How Karthik Shanadi Built Athlete's Thread to 7-Figure Success in Apparel

Founded By

Karthik Shanadi

Monthly Revenue

$833K

Starting Costs

$500

Founders

Employees

100 (est.)

Profitable

Yes

Year Started

2021

Customer

B2C

Founded By
Karthik Shanadi: Monthly Revenue
$833K: Starting Costs
$500

Founders
2: Employees
100 (est.): Profitable
Yes

Year Started
2021: Customer
B2C

Who is Karthik Shanadi?

Karthik Shanadi and Luke McGurrin co-founded Athlete's Thread, having started their entrepreneurial journey at the University of Florida with a modest $500 budget, leveraging their college experience in creating customized apparel for fraternities and sororities.

What problem does Athlete's Thread solve?

Athlete's Thread helps college athletes easily create and sell personalized merchandise, enabling them to profit from their name and image, which was previously impossible.

Snapshot of Athletes Thread Homepage

How did Karthik come up with the idea for Athlete's Thread?

Karthik Shanadi and Luke McGurrin identified an opportunity with Athlete's Thread by observing a significant change in the NCAA's policies, which allowed college athletes to profit from their name, image, and likeness. Recognizing that this shift gave star athletes the spotlight, they saw a broader opportunity to empower all athletes, not just the stars, to benefit financially. This insight came from their experience and success with previous ventures in custom merchandise and college licensing, which helped them understand the intricacies of the sports industry and athlete endorsements.

They started by researching and validating the need for a more inclusive approach to monetizing athletes' identities, focusing on how to simplify the brand-building process for athletes regardless of their popularity. The lessons from their earlier experiences in the apparel industry helped them navigate licensing complexities and refine their business model, ensuring that even lesser-known athletes could tell their stories and reach supportive communities. They turned the challenges of their previous business dealings into an advantage by developing technology and processes that lowered the barriers for athletes to create and sell their own merchandise.

Through feedback and ongoing refinement, they made adjustments to ensure their platform was user-friendly and catered specifically to athletes' needs. The key lesson they learned was the importance of staying adaptable and leveraging changes in the external environment to create innovative solutions, cementing Athlete's Thread as a platform that supports athletes of all backgrounds in telling their unique stories.

How did Karthik Shanadi build the initial version of Athlete's Thread?

Building Athlete's Thread was a process that demanded significant technical and strategic input from the co-founders, Karthik Shanadi and Luke McGurrin. Initially leveraging their experience from Greek House, they focused on developing a seamless order management platform and a user-friendly customer portal to streamline the customization and purchasing of NCAA-compliant licensed merchandise. The co-founders utilized Shopify as the backend e-commerce platform, which enabled smooth scaling to meet growing demand. The development of the first prototype involved creating fully-licensed designs and setting up a micro store with a lineup of 8 to 12 products, taking approximately three days from design to launch. The challenge was navigating the complex landscape of sports licensing and establishing strong tech infrastructure, which required continuous learning and adaptation.

What were the initial startup costs for Athlete's Thread?

Unexpected Costs: The business faced an unexpected $40,000 licensing bill due to unreported sales and unpaid royalties. They negotiated a payment plan to manage this cost.

What was the growth strategy for Athlete's Thread and how did they scale?

Affiliate and Ambassador Program

Athlete's Thread heavily invested in an affiliate and ambassador program to drive engagement and sales. They recruited campus representatives and ambassadors who would promote the brand on social media and share discount codes. By sending out free products, these ambassadors created content for the brand, which Athlete's Thread could repurpose for marketing. This approach was particularly effective because it allowed the company to leverage word-of-mouth marketing through trusted voices—often influential within specific communities—at a relatively low cost. This strategy helped expand their reach and maintain long-term customer relationships.

Why it worked: This channel was successful because it effectively turned users into marketers, increasing visibility and authenticity. When customers see real people using and endorsing products, it builds trust and encourages purchases. Moreover, the generated content from ambassadors provided continuous material for the brand to engage new customers and maintain relevance on various platforms.

Cold Outreach and Outbound Sales

In its early stages, Athlete's Thread used cold outreach, primarily via emails and text messages, to acquire new customers. This targeted and direct approach allowed them to personally connect with potential clients, such as fraternities and sororities, by offering customized solutions for their apparel needs.

Why it worked: Direct outreach was cost-effective and enabled personalized communication, which was critical in establishing initial trust and relationships. It also allowed Athlete's Thread to gain immediate feedback and iterate on their offerings based on real-time responses from potential customers.

Paid Search and Marketplaces

Athlete's Thread utilized paid search advertising to drive targeted traffic to their website. By focusing on search intent, such as users looking for specific athlete merchandise, they achieved high conversion rates due to the relevancy of ads to the user's search. Additionally, they expanded their presence through marketplaces like Etsy and Google Shopping, increasing product visibility.

Why it worked: These methods are effective because they target users who are already searching with a buying intent, boosting the likelihood of conversion. By being present where customers naturally shop and browse, Athlete's Thread could capture an audience searching for precisely what they offered, hence achieving higher sales.

Exceptional Customer Service

Investing in customer service, Athlete’s Thread ensured rapid responses to inquiries and efficiently resolved issues, often within a few hours. This approach wowed customers and fostered loyalty. They hired offshore teams to manage customer interactions cost-effectively, allowing them to staff more representatives than competitors.

Why it worked: Fast and efficient customer service not only satisfies customers but also encourages repeat business and positive word-of-mouth referrals. A responsive support system reassures customers of their importance, creating a lasting relationship that enhances brand reputation and encourages loyalty.

What's the pricing strategy for Athlete's Thread?

Athlete's Thread offers custom apparel with micro-stores for athletes starting at $20 per piece, leveraging NIL opportunities for college athletes to create personalized merchandise.

What were the biggest lessons learned from building Athlete's Thread?

Niche Specialization: Focusing on a specific market like custom college apparel allowed Athlete's Thread to build expertise and reduce competition. This approach was inspired by prioritizing a perfect experience for initial customers, which then expanded organically.
Adaptability and Learning: Encountering setbacks, such as unexpected licensing fees, taught crucial lessons on industry regulations. The ability to adapt and negotiate was key to overcoming this challenge and securing the company's future in the licensing space.
Innovative Marketing: They leveraged low-cost marketing strategies, like campus reps and ambassador programs, to grow their brand's presence. This hands-on approach not only promoted their products but also generated valuable content for further brand building.
Outstanding Customer Service: By prioritizing quick and effective customer service, Athlete's Thread stood out in a crowded market. Answering customer queries within a few hours helped establish trust and built a loyal customer base.
Global Talent Utilization: Building a global team helped reduce costs while accessing diverse talent. This strategic approach allowed them to staff efficiently, benefiting both employees and the business, and enhancing operational capabilities.

Discover Similar Business Ideas Like Athlete's Thread

	Idea	Revenue	Traffic	Revenue Per Visitor	Starting Costs
Matcha.com	tea business	$708K monthly	72.2K monthly	$9.81 per visitor	$60K to start
Moneypicks	niche blog	$8K monthly	— monthly	— per visitor	— to start
vonu	baby products business	$100K monthly	54K monthly	$1.85 per visitor	$15K to start
NOVO watch	watch brand	$20K monthly	— monthly	— per visitor	$5K to start
WrumerSound	sports app developer	$35K monthly	— monthly	— per visitor	$2.5K to start
Pretty Arrow	financial advisor	$10.4K monthly	— monthly	— per visitor	$10 to start
Selfarama		$12K monthly	— monthly	— per visitor	$500 to start