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Among Online Entrepreneurs, Subscriptions Are All the Rage
08 Mar 2012 EST - The New York Times
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After Alex Zhardanovsky sold his online ad company, AzoogleAds, he went looking for a new business concept. His search took him from skin care to weight-loss products to prize giveaways. The answer that finally came to him — pet food — was inspired by sheer inconvenience. “If you’re a dog owner like I am, you go out and buy food every three or four weeks,” Mr. Zhardanovsky said. “But you usually don’t realize you need it until you’re out.” Mr. Zhardanovsky, 34, was well aware that an online pet supply store, Pets.com, had been one of the more celebrated flameouts of the dot-com bubble. But he had an idea to build the business by taking a different approach to sales. While selling online ads, he had seen other companies, like Netflix, persuade consumers to lock in monthly fees for repeat orders. Those companies, he believed, were generally more successful and thus bought more of his ads. For his new business, Mr. Zhardanovsky’s plan was to sell pet food on a subscription basis. He figured that other pet owners had experienced the same frustrations keeping the food stocked and might be willing to sign up for a monthly delivery service as well. “Dogs never stop needing to eat,” he said.

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