Twelve Days of Commerce: #4 Dipsea: spicy audiobooks
Turning up the heat
Me: “Should we pencil in a team call for Friday?”
Faye: “We don’t work Fridays.”
Me: “Oh, how come?”
Faye: “It’s just our thing.”
Me: [Adds "Implement no-Friday policy" to Monday’s to-do list.]
Welcome my number 4: Dipsea.
First impressions
When I first met Faye Keegan, the co-founder and CEO of Dipsea, it was through a mutual friend’s introduction. At the time, Dipsea was exploring new creative strategies and reached out to Igloo for help in spicing up their Facebook campaigns (quite literally).
What struck me immediately was Faye’s laid back demeanour and calm energy, despite running a business in such a nuanced space. Balancing the sensitivities of creative production and copy while battling the frequent headaches of platform violations, is no small feat. The irony of it all? We live in a world where creators can share provocative content organically, yet advertising a tasteful image of a woman biting her lip can trigger bans from platforms like Facebook and Google.
Faye and I bonded over our shared curiosity about the irrationality of big media policies and their failure to differentiate meaningful, impactful businesses from the rest. As we devised a strategy that walked a delicate tightrope, we acknowledged our limitations and got to work.
A movement in motion
Sarah Diamond, is an audio producer and columnist of ‘Word Through the Times,’ with the New York Times. She delves into the rise of the duo leading the charge in spicy audiobooks, referencing both the Dipsea team and close competitor Quinn, founded by Caroline Spiegel (sister of Snap CEO Evan Spiegel) - alongside other prominent female voices in the space.
What’s particularly compelling is her exploration of the psychology behind these two apps. Both founding teams stress the importance of branding their platforms as ‘wellness’ experiences. They position these apps as safe spaces for women to reimagine their fantasies, moving away from the “power imbalances and sexual domination often seen in pornography,” as noted by Mal Harrison, executive director of the Center for Erotic Intelligence. Angela Sarakan, a senior producer at Dipsea, expands on this: “You’re listening in on the private worlds of these characters and, in that way, learning more about yourself and the way you might want to communicate or do things differently.”
After also working with the Evernow team, who were launching a parallel platform for sexual wellness coaching under a telehealth model with Leah Millheiser (watch) I quickly realized this was starting to feel more like a movement. Faye and her business partner, Gina, discuss their efforts with a blend of passion for women’s wellness and a deep sense of duty. Remarkably, Dipsea’s success is reflected in the organic lifetime value of its clientele, with some users remaining loyal for well over a year.
The acquisition and where Dipsea goes from here
Recently, Dipsea announced exciting news: they’ve been acquired by the app-subscription powerhouse RevenueCat, which previously raised $12M from multiple investors. Sarah Perez, writing for TechCrunch, documented the terms of the buyout, though the exit amount remains undisclosed (read more). The deal, structured as a full-cash buyout, keeps the brilliant Dipsea team on board, continuing their mission to deliver spicy, empowering narratives for women worldwide.
So, what makes Dipsea such a standout on my DC Christmas roster? Across CPG and e-commerce, we’re seeing heightened sensitivity toward consumer buying behaviors. People are becoming more mindful of what they purchase or subscribe to, whether due to global inflation fatigue or the growing focus on telehealth, wellness, and longevity for remote workers. It’s challenging to pinpoint the exact driver, but Dipsea has tapped into this cultural shift brilliantly.
The strength of Dipsea’s model lies in its lean operational architecture. With no inventory or free users, the business keeps fixed costs remarkably low. They’ve mastered consumer psychology, letting the product speak, or perhaps whisper erotically, for itself. While traditional marketing channels may limit their ability to acquire users at venture-backed scale, Dipsea’s lean approach has always set them apart. With Faye and Gina at the helm, I’m confident their founder-driven ethos will endure. I’d argue that their inability to acquire users through conventional means is an even greater testament to their skills as storytellers.
As Perez highlights, Dipsea’s business is robust, boasting 93,847 paying subscribers and an ARR nearing $6 million as of September 2024. Looking ahead, I wouldn’t be surprised if they leverage AI to streamline storytelling, diversify personas, and scale their content output even further.
Interesting, thanks for sharing!
Andrew, your writing is so compelling! Have you always written, or are you one brilliant, amazing guy, in general, who excels in everything, naturally?