20VC: The Science of Storytelling: Three Steps to Master the...

Full Title

20VC: The Science of Storytelling: Three Steps to Master the Perfect Story | From Near Death Experience to Unicorn Startup: The Untold Story of Omaze with Matt Pohlson

Summary

This podcast episode features Matt Pohlson, co-founder and CEO of Omaze, who shares his company's journey from struggling celebrity experiences to a highly successful model of giving away life-changing prizes like houses. His narrative is deeply influenced by a personal near-death experience, which transformed his leadership style and approach to business strategy, particularly emphasizing the "science of storytelling" to drive growth and achieve significant charitable impact.

Key Points

• Omaze originated from the observation that only high-net-worth individuals could access unique celebrity experiences for charity, leading to the idea of democratizing these opportunities for a wider audience through small donations.
• After initial struggles with low fundraising from celebrity experiences, Omaze achieved a breakthrough with a Bryan Cranston "Breaking Bad" campaign by leveraging creative storytelling and social media, significantly increasing engagement and funds raised.
• Matt Pohlson's near-death experience, where he flatlined for over four minutes, fundamentally altered his perspective on fear, enabling him to make bolder, love-driven strategic decisions for the company.
• This personal transformation inspired Omaze's pivot from ephemeral celebrity experiences to tangible, high-value prizes like luxury cars and, eventually, houses, which proved more scalable and profitable due to consistent demand and clear value proposition.
• Omaze discovered that highly engaged niche communities, even with smaller follower counts (e.g., Sam Heughan), generated more revenue than broader celebrity audiences with less engagement (e.g., Cristiano Ronaldo).
• The "science of storytelling" is central to Omaze's brand strategy, focusing on making the customer the hero, positioning Omaze as an empathetic and authoritative guide, clearly demonstrating the product's transformative potential, and utilizing "story gaps" to maintain audience engagement.
• The shift to a monthly house prize draw, especially in the UK market, led to exceptional customer retention rates, comparable to leading consumer subscription services like Netflix and Spotify, by continuously offering the promise of life transformation.
• Matt emphasizes that effective leadership involves adapting one's approach to individual team members and fostering a culture of self-compassion and resilience, as opposed to self-criticism, enabling teams to navigate challenges with greater clarity and effectiveness.

Conclusion

Omaze's long-term vision is to become a Fortune 500 company and the number one non-governmental source of charitable funds globally within 15 years, requiring expansion into 14 new markets.

The company's success is a testament to the power of deeply understanding customer psychology, continuous iteration on product and marketing based on data, and the resilience and adaptability of its leadership.

Matt advocates for a leadership style that embraces vulnerability, prioritizes self-care routines like meditation and exercise, and fosters a culture of supportive feedback and shared mission, leading to more sustainable growth and personal well-being.

Discussion Topics

• How can founders leverage personal transformative experiences to guide pivotal business decisions and foster resilience within their organizations?
• What are practical strategies for businesses to implement a "customer as hero" storytelling approach across all their marketing and product development efforts?
• How can companies balance the pursuit of ambitious growth with promoting personal well-being and preventing burnout among their leadership and teams?

Key Terms

Flatline

A medical term indicating no electrical activity in the heart, typically shown as a straight line on an EKG.

Bowel Obstruction

A blockage in the small or large intestine that prevents the passage of food and liquid.

ECMO machine

Extracorporeal Membrane Oxygenation; a medical device that provides cardiac and respiratory support to patients whose heart and lung function is severely compromised.

Prefrontal Cortex

The most anterior part of the frontal lobe of the brain, involved in complex cognitive behavior, decision-making, and social behavior.

Amygdala

An almond-shaped set of neurons located deep in the brain's medial temporal lobe, playing a key role in the processing of emotions, particularly fear.

CAGR

Compound Annual Growth Rate; the mean annual growth rate of an investment over a specified period longer than one year.

CAC

Customer Acquisition Cost; the cost associated with convincing a customer to buy a product or service.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's financial performance that can be used to compare profitability among companies.

UTM links

Urchin Tracking Module links; customized URLs used in marketing to track the source, medium, and campaign that referred users to a website.

OKRs

Objectives and Key Results; a goal-setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes.

Triple funds

A term used in the podcast to refer to charitable funds generated by Omaze, distinct from government funding.

Timeline