249: SaaS Case Study: How Snappa Bootstrapped Their Way from Idea to $33k MRR in 2 Years
Sep 28, 2017
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Guest Christopher Gimmer, Co-founder of Snappa, shares how they bootstrapped Snappa to $33k MRR in 2 years. Topics include idea validation, successful launch, growth strategies, freemium model, user engagement, marketing tactics, and strategies for sustainable growth in SaaS companies.
Building a software tool once to sell repeatedly with minimal costs is a lucrative side hustle model.
Snappa's success stemmed from addressing a market need for easy graphic design tools for content creators.
Strategic partnerships, content marketing, and personalized user experiences were crucial in growing Snappa's business.
Deep dives
Snappa's Evolution from Idea to Successful SaaS Business
Snappa, an online tool for creating social media graphics, evolved from the co-founders' marketplace for web design themes. The idea sparked from the inconvenience of creating images for their web business and a popular blog post about free stock photos. Leveraging SEO and content marketing, they attracted traffic and identified a need for a more efficient graphic creation tool.
Strategic Partnerships and Content Marketing Drive Growth
Snappa utilized strategic partnerships with Lead Pages and Sumo.me to offer Snappa as a bonus, effectively expanding their reach and attracting new users. They focused on content marketing and SEO by creating specialized pages for specific graphic design use cases, driving traffic and conversions to the platform.
Customer Validation and Engagement Strategies
Through personalized onboarding and email marketing, Snappa targeted user behavior to encourage upgrades and enhance the core user experience. They offered a freemium model to cater to different user needs, with a focus on engaging ongoing content creators and promoting premium features.
Financial Sustainability and Future Plans
With low variable costs per user, Snappa maintained financial sustainability through AWS hosting and efficient operational expenses. Focusing on enhancing personalization and user experience, they aim to increase the lifetime value of customers and continue growing the platform.
Drive and Purpose: The Key to Side Hustle Success
The success of Snappa highlights the importance of leveraging existing assets, conducting thorough market research, building a customer base before launch, and strategically partnering to amplify reach. The core principles of driving customer acquisition and creating a valuable user experience remain pivotal in sustaining and expanding a side hustle.
The holy grail of side hustle business models is software, right? Built it once and sell it over and over again for almost zero incremental cost!
Having built the online graphic design tool Snappa to $33k in monthly recurring revenue in 2 years, Christopher Gimmer rounds out our "recurring revenue" theme for the month.
The software as a service aims to help bloggers and content creators make perfectly sized social media graphics or blog images easily and professionally. “Create online graphics in a snap,” the tagline says.
The cool do-it-yourself tool is sold on a freemium or monthly/annual subscription model.
“I just wanted to know whether people were having the same issues I was having,” Christopher said, talking about the hassle he experienced creating quick and professional looking social media and blog graphics.
This is the fourth episode in this series of recurring revenue shows. If you’ve missed any of the previous episodes, be sure to check out:
In this episode, Christopher shares how he validated his idea, successfully launched his new tool just months later and generated $2-3k in the first week, and grew the business to where it is today.