Millions in Sales From 3 Simple Words

Monday, November 26th, 2007

Millions in Sales From 3 Simple Words: Life is good.

Mr. Jacobs is the 42-year-old co-founder of Life is good, a popular apparel brand based in Boston that is on track to break $100 million in sales this year. This is rarefied air for Mr. Jacobs, who a dozen years ago was selling T-shirts out of a battered van on the streets of Boston with his brother John, now 39.

From a single childlike drawing of a character they named Jake and their uplifting three-word slogan, the brothers have developed a fashion brand sold in 4,500 independent retail outlets in the United States and 27 other countries.

Since 1994, they have sold nearly 20 million Life is good T-shirts and now have a product line with more than 900 items, from hats to dog beds, and the company continues to grow 30 to 40 percent annually. There are now 93 independently owned Life is good retail shops selling only their merchandise, and the company plans to have a total of 200 by the end of 2009. With all that, Life is good has just 250 employees.
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Though they had been reasonably content to sell enough of their wares to pay a meager rent and avoid taking real jobs, the Jacobs brothers always believed that they could make a better T-shirt and turn it into a bona fide business.

They posted their own drawings and slogans on the wall of their apartment near Boston and regularly polled friends at their frequent keg parties for feedback about their ideas. “It was truly like a focus group,” Bert Jacobs recalled.

In search of something that would resonate with a broad audience, they created Jake, a crudely drawn stick character not all that far removed from the Smiley Face, and were amazed at how he inspired an intensely positive reaction.

“This guy has life figured out,” wrote one friend next to the drawing.

They later posted a list of 50 slogans they had compiled and got a similar reaction to the unremarkable phrase “life is good.” A girlfriend concluded that the slogan with three simple words “kind of says it all.”

The brothers printed 48 test T-shirts that combined the slogan with the drawing for a street fair in Cambridge, Mass., in 1994, and sold the entire lot in 45 minutes.

That night, the brothers huddled and decided that the gold they had seemingly struck was a result of their message of optimism. “The reason people bought those shirts was because they understood it instantly,” Bert Jacobs said. “It made them smile, and it was tangible. They could reach out and get a little sunshine.”

Doug Gladstone, chief executive of Brand Content, an ad agency in Boston, agreed. “They tapped into something positive yet benign,” he said. “The product makes you feel good but it’s not over the top.”

By the end of 1994, the brothers had sold $82,000 of Life is good shirts through a couple of willing retail outlets. Within four years, they broke the $1 million barrier and believed they had found the small business they had always dreamed of and that they were sitting on an emerging brand.

The outside world did not see it that way. “It was a real uphill battle to get other people to say we had a brand,” Bert Jacobs said. “At $10 million and even $20 million in sales, they were still asking us when we were going to launch something different.”

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