CG Cookie

How CG Cookie Grew From Near-Bankruptcy To $88K MRR

Monthly Revenue

$88K

Founders

Employees

15 (est.)

Monthly Traffic

285,800

Profitable

Yes

Year Started

2008

Customer

B2C

Revenue Per Visitor

$0.31

Founders

Employees

15 (est.)

Monthly Traffic

285,800

Profitable

Yes

Year Started

2008

Customer

B2C

Revenue Per Visitor

$0.31

Who is Wes Burke?

Wes Burke, the founder of CG Cookie, is from Chicago and worked as a 3D environment game artist before launching the business during his long daily commutes.

CG Cookie effectively addresses the challenge of affordable, high-quality education in 3D software like Blender, enabling artists to develop crucial skills that could be otherwise costly and time-consuming. By providing a robust library of tutorials, resources, and community support at a low subscription cost, CG Cookie alleviates a significant barrier for aspiring and professional 3D artists, driving both user satisfaction and business growth.

Wes was in a tough spot in 2007, dealing with financial struggles and a long daily commute. During those hours on the train, he began to work on a side project he called CG Cookie, a website focusing on computer graphics. With a background in 3D game art, he wanted to build something positive and useful for the CG community.

Wes and his friend, Jonathan, faced many challenges, especially when they couldn't afford to keep the project going in 2009. They decided to presell a training DVD to validate their idea and earned enough to continue. This gave them the confidence that CG Cookie could become a real business.

They continuously refined their idea based on user feedback and market needs, focusing on subscription-based access to high-quality training. They learned the importance of clear direction and community focus, adapting their strategy whenever necessary to meet their goals without losing sight of what they set out to achieve: helping artists succeed.

Wes Burke developed CG Cookie during his daily 2-hour commutes, working vigorously on a WordPress site using his limited HTML/CSS knowledge and numerous plugins. The first version of CG Cookie, which launched in September 2008, was a patchwork site combining news, jobs, images, and tutorials related to computer graphics.

Snapshot of CGCookie website in the early days

The site initially used simulcasting education material before transitioning to exclusive training content created by contractors. The production of tutorials involved risky but necessary financial decisions, often funded by credit cards, with initial contractor payments around $125 per tutorial. The tech stack evolved from WordPress to a custom Ruby on Rails CMS, highlighting the significant technical learning curve and complexity in maintaining their platform.

Pre-sale DVD for Funding: They launched a pre-sale DVD and managed to get over 30 pre-orders for a Blender training DVD.
Subscription-Based Membership: They offered a subscription-based membership for $10/month starting in December 2009.
Growing the Team: They increased their staff from 2 to 6 full-time members as the company grew.
Medical Benefits: They covered 100% of full-time employee’s medical benefit costs.
Unexpected Costs: Used credit cards to cover initial costs of contractor payments, commissioning tutorials for $125 each, which had to be paid back from the sales revenue.

Kickstarter

The company launched a Kickstarter campaign to fund the development of their product. It did $300,000 in sales in the first 3 months. In their Kickstarter campaign, they offered a 10% discount to early backers.

Why it worked: Kickstarter is a great platform for getting initial customers, they were able to get a lot of attention and get 1,000+ people to buy and test the product.

Community Outreach

CG Cookie leveraged the close-knit and passionate Blender community to spread the word about their pre-sale DVD covering the latest release of the Blender software. In 2009, Wes and his partner brought up the idea of selling a pre-release training DVD at a time when the Blender community was eager for comprehensive training materials.

Why it worked: Tapping into an established community of Blender users created trust and excitement around their product. The Blender community was already in need of educational resources, so offering this DVD addressed a direct and immediate need.

Pre-Sale Strategy

Wes and Jonathan created a dedicated pre-sale page for their Blender training DVD. After launching it at 10 PM, they checked the sales the next morning and found they had over 30 pre-orders.

Why it worked: The element of urgency and exclusivity in pre-sales prompted quick action from interested users. This initial success served as a powerful validation of their product idea and created early revenue.

Email Marketing

Once the pre-sale page was live, Wes and Jonathan utilized email marketing to reach out to their existing networks and potential customers. They fired off emails to as many contacts as possible, notifying them about the new DVD.

Why it worked: Direct communication through email allowed them to convey the importance and value of their new training resource effectively. Personalized emails can grab attention better than broad social media posts, thereby increasing chances of conversion.

Metrics:

Within hours of launching the pre-sale, they had 30+ pre-orders.
Initial pre-sale revenue was enough to validate their concept and keep the project going.

Interviews with Famous Artists

Wes Burke leveraged his connections with artists from prestigious studios like Pixar and ILM to conduct interviews. These interviews were shared on CG Cookie’s website and social media channels, capturing the interest of their target audience. The credibility and popularity of these artists helped attract traffic to CG Cookie, while the shared content by the artists themselves further amplified their reach.

Why it worked: Featuring well-known artists provided CG Cookie with content that was both authentic and intriguing. It also worked as a form of social proof, showing potential users that professionals in the industry trusted and associated with CG Cookie, thereby boosting their credibility and attracting a broader audience.

SEO

CG Cookie focused on SEO strategies to attract users searching for Blender tutorials and resources. They created detailed and engaging content around keywords like “Blender training” and “Blender tutorials.” Making sure to optimize their site structure and content allowed them to rank well on search engines, bringing in organic traffic over time.

Why it worked: Targeting specific, high-intent keywords ensured that the traffic CG Cookie received was relevant. Users searching for these terms were often looking for educational resources or assistance, which CG Cookie provided, making it an easy conversion from visitor to customer.

Social Media

CG Cookie used authentic social media posts early on, focusing less on directly promoting their products and more on building community culture. They shared behind-the-scenes content, user success stories, and helpful tips and tricks related to CG and Blender.

Why it worked: By focusing on community and culture instead of hard selling, CG Cookie was able to foster trust and loyalty among their followers. This engage-first approach made their audience feel valued and part of the community, which in turn led to increased word-of-mouth promotion and customer retention.

Email Marketing

CG Cookie actively built up their newsletter audience to maintain communication with their user base. Their emails were informational and authority-building rather than purely promotional, which helped position CG Cookie as a trusted resource in the CG community.

Why it worked: Email marketing allowed CG Cookie to reach customers directly and consistently. Providing valuable content in their emails helped build trust and ensured that their subscribers viewed them as an authority in the industry, increasing the likelihood of conversion when promotions or new products were introduced.

CG Cookie offers a subscription-based pricing model at $29/month, providing access to an extensive library of Blender tutorials, along with additional revenue from Blender add-ons and YouTube monetization.

Believe in Your Mad Dreams: Wes Burke's journey with CG Cookie started with a strong belief in his side project despite the hardships. His commitment turned a simple idea into a thriving community and business. Believe in your vision even when it seems crazy; persistence can transform it into reality.
Be Prepared to Change Everything: When CG Cookie's subscriber numbers plateaued, they realized a need for a clear direction. By refocusing their brand and offerings, they restructured their business successfully. Don't be afraid to pivot and make substantial changes if the current path isn't working.
Find a Way to Get Paid For Your Work: The shift to a subscription model was crucial for CG Cookie's growth. It provided steady income and positioned them as a key player in the open-source community. Ensure you have a sustainable business model to monetize your efforts effectively.
Embrace Fear: Facing fear head-on and using it as motivation was a significant lesson for Wes Burke. Moving through fear and doubt can fuel creativity and drive success. Let fear guide you to areas of growth rather than holding you back.
Be Generous and Give Back: From the early days, CG Cookie invested profits back into the company and supported the Blender Development Fund. Giving back not only strengthens community ties but also reinforces a positive company culture, which can be vital for long-term success.

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