Today we profile another Indy tech startup – eFamily.com. David Hosei, a serial entrepreneur and eFamily.com’s CEO answers some questions below. Founded in 2010, eFamily.com is quietly building up quite a following. They have an interesting take on creating “private” social networks, as well as the struggle lots of dot-coms have – free vs. pay services.
Tell us about your startup…your words…whatever you want to say.
eFamily is a passion project that will change the world. It may be in a ’small’ way, but its goal is to connect families in a private and secure place online to share content and connect.
We currently have over 7200 families that have signed up for the service and have over 227,000 profiles associated with the family sites. A profile can be defined as a member of the family tree. We’ve had over 100,000 stories, photos, videos, and comments posted to the site. We have a freemium model, which means that we offer both free and premium services. 99% (literally) are on the free model. We need to do a better job of converting users to premium services. For the free users, we provide advertisers a platform to message to our family focused demographic. We are actively pursuing brands that want to reach this market.
How did you come up with concept for your business, and how/when did the business model for that concept become clear?
eFamily as a concept was conceived on my wife and I’s honeymoon. We were just getting ready to sell a .com that I was involved with since college and wanted to do something else in the Internet space. We were excited to be starting a family together and had family members across America. MySpace was the dominant player in the market for social interaction, but had a terrible privacy and connecting environment for families. So, we saw an opportunity and started building.
We attempted to build our idea two times in one way or another and failed both times. We finally merged with a company called Famiva.com to get us the technology suite that we originally dreamed of on our honeymoon.
We’ve known pretty much the whole time that the business model was a freemium service. At my previous .com (3GUPLOAD.COM), we had a freemium service and it worked really well for several years.
What made you first believe that starting a business is right for you (i.e. as opposed to working for someone else)?
I had an opportunity to work for $5.15 an hour at McDonald’s as a 15 year old. I took the application and thought to myself this wasn’t for me. At about the same time, I was offered an opportunity to cut my neighbor’s lawn for $15. It took me 45 minutes to cut the grass - effectively making me $20 an hour. I did some calculations, while I was cutting (I always loved thinking about other things when I cut grass). I figured if I could cut 30 times a year and had 50 clients averaging $15, I’d make over $20,000 a season (which was a ton of money at the time for a 15 year old part-time worker). And so my entrepreneur career began. I ended up making over $40,000 in gross revenue during my years in high school and had several friends working for me. I loved and enjoyed it very much.
To your point about working for someone else, I don’t mind working for other people. In fact, during high school I was a bus boy for my grandmother’s country club on Friday and Saturday nights. I have had several bosses over the years and enjoy learning different styles, what not to do, and the stability of income.
What challenges have you encountered?
Getting traction in the marketplace has been a major challenge. Although we have 7200 families signed up, we need 100x that to make our model work effectively. Now, the question is do we change our model or are we missing the ‘killer application’. Working through whether we change our model has been a challenge. Figuring out what or if a ’killer application’ exists in this space has been a challenge.
What sacrifices have you made to start you business?
I have made a lot of financial sacrifices to start this particular business.
In your opinion, what makes Indiana a great place to start your business?
I love Indiana. I have started several companies here (from lawn care to .com’s to a real estate company) and enjoy the people, low cost of doing business, and opportunities.
If you could give an entrepreneur looking to start a business one piece of advice…what would it be?
Find a great business partner that complements your skill set, has the time to dedicate to the business, and is passionate about the business.
Stat Sheet: eFamily.com
