How to Create Demand from Scratch: From Kickstarter to 200M/yr in revenue

Did you check out our breakdown on Ridge Wallets yet inside the Funnel of the Week Members Area?

Inside the full funnel breakdown you’ll see how Ridge combines an impressive number of skus + pre-purchase order bumps to drive a solid AOV.

(What about their upsell funnel? You’ll have to check out the breakdown to see what’s happening there…)

But in today’s post, let’s zoom out a bit to understand how Ridge got there in the first place:

Let’s see how Ridge Wallet cracked the code on scaling a premium DTC accessories brand, 100% bootstrapped & without taking on outside capital.

Back in 2013, a father-son duo, Daniel and Paul Kane, launched a Kickstarter for what they thought was just a better wallet. They raised $266,000 from 5,000+ backers.

Fast forward to 2024...

Ridge is on track to generate over $200 million in revenue¹.

And they did it without taking a single dollar of outside capital.

How?

As they say, "Success leaves clues"...

So let's dig in and find out exactly how Ridge turned a simple wallet into a DTC powerhouse.

The Sean Frank Triangle of Success

Ridge CEO Sean Frank recently dropped some serious knowledge about what makes products actually work in today's brutal DTC landscape. Here's the link to his full post on this topic, it’s a good one.

He calls it "The Sean Frank Triangle of Not Being a Loser".

Here are the 3 crucial elements:

1. Intent (Built-in Demand)

2. AOV (Average Order Value)

3. LTV (Lifetime Value)

Let's break down how Ridge masterfully played each of these...

Intent: The Wallet Problem. How to Create DEMAND

Here's where it gets interesting...

Sean actually admits that wallets are TERRIBLE when it comes to built-in demand:

"No one is looking for one, so I have to generate my own demand."

So how did Ridge overcome this "no built-in demand" problem?

They went ALL IN on creating demand through two brilliant moves:

1. YouTube Influencer Marketing at Scale We're talking MASSIVE scale here…

• 5,000+ YouTube creators sponsored²

• 544 million+ views generated³

• $60M+ in revenue from YouTube alone⁴

But here's the genius part:

Instead of chasing the biggest names, Ridge focused on creators with engaged audiences, regardless of size. Their only requirements?

• Two-thirds English-speaking audience

• 50% male viewers

They'd reach out to 1,000+ creators monthly⁵, close 200-300 deals, and start with small 3-5 video test campaigns.

2. Product Comparison Marketing Ridge's ads don't just sell a wallet...

They sell a transformation:

"Look at this bulky leather mess you're carrying → Here's our slim, RFID-blocking, aircraft-grade aluminum solution"

AOV: Solving the "Expensive Clicks" Problem

Sean drops this truth bomb:

"The cost per click goes up every year. It used to be you could scale a $20 product. Then it became a $40 product. Now you need a minimum of $65 bucks to break even on meta."⁶

Ridge's solution?

Premium pricing + Smart Pre-Purchase Bumps

• Core wallet pricing: $85-125

• Pre-purchase add-ons: money clips, key cases

• No post-purchase upsells (unlike most DTCs)

Here's a couple of the pre-purchase add-ons. Check out everything they do in post we did inside the Funnel of the Week Members Area.

The result? An AOV that can support aggressive ad spend while maintaining that crucial 80% gross margin.

LTV: The "Keep Them Coming Back" Challenge

Here's where Ridge faced their biggest puzzle...

As Sean puts it: "We have these cohorts that are like, 'Yeah, I love the product, it's great. But I don't need another wallet.' There's nothing we can do to get them to buy another wallet."

Most companies would've been stuck here.

But Ridge? They got creative...

Their LTV Solution: Category Expansion + Licensing Magic

Check out this product evolution:

1. Core Products:

• Wallets

• Key cases

• Phone cases

• Backpacks

2. Premium Accessories:

• Everyday folding knives

• Premium pens

• Wedding rings (genius move into high-ticket items)

3. Licensed Collections:

• MLB partnerships

• NASA collaboration

• Sports team collections

But the real game-changer?

Bringing on MKBHD (Marques Brownlee) as Chief Creative Partner and board member.

This wasn't just another influencer deal - it was a strategic partnership that opened up entirely new product categories and audience segments.

This wasn't just another influencer deal - it was a strategic partnership that opened up entirely new product categories and audience segments.

The 3 Stages of Ridge's Scale

Stage 1: The Kickstarter Launch ($266K)

• Focus: Core wallet product

• Channel: Crowdfunding

• Key Win: 5,000+ early adopters

Stage 2: The Performance Marketing Phase

• Heavy investment in Facebook/Instagram

• YouTube influencer scaling

• 50% of revenue going to marketing

• Target: 3X ROAS

Stage 3: Omnichannel Empire ($200M+)

• DTC website

• Amazon presence

• Retail partnerships (Best Buy, Nordstrom)

• International expansion

• US manufacturing facility acquisition

Key Takeaways: The Ridge Growth Blueprint

So what can we learn from Ridge's journey from Kickstarter sensation to $200M+ powerhouse?

Here are the money lessons:

1. Product Evolution is Everything

Don't get stuck in one lane. Ridge could've remained "just a wallet company," but they:

• Expanded strategically into new categories

• Added premium pricing tiers

• Created collectible collaborations
  

2. Marketing Math Matters

Ridge's success formula:

• 80% gross margins

• 50% marketing spend

• 3X ROAS target

• Zero outside capital needed
  

3. Channel Diversity is King

Unlike many DTCs who avoided Amazon like the plague, Ridge embraced it:

• Strong DTC website presence

• Amazon store optimization

• Strategic retail partnerships

• International market expansion
  

4. Manufacturing Control

They didn't just outsource - they invested in:

• US-based manufacturing

• Quality control

• "Made in USA" premium positioning for Asian markets

The Big Picture: What Makes Ridge Different

Here's what Sean Frank says separates Ridge from other DTCs:

"We've never touted a DTC flag. We were never like, 'We're not going to sell on Amazon.' We were just like, 'Yeah, we should be where people want are.'"

This pragmatic approach helped them avoid the pitfalls that trapped many DTC brands.

Looking Ahead: Ridge's Next Chapter

With MKBHD now on board and a clear path to a $1B valuation, Ridge isn't slowing down.

Their focus?

• New product categories

• International expansion

• Premium retail presence

• US manufacturing growth

The lesson for entrepreneurs?

Success in DTC isn't about following playbooks - it's about creating your own.

Ridge didn't just sell wallets. They built an accessories empire by understanding:

• Product economics

• Marketing mathematics

• Channel diversity

• Manufacturing control

And most importantly? They never stopped evolving.

As Sean Frank puts it: "You need to build something that people want and need MORE of."

That's how you turn a $266K Kickstarter into a $200M+ empire.

Not bad for a wallet company, right? 

Want to see the full breakdown of the funnel? Check it out inside the Funnel of the Week Members Area!

Have a great weekend!

The Funnel of the Week Team

PS - in case you’re wondering, what Funnel of the Week is all about…

More on What’s Inside Funnel of the Week Members Area

Funnel of the Week has been live just one month now, and if you haven’t logged in for a bit, here’s what you’ve been missing:

We continue to stack full funnel breakdowns each and every week inside the Members Area:

We’ve got: 

• ecomm funnels

• VSL funnels

• Info Products funnels

• (and more)

…And we add a new funnel breakdown & swipes each week.

So if you have a funnel you want us to break down?

(Including all the landing pages, order bumps, upsells, downsells, email/sms followup & more…)

Just let us know and we’ll add it to our Funnel of the Week “next up” list. 

We’ll go through the funnel, document all the funnel steps, email/sms followups, etc. as we become a real customer (we don’t ask for refunds), and document the whole process so you have it at your fingertips.

If you’re not yet inside the Members Area? Go here to learn more about Funnel of the Week & get access.

The big idea of Funnel of the Week is this:

We break down a new DTC funnel (including ads, front end offer, upsells, post-purchase emails/sms/etc.), each and every week.

Here’s a quick Google doc walking through what we at Funnel of the Week has got in store for you, each and every week:

Check it out. We’re doing a special “early bird” price for access for a limited time.

And if you want great funnel insights delivered to your email inbox, multiple times per week? Go here to sign up for our Funnel of the Week email newsletter (it’s free) funneloftheweek.com

That’s all for today.

Have a great week!

The Funnel of the Week Team

PS: Not yet subscribed to our free Funnel of the Week newsletter? Join now for exclusive insights: https://funneloftheweek.com

PPS: What insights do YOU want in our funnel breakdowns? Hit reply and share your thoughts

PPPS: Got a funnel you think we should break down? We’d love to hear your suggestions!