Online Business Tries to Do Well by Doing Good

In the world of online businesses, ECHOage seems especially timely: It comes at the vortex of the end of rampant consumerism (one can only hope) and the boom of social media and eco-conservation.

The Canadian company, started two years ago by "mompreneurs" Alison Smith and Debbie Zinman, offers an alternative to the typical present-laden, over-the-top kids party.

Their website allows a parent (almost always a mother) and her child to invite guests to their party and choose a charity that will receive half the proceeds of the monetary gifts the child receives. The invited guests can give $10-$40 as the gift amount. ECHOage takes a 15 percent administrative fee, and the rest is split between the host mom, who can purchase one large and more meaningful gift for the child, and a charity the party-giving mom and child select. There are about two dozen charities in the United States and Canada available through the site, each of them devoted to children's issues and the environment. The service is available throughout the whole of Canada and in 48 of the 50 United States.

So how's it going for ECHOage?

While the founders (and sole full-time employees) would not comment on business metrics, some back of the envelope calculation suggests that if the average party generates $250 (10 guests giving $25 apiece), ECHOage takes $37.50 per party. To get to $500,000 in annual revenue, ECHOage would need to funnel 13,333 parties through its system each year, or 36 a day. With the scalable system they've set up, that's achievable. And the U.S. and Canada are big enough markets to visualize that happening before too long.

The site is user friendly and sparse. It's easy to navigate and offers feedback tools such as a Tracker that allows mom and child to see who has responded to their invitation, how much they have given (they can RSVP without making a financial contribution to the party -- it's voluntary), and how much has been raised for their selected charity. When the party is done, the child gets a personal letter of thanks from the charity and, perhaps, an early indoctrination into the importance of sharing and helping others.

Smith and Zinman say they've spent significant time and resources on user interface and experience to make sure that moms and kids understand the system and have a positive experience using it. When party-givers' experiences are positive, they tell others. The goal is to grow the business virally with users and invited guests telling others and spreading the word. To that end, ECHOage is soon launching an "Ambassadors" program that will allow clients to recommend ECHOage to friends. When they do, they'll be able to follow the impact they make downstream as more people adopt and use the system.

Smith and Zinman have some advice to offer prospective entrepreneurs:

• Invest time and resources in usability and user interface. "What happens between a mother and her computer screen when she is setting up a party or RSVPing to an ECHOage party is our Number One goal," Smith says. "Was it rewarding and memorable? If we can check those boxes we know we've been successful."

• If you're entering entrepreneurship with someone as a partner, make sure you pick one with whom "you can work til two in the morning," Zinman says. It's also important to have a goal that's bigger than financial. "Children changing the world is what motivates us," she notes.