Dollar Shave Club: Michael Dubin, From Zero to a Billion Dollar Exit in Five Years (December 2018)
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this captivating episode, Michael Dubin shares the extraordinary story of how Dollar Shave Club went from a chance encounter at a holiday party to a billion-dollar acquisition by Unilever in just five years. (04:06) The story begins with Michael's unlikely background in improv comedy and video marketing, which would prove instrumental in creating one of the most successful guerrilla marketing campaigns in modern business history.
- Core theme: How creative marketing, timing, and solving a real customer problem can disrupt even the most entrenched industries like men's shaving, dominated by giants like Gillette
Speakers
Michael Dubin
Michael Dubin is the co-founder of Dollar Shave Club, which he launched in 2012 and sold to Unilever for a reported $1 billion in 2016. Before founding Dollar Shave Club, Michael worked in video marketing and spent eight years training in improv comedy at the Upright Citizens Brigade in New York. He previously worked at NBC as a page, then at MSNBC as a production assistant and writer, before transitioning to marketing roles at Time Inc. and Sports Illustrated, where he built microsites and video content for major brand advertisers.
Key Takeaways
Trust Your Gut When You Identify a Real Problem
Michael's decision to pursue Dollar Shave Club wasn't based on market research or complex analysis—it came from his personal frustration with buying razors. (23:39) He knew that if he felt frustrated by overpriced razors locked behind plastic cases and the inconvenience of the buying experience, others must feel the same way. This gut instinct proved correct and became the foundation of a billion-dollar business. The key lesson here is that entrepreneurs should pay attention to their own pain points as consumers, as these often represent broader market opportunities.
Your Background Skills Can Converge in Unexpected Ways
Michael's eight years of improv training and video marketing experience seemed unrelated to selling razors, but they became his secret weapons. (23:05) The viral launch video that put Dollar Shave Club on the map was a direct result of these seemingly disparate skills converging at the right moment. This demonstrates that no experience is ever wasted—skills developed in one context can create unique competitive advantages in completely different situations.
Timing and Media Strategy Matter as Much as the Product
Michael deliberately chose to launch Dollar Shave Club's viral video on March 6, 2012, specifically because there was a media lull before South by Southwest, and journalists were looking for big tech stories. (35:35) He understood that having a great product or video isn't enough—you need to think strategically about when and how to get media attention. This media-savvy approach was crucial to the video's success and demonstrates the importance of understanding media cycles and timing.
Prepare for Success by Building Resilient Operations
When Dollar Shave Club's viral video caused their website to crash and inventory to sell out, Michael faced a critical decision: shut down or keep taking orders despite delays. (38:38) He chose transparency and kept selling with clear communication about delays, which maintained customer trust. The lesson is that viral success can be as challenging as failure—entrepreneurs must be prepared to scale quickly and maintain customer relationships even when overwhelmed by demand.
Crisis Management Becomes Easier with Experience
Michael emphasizes that starting a business involves many "near death experiences" that feel catastrophic in the moment but are rarely as bad as they seem. (53:00) After surviving several crises, entrepreneurs develop the ability to stay calm and rational during future challenges. This emotional resilience is crucial for long-term success, as every business faces multiple existential threats along the way.
Statistics & Facts
- Gillette owned about 70% of the U.S. shaving market a decade ago, but their market share has dropped to closer to 50% today, partly due to companies like Dollar Shave Club. (06:08)
- By 2015-2016, Dollar Shave Club had approximately 3 million subscribers and controlled most of the online razor subscription market, capturing 20-25% of the men's non-disposable razor market overall. (50:00)
- The viral launch video was viewed over 25 million times, making it one of the most successful startup marketing videos ever created. (33:51)
