-Craig Sharkton
2 responses so far ↓
1 CHANCEvb // Nov 10, 2008 at 12:16 pm
I went on a shoe drop with TOMS shoes in April. I’ll share a few things that add to how great this business model is.
First, the shoes stand out in a great way. If you wear TOMS, people are going to ask ‘why are you wearing loafers?’ or say ‘cute shoes.’ You’ll get a response at some point during the day everytime you wear these shoes. This is perfect for company because it creates walking advertising all over the world (and most people wearing TOMS are thrilled to share the story of how they have been able to help out a child in need).
Second, if you are interested in the giving part of TOMS business model, they’re taking applications 24/7. Log onto their website and fill one out. It is filled with very thought provoking questions so they can get a good feel of who they really want to take on each shoe drop. Best part of it for TOMS, the volunteers pay their own way. Now you have customers wearing your shoes, sharing your message, and delivering the shoes for you. They get to have an unbelievable experience and get more excited about sharing the story of TOMS shoes once they return.
Great job Blake and Alejo, this business model is unbelievable.
2 Steven H. // Apr 8, 2010 at 7:18 am
I want so much to provide for my family and the world at the same time. How can I become a social entrepreneur without being a total knock off of TOMS?? Very hard…
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