How Mailbox Captured the Market and Was Acquired by Dropbox for $100 Million in Just 37 Days
In January 2013, Gentry Underwood launched Mailbox, an innovative email app designed to tackle one of the biggest pain points of modern life: the overwhelming flood of unread emails. Just over a month later, Mailbox was acquired by Dropbox for a staggering $100 million. Here’s how they achieved this rapid success:
1. Solving a Critical Problem
- The Problem: People were struggling to manage their overflowing inboxes, with no elegant solution available.
- The Solution: Mailbox offered a simple, intuitive interface that helped users quickly and efficiently triage their emails, turning a cluttered inbox into a manageable task list.
2. Innovative Referral System
To build buzz and scale rapidly, Mailbox implemented a “referral reservation system” that was both automated and viral:
- Step 1: Users signed up for notifications to be alerted when the app was ready for them.
- Step 2: Each user could see how many people were ahead of them in the queue.
- Step 3: To move up the line faster, users were encouraged to invite their friends.
- Step 4: As more friends signed up, they in turn invited others, creating a viral loop.
This gamified reservation system generated excitement and anticipation, making people eager to gain access to the app.
3. The Viral Video
Mailbox released a beautifully crafted video explaining the app’s features and benefits. The video resonated with viewers because:
- The Problem Was Universal: Everyone could relate to the frustration of an unmanageable inbox.
- The Solution Was Simple: The app’s swipe-based email management system was intuitive and visually appealing.
- The Message Was Clear: The video communicated the app’s functionality and value in an engaging way.
The video went viral, amplifying interest in the app.
4. Tech Media Amplification
- Tech journalists, always on the lookout for innovative solutions to common problems, eagerly covered Mailbox.
- The app’s sleek design, clever functionality, and the buzz generated by the referral system gave journalists plenty to write about.
5. The Snowball Effect
- Media Coverage + Viral Video: The video’s success attracted media attention, which in turn brought more users to the app.
- Referral System: The gamified queue drove exponential growth as users recruited their friends to move up the line.
- Rapid User Growth: Within 37 days, 538,000 people were on the waiting list to access Mailbox.
6. The Dropbox Acquisition
- Dropbox recognized the immense potential of Mailbox and its ability to solve a widespread issue with email.
- With the app’s rapidly growing user base and buzz, Dropbox made the strategic decision to acquire Mailbox for $100 million just 37 days after its launch.
Key Takeaways
- Focus on a Real Problem: Mailbox addressed an issue that resonated with millions of users—unread email overload.
- Simplify the Solution: The app’s intuitive design made it easy for users to understand and adopt.
- Create Buzz: A viral video and an innovative referral system drove excitement and word-of-mouth growth.
- Leverage Media: Tech press coverage amplified the app’s visibility, bringing in more users.
- Timing is Everything: By building a buzzworthy product and scaling rapidly, Mailbox positioned itself as an attractive acquisition target.
Mailbox’s story is a masterclass in solving a universal problem, crafting a viral growth strategy, and achieving rapid success in the tech world.
Source: Business Insider Australia