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Paid Ads Playbook

How 89 startups used paid ads to grow. Here's what the data says about what they actually did.

89
Companies
$252k
Avg MRR
$2.0M
Top MRR
56%
$50k+ Hit Rate

Most Used Tools (85 companies)

Facebook Ads48 (56%)
Google Ads17 (20%)
Slack12 (14%)
Google AdWords10 (12%)
LinkedIn8 (9%)
Instagram8 (9%)
Twitter7 (8%)
Instagram Ads6 (7%)
Facebook5 (6%)
WhatsApp5 (6%)
Stripe5 (6%)
Shopify5 (6%)
YouTube5 (6%)
LinkedIn Ads4 (5%)
Evernote4 (5%)

How They Got Their First Customer

cold outreach and agency spotlight content marketing1
Word of mouth from local business owners at his church1
Word of mouth from 20 friends who agreed to try the service in a 1-month trial after being messaged about the idea1
Webinar attendees from Facebook ad-driven list building and retargeting campaigns1
Tested 22 different business model permutations including affiliates, dropshipping, and partnerships before landing on the SaaS subscription model1
Taking referral cases from other lawyers who were advertising1
Speaking at a big financial marketing event where they encountered high-end financial advisors and discovered the niche1
Referral from venture capitalist met in Uber ride in San Francisco1
Reddit ads driving traffic to a landing page with demand testing for a $39 styling fee1
Personal networks and Facebook ads1

Time to PMF

1 year3
6 months2
4 months2
10 months2
approximately 9 months to 1 year1
approximately 2 years1
Approximately 1 year (tested throughout 2014, found PMF with SaaS model by late 2014/early 2015)1
6-7 months1
3 months1
2 years1

Top Companies by MRR (89)

Capital Daily / Overstory Media Groupby Andrew Wilkinson

Andrew Wilkinson launched Capital Daily, a local news newsletter for Victoria, Canada, after noticing his local newspaper had no real journalism. He spent $200k on ads to quickly acquire 25,000 subscribers, then hired journalists to build out the team. After burning money on inefficient operations, he partnered with Farhan (who had scaled Vancouver's biggest local news site) as CEO. The business is now expanding across Canada under the parent company Overstory Media Group.

Contentpaid-adsfreemiumvia My First Million
Capital Dailyby Andrew Wilkinson

Capital Daily is a local news newsletter for Victoria, Canada that grew from a simple idea into a 40,000-subscriber operation (25% of the city's population) in about 1.5 years. Andrew Wilkinson started it with a stay-at-home mom friend, scaled it using PPC advertising at $2 per acquisition, and later hired actual journalists to do original reporting. The business has become larger than the traditional local paper and is now exploring expansion across Canada and potentially the US.

Contentpaid-adsfreemiumvia My First Million
Kimpby Senthu Velnayagam

Kimp is a subscription-based design company offering graphic design and video design services for a flat monthly fee. Founded by serial entrepreneur Senthu Velnayagam and his brother Ven, it was built by bootstrapping revenue from their previous design businesses (BannersMall and Doto) after those faced declining market conditions. Within a month of their soft launch in February 2019, they scaled to global traction through social media and Google Ads, eventually building a remote team across multiple continents.

SaaSpaid-adssubscriptionvia Failory
Kopelyby Andrew Laux

Kopely was a mobile stress relief app founded by Andrew Laux, a health and fitness entrepreneur, that aimed to help users manage stress through actionable coping strategies and psychology-based tools. From December 2019 to March 2020, Andrew generated significant pre-launch traction through SEO and Facebook ads, building an interested user base. The startup was killed when COVID-19 hit and the equity-backed development team deprioritized the project to focus on their own survival, resulting in zero revenue and indefinite pause.

SaaSpaid-adsfreemiumvia Failory
Onepagetripby Ana Santos

Onepagetrip was a travel itinerary sharing marketplace that failed after over a year of development. The startup struggled to monetize, trying hotel affiliate bookings and pay-to-access itineraries without success. The founders' biggest mistakes were building without validating the idea first, not having a monetization plan from the beginning, and competing against billion-dollar travel companies while maintaining day jobs.

Marketplacepaid-adsothervia Failory
QuickHaggleby Bilal Ahmad

QuickHaggle was a skill-exchange marketplace built on a barter system model where users could trade services without payment. Despite positive reception and $500+ in Facebook Ads, the platform failed after a year with zero completed trades due to trust issues between parties and high customer acquisition costs.

Marketplacepaid-adsfreevia Failory
I Voted Remain / RealityHuntby Toby Allen

Toby Allen built two side projects—I Voted Remain (a Brexit-themed dropshipping t-shirt business) and RealityHunt (a Product Hunt clone for AR/VR)—to learn and test ideas. I Voted Remain generated only £70 profit from 10 t-shirt sales before shutting down due to high advertising costs and political sensitivities. RealityHunt cost €1,000-€2,000 but failed to gain traction due to poor execution and insufficient market maturity, though Toby believes the problem still exists today.

Otherpaid-adsone-timevia Failory
Sport Draftrby Will Laurenson

Sport Draftr was a Daily Fantasy Sports platform in the UK offering leagues in the English Premier League and UEFA Champions League. The product achieved strong product-market fit with engaged users and grew to 1,000 users with 50% playing weekly, but failed due to unfavorable gambling legislation changes that scared off investors and made scaling impossible without significant capital.

Otherpaid-adsusage-basedvia Failory
The Punjab Kitchenby Amit Gogia

The Punjab Kitchen was a homemade North Indian food delivery startup founded by Amit Gogia and his wife in Gurgaon, India. After 18 months of operations, the business failed due to pricing pressure from competitors, achieving only $800 in revenue while burning $1,200 monthly in expenses. The founders couldn't achieve economies of scale or break-even before shutting down.

Otherpaid-adsone-timevia Failory
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