Every day, more than 5 million people in three countries get an email about discounted e-books from Boston-based startup BookBub — emails that drove more than 10 million ebook sales last year.
"They're the biggest success story that no one knows about," said David Beisel, a partner at NextView Ventures, an early stage venture capital firm in Boston and an investor in the company.
Founded three years ago, BookBub hit the 5 million member mark last week, up from 4 million in late December.
"Readers need great ways to discover books and have curation among those books," said Josh Schanker, BookBub president and co-founder. "There are so many options out there, and I think that's why this is really resonating. It's been a great way for both readers to discover books and for publishers to get their books discovered."
Bookbub's editorial team sifts through hundreds of books a day to find the best ones for the best price, Schanker said.
Roughly 20 percent of members click on a deal every day, he said.
To keep pace with that growth, BookBub has doubled its staff since April, and plans to add another 10 to 20 employees this year.
"Ten years ago, you walked into Borders or Barnes and Noble and they had the table out front, and that helped you discover books. You could do this browsing in a physical setting, and of course those books seemed curated to you," Beisel said. "Even though it's a simple email newsletter ... it's replacing that function of that table in the bookstore that is no longer there."
A seemingly simple business, a lot goes on behind the scenes, Schanker said. Nearly every member gets a personalized list of deals every day, based on location, book tastes and e-bookstore preferences.
The company is also using the data it has collected from book sales to better curate books in the future.
"We know books about World War II do incredibly well, and that our audience really likes that even across our categories," Schanker said. "And having a dog on the cover of a book actually seems to send sales even higher."
The company raised $3.8 million in venture financing in April, money that is being used to expand its content and make the website a destination for booklovers, not just for those looking for a deal.
Schanker said the core business — e-book deals — is profitable.
"We've heard from members that they're looking for ways to discover great books," Schanker said, "whether they're through deals or otherwise, so we're building a lot of things."
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