iBelieve.com Shuts Down

Cindy Crosby |

Oct 30, 2000

News
iBelieve.com Shuts Down Cindy Crosby -- 10/30/00 *Christian lifestyle site lays off staff, suspends all operations* After a highly visible launch in January, backed by a $30-million private equity infusion and the support of the largest Christian retail chain (News, Oct. 11, 1999), the Christian lifestyle site iBelieve.com closed down October 20, laying off its staff of 35 and suspending all operations. The Grand Rapids, Mich.-based Internet company, which sought to integrate content, community and commerce for Christians, spent the last several months attempting to raise additional capital. However, when market interest in Internet ventures cooled off this spring, iBelieve.com president Jef Fite said the venture was unable to find enough investors. "We looked for funding, and there wasn't any," Fite told PW. "Our timing was unfortunate." Although Fite said iBelieve.com was on track to achieve profitability before its third year, he found most investors he talked with were looking for Internet companies that were already profitable or close to becoming profitable. "We were in discussions with two multibillion-dollar multimedia companies that were interested in us, and we thought we were going to receive some investments," Fite said. "Then they said no. At that point, I could not in good conscience go on operating iBelieve.com, and in 24 hours we made the decision to shut down." iBelieve.com teamed up with Madison Dearborn Partners, a Chicago-based private equity firm, and Andersen Consulting's Global Retail/E-commerce Practice to build the site. Sister company Family Christian Stores (FCS), the country's largest Christian retail chain with 362 retail outlets, also supported the site. Although it was a separate operation, iBelieve.com had planned to leverage FCS's bricks-and-mortar visibility and its six-million-member Family Perks list--a frequent shopper program--to build awareness and traffic for the site. Les Dietzman, CEO for both FCS and iBelieve.com, told PW that the shutdown of the site should not affect the bricks-and-mortar stores. "However, it's very disappointing to lose the close marketing relationship we had with iBelieve.com," he said. iBelieve.com's revenue model called for it to be driven principally by product sales. Books were sold to consumers through My Store, which offered 90,000 titles and an additional 55,000 SKUs of related product, such as music, videos and apparel. During its life span, iBelieve.com logged 550,000 registered members, 60 ministry partners and two million unique visitors. Despite the demise of iBelieve.com, Fite said he is confident that a Christian lifestyle site is a viable idea. "There is a market there," Fite said. "I think we'll see other folks going into Christian lifestyle sites again, just not with the big splash into Internet business that was done in the past. Rather, businesses will start smaller and grow more slowly."

News

iBelieve.com Shuts Down
Cindy Crosby -- 10/30/00
Christian lifestyle site lays off staff, suspends all operations

After a highly visible launch in January, backed by a $30-million private equity infusion and the support of the largest Christian retail chain (News, Oct. 11, 1999), the Christian lifestyle site iBelieve.com closed down October 20, laying off its staff of 35 and suspending all operations.

The Grand Rapids, Mich.-based Internet company, which sought to integrate content, community and commerce for Christians, spent the last several months attempting to raise additional capital. However, when market interest in Internet ventures cooled off this spring, iBelieve.com president Jef Fite said the venture was unable to find enough investors. "We looked for funding, and there wasn't any," Fite told PW. "Our timing was unfortunate." Although Fite said iBelieve.com was on track to achieve profitability before its third year, he found most investors he talked with were looking for Internet companies that were already profitable or close to becoming profitable.

"We were in discussions with two multibillion-dollar multimedia companies that were interested in us, and we thought we were going to receive some investments," Fite said. "Then they said no. At that point, I could not in good conscience go on operating iBelieve.com, and in 24 hours we made the decision to shut down."

iBelieve.com teamed up with Madison Dearborn Partners, a Chicago-based private equity firm, and Andersen Consulting's Global Retail/E-commerce Practice to build the site. Sister company Family Christian Stores (FCS), the country's largest Christian retail chain with 362 retail outlets, also supported the site. Although it was a separate operation, iBelieve.com had planned to leverage FCS's bricks-and-mortar visibility and its six-million-member Family Perks list--a frequent shopper program--to build awareness and traffic for the site.

Les Dietzman, CEO for both FCS and iBelieve.com, told PW that the shutdown of the site should not affect the bricks-and-mortar stores. "However, it's very disappointing to lose the close marketing relationship we had with iBelieve.com," he said.

iBelieve.com's revenue model called for it to be driven principally by product sales. Books were sold to consumers through My Store, which offered 90,000 titles and an additional 55,000 SKUs of related product, such as music, videos and apparel. During its life span, iBelieve.com logged 550,000 registered members, 60 ministry partners and two million unique visitors.

Despite the demise of iBelieve.com, Fite said he is confident that a Christian lifestyle site is a viable idea. "There is a market there," Fite said. "I think we'll see other folks going into Christian lifestyle sites again, just not with the big splash into Internet business that was done in the past. Rather, businesses will start smaller and grow more slowly."

A version of this article appeared in the 10/30/2000 issue of Publishers Weekly under the headline: