Cord Blood Subscription Service

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:

  • 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
  • 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
  • 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
  • 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: 52:50
SP

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.

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