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On being a tiny team and the one thing we can't scale
Blog →
by
Philippe Lehoux
April 5, 2022
· Updated on
Missive will soon reach $2M in ARR, roughly one year after the $1M mark.
In the article celebrating this significant milestone, I wrote that we could grow another 100% with the same team size.
We believe we can grow by another ~100% with only the four of us.
I was right. We grew to this point without sacrificing quality to our customers. It is baffling to most people, especially ones from the startup world, to see us thrive with such a low headcount.
Our users love the app and love the customer support experience we offer. They are shocked when we tell them we are just three. Also shocked when they see my basement Office in Zoom calls. 😆
Do I have the most unglamorous working setup?
- Basement ✅
- No window ✅
- Wooden crate + books standing desk ✅
- Kid toys all around ✅
- Apple Studio Display ❌
Who beats that? 🤣#remotework #bootstrap #desksetup pic.twitter.com/M5osCQ5diO
— Phil Lehoux (@plehoux) March 30, 2022
It's not just that we did not raise any money, but we willingly kept the team small. Some critical aspects of our business are just more manageable because of our size, like:
The three of us do all of the support. There is a direct line between the problems and the solutions. Our customers, when they complain, when they voice frustration about the product, we hear them and act swiftly.
We act swiftly to please them, of course, but also to keep our sanity; responding to the same complaints again and again is soul-crushing.
In seven years, our tech stack has stayed pretty much the same. We don't reinvent the wheel; we don't migrate to new frameworks or languages to please a new generation of developers. We don't have to since we are not recruiting X new developers every month.
Yes, our revenues have grown at a healthy ~5% month-over-month rate. But this growth came in significant part from the expansion of our existing customers. We have been able to stay small because the rate at which we onboard new customers has remained approximately the same for the last 2-3 years.
In the last year’s post about our $1M ARR milestone, I wrote:
We never spent a dime on marketing; the cost of customer acquisition in our space is crazy high. We can't compete with subsidized VC-backed companies.
This is not true anymore; the business generates a lot of cash flow, and many customer acquisition channels are starting to make more and more sense.
So this brings me to the one thing we can not scale indefinitely: good customer onboarding. Each business is unique; each has its requirements, workflows, etc. When people first set up in Missive, that is when there are the most questions, this is when we can tell them where the value is. The more new users we onboard simultaneously, the bigger the team will need to be if we want to keep offering a stellar experience.
Can I predict what our headcount will be in a year? No, but I'm confident it won't be just the three of us.
October 1, 2024
A Decade of Lazy Marketing
A look back at the marketing efforts that fueled Missive's growth over the past 10 years.
When talking about Missive, I often dropped this bomb:
— We never did any marketing.
Well, looking back, it’s a lie. Or let’s just say that it’s an understatement.
Or maybe I was being lazy and not recollecting the many small things we did.
Now that the Missive team is growing fast (read more), I realized, you must tell your team the complete story to equip them with success.
I’m writing this for our future Head of marketing. It’s a list of all of the things we did marketing-wise for the last ten-ish years. As you can see, not so much.
To me it's a testament that, yes, if you build something that people like, they will find you.
Now, imagine with a marketing team...
Note: We got our first customer on Jul. 20, 2016 and we are now at ~$500k USD MRR eight years later.
1. First homepage, at this point Missive was free to use beta. 2015
2. We have a Blog we updated sporadically. 2015 - 2024
3. Multiple ProductHunt launches. 2015-2023
4. A Brief History of Email Apps. - A failed attempt at creating valuable content. Was fun to do, but was a miserable failure. 2015
5. Twitter - Hello Word 2015
6. Email cold outreach to a few people we admired to get feedback and validate the product. No more than 50 emails total were sent. 2015
7. Second homepage and the release of our paid plans. 2016
8. Twitter - I monitored conversations about competitors, email clients, etc. and mentioned Missive in replies. 2016-2023
9. Nailed basic SEO vitals. 2016-2024
10. Open sourced EmojiMart component, now used by big startups (e.g. Figma!). It's a big driver of traffic and backlinks. 2016-2024
11. Attending the Inbox Awesome conference in NYC, the conference was for email marketers, not our target audience. Here is a picture of me on a panel about how to make people open and read your email newsletters. I had 0 clue what I was doing. I attended two years in a row because we like the title "Inbox Awesome" 🤣. 2016-2017
12. Getting both our desktop and mobile javascript apps featured on the App Store and writing about it. This established us as a legitimate player in the email client space. 2017
13. Published VS competitor landing pages, to this day, these are our most valuable content. 2016-2024
14. Developed integrations with popular SaaS (Asana, Salesforce, Aircall, etc.). This created nice co-marketing opportunities like being featured in their app/integration store. 2019-2023
15. Third homepage (current one). 2020
16. We deprecated a really popular feature, read tracking, we explained our reasoning in a blog post. This was an important decision, it helped defined our company culture and product direction. It mostly created churn for solo-user customers.
17. We hired consultants to do SEO + write content. We did with two firms, both times the firm owners were paid Missive users. In both instances we paid $10k/month and the experiment went on for around six months. Six months is not a lot in the SEO world, but each time, both we and the consultant learned that writing good content on an app like Missive is really hard and can't be done by pay-to-hire-content-writers. 2022 & 2024
18. We ditched Google analytics, for privacy reasons, read more. I'm still not so sure about this one, it does feel like we did some privacy-posturing. Now, this might be a potential friction for our future marketing team. We have no plan to re-visit this at the moment.
19. We created a homemade affiliate program. 2022 - 2024
20. MRR milestone blog posts + Hacker news traffic 2021-2024
21. We created many case studies to showcase how Missive is used by people in different industries. Those were pushed on LinkedIn and X.2020-2023
22. We sent a total of forty newsletters, all were a summary of our progress pushing out the content of our changelog. 2016-2024
23. We offer weekly webinars potential customers can attend to learn more about the product and each webinar offers a dedicated Q&A at the end. Those webinars have been a great success, specially for people coming from other competitors looking for a validation that the switch to Missive is a good decision. 2020 - 2024
24. We attended our first trade show in an industry where we find some of our bigger customers, logistic companies. I wrote an article about our experience. 2024
25. We got serious with G2 and other review sites and started earning multiple customer reviews and earning multiple badges. 2024
26. All co-founders did couple of podcasts & interviews over the years. (1, 2, 3, 4, 5, 6, 7, 8, ...) 2016 - 2024
27. I developed our product metric pipeline with Segment and Mixpanel. This will be useful for the future marketing team. 2024
This list is really a testament of how small our team was and how focused on the product we were. We were lucky enough those small initiatives created enough traction to where we are today. Having said that, reading it again, it shows unequivocally how amateurish our marketing efforts were.
It's time to bring expertise and structure, our marketing efforts should be as good as the quality of our product. And thus, we are looking for a Head of Marketing. If you are interested, please reach out (email).
June 11, 2024
Missive’s First Trade Show
Our journey to learning the ropes of trade shows and connecting with the right people in the logistics industry.
The time and energy invested in our product metrics pipeline allowed us to answer questions like which industries are extracting the most value out of Missive.
After crunching our numbers (organization size, core functionalities usage, ease of onboarding), the answer was:
With this insight, our next question was: where can we meet as many people from these industries in person? Our first instinct was to attend industry-specific trade shows.
With that in mind, three weeks ago, we identified FreightWaves Future of Supply Chain in Atlanta as the biggest short-term opportunity. We contacted the organizers and negotiated an interesting package:
Once confirmed, we had two weeks to organize the whole trip. Two team members would go: Janie (COO) and myself (CEO). The first thing I did was to make noise about our attendance. I posted on LinkedIn, X (formerly Twitter), and the Hampton founders community. My angle was to be transparent about us having zero experience and going there to learn as much as possible.
Instantly, people started to reach out privately to give tips on how we should approach this to get as much ROI as possible. I want to personally thank two people. Vic Cherubini, who proactively reached out, organized his thoughts around trade shows before our call, and shared valuable insights:
I also want to thank Maxime Villemure, an ex-pro poker player turned logistics entrepreneur, who reached out on X and proposed a call to teach me everything about 3PL/Logistics and his industry.
With these personal coaching sessions and Janie’s firsthand experience with trade shows, we understood the need to reach out to as many people as possible before the show.
The first two were easy. The last was harder as we did not have a list of attendees. However, the Future of Supply Chain website had logos of all the businesses attending. We took screenshots, then used ChatGPT-4o to identify the domain names related to all logos. We then passed that domain list to Hunter.io and got a list of possible email addresses to reach out to.
Janie then proceeded to message people on LinkedIn or cold-reach them via email about our presence at the event.
All in all, we successfully scheduled two demos through these messages. Not bad, but not great. The good news is the conference wasn’t huge, so all attendees saw our booth, making pre-booking meetings less important.
Vic provided excellent tips for our booth, but we ended up having no time to implement most of them. We kept things simple. Arnaud quickly created a video that we looped on the TV:
<figure> <div class="video-container"> <iframe src="https://www.youtube-nocookie.com/embed//5Z6S7w2_rk0?quality=high&modestbranding=1&showinfo=0&rel=0&theme=light&autoplay=0" frameborder="0" allow="accelerometer; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> </div></figure>
I used my laptop to demo the product directly to attendees. All in all, we did 33 demos at the booth. I did a good job with the demo on the main stage, both highlighting the pain of brokers dealing with a massive volume of emails and the solutions Missive has to offer (team inboxes, AI, rules & automation, custom integrations and analytics).
Many people also discovered the product while listening to the radio interview I did live on the What the truck?!? Radio show.
We mostly encountered three types of leads:
We scanned their badges and took screenshots of the person to remember post-event who and what. Janie also took notes in the lead retrieval app. Janie spent our airport transit day following-up with everyone we talked to or showed interest.
From our conversations, I assume we can hope to convert at least 5 organizations, all having need for 50 seats each, to Missive.
We have yet to assess the ROI of this trip to Atlanta, but just as an experience it was an absolute eye-opener and I came away wanting to invest way more resources into attending industry specific trade shows.
One quote from Paul Graham I absolutely abide by is “action produces information”, and we absolutely did with this first trade show.
