#84: Scaled and Sold a Marketplace of Pre-Vetted Freelancers – Nathan Hirsch
Mar 8, 2024
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Nathan Hirsch, co-founder of FreeUp, shares his journey of building and selling the company, highlighting niche targeting, software-people combo in operations, and organic marketing strategies. FreeUp grew to $12 million in revenue before being acquired. The podcast delves into the challenges and successes of scaling a tech-enabled marketplace, strategies for rapid business growth, and operational excellence in Amazon seller business.
Niching down to specific industries like e-commerce is crucial for attracting clients.
Combining software with people operations is essential for efficient freelancer-client matching.
Success can be achieved through organic marketing, niche focus, and exceptional customer service.
Deep dives
Building a Successful Virtual Assistant Marketplace
FreeUp, an online marketplace for pre-vetted freelancers, was co-founded by Nathan Hirsch and eventually sold for a successful exit in 2019. The business scaled rapidly, reaching $12 million in revenue by year four. They operated with no office or US employees, relying on 30 virtual assistants in the Philippines for various tasks like sales calls, bookkeeping, and customer service.
Tech-Enabled Service Model and Niche Focus
FreeUp's success was attributed to its unique tech-enabled service model, combining software with manual processes to match freelancers and clients efficiently. By niching down to e-commerce initially and later expanding to marketing and other sectors, FreeUp differentiated itself in a crowded marketplace. Co-founder Connor spearheaded the software side, while Nathan focused on networking and partnerships for growth.
Strategic Growth Through Organic Marketing and Partnerships
FreeUp's rapid growth was fueled by organic marketing strategies, including podcasts, SEO-driven content creation, social media engagement, and affiliate programs. Strategic partnerships with e-commerce software companies helped FreeUp gain visibility and attract clients. With a disciplined approach to hiring and systematized operations, they navigated challenges and competition, ultimately leading to a successful acquisition.
Lessons Learned and Future Ventures
Nathan and his team's commitment to systematized hiring and operations proved integral to FreeUp's growth and acquisition. The experience with FreeUp inspired ventures like Outsource School, where they teach hiring best practices. Their bookkeeping service, Accounts Balance, addresses a common entrepreneurial pain point and emphasizes the importance of clean finances and operations in building successful businesses.
Prioritizing Professional Bookkeeping from Day One
The decision to hire a bookkeeper from the inception of the business proved to be immensely beneficial, ensuring meticulous bookkeeping for four years. This approach not only facilitated the smooth sale of the business but also enabled informed monthly decision-making based on accurate financial reports. Implementing a structured monthly bookkeeping process allowed for consistent growth and inspired the creation of a bookkeeping business model.
Importance of Regular Financial Analysis and Decision-Making
Regularly comparing monthly and yearly financial metrics such as gross and net profits provided critical insights for business growth. Assessing metrics like customer acquisition costs and expenses enabled strategic adjustments like pricing modifications or service enhancements. Engaging in detailed expense reviews and profit analyses helped in identifying areas for improvement and informed decision-making based on substantial financial data.
Nathan Hirsch, co-founder of FreeUp, shares his journey of building and selling the company and his other business adventures. FreeUp provides clients with pre-vetted virtual assistants (VAs) and freelancers in an online marketplace.
Nathan discusses the importance of niching down and targeting specific industries, such as e-commerce, to attract clients. He also highlights the combination of software and people in FreeUp’s operations, with software handling recruitment and billing and people assisting with matching and customer service.
FreeUp achieved success through organic marketing strategies, niche focus, and great customer service. The business grew to $12 million in revenue in four years before being acquired by The HOTH in 2019.
