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“State of the Quirky” Town meeting – $100m loss, new changes


State of the Quirky Town meeting 100m loss outlines Quirky 2 0 quirky Adafruit Industries Makers hackers artists designers and engineers

Source: https://blog.adafruit.com/2015/02/17/sta...

Quirky is closing the e-com site, you cannot purchase via their web site. They’ll link to other places to purchase. Average order took an extra 7 days to process and ship, 3,200 unanswered emails. 1,500 calls/day.

If an idea does not happen, it’s set to private and you re-submit it for Quirky 2.0. The archives are not searched. You need check marks for eval.  Things that are chosen at eval and not made in owned, they’ll keep talking to you. In “powered by” there’s a 30 day window, if it doesn’t happen you’ll get an email that says how to get your IP back.

Kids are allowed to invent on Quirky 2.0 (not beta) – children of all ages, with parental approval, working with government.

No more referral payments.

No longer doing 3 virtual product launches per week.

Withdrawal limit dropped from $75 to $50, effective 2/18/2015.

Quirky is removing the requirement that every product they make starts with a community idea. Ideas can come from GE, Quirky staff, etc.

“Topic they fight hard to avoid bringing up” – Quirky is “not making money”. Quirky was paying 10% of the revenue. The community made $9m from Quirky, Quirky has “lost over $100m” (Quirky has raised $185 million).

Quirky will honor prior commitments.

Going forward if you’ve earned less than $500k, 5% if Quirky product, 3.5% PbQ royalty, 10% non-royalty IP. On the next $500k royalties go down (about half).

Payments have not been paid out since 9/2014, going to be paid by 2/27/2015. Going to pay each quarter going forward in 2015. The problem is retailers are returning products (about 25%) gross sales vs net sales.

Stashed in: Kleiner Perkins, Internet of Things

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So many questions.

How is Quirky so unprofitable?

Why were they doing 3 product launches a week instead of focusing on quality?

And why did investors spend so much money before Quirky had a scalable business model?

And will good inventors ever try Quirky again after news that retailers keep returning products?

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