Thread
10 years ago, I started my first SaaS company. In that time, I’ve grown it to $33.4 million in annual recurring revenue.
Here are 10 lessons I’ve learned over the last decade:
Here are 10 lessons I’ve learned over the last decade:
1. It takes longer than you think
Two years in, I was only at $2k/month in revenue, not profitable, and smart friends were saying I should shut down the business.
A year later, we were doing $100k/mo.
I was so close to moving on to other projects, but I’m grateful I didn’t.
Two years in, I was only at $2k/month in revenue, not profitable, and smart friends were saying I should shut down the business.
A year later, we were doing $100k/mo.
I was so close to moving on to other projects, but I’m grateful I didn’t.
2. Go all-in sooner
I ran ConvertKit part-time while also blogging and selling digital products.
While that can work to test an idea, I wish I’d gone all-in as soon as I had initial traction rather than waiting 2 years and rebuilding momentum after a slump.
I ran ConvertKit part-time while also blogging and selling digital products.
While that can work to test an idea, I wish I’d gone all-in as soon as I had initial traction rather than waiting 2 years and rebuilding momentum after a slump.
3. Do direct sales
The key to restarting growth after I went all in was direct sales. As a content marketer, I was only interested in scalable growth channels. I was so wrong!
Do things that don’t scale, because that enables the channels that do scale.
The key to restarting growth after I went all in was direct sales. As a content marketer, I was only interested in scalable growth channels. I was so wrong!
Do things that don’t scale, because that enables the channels that do scale.
4. Choose a niche
I couldn’t have done direct sales without a target audience.
Part of the reason ConvertKit was failing is I was targeting everyone who needed marketing.
Focusing on professional bloggers early was pivotal. Later we expanded & now serve creators of all kinds.
I couldn’t have done direct sales without a target audience.
Part of the reason ConvertKit was failing is I was targeting everyone who needed marketing.
Focusing on professional bloggers early was pivotal. Later we expanded & now serve creators of all kinds.
5. Focus on product quality
Talk to your customers, find the most painful parts of the product, and fix them. Use your product yourself every day.
Scaling without focusing on product quality increases churn.
A polished product was key to get us to 99.8% revenue retention.
Talk to your customers, find the most painful parts of the product, and fix them. Use your product yourself every day.
Scaling without focusing on product quality increases churn.
A polished product was key to get us to 99.8% revenue retention.
6. Build a culture of execution
Overly focusing on bootstrapping attracted a group of people who wanted work/life balance over everything. Growth stalled.
I later pivoted to:
• Hire pros with experience scaling software companies
• Paid more with equity
• Pushed for results
Overly focusing on bootstrapping attracted a group of people who wanted work/life balance over everything. Growth stalled.
I later pivoted to:
• Hire pros with experience scaling software companies
• Paid more with equity
• Pushed for results
7. Don't underestimate deliverability and fraud
We’ve hired a great compliance team and built machine learning models to find and prevent issues, but had I known up front how much time we'd spend fighting spammers and fraudsters, I might not have started ConvertKit.
We’ve hired a great compliance team and built machine learning models to find and prevent issues, but had I known up front how much time we'd spend fighting spammers and fraudsters, I might not have started ConvertKit.
8. Meet customers and partners in person
Zoom meetings are easy, but there's no match for connecting with people face to face.
You will stand out if you fly to a city and meet with your key partners and customers in person. Those relationships are invaluable.
Zoom meetings are easy, but there's no match for connecting with people face to face.
You will stand out if you fly to a city and meet with your key partners and customers in person. Those relationships are invaluable.
9. Use workshops to create urgency
For someone to make a purchase, they need a reason to buy now (as opposed to later).
Webinars and workshops are a great way to give prospects a deadline. Since events happen in real time, the end of the event creates a natural deadline.
For someone to make a purchase, they need a reason to buy now (as opposed to later).
Webinars and workshops are a great way to give prospects a deadline. Since events happen in real time, the end of the event creates a natural deadline.
In 2016, we created a flywheel of partner workshops with affiliates to scale from $100,000 to $500,000 in MRR that year. Sometimes teaching as many as 20 workshops per month.
Offering a sign up bonus at the end of the workshop drove thousands of customers.
Offering a sign up bonus at the end of the workshop drove thousands of customers.
10. Move from cost center to revenue center
Most creators pay ConvertKit and earn their ROI through other activities. But we're working hard to make sure ConvertKit is paying *you*.
Through Commerce and our sponsor network, we are now paying creators $1+ million per month.
Most creators pay ConvertKit and earn their ROI through other activities. But we're working hard to make sure ConvertKit is paying *you*.
Through Commerce and our sponsor network, we are now paying creators $1+ million per month.
What I'm most proud of is the creators we serve.
In the same day, I helped @Schwarzenegger, @tferriss, and @RyanHoliday with their ConvertKit accounts.
My wife had some music on. The artist used ConvertKit.
It hit me: Nearly all of my favorite creators use ConvertKit!
In the same day, I helped @Schwarzenegger, @tferriss, and @RyanHoliday with their ConvertKit accounts.
My wife had some music on. The artist used ConvertKit.
It hit me: Nearly all of my favorite creators use ConvertKit!
I’d love to share the journey with you as we grow to $100M. Follow me @nathanbarry for more threads.
Subscribe to my weekly newsletter for tips on scaling a software company, building an audience, and earning a living as a creator:
nathan.ck.page/twitter
Subscribe to my weekly newsletter for tips on scaling a software company, building an audience, and earning a living as a creator:
nathan.ck.page/twitter
Mentions
See All
Sahil Bloom @SahilBloom
·
Dec 29, 2022
This is a must read for founders.