Meet the woman who made millions from Christmas - by accident

"We had no idea what on earth we were getting ourselves into."

So says Chanda Bell, one of the three women responsible creating what has become a bigger Christmas tradition in the UK than watching the Queen's speech. 

Many parents will be familiar with Elf on the Shelf, an idea which launched in America in 2005 but which is now celebrating ten years on this side of the pond. For the uninitiated, it involves a book entitled 'Elf on the Shelf: A Christmas Tradition' which comes in a box along with a toy elf who watches over the behaviour of the children in its household during the run up to Christmas.

Every night the elf runs back to the North Pole to make its report to Santa Claus, reappearing the following morning in a different location to the day before. Parents can have as much fun as the kids, finding new and inventive ways to stage its return, and taking a quick trawl through social media you'll find endless pictures of Elves hanging in fairy lights, peeking out of cereal boxes and hiding in sweet cupboards. 

Research carried out by Motif, a photo book making app, found that over a quarter of us now include Elf on the Shelf in our annual festive rituals, while searches for Elf on the Shelf related ideas in Google prove to be more popular than poor old Father Christmas himself.

So how did this little character infiltrate our homes and lives to such an extent that it has become more integral to Christmas than the Queen?

"I think what we offer sparks the imagination of both parents and children. And grandparents for that matter," says Bell. "It becomes a topic of conversation in lives that are otherwise busy and distracted. It’s the one thing everyone has in common. And I think that’s the magic of any good tradition, that you can all participate in some form or fashion."

And with over 13 million Elves sold worldwide, or as the lore of Elf on the Shelf describes it, 'adopted', what started as a way to keep Bell's mother busy at a time when she was suffering with ill health, is now a truly global phenomenon.

The story of the Elf and the company it created would make a brilliant Christmas film.

'Family risks all by putting life savings into business idea and thanks to a little dose of Christmas magic, all their dreams come true.'

You can hear the pitch now.

The reality, of course, was much less of a fairy tale with Bell, her twin sister Christa Pitts and their mother Carol Aebersold taking a leap of faith which saw Pitts sell her house and Bell max out her personal credit cards in order to produce the first run of Elf on the Shelf.

"I was really only concerned about paying off my debts at the start," says Bell. "I am positive we were at minus zero before."

It was back in 2004 when Bell suggested to her mother that they write a book together about their own family's Christmas elf tradition. Once written it was rejected by every publisher they submitted it to. How those publishers must regret their lack of vision now.

Such was the family's belief in the Elf on the Shelf story that they took their wares around trade fairs for three years, reinvesting any profit back into manufacturing new stock.

But in 2007 things changed. The actress Jennifer Garner was photographed carrying an Elf on the Shelf box and it soon went interstellar, so much so that this year there was even an enormous inflatable Elf in Macy's Thanksgiving Day Parade in New York. 

There are now Elf Adoption Centres ('stockists' to the cynics) in more than twelve countries and with the help of Amazon, they're finding themselves on shelves all over the world. Head office is still in Georgia where they employ more than 80 of their own Santa's Little Helpers in departments including product development, marketing, sourcing and animation.  

And it's only when she looks around at her staff that Bell allows herself a 'wow' moment, but she insists she never thinks "we've made it", believing there's still so much more to do.

And they're certainly keeping busy creating new stories and ranges of toys with Elf Pets (including a Saint Bernard book and soft toy), Claus Couture (clothes, accessories and props for the elves), Letters To Santa kits and even branded Christmas Eve boxes so families can combine two of the biggest, and most recent, Christmas traditions in one handy festive moment. 

"Our busy time is October through to Christmas day," says Bell. "We have a really fun activity on social media, on Christmas Eve our whole staff is working, we’re making live reports from Santa’s sleigh. The kids get really into it. So we're very busy October through December, consumer facing and then the rest of the year is spent planning for those three tremendous months."

As a privately owned family company there are no accurate figures as to how much money has been made from Bell's old family tradition, but Fortune reported that the year on year growth has averaged at 149% with sales hitting $16.6 million in 2011.

Not that Bell is taking much notice. "It’s really about creating these stories for families and being the voice of Santa in the North Pole," she says. "That’s where our focus is. We’re making a difference in people’s lives. I know that sounds so silly but it’s true. Some of the stories we get are so meaningful."

One such story is of a firefighter who ran back into a burning house to save the family's Elf on the Shelf. Having adopted one himself, he knew how much it would mean to them. And Bell tells of a special needs adult who calls the Elf on the Shelf office every day of the year asking to speak to the same employee. So it's fair to say the impact of this modern tradition is deeply felt.

But does Bell ever find herself becoming tired of living and breathing Christmas all year round? Of course not. 

"I think when you’re doing something that you’re truly in love with and are really passionate about, it never feels like a job," she says. "It’s so much fun. I could be doing a million other jobs that might bore me to tears and I am never bored."

For more Christmas features and gift guides, see www.telegraph.co.uk/christmas