Innovation Spotlight: iPostal1

Founder & CEO: Jeff Milgram | EVP: Barry Gesserman

“The money is in the mailbox” could easily be a slogan for iPostal1, which is helping thousands of businesses like self-storage earn additional income each month just by becoming a mail receiving and forwarding destination.

iPostal1 was founded by Jeff Milgram in 2015, but the business’ roots took hold long before, when Jeff’s educational software company took off. “In 2001 we were shipping so many CDs that we actually became the largest shipper in Rockland County, NY,” recalls Milgram. “This led to opening our own pack-and-ship business to get better discounts on every package we shipped.”

As his understanding of the shipping industry grew, Milgram refined his business, putting a focus on digital mailboxes that allowed him to receive and manage postal mail and packages for international customers. He then created a platform that enabled his customers to view and manage their mail items online.

That’s when Milgram had a lightbulb moment, realizing that they shouldn’t be limiting the operation to just one location. “We could license our software to other pack-and-ship stores and give them the same opportunity for growth that we experienced,” he says.

The model shift paid off quickly, starting with six pilot locations before expanding into retail pack and ship stores in all 50 states. Staples came onboard in 2021 with 1,000 stores, followed by hundreds of coworking spaces in prestigious office buildings. iPostal1 is now the leading digital mailbox provider world-wide, with over 4,000 addresses listed on iPostal1.com. “A lot of people have some real issues receiving mail or running their own business, and there are five main challenges,” explains Barry Gesserman, executive vice president of B2B marketing and partnerships. “They may travel a lot or have a second home, or they may run a home business and want to protect their privacy or upgrade their brand image with a commercial address. Other times, a person just wants a particular business address, say Manhattan instead of Des Moines.

And lastly, there’s always concern over porch pirates.” The response was phenomenal, with iPostal racking up an average 4.5/5 rating on Google and Trustpilot.

As the team began building its partner network, they realized that self-storage operators would be perfect for the platform. “For one, there are a lot of them,” laughs Gesserman. “Many of these owners are also entrepreneurial, so they’re eager to earn more money. And, people already trust self-storage businesses to watch over their belongings, so why not their mail and packages, too?”

Gesserman also knows that many self-storage owners are looking at ways to get more productivity from their store managers. “Now, that manager can manage the iPostal1 business during downtime, and the money they bring in could potentially pay for their salary!”

Because iPostal1 began as its own digital mailbox operation, the company knows how to make things easy for its partners, who may initially believe it’s going to be too much work. “When we hear that, we say ‘timeout,’” says Gesserman. “We explain that for 100 customers, they might be looking at 30 minutes per day–that’s it. Some days, maybe no work at all.”

That’s because iPostal1 completely takes care of the transactional sides of the business, taking customers' credit card information and checking for fraud risk. They also collect all fees, remitting partners their earnings when due. Gesserman says that operationally, all the partner has to do is receive the mail, insert an outside image into the customer’s digital mailbox, and perform any tasks requested.

Tasks, which can be completed with an app, may include forwarding mail, opening mail and scanning the contents if the customer wants to see it immediately, or shredding it if the customer doesn’t want it. “All our locations register with USPS, so there’s no issue handling other people’s mail.”

iPostal1 also provides the marketing, spending millions to bring people to their website and select an address and plan. “We sign up customers for our partners. All they need is a computer, mobile device, printer, and some shelf space – things they already have, so there’s no investment, just money to be made.”

Gesserman says that revenue at any given location depends on the demand for that address. Some locations make $12,000 a year, others make $50,000, and there are some earning over $100,000. Another source of income is storage fees. If customers don’t collect their mail or packages, or have them forwarded, charges start after 30 days. “If there’s one thing storage facilities have, it’s space, but we still don't want our partners to become warehouses.”

Self-storage operators can also offer digital mailbox service directly to their own renters, many of whom are downsizing, moving, separating or traveling, and need a reliable and secure way to receive and manage mail and packages.

Today, iPostal1 has roughly 100 storage operators on the platform. “We’re in discussions with many more,” says Gesserman. “We had a lot of interest when we went to the last Self-Storage Association Tradeshow and we're very excited about the self-storage channel. This is just the beginning.”

Written by Brad Hadfield, MSM’s lead writer and website manager

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