Pitch Introduction
History By Mail captured the attention of Shark Tank viewers as an American history replica subscription service that brings historical documents and artifacts directly to subscribers’ homes. Founded by history enthusiast Ari Siegel, the company transforms the way people experience American history by delivering tangible replicas of significant historical documents each month.
Business Overview
Product/Service: History By Mail offers a subscription service that delivers monthly replicas of significant American historical documents and artifacts directly to subscribers’ mailboxes. Each delivery includes the historical document replica along with contextual storytelling that explains its significance and historical background.
Problem It Solves: The company addresses the gap in accessible, hands-on American history education. Many people want to connect with historical events but lack the opportunity to physically experience historical documents, especially those housed in museums or archives that are not easily accessible to the general public.
Target Market: History By Mail serves history enthusiasts, educators, students, and gift buyers looking for unique educational gifts. The service appeals to individuals who appreciate tangible historical experiences over digital alternatives.
Unique Selling Proposition (USP): What sets History By Mail apart is its combination of authentic historical replicas with educational storytelling, delivered directly to subscribers’ homes as a monthly subscription service. The company has established itself as the number one American history replica subscription service in the market.
| Company Details | Information |
|---|---|
| Company Name | History By Mail |
| Founded | 2019 |
| Founder | Ari Siegel |
| Industry | Media/Entertainment |
| Location | Northbrook, IL |
| Website | historybymail.com |
About Founder’s
Ari Siegel is a history enthusiast and entrepreneur from Chicago who transformed his passion for American history into a successful subscription business. With a background that includes an internship in the U.S. Senate and a family history in entrepreneurship through Siegel Jewelers, Ari combined his love for history with business acumen to create History By Mail. His journey began when he visited the Library of Congress and discovered incredible historical documents that inspired him to create replicas for family and friends.
- Interned in the U.S. Senate with Senator Carl Levin
- Family business background with Siegel Jewelers spanning 135+ years
- Visited Library of Congress where the business concept was born
- Started replicating historical documents for family and friends
- Transformed personal passion into successful subscription business
- Appeared on Shark Tank Season 16 seeking investment and partnership
Shark’s and Founder’s QnA
What is History by Mail?
History by Mail is a subscription service that delivers the best of America’s incredible history directly to your door each month. Subscribers receive an envelope in the mail each month that contains an immersive experience they can touch and examine, making the past feel vivid and exciting.
How did you come up with this passion?
I’ve always been a history buff. I heard both of my grandparents tell stories about their service in World War II. I was an intern in Senate and one day I was touring the Library of Congress. They had some incredible documents on display including handwritten letter by President Abraham Lincoln. When I saw that, it gave me the chills and instantly transported me back to the Civil War era. I started replicating them for family and friends. Their eyes lit up and I thought there’s a business here.
How do you find customers?
We have two main pieces of our business. We have a direct to consumer website and roughly half of our business is wholesale to uncommon goods, which is one of the largest websites, gift sites in the country.
What are your sales figures?
We’ve sold $3 million in sales in the last 5 years and nine months. This year in the last 12 months, we’ve sold about $1.75 million. We have sold 85,000 subscriptions.
What are your subscription options and pricing?
You have three different subscription options. You can either get monthly for $9, six months for $42, or annual is $78.
What is your customer retention rate?
On average 18 months. What we anticipate for 2024 is about 1.3 million in revenue.
What is your profit margin?
We have a 43% net operating margin. So that’s after marketing cost for acquired customers. That means I’m going to make at least $400,000 free cash.
What is your customer acquisition cost?
$20 blended. Our LTV is $148.
What is your return on ad spend?
When you put out a $1,000, you make $5,000 in sales on Google. Depending on the time of year, because we are a gift product, it’s between three and four.
Why are you seeking investment if you’re already profitable?
The money is used for scale. We haven’t tapped any bulk sales. We’ve gone after one particular niche, which is gifting. We haven’t tapped corporate sales, museums, schools.
What’s Kevin O’Leary’s counter offer?
The right deal that’s fair is $250,000 for 20% and I’ll get my money back before I die. It’s got to be realistic because I want to turn on the social media and I think it’s going to grow.
What does Barbara Corcoran offer?
I will match Mr. Wonderful’s offer. I like you. I like what you stand for and I would enjoy working with you.
What about social media presence?
Social media has not been a focus. I just personally am not honest about it. You would be like the king. You look like the perfect type to be the historical nerd on social media. People would love to listen to you.
Do you want to partner with both sharks?
I would invite Barbara to do this with me because I think her social media skills are very strong and I think we could have a lot of fun together.
What made you choose Barbara and Daniel’s offer?
Two sharks are better than one. I very much appreciate your offer, but Barbara and Daniel, you have a deal.
Key Stats & Financials
History By Mail demonstrated impressive financial performance during its Shark Tank pitch, showing strong revenue growth and profitability metrics that caught the attention of multiple Sharks. The company’s subscription-based model proved to be both scalable and profitable.
- Sales: $3 million in sales over 5 years and 9 months, $1.75 million in the last 12 months
- Margins: 43% net operating margin after marketing costs
- Valuation: Originally requested $2.5 million valuation for 10% equity
- Investment Request: Seeking $250,000 for 10% equity
- Use of Funds: Scale operations, tap into corporate sales, museums, and schools
| Financial Metric | Amount |
|---|---|
| Total Revenue (5 years 9 months) | $3,000,000 |
| Annual Revenue (2024 projection) | $1,300,000 |
| Last 12 Months Revenue | $1,750,000 |
| Subscriptions Sold | 85,000 |
| Free Cash Flow | $400,000+ |
| Net Operating Margin | 43% |
Business Potential and TAM
History By Mail operates in the educational subscription box market, which has shown significant growth potential. The company targets history enthusiasts, educators, students, and gift buyers. The total addressable market includes millions of Americans interested in history and education, with additional opportunities in corporate gifting, museums, and educational institutions.
- Subscription box market continues growing with educational focus
- Untapped markets include corporate sales and museum partnerships
- Gift market potential during holidays and special occasions
- Educational institutions represent significant B2B opportunity
History By Mail: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Primary Audience | History enthusiasts aged 35-65 |
| Secondary Audience | Educators and students |
| Gift Buyers | Adults purchasing educational gifts |
| Geographic Focus | Primarily US market |
| Income Level | Middle to upper-middle class |
| Interests | History, education, collecting |
Marketing and Distribution Strategy
History By Mail employs a dual distribution strategy combining direct-to-consumer sales with wholesale partnerships. The company leverages its partnership with Uncommon Goods for significant wholesale distribution while maintaining its own direct sales channel. Marketing focuses on the gift market, with additional opportunities in social media, corporate sales, and educational institutions.
- Direct-to-consumer website sales
- Wholesale partnership with Uncommon Goods
- Gift market positioning for holidays
- Social media marketing (underdeveloped area)
- Corporate sales opportunities (untapped)
- Museum and educational institution partnerships
History By Mail Deal Outcome
History By Mail successfully secured a deal with two Sharks during their Shark Tank pitch. The company managed to attract offers from both Kevin O’Leary and Barbara Corcoran, ultimately choosing to partner with both investors for a stronger partnership arrangement. This resulted in a significant investment that would help scale the business.
| Deal Details | Information |
|---|---|
| Sharks Involved | Barbara Corcoran and Daniel Lubetzky |
| Investment Amount | $250,000 |
| Equity Offered | 20% |
| Valuation | $1.25 million |
| Deal Terms | Partnership for scaling and social media |
History By Mail Post-Show Update
Following their successful Shark Tank appearance, History By Mail experienced immediate sales growth and continued expansion. The company reported their best sales day within an hour of the episode airing, surpassing their previous best sales week. This “Shark Tank effect” demonstrated the significant impact of the show on the business’s visibility and sales performance.
Business Analysis & Lessons
History By Mail demonstrates how a niche passion can be transformed into a profitable subscription business. Ari Siegel’s deep understanding of his target market and his ability to combine education with tangible experiences created a unique value proposition. The business model shows how traditional interests can find new life in modern subscription formats, especially when targeting specific demographics with genuine interests.
The pitch also illustrated the importance of having strong financials and clear growth strategies when approaching investors. Ari’s transparency about his business performance and future plans, combined with his genuine passion for the subject matter, helped build trust with potential partners and investors.
- Niche markets can be highly profitable when properly executed
- Passion combined with business acumen creates compelling investment opportunities
- Subscription models work well for educational and experiential products
- Strong financial performance builds investor confidence
- Partnership value often exceeds monetary investment benefits
- Social media presence is crucial for modern business growth
Pitch Conclusion
History By Mail’s Shark Tank appearance demonstrated how a unique passion project can evolve into a successful business venture. The company’s combination of educational value, tangible experiences, and subscription convenience created a compelling offering that resonated with both investors and consumers. As the business continues to grow with the help of its new partners, it serves as an excellent example of how niche interests can be monetized effectively.