$20M/year & 100% bootstrapped
In 2019, they were called "IDIOTS" as they were building a product that already existed.
In 2023, their business is better than most VC-backed startups.
Thread ๐งต
In 2019, they were called "IDIOTS" as they were building a product that already existed.
In 2023, their business is better than most VC-backed startups.
Thread ๐งต
Martha Bitar and Rebecca Shostak founded Flodesk in August 2019.
Since then:
โข Flodesk hit $20M revenue per year
โข Has achieved YoY growth of 391%
โข Has only 21 employees (75% of which are women)
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Since then:
โข Flodesk hit $20M revenue per year
โข Has achieved YoY growth of 391%
โข Has only 21 employees (75% of which are women)
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The year is 2019.
Martha Bitar and Rebecca Shostak are two working millennials who are doing well in their careers.
Martha is the Director of Business Development at Honeybook - a client flow software based in Silicon Valley.
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Martha Bitar and Rebecca Shostak are two working millennials who are doing well in their careers.
Martha is the Director of Business Development at Honeybook - a client flow software based in Silicon Valley.
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While Rebecca is a world-class designer who worked for literal rockstars (think Linkin Park and Rihanna).
They crossed paths because of their work and became friends.
One fine day, they realized something:
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They crossed paths because of their work and became friends.
One fine day, they realized something:
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Too many incredible creators and business owners were missing out on email marketing.
The existing tools? Total letdown.
They didn't cater to the rising tide of innovative entrepreneurs and content creators โ they were complicated & difficult to
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The existing tools? Total letdown.
They didn't cater to the rising tide of innovative entrepreneurs and content creators โ they were complicated & difficult to
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Content creators & small business owners don't have an army of marketers to design, write, and craft killer emails.
So...
Martha, Rebecca, and Trong decided to come together and build a better tool.
And that's how Flodesk came to be.
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So...
Martha, Rebecca, and Trong decided to come together and build a better tool.
And that's how Flodesk came to be.
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Flodesk worked hard to find the most sustainable way to grow.
6 Strategies they used to grow to $20M a year, fully bootstrapped ๐
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6 Strategies they used to grow to $20M a year, fully bootstrapped ๐
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Strategy 1: Choosing the right customer & value prop
They laser-focused on the small business market
And tackling 2 key areas: Ease of Use & Impactful Design
By automating tasks and creating a user-friendly platform, they aimed to save time and boost email campaign success
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They laser-focused on the small business market
And tackling 2 key areas: Ease of Use & Impactful Design
By automating tasks and creating a user-friendly platform, they aimed to save time and boost email campaign success
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Strategy 2: Simple Landing Page
With a simple landing page, Flodesk addressed common issues.
-Poor checkout conversion rate
-Less than 15% open rate across all emails
Flodesk website circa December 2019 ๐
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With a simple landing page, Flodesk addressed common issues.
-Poor checkout conversion rate
-Less than 15% open rate across all emails
Flodesk website circa December 2019 ๐
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The result?
~13% of all website visitors signed up for the free trial.
For context, the industry average is ~11%
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~13% of all website visitors signed up for the free trial.
For context, the industry average is ~11%
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Strategy 3: Turning Customers Into Fans
Flodesk's endgame wasn't just about retaining customers.
They had a workout routine to create a strong Facebook community and get 3 things for FREE-
โข Ample feedback
โข An open RnD space
โข Brand promotion
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Flodesk's endgame wasn't just about retaining customers.
They had a workout routine to create a strong Facebook community and get 3 things for FREE-
โข Ample feedback
โข An open RnD space
โข Brand promotion
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Strategy 4: Obsession To Understand Customers
Listen to why customers leave and why they stay.
It reveals product improvements and optimizes the roadmap.
Customer voices >>> Feature brainstorming
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Listen to why customers leave and why they stay.
It reveals product improvements and optimizes the roadmap.
Customer voices >>> Feature brainstorming
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Strategy 5: Better Analytics Than Other Players
Flodesk focused on providing analytics that is not BORING.
Important metrics like -
โข Where are subscribers coming from?
โข When they open your email
โข Days best for sending the email
Visualized perfectly!
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Flodesk focused on providing analytics that is not BORING.
Important metrics like -
โข Where are subscribers coming from?
โข When they open your email
โข Days best for sending the email
Visualized perfectly!
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This feature is often neglected, but it is the most important.
And is super useful for people who are "not techy".
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And is super useful for people who are "not techy".
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Strategy 6: Nice and Cheap but NOT Free
Flodesk is priced roughly the same as a KFC meal - a mere $38/month.
Here's the best part:
While other platforms have tier-based pricing (as the email list โ - the price โ)
Flodesk charges just a flat monthly fee. ๐งข
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Flodesk is priced roughly the same as a KFC meal - a mere $38/month.
Here's the best part:
While other platforms have tier-based pricing (as the email list โ - the price โ)
Flodesk charges just a flat monthly fee. ๐งข
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Why though?
Because they can! (remember: they're not VC-backed, so they don't *need* to maximize revenue per user)
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Because they can! (remember: they're not VC-backed, so they don't *need* to maximize revenue per user)
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Strategy 7: Creating a Viral Loop
For every email customers sent using Flodesk, Flodesk was getting more eyeballs.
How?
At the end of every email sent is the Flodesk logo :)
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For every email customers sent using Flodesk, Flodesk was getting more eyeballs.
How?
At the end of every email sent is the Flodesk logo :)
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The best products have a viral loop - where existing users bring in new users, who then become active participants and continue the cycle by bringing in even more users.
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3 Things you can learn from Flodesk's story:
1) There's no such thing as a Saturated Market
Flodesk carved out its own place in a market with huge players like Mailchimp, Squarespace, and Convertkit.
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1) There's no such thing as a Saturated Market
Flodesk carved out its own place in a market with huge players like Mailchimp, Squarespace, and Convertkit.
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2) Y-Combinator YouTube Channel >>>
Martha Bitar believes that Y-Combinator's Startup School series is millions of dollars worth of information out there for free.
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Martha Bitar believes that Y-Combinator's Startup School series is millions of dollars worth of information out there for free.
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3) Build what you truly love
๐
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Like this? Follow @ericosiu for more on business & marketing.
Retweet the first tweet to share this with your entrepreneur friends.
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Retweet the first tweet to share this with your entrepreneur friends.
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