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Getting to €20k in MRR in 90 days

91 points| blackdogie | 11 years ago |blog.rubyandduke.com | reply

37 comments

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[+] bemmu|11 years ago|reply
I thought no-one would bother filling out contact details / CC number without getting to a desktop first. After looking at your data and then checking my own analytics, I'm wrong.

Even for Candy Japan, I see 13% of conversions from mobile, 12% from tablet. And this despite the site not being designed for mobile at all. Sounds like fixing my mobile side might actually be a great opportunity for getting some more conversions.

[+] kaolinite|11 years ago|reply
It's quite possible this changed with iOS7 with the introduction of iCloud Keychain, which enabled storage of credit card information. I've found myself buying a lot more stuff on the mobile web since then, things that previously I only would have bought on a desktop.
[+] vjvj|11 years ago|reply
The gulf between perceived and actual mobile phone usage is huge even now. People are willing to do a lot more on their phones than we expect.

We have a long-ish sign up form for Car Quids yet half of our completions are done on mobile too.

[+] blackdogie|11 years ago|reply
Plus there should be some SEO benefits too. So it should work two fold. I've seen a site of mine move from mid-30% mobile traffic this time last year, now up to over 50%. I was surprised with the amount and the change over the last 12 months.
[+] johnward|11 years ago|reply
The fact that these boxes keep turning into successful small businesses is amazing to me. Especially when this box already has a competitor that I thought of as soon as I figured out what it is.

The article wasn't as insightful as I hoped. Though I'm pretty impressed by that growth in 3 months. You often see things like SaaS growing much slower. I see people talk about taking years to scale to 20k in monthly recurring revenue and they did it in 3 months. I appreciate that they shared their story but it seems like mostly they built a following by sharing dog pictures on social media. Maybe that's the lesson?

They did drop some info about AdWords not working which sounds like the targeting might have been weak or just not good for their target audience. The 100 conversions from a 10,000 person email list is very low for email. Most lists outperform any other media in conversion rates from my experience but those lists are filtered before people even join. It sounds like they have a bunch of people that simply like dogs and decided to join the mailing list. I could see why the conversion could be so low in that case. I still think focusing on a better mailing sequence is an easily hanging fruit to attack but it looks like social is working for you. It would be interesting to see churn numbers in a few months.

[+] aakilfernandes|11 years ago|reply
> I appreciate that they shared their story but it seems like mostly they built a following by sharing dog pictures on social media. Maybe that's the lesson?

I think the lesson is figure out your marketing channel before you build.

[+] mpeg|11 years ago|reply
I like the acquisition success story, people bash on Facebook ads but they're probably the best online channel when you have a very specific audience you want to target with high reach (dog owners, UK&I)

Just doesn't work as well for retail products / subscriptions when your audience is not necessarily ready to buy, and you just end up with worthless likes and no conversions.

For instance, FB targeting women 25-35 for online clothes shopping probably results in lower conversion rates than Google, even though the audience demographics could be the same, because search translates to buying intent.

[+] niallharbison|11 years ago|reply
We wouldn't have had the growth we have had without Facebook. Its the most targeted and cost effective ad platform the world has ever seen. Not suited to every business of course but I do think a lot of people underestimate just how effective it can be.
[+] andyakb|11 years ago|reply
I don't think its fair to say FB ads dont work as well when your audience is not ready to buy. If you try to run an Adwords style campaign on FB, then you are right, that isn't very likely to work but that isnt because of FB.

The problem is the ads don't match where the prospects are in the buying cycle. Where FB excels is driving leads into a nurturing campaign that gets them ready for the sale down the line. These campaigns work wonderfully across a wide variety of industries.

[+] mrborgen|11 years ago|reply
Great job! May I ask how much money you set off to do marketing before you launched?
[+] eonw|11 years ago|reply
20k is nice, but how profitable is it?
[+] sillypog|11 years ago|reply
Is it recurring revenue if it hasn't recurred yet?
[+] beambot|11 years ago|reply
Of course it is... they just don't know the churn rate (or CAC) yet -- both of which are crucial to the recurring revenue value equation.
[+] eonw|11 years ago|reply
i would say no, i would call it, "potential recurring income". with only 90 days of data you don't really know how long each customer will stay, without more data you really don't know how many of those will stick around for another month. then again i dont count my eggs before they hatch.
[+] yarper|11 years ago|reply
This looks like such a good place to work. I love dogs and all doggie related things make me happy. No wonder you guys aren't having trouble getting customers.
[+] niallharbison|11 years ago|reply
Its the one thing I didn't write about is that we all bring our dogs to work and are trying to build a world class culture as much as anything. When you do what you love its just doesn't even feel remotely like work!
[+] joelennon|11 years ago|reply
Great post Niall. Just wondering what groundwork you had laid down before the 90 days. Also, staggering numbers on the Bow Wow Times site. Do you think it's mainly down to the fact that people just love dogs (and articles about dogs) or is there anything you guys did that would be replicable for other B2C markets?
[+] pkaye|11 years ago|reply
I wonder what the gross profits are.
[+] niallharbison|11 years ago|reply
Niall the CEO of company here. We are pretty close to 50 depending on where they ship to, what package people go on etc. It starts to get way more interesting with volume though at 5000+ boxes providing we get that far!
[+] creznew|11 years ago|reply
Do you have some sort of deal/sponsorship with any of the product suppliers?
[+] kpatterson|11 years ago|reply
Commenting for a later read. This is great stuff for getting the ball rolling.