Cord Blood Subscription Service
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A subscription-based cord blood storage business that preserves stem cells from newborn babies' umbilical cords, targeting new parents at hospitals during childbirth with a fear-based marketing approach.
Key Points:
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Service Overview:
- Collect and freeze cord blood right when baby is born
- Store stem cells long-term for potential future medical needs
- Annual subscription model for ongoing storage
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Marketing Strategy:
- Target parents during childbirth at hospitals
- Play on parental protection instincts
- Position as "insurance policy" for baby's future health
- Emphasize potential life-saving benefits
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Business Model:
- Upfront collection fee (couple thousand dollars)
- Recurring annual storage fees ($500/year)
- Long-term subscription commitment
- Set it and forget it revenue model
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Why It Works:
- Targets parents at emotional moment
- Leverages fear of future medical issues
- Parents unlikely to cancel once committed
- High lifetime value per customer
- Low ongoing costs after initial collection
As Shaan notes: "This is the most incredible business I've ever heard of... playing on parents' fear at a time when all of their love endorphins are kicking up and they're like okay my purpose in life is to protect this baby."
23:00 - 24:21
Full video: 52:50SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.