A project manager and a failed DJ use their severance packages to bootstrap a web design agency.
It fails.
The crazy part?
Their side hustle turns into a ubiquitous $10 Billion SaaS Startup ππ½ππ½ππ½
It fails.
The crazy part?
Their side hustle turns into a ubiquitous $10 Billion SaaS Startup ππ½ππ½ππ½
1/ Ben Chestnut was the son of an army codebreaker and an immigrant entrepreneur.
He learned business and entrepreneurship hiding under the kitchen table while his mom ran a home salon.
Half Thai and half American, he never fit into a small southern town...
He learned business and entrepreneurship hiding under the kitchen table while his mom ran a home salon.
Half Thai and half American, he never fit into a small southern town...
2/ Dan Kurzius was born in Albuquerque, working at his family's bakery/deli until a big chain pushed them out of business when he was 12.
His father died of a heart attack shortly after that, and the family lost their primary income...
His father died of a heart attack shortly after that, and the family lost their primary income...
3/ Ben bounced between majors and ended up in industrial design but found his passion in web design.
A self taught coder, he got an interview at Cox Media.
Halfway through, Ben realized the job was for banner ads, not websites.
Intrigued by the challenge, he took the job...
A self taught coder, he got an interview at Cox Media.
Halfway through, Ben realized the job was for banner ads, not websites.
Intrigued by the challenge, he took the job...
4/ Life wasn't easy, but Dan made his way to Atlanta as a part time DJ and competitive skateboarder.
When he settled down with his wife and had a few kids, it was time to get a "real" job.
Around 2000, he applied for a gig writing at a Cox Media backed music startup...
When he settled down with his wife and had a few kids, it was time to get a "real" job.
Around 2000, he applied for a gig writing at a Cox Media backed music startup...
5/ Ben had climbed his way up the ladder to become a project manager and web developer at that same "startup" - MP3Radio.
He interviewed Dan, who then realized the job was for writing code.
Not music reviews!
Lying through his teeth, Dan got the job...
He interviewed Dan, who then realized the job was for writing code.
Not music reviews!
Lying through his teeth, Dan got the job...
6/ Dan rushed home to spend every waking hour learning to code.
2 weeks later, he arrived for work and spent his first day terrified he would be found out as a fraud.
He turned out to be a natural talent, but that didn't matter.
MP3Radio shut down a few months later...
2 weeks later, he arrived for work and spent his first day terrified he would be found out as a fraud.
He turned out to be a natural talent, but that didn't matter.
MP3Radio shut down a few months later...
7/ Ben and another coworker, Mark Armstrong, used their severance checks to found Rocket Science Group (RSG).
A web design and development agency for big tech companies.
The Dot Com crash tanked what little business they had, forcing them into airlines. Until 9/11...
A web design and development agency for big tech companies.
The Dot Com crash tanked what little business they had, forcing them into airlines. Until 9/11...
8/ They pivoted for the third time in 2 years. This time into real estate.
Dan left his job at Cox and rejoined his old coworkers to help drive sales and build websites.
Still selling to big corps, the self proclaimed "cockroaches" scraped by...
Dan left his job at Cox and rejoined his old coworkers to help drive sales and build websites.
Still selling to big corps, the self proclaimed "cockroaches" scraped by...
9/ Big client politics were burning them out.
RSG was so small the team had to stop selling to complete the work.
Small clients couldn't afford $30K+ websites. They wanted email marketing.
After yet another year of feast or famine agency life, things had to change...
RSG was so small the team had to stop selling to complete the work.
Small clients couldn't afford $30K+ websites. They wanted email marketing.
After yet another year of feast or famine agency life, things had to change...
10/ Ben had the core of a simple email app in a scrapped e-greeting card idea, he rebuilt it and launched with a small Adwords budget in July 2001.
The team left the side project up and sold it to SMBs at night until they came to a realization...
The team left the side project up and sold it to SMBs at night until they came to a realization...
11/ As 2005 came to a close, they were tired of barely making money working long hours for their clients.
One night Ben was shocked by the company's numbers.
The agency was slowly failing.
The only reason they were still alive was their email business
They went all in...
One night Ben was shocked by the company's numbers.
The agency was slowly failing.
The only reason they were still alive was their email business
They went all in...
12/ Client work wrapped up in 2006, and by 2007 they were full time on the email platform for small businesses, Mailchimp.
They had 10,000 users and barely broke even.
To boost revenue, they switch to monthly fees from per send.
Profits rose, but burnout remained...
They had 10,000 users and barely broke even.
To boost revenue, they switch to monthly fees from per send.
Profits rose, but burnout remained...
13/ Mark couldn't stay on the rollercoaster any longer.
Ben and Dan bought him out in 2008.
By Sept 2009, they reached 85,000 paid users.
Going freemium was when Mailchimp really exploded...
Ben and Dan bought him out in 2008.
By Sept 2009, they reached 85,000 paid users.
Going freemium was when Mailchimp really exploded...
14/ It was a big bet to give away email software, but tying their success to their customers was a gamechanger.
Profit grew by 650% that year! They were adding 30,000 users every month.
By Sept 2010, they had grown to 450,000 users and just over $2MM ARR...
Profit grew by 650% that year! They were adding 30,000 users every month.
By Sept 2010, they had grown to 450,000 users and just over $2MM ARR...
15/ Hypergrowth continued from there. By September 2012, the company had reached 2 million users. They were growing 10-15% every month!
They over doubled in 2013 and added 2.4 million new users that year.
They hit 5MM users at the beginning of 2014 and then went mainstream...
They over doubled in 2013 and added 2.4 million new users that year.
They hit 5MM users at the beginning of 2014 and then went mainstream...
16/ MailChimp was one of the first to start spending on podcasts, sponsoring shows like the Joe Rogan Experience to fuel growth.
A friend introduced them to a not yet launched show, "Serial".
They agreed to sponsor season 1 for $300k...
A friend introduced them to a not yet launched show, "Serial".
They agreed to sponsor season 1 for $300k...
17/ "Serial" was a breakout success.
An accident while recording the ad spot turned it into one of the best of the year. SNL even name dropped MailChimp that Dec.
They ended 2014 with just under 8 million users.
An accident while recording the ad spot turned it into one of the best of the year. SNL even name dropped MailChimp that Dec.
They ended 2014 with just under 8 million users.
18/ In 2015, Mailchimp reached $280 million in revenue.
They got a $2 billion acquisition offer in 2016.
By 2018, there were multiple offers above $4 billion...
They got a $2 billion acquisition offer in 2016.
By 2018, there were multiple offers above $4 billion...
19/ The most recent offer, from Intuit, is north of $10B.
Mailchimp holds an estimated 62% market share with ~$300MM in EBITDA for 2020. Their ARR is unknown, but estimated to be >$1B!
It took 20 years to get there without a dime of VC, but Dan and Ben still own 100%
Mailchimp holds an estimated 62% market share with ~$300MM in EBITDA for 2020. Their ARR is unknown, but estimated to be >$1B!
It took 20 years to get there without a dime of VC, but Dan and Ben still own 100%
20/ Sources:
creativeloafing.com/content-185685β¦
doeswhat.com/2012/09/26/intβ¦
thedrum.com/news/2019/08/0β¦
rewindandcapture.com/why-is-mailchiβ¦
robertkatai.com/mailchimp-usinβ¦
web.archive.org
sumo.com/stories/mailchβ¦
emailtooltester.com/en/blog/mailchβ¦
web.archive.org/web/2003080116β¦
creativeloafing.com/content-185685β¦
doeswhat.com/2012/09/26/intβ¦
thedrum.com/news/2019/08/0β¦
rewindandcapture.com/why-is-mailchiβ¦
robertkatai.com/mailchimp-usinβ¦
web.archive.org
sumo.com/stories/mailchβ¦
emailtooltester.com/en/blog/mailchβ¦
web.archive.org/web/2003080116β¦
21/ This story is a reminder that:
1) Staying close to your customers makes a better product
2) You make luck through action
3) Competitive markets mean $$ is in play
4) Branding matters
5) Business should be fun
6) It can decades to reach $1B+
And that anyone can do it...
1) Staying close to your customers makes a better product
2) You make luck through action
3) Competitive markets mean $$ is in play
4) Branding matters
5) Business should be fun
6) It can decades to reach $1B+
And that anyone can do it...
22/ If you enjoyed this thread, follow me @jspujji
I tweet Bootstrapped Giants stories like this every week.
RT the whole thread to share this amazing story!!
I tweet Bootstrapped Giants stories like this every week.
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