{"id":1302,"date":"2020-07-25T20:30:00","date_gmt":"2020-07-25T18:30:00","guid":{"rendered":"https:\/\/stefan.co\/en\/?p=1302"},"modified":"2021-12-08T10:00:50","modified_gmt":"2021-12-08T08:00:50","slug":"friendly-1k","status":"publish","type":"post","link":"https:\/\/stefanvetter.com\/en\/friendly-1k","title":{"rendered":"Friendly: I Grew From Zero to $1,000 MRR in 94 Days \u2013 Here\u2019s How I Did It"},"content":{"rendered":"\n<p>The monthly recurring revenue (MRR) of my MarTech startup <a href=\"https:\/\/friendly.is\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Friendly (opens in a new tab)\">Friendly<\/a> recently has exceeded $1,000 \u2013 just 94 days after its launch.<\/p>\n\n\n\n<p>But it took me more than 20 years to get there.<\/p>\n\n\n\n<p>Running a product company was a dream of mine since my teenage years. There was always something holding me back though.<\/p>\n\n\n\n<p>In my teenage years it was missing role models.<\/p>\n\n\n\n<p>In my twenties, the advice of parents and friends to &#8220;get a good education&#8221;.<\/p>\n\n\n\n<p>And in my thirties, when I finally would have had the courage, I lacked the ideas.<\/p>\n\n\n\n<p>Moreover, I only knew the example of founders who worked practically around the clock. How could I reconcile this with the newfound family with little kids?<\/p>\n\n\n\n<p>That finally changed when I got to know the concept of &#8220;indie hackers&#8221; and &#8220;bootstrappers&#8221; through people like Pieter Levels and Arvid Kahl. It seemed to be finally possible to build a start-up without investors and unhealthy working hours.<\/p>\n\n\n\n<p>The problem of the missing idea still remained. I <a rel=\"noreferrer noopener\" aria-label=\"read a brilliant tip from Arvid Kahl (opens in a new tab)\" href=\"https:\/\/thebootstrappedfounder.com\/zero-to-sold\/guide\/#Step_One_Audience\" target=\"_blank\">read a brilliant tip from Arvid Kahl<\/a> to start with the audience instead of the idea:<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"630\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl.png\" alt=\"\" class=\"wp-image-1363\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl.png 1200w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl-700x368.png 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl-1024x538.png 1024w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl-768x403.png 768w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/audience-not-idea-arvid-kahl-600x315.png 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>As a result of the establishment of my agency <a rel=\"noreferrer noopener\" aria-label=\"Wortspiel (opens in a new tab)\" href=\"https:\/\/wortspiel.com\/\" target=\"_blank\">Wortspiel<\/a> and my previous career, it was clear that my audience should be in the marketing sector. I also knew that my target group would be companies:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Yes:<br><br>B2C is the most demanding customers for the least money<br><br>B2B is the least demanding customers for the most money<br><br>(in my experience) <a href=\"https:\/\/t.co\/W8voULD3eQ\">https:\/\/t.co\/W8voULD3eQ<\/a><\/p>&mdash; @levelsio (@levelsio) <a href=\"https:\/\/twitter.com\/levelsio\/status\/1111166534188097537?ref_src=twsrc%5Etfw\">March 28, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>And by talking to people from this audience and researching their biggest problems, I noticed two major trends in marketing:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Companies want more data sovereignty. This trend is being accelerated in regions like the EU and California by new legislation such as GDPR and PECR.<\/li><li>Due to instances like the Cambridge Analytica scandal, there has been a growing unease about the dominance of large tech companies and the possible misuse of data. At the same time, there is a growing desire to get in touch with interested parties and customers independently of these gatekeepers. This can be seen in the growing popularity email (newsletters are hot in 2020).<\/li><\/ol>\n\n\n\n<p>I then came up with two concrete product ideas: <a href=\"https:\/\/friendly.is\/analytics\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Friendly Analytics (opens in a new tab)\">Friendly Analytics<\/a>, a privacy friendly web analytics solution, and <a href=\"https:\/\/friendly.is\/automate\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Friendly Automate (opens in a new tab)\">Friendly Automate<\/a>, an SME friendly email marketing tool.<\/p>\n\n\n\n<p>So at age 38 I finally started my own start-up\u2014in the midst of the Corona crisis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How I made it to $1,000 MRR<\/h2>\n\n\n\n<p>Here are the tactics I used to grow Friendly from a brand new startup to a company that makes over $1,000 in MRR.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Launched Friendly Analytics on Product Hunt<\/h3>\n\n\n\n<p>On March 18, 2020 <a rel=\"noreferrer noopener\" aria-label=\"Friendly Analytics launched on ProductHunt (opens in a new tab)\" href=\"https:\/\/www.producthunt.com\/posts\/friendly-analytics\" target=\"_blank\">Friendly Analytics launched on ProductHunt<\/a> \u2013 only 26 days after registering the domain <a rel=\"noreferrer noopener\" aria-label=\"Friendly.is (opens in a new tab)\" href=\"http:\/\/friendly.is\/\" target=\"_blank\">Friendly.is<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"712\" height=\"481\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-intro.png\" alt=\"\" class=\"wp-image-1364\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-intro.png 712w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-intro-700x473.png 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-intro-600x405.png 600w\" sizes=\"(max-width: 712px) 100vw, 712px\" \/><\/figure>\n\n\n\n<p>It made it to the homepage after just a few minutes and was able to stay there all day.<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"842\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb.jpg\" alt=\"\" class=\"wp-image-1365\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb.jpg 1200w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb-700x491.jpg 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb-1024x719.jpg 1024w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb-768x539.jpg 768w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-analytics-ph-fb-600x421.jpg 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>I supported the launch with my agency&#8217;s newsletter (which went to 3,252 people, got an open rate of 37.5% and generated 130 clicks to the landing page) and <a href=\"https:\/\/www.linkedin.com\/posts\/stefanvetter_die-datenschutzfreundliche-google-analytics-alternative-activity-6645584325414830080-2kvX\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"on LinkedIn (opens in a new tab)\">on LinkedIn<\/a>.<\/p>\n\n\n\n<p>Friendly Analytics ended the day on Product Hunt on a good 12th position on with 120 votes and a rating of 5\/5.<\/p>\n\n\n\n<p>The results were 593 visitors to the landing page \u2013 and 0 sales.<\/p>\n\n\n\n<p>I see two reasons for this:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>I hadn&#8217;t tested the pricing before. The cheapest subscription was $29 a month &#8211; obviously too high. (Tip: before launching, ask some contacts what your offer would be worth to them.)<\/li><li>I had almost no feedback on the landing page, and the landing page had a lot of upside potential. In <a href=\"https:\/\/www.indiehackers.com\/post\/how-i-earned-16k-in-48-hours-with-my-saas-launch-detailed-breakdown-578ad8f767\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"this blog post on Indie Hackers (opens in a new tab)\">this blog post on Indie Hackers<\/a>, Danny Postma describes how to do it better.<\/li><\/ol>\n\n\n\n<p>It took me 21 more days to get the first paying customer for Friendly Analytics on April 8, which still felt like a great success.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Soft launched Friendly Automate using my agency&#8217;s newsletter<\/h3>\n\n\n\n<p>One day before I got the first paying customer, I published my second product, Friendly Automate.<\/p>\n\n\n\n<p>This time I wanted to do it better, so I decided to do a &#8220;soft launch&#8221;.<\/p>\n\n\n\n<p>In order not to &#8220;waste&#8221; the valuable momentum on Product Hunt again, I first promoted Friendly Automate to some friends on the beginning of April. I then shared it through my agency newsletter and on LinkedIn on April 7.<\/p>\n\n\n\n<p>This gave me the chance to respond to feedback and improve the offer and landing page before the big launch.<\/p>\n\n\n\n<p>This soft launch already showed me that the demand for this second product was much stronger than the first one:<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"765\" height=\"686\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/friendly-first-customers.png\" alt=\"\" class=\"wp-image-1366\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-first-customers.png 765w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-first-customers-700x628.png 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-first-customers-600x538.png 600w\" sizes=\"(max-width: 765px) 100vw, 765px\" \/><figcaption>This table shows our customer development until reaching $1,000 MRR. It took us 23 customers to get there. More than half of them decided to switch to a paid subscription after the free trial. &#8220;Cancel&#8221; means that customers have canceled their subscription during the trial period, &#8220;Churn&#8221; means that they canceled an active subscription. The two customers still on trial had to postpone the test for internal reasons.<\/figcaption><\/figure>\n\n\n\n<p>You can see that on the day after the soft launch we already acquired four trials for Friendly Automate while a week after the launch of Friendly Analytics on ProductHunt we have not had a single customer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Launched Friendly Automate on Product Hunt<\/h3>\n\n\n\n<p>This gave me the confidence to introduce Friendly Automate to a larger audience. So I <a rel=\"noreferrer noopener\" aria-label=\"launched it on Product Hunt  (opens in a new tab)\" href=\"https:\/\/www.producthunt.com\/posts\/friendly-automate\" target=\"_blank\">launched it on Product Hunt <\/a>on April 21:<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"717\" height=\"571\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/friendly-automate-producthunt-intro.png\" alt=\"\" class=\"wp-image-1369\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-automate-producthunt-intro.png 717w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-automate-producthunt-intro-700x557.png 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-automate-producthunt-intro-600x478.png 600w\" sizes=\"(max-width: 717px) 100vw, 717px\" \/><\/figure>\n\n\n\n<p>Like Friendly Analytics, the product made it to the homepage after only a short time, but did not rank as highly. It ended the day in 31st place with 50 votes.<\/p>\n\n\n\n<p>But the launch generated at least one new test customer, with more to come in the next few days. From a business perspective, the launch was therefore more successful than the first one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Became an Open Startup<\/h3>\n\n\n\n<p>One of my entrepreneurial role models is Buffer. They are a pioneer in corporate transparency. <a href=\"https:\/\/buffer.com\/resources\/transparency-in-business\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"According to Buffer (opens in a new tab)\">According to Buffer<\/a>, transparency in business has four key benefits:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>It creates trust in your team and with customers<\/li><li>It fosters innovation, because your own team has more information at their disposal to make better decisions<\/li><li>It promotes fairness, for example when it comes to salaries.<\/li><li>You will receive more helpful feedback<\/li><\/ol>\n\n\n\n<p>I would add a fifth aspect: it definitely helps in marketing.<\/p>\n\n\n\n<p>Instead of having to create new and original content all the time, you can simply document what happens anyway.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cDocument, don&#8217;t create.\u201d<\/p><cite><a href=\"https:\/\/www.garyvaynerchuk.com\/creating-content-that-builds-your-personal-brand\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Gary Vaynerchuk (opens in a new tab)\">Gary Vaynerchuk<\/a><\/cite><\/blockquote>\n\n\n\n<p>It is no coincidence that I first learned about Baremetrics because <a href=\"https:\/\/baremetrics.com\/blog\/buffer-baremetrics\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Buffer used them to make their revenue public (opens in a new tab)\">Buffer used them to make their revenue public<\/a> in 2014. I thought it was the coolest thing ever.<\/p>\n\n\n\n<p>Six years later, I am thrilled and honored that Baremetrics CEO Josh Pigford has created a <a rel=\"noreferrer noopener\" aria-label=\"public revenue dashboard for Friendly (opens in a new tab)\" href=\"https:\/\/friendly.baremetrics.com\/\" target=\"_blank\">public revenue dashboard for Friendly<\/a> as well:<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"789\" height=\"510\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/07\/friendly-baremetrics-josh-pigford.png\" alt=\"\" class=\"wp-image-1372\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-baremetrics-josh-pigford.png 789w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-baremetrics-josh-pigford-700x452.png 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-baremetrics-josh-pigford-768x496.png 768w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/07\/friendly-baremetrics-josh-pigford-600x388.png 600w\" sizes=\"(max-width: 789px) 100vw, 789px\" \/><\/figure>\n\n\n\n<p>This dashboard is now the heart of our O<a rel=\"noreferrer noopener\" aria-label=\"pen Startup page (opens in a new tab)\" href=\"https:\/\/friendly.is\/open\" target=\"_blank\">pen Startup page<\/a>, where we also share our web analytics and product backlog.<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"630\" src=\"https:\/\/stefan.co\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k.jpg\" alt=\"\" class=\"wp-image-1303\" srcset=\"https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k.jpg 1200w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k-700x368.jpg 700w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k-1024x538.jpg 1024w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k-768x403.jpg 768w, https:\/\/stefanvetter.com\/en\/wp-content\/uploads\/2020\/06\/202006friendly-mrr-1k-600x315.jpg 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption>Our public revenue dashboard from Baremetrics at the time we reached the $1000 MRR.<\/figcaption><\/figure>\n\n\n\n<p>Being an Open Startup has helped us to stay in the conversation, attract attention and ultimately win more customers.<\/p>\n\n\n\n<p>You can see other Open Startups and even <a rel=\"noreferrer noopener\" aria-label=\"join in here (opens in a new tab)\" href=\"https:\/\/baremetrics.com\/open-startups\" target=\"_blank\">join in here<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Launched an affiliates and partner program<\/h3>\n\n\n\n<p>The last major building block of our traction are partners &#8211; affiliates and agencies. Three out of 14 customers active at that time came through partners &#8211; including our largest customer.<\/p>\n\n\n\n<p>The share has continued to grow to this day. Therefore, I cannot recommend enough to think about an affiliate program early on.<\/p>\n\n\n\n<p>Compared to paid advertising on Google or Facebook, there is no risk in an affiliate program &#8211; <a href=\"https:\/\/friendly.is\/partner\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"we pay our affiliates 25% lifetime commission (opens in a new tab)\">we pay our affiliates 25% lifetime commission<\/a>.<\/p>\n\n\n\n<p>That means we only pay if we earn money. And our affiliates have the chance of an attractive revenue share.<\/p>\n\n\n\n<p>And I&#8217;d give the money 1000 times better to our partners than Google and Facebook.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What&#8217;s next?<\/h2>\n\n\n\n<p>I am super grateful for what I have been able to achieve so far. And at the same time I am still at the very beginning.<\/p>\n\n\n\n<p>Last month I was able to bring Jozsef Keller, my first full-time employee, on board as CTO. I have been working with Joey since March, initially on a freelance basis. During this time he has brought Friendly a long way, and we have developed into a good team.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cMarketing and Innovation produce results, all the rest are costs.\u201d<\/p><cite>Peter Drucker<\/cite><\/blockquote>\n\n\n\n<p>I have strengths as an entrepreneur and marketer, but my weaknesses have <a href=\"https:\/\/friendly.is\/en\/june-2020\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"become apparent in engineering (opens in a new tab)\">become apparent in engineering<\/a> (which for us as a tech startup creates innovation). Therefore the role of CTO was the most important addition for our team.<\/p>\n\n\n\n<p>My goal for Friendly is not a quick exit, but rather a company that is profitable and in which our team and I still enjoy working even decades from now.<\/p>\n\n\n\n<p>You can follow me on this journey on Twitter (<a href=\"https:\/\/twitter.com\/stefanvetter\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"@stefanvetter (opens in a new tab)\">@stefanvetter<\/a>) and <a href=\"https:\/\/www.linkedin.com\/in\/stefanvetter\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"LinkedIn (opens in a new tab)\">LinkedIn<\/a> or by subscribing to <a href=\"https:\/\/stefan.co\/en\/join\">my newsletter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The monthly recurring revenue (MRR) of my MarTech startup Friendly recently has exceeded $1,000 \u2013 just 94 days after its launch. But it took me more than 20 years to get there. Running a product company was a dream of mine since my teenage years. There was always something holding me back though. In my [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1447,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_trash_the_other_posts":false,"footnotes":""},"categories":[39],"tags":[],"class_list":["post-1302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-friendly","has-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Friendly: I Grew From Zero to $1,000 MRR in 94 Days \u2013 Here\u2019s How I Did It | Stefan Vetter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/baremetrics.com\/blog\/friendly-growth-study\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Friendly: I Grew From Zero to $1,000 MRR in 94 Days \u2013 Here\u2019s How I Did It | Stefan Vetter\" \/>\n<meta property=\"og:description\" content=\"The monthly recurring revenue (MRR) of my MarTech startup Friendly recently has exceeded $1,000 \u2013 just 94 days after its launch. But it took me more than 20 years to get there. Running a product company was a dream of mine since my teenage years. There was always something holding me back though. 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