Michael Preysman on Building Magna After Everlane: What Works in Wellness DTC Right Now

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On October 13, 2026, Eric Hinman sat down with Michael Preysman for the Founders Only monthly live call. Michael founded Everlane and now runs Magna, a longevity and wellness brand. The conversation covered his founder story, how Magna thinks about capital, the metrics he actually manages to, and what is working (and not working) in paid acquisition and retail today.

From Everlane to Magna

Michael studied computer engineering at Carnegie Mellon and worked in private equity before realizing his real passion was consumer brands. He launched Everlane in 2011. It started as a curation focused tech product, then pivoted to direct to consumer apparel after the team saw how large product markups were. With no Shopify and a team of about eight, they built their own tech stack.

One lesson from that pivot: after raising $1 million on the original tech concept, Michael told investors about the change over email. His takeaway was that people spend far less time judging you than you fear.

He was also candid about the cost. Building Everlane purely out of personal obsession led to serious burnout. With Magna, he is running a healthier balance of life and work.

The Magna plan: a house of wellness brands

Magna sits under a holding company called The Ever Company, designed as a house of brands in wellness and longevity. The stated goals from the call:

• Raise between $10 million and $20 million in total
• Reach $100 million in revenue with $15 million in profit and a team of about 20
• Launch another brand within 12 to 24 months on top of Magna's existing infrastructure

Michael also drew a clear line between building to sell and running a lifestyle business. Venture backed companies need to grow on a compressed timeline and burn more capital. A lifestyle business can grow slowly toward profitability over a much longer window, but high margin lifestyle businesses can be hard to sell unless they scale into something more repeatable.

The metrics Michael manages to: payback and retention

Instead of leaning on the standard 3 to 1 LTV to CAC ratio, Magna focuses on:

• A 5 to 7 month payback period on customer acquisition
• Month 12 retention as close to 15% as possible

He warned against businesses that show a fast four month payback but only about 1% retention at month 12. In his view those are marketing arbitrage plays, not brands.

Product innovation or distribution: pick your edge

Michael's framework for wellness brands: you win through either real product innovation or creator led distribution. He pointed to Ballerina Farm and Bloom as distribution plays, and to Grüns and David Protein as product innovation plays. Meaningful innovation, like a new format or a clearly better product, is what drives fast paybacks and organic growth.

This came up again in Q&A. A member asked:

"If you can only prioritize one platform between meta and tik tok, where would you suggest early stage DTC brands (with limited resources) invest their time and energy?" Daniel Mosko, FOC member

Michael's answer was that the platform matters less than the product. Without a truly differentiated product, Meta's algorithm will extract a high CAC from a commodity brand no matter where you start.

On format innovation, he and Eric pointed to examples like Lumen water bottles and Olipop pairing a familiar soda can with low sugar and probiotics. He recommended trade shows like SupplySide West in Las Vegas for spotting new formats and ingredients.

Paid acquisition: Meta volatility and the return of statics

Roughly 70% of Magna's ad budget goes to Meta. Michael was frank that the platform has been volatile, especially through September and October, with fast creative fatigue. He noted that Meta seems to land on a "natural" CAC regardless of site conversion improvements, which is pushing Magna to test channels like live events and podcasts.

What is working right now: simple static images with text overlays that call out product claims. Members in the chat saw the same thing:

"We've noticed a huge comeback in statics for service based recently" Bij Sed, FOC member

Michael also set firm creative boundaries for Magna, rejecting low quality tactics like sensational AI animations, even when competitors run thousands of those ads.

Retail: Target and velocity

Magna launched in Target with five SKUs, and Target plans to double the set next year. Michael's reflection: ideally a brand reaches $25 million to $40 million in revenue before major retail, because success depends on velocity, measured as units per store per week per SKU. To drive those velocities, Magna is investing in TikTok Shop and a creator seeding program, now run fully in house after an agency partnership did not deliver.

AI and new discovery channels

Magna built custom internal AI infrastructure that connects its data warehouse, chat tools, live dashboards, and meeting data through a memory system. On AI search, Michael noted LLMs drive real traffic for technical products, while commodity categories like electrolytes still lean on traditional retail discovery. Magna is still investing in Reddit.

Member Q&A highlights

Leveraging physical stores. David Olit, who is growing a supplement retail business from 6 to 43 locations, asked:

"IS there a way to leverage what's happening in the stores better essentially aside from just selling the products." David Olit, FOC member

Michael's advice: private label brands rarely travel far outside their own doors. Either hire a dedicated GM of Digital with real incentives and budget, or turn the stores into hubs and clubhouses for the brand. Eric backed the clubhouse idea, with run clubs and community events.

Raising a small first round. Joe Busby asked how to raise about $20,000 for a first supplement batch. Michael suggested a SAFE with a valuation cap, and said a strong deck, friends and family, or crowdfunding should get there if the product is truly unique.

Key takeaways

1. Manage to payback and retention together. Michael targets a 5 to 7 month payback with month 12 retention near 15%.
2. Win on product innovation or distribution. Platform choice comes second.
3. Expect Meta volatility and creative fatigue. Static ads with clear product claims are working right now.
4. Get to scale before big box retail. Velocity per store per week is what keeps you on shelf.
5. Bring critical channels in house when agencies do not deliver. Magna did this with TikTok.
6. For early capital, a SAFE with a valuation cap keeps things simple.

Join the next conversation

Founders Only live calls are part of membership: monthly fireside chats with operators like Michael, plus open Q&A where members bring real questions. Next up on October 27: Jake Schincariol on using AI agents to run your personal life and grow your business.

Want in on the next call? Apply to join Founders Only Club at foundersonlyclub.com or explore Membership.