Nathan Barry, the founder of ConvertKit, found himself stuck at $1.5k MRR (monthly recurring revenue) with his SaaS business. However, he managed to turn things around and scaled ConvertKit to nearly $100k MRR in just 12 months. In this playbook, we'll outline how Nathan got stuck and the strategies he used to get unstuck. These insights can be valuable for other SaaS founders who are struggling to grow their customer base.

Part 1: How Nathan Barry Got Stuck at $1.5K MRR with ConvertKit

Nathan Barry, the founder of ConvertKit, initially aimed for $5K in monthly recurring revenue (MRR) within six months. However, despite quick initial traction, ConvertKit's growth stalled at $2K MRR and then gradually declined to $1.5K. He tried numerous strategies to scale, including content marketing, webinars, and partnerships, but none of them helped him gain traction.

At this point, Nathan faced a critical decision: shut ConvertKit down or double down on his efforts. He chose the latter and decided to invest his last $50,000, hire a full-time developer, and shut down his other business to focus on ConvertKit full-time. This marked a turning point for Nathan and ConvertKit, as he committed to exploring new strategies to spur growth.

The turning point in Nathan's journey came from a conversation with Hiten Shah. Hiten advised Nathan to either shut ConvertKit down or give it the time, money, and attention it deserved. This advice stuck with Nathan and eventually led him to double down on his efforts, kickstarting ConvertKit's growth.

Nathan soon realised that the key to unlocking ConvertKit's growth potential was direct sales. He devised a 10-step process that ultimately enabled him to scale ConvertKit from $1.5K MRR to $100K MRR in just 12 months. This transformational journey demonstrates the power of determination, strategic thinking, and targeted action in achieving success for a SaaS business.

Part 2: The Direct Sales Strategy

The turning point came when Nathan discovered the power of direct sales. He followed a 10-step process to build an effective direct sales strategy:

1. Choose a niche: Nathan narrowed his target audience from everyone who needed email marketing to "email marketing for professional bloggers." This allowed him to create more focused sales page copy that resonated with his target customers.
2. Create a list: He niched down even further, targeting specific groups like "email marketing for professional paleo recipe bloggers who are women" or "Men's fashion bloggers in NYC." This enabled him to create highly targeted lists of potential customers using Twitter, Google, and 'top blogs in x category' posts.
3. Ask about frustrations: Nathan reached out to potential customers with personalised emails, asking them about their frustrations with their current email marketing providers. By focusing on their pain points, he was able to start a conversation and build rapport.
4. Build a connection: He listened to their frustrations and shared his own experiences, explaining how ConvertKit was designed to address those specific issues. This established trust and credibility.
5. Get on a call: Nathan offered a call to discuss ways to improve their current tools and showcase ConvertKit's features. He conducted hundreds of Skype calls, providing value by offering suggestions and demonstrating ConvertKit's capabilities.
6. Remove the biggest objection: To overcome the hurdle of switching providers, Nathan offered to migrate customers' data and set up everything for them for free. This concierge migrations program helped remove the barrier that was holding potential customers back.
7. Do anything to get the customer: Nathan went the extra mile to onboard early customers, even though it was time-consuming and paid little. He manually moved everything over, including forms, email sequences, and templates, ensuring a smooth transition for new customers.
8. Create an echo chamber: Each new customer made it easier to acquire the next one, creating a snowball effect. As influential bloggers like Pat Flynn and Wellness Mama switched to ConvertKit, they started talking about the tool, generating more interest and referrals.
9. Ask for referrals: Once a customer was set up and successful, Nathan asked for referrals to other potential customers. Warm introductions from satisfied customers proved to be far more effective than cold outreach.
10. Be human: Nathan maintained a personal and human touch in all his interactions. He was respectful, genuine, and patient, even when people didn't respond immediately or needed more time to make a decision.

Part 3: Doubling Down and Scaling Up

Nathan's decision to double down on ConvertKit led to hiring a full-time developer, investing his last $50,000, and focusing on ConvertKit full-time. He continued using direct sales, cold emailing, and concierge migrations to grow ConvertKit from $1.3k to $5k MRR in 6 months. Nathan didn't stop there; he scaled the business further by leveraging the following tactics:

1. Building a team: As the business grew, Nathan hired more people to handle different aspects of the company, such as customer support, marketing, and development. This allowed him to focus on strategy and sales while the team executed the day-to-day tasks.
2. Investing in content marketing: With a growing customer base, Nathan ramped up content marketing efforts, sharing valuable information that helped position ConvertKit as a thought leader in the email marketing space.
3. Improving product features: Nathan listened to customer feedback and continued to refine and enhance ConvertKit's features, making it an even more compelling option for professional bloggers.
4. Hosting webinars: ConvertKit hosted regular webinars to showcase its features, share email marketing best practices, and engage with potential customers. Webinars proved to be an effective way to demonstrate the product's capabilities and convert prospects into customers.
5. Implementing an affiliate program: Nathan introduced an affiliate program that incentivised existing customers to refer new users to ConvertKit. This created a win-win situation, as customers were rewarded for sharing the tool with their audience, and ConvertKit benefitted from the increased exposure and credibility.
6. Strengthening partnerships: Nathan nurtured relationships with industry influencers, who became advocates for ConvertKit. Their endorsements helped to build trust and drive more users to the platform.
7. Prioritising customer success: Nathan and his team focused on ensuring customer satisfaction, which led to strong word-of-mouth referrals and a high retention rate. They continuously provided value to customers by delivering excellent support and helping them get the most out of ConvertKit.

Through a combination of direct sales, content marketing, product improvements, webinars, affiliate programs, partnerships, and a relentless focus on customer success, Nathan Barry managed to scale ConvertKit from $1.5k MRR to nearly $100k MRR in just 12 months. His playbook offers valuable insights and actionable steps for SaaS founders who are struggling to grow their businesses and break through stagnation.

Want even more? Check out Nathan's twitter thread on the exact same topic here: