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Word Of Mouth Playbook

How 568 startups used word of mouth to grow. Here's what the data says about what they actually did.

568
Companies
$321k
Avg MRR
$12.0M
Top MRR
47%
$50k+ Hit Rate

Most Used Tools (417 companies)

Slack70 (17%)
Twitter57 (14%)
Stripe42 (10%)
LinkedIn37 (9%)
Facebook31 (7%)
Evernote26 (6%)
Facebook Ads25 (6%)
HubSpot24 (6%)
Salesforce23 (6%)
Trello22 (5%)
HostGator21 (5%)
YouTube20 (5%)
Google Analytics20 (5%)
Google Ads19 (5%)
Instagram18 (4%)

How They Got Their First Customer

word-of-mouth3
Kickstarter campaign2
word-of-mouth from friends requesting custom sandals1
word-of-mouth from Mother's Day special menu item1
word-of-mouth following New York Times credibility boost1
word-of-mouth and vendor partnerships1
word of mouth from dentists discovering his personal use of the software1
word of mouth and organic social media1
word of mouth1
referral from friend/family asking for advice on points optimization1

Time to PMF

6 months10
2 years10
1 year9
3 months5
2 months5
5 years4
3 years4
3 weeks4
10 months4
1.5 years4

Top Companies by MRR (568)

Vidyardby Michael Litt

Vidyard is a video marketing platform founded in 2010 that has grown to serve over 1,000 customers across three offices (Vancouver, Boston, Waterloo). The company has raised $70M in funding and is more than doubling year-over-year revenue while maintaining 85-90% gross margins through economies of scale and strategic product expansion. Growth is driven by personalized video prospecting, referrals, and a freemium Chrome extension called ViewedIt that has reached 100,000 users since October.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
YAPby Maria Seidman

YAP is a SaaS platform for event applications launched in 2012 that serves the professional events industry (MICE - meetings, incentives, conferences, events). The company charges $400 per app per year with volume pricing up to 50 apps, and has published over 85,000 apps since launch while remaining profitable and bootstrapped with a remote team of five. Maria Seidman grew the company through unconventional guerrilla tactics, including sneaking into conferences as an attendee to sell directly to event organizers.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Bright Funnelby Nadim Hussain

Bright Funnel is a B2B marketing measurement and attribution platform founded in late 2012/early 2013 by Nadim Hussain. Chris Mann joined as Head of Product in January 2016 and became CEO in April 2017. The company has grown to $3 million ARR across 70 customers with an average contract value of ~$50K, positioning itself as a neutral attribution platform for enterprise B2B marketers.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Book in a Boxby Tucker and Zach (co-founders), JT McCormick (CEO)

Book in a Box is a publishing service founded in 2015 that helps busy professionals and speakers write and publish books without spending years writing. By interviewing authors and converting their spoken content into professionally published books, they've grown to work with 500 authors in 2.5 years, generating $11.3 million in cumulative revenue with no debt or VC funding. They've scaled to 30 full-time team members and 100+ freelancers, averaging 25-30 new books per month.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Bancor Networkby Yael Hartzal

Bancor Network is a decentralized protocol built on Ethereum that solves liquidity problems between cryptocurrencies and tokenized assets through automated smart contracts. The project completed the largest ICO at its time, raising $153 million in just 3 hours on June 12, 2017, with over 12,000 token holders participating. The founder, Yael Hartzal, a 20-year veteran of tech entrepreneurship, emphasized the importance of humility and continuous learning while building a new financial ecosystem.

Otherword-of-mouthothervia Nathan Latka Podcast
Cameron Harald Consultingby Cameron Harald

Cameron Harald is a business growth consultant who coaches high-level CEOs and executives to scale their companies. Starting with a $80,000 annual retainer as his baseline fee (doubling for larger clients like Sprint's second-in-command), he has helped companies like Justix grow from $80 million to $250 million in revenue over four years. He also generates income through book royalties (50,000 copies of "Meeting Suck" sold in the first year), speaking fees ($30,000 per engagement, up from $7,500), and equity stakes in portfolio companies.

Agencyword-of-mouthsubscriptionvia Nathan Latka Podcast
Bugsnagby James Smith

Bugsnag is a B2B SaaS crash monitoring platform founded by James Smith in February 2013 that helps companies detect and fix errors in their software applications. After bootstrapping to profitability in 6-9 months with $4.5K MRR, they raised $9.5M in venture capital (Series A from Benchmark for $7.2M) and grew to 4,000 paying customers and 60,000 total users. The company has achieved over $2M ARR with healthy metrics including sub-1% logo churn and net negative revenue churn, growing primarily through word-of-mouth and freemium adoption.

SaaSword-of-mouthfreemiumvia Nathan Latka Podcast
Sideline Swapby Brendan Candon

Sideline Swap is a two-sided marketplace for buying and selling used and new sports gear founded in 2015 by Brendan Candon. The company grew from $400k in transaction volume a year prior to over $3 million in total lifetime transaction volume, with $2 million processed in the first seven months of 2017, growing 30% month-over-month through a flywheel of supply acquisition (15,000+ sellers) and demand generation (23,000+ buyers) powered by social media and influencer marketing. Brendan raised $3 million in total funding and built a team of 10, projecting $5-6 million in revenue for 2017 while maintaining an 80% average order value.

Marketplaceword-of-mouthcommissionvia Nathan Latka Podcast
Hirewireby Joe Wynn

Hirewire is a mobile-first marketplace connecting job seekers and restaurants/hourly employers, founded by Joe Wynn in 2015 after he sold his previous company Campus Special for $25M. In their first year beta in Atlanta (Jan 2016), they acquired 4,000+ employers, 100,000+ job seekers, and placed 20,000 people in jobs, with over 50% organic growth. They've raised $4.1M and charge employers $50-$100/month per location, expecting to reach ~$200k/month in revenue soon.

Marketplaceword-of-mouthsubscriptionvia Nathan Latka Podcast
Jumeo

Jumeo is a SaaS platform providing trusted identity verification services (ID verification, identity verification, and document verification) primarily for merchants in the sharing economy, fintech, and online gaming sectors. Founded in 2013 and led by CEO Stephen Stude since 2015, the company has raised $60 million and serves 350-400 customers across 40 countries with a 1,500-person team. Growing 46% year-over-year, Jumeo processed 26 million identity verifications in 2016 and is on track to exceed 30 million in 2017.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Riskalyzeby Aaron Klein

Riskalyze is a SaaS platform launched in 2011 by Aaron Klein that helps financial advisors align client portfolios with their actual risk tolerance using a quantitative "risk number" score. The company achieved $24M in total capital raised (mostly bootstrapped until late-stage institutional funding), serves 19,000+ paying financial advisors at $145/month base pricing, and maintains industry-leading 90%+ annual retention by focusing on solving the behavioral finance problem of investors making poor short-term decisions driven by fear and greed.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Stowaway Cosmeticsby Julie Frederick

Stowaway Cosmetics is a venture-backed direct-to-consumer cosmetics brand founded by Julie Frederick that creates right-sized makeup products (half the size and half the price of prestige cosmetics) targeting women who don't finish traditional full-size products. Launched in February 2015 after raising $1.5M in seed funding led by Gary Vaynerchuk and Metamorphic Ventures, the company has sold over 100,000 units in 18 months with impressive 40% repeat purchase rates and 80-90% gross margins through their DTC model.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
Tarka Indian Kitchenby Regina Pradam

Regina Pradam founded Tarka Indian Kitchen in 2009 as a quick-casual restaurant concept inspired by the success of chains like Peiwei, offering made-to-order Indian dishes rather than pre-prepared food. Starting with one location in south Austin, the business grew to five units by 2016 with average ticket sizes around $12 and healthy unit economics (27% COGS, 32% labor, 10-11% rent). Regina plans to double to ten locations across Houston, Austin, and San Antonio within 24 months.

Otherword-of-mouthothervia Nathan Latka Podcast
Coffee with Carissaby Carissa Hill

Carissa Hill built a Facebook marketing course teaching small businesses how to acquire customers through Facebook. After launching in February 2015 with $100k annual revenue, she discovered Facebook Live in June 2016 and dramatically accelerated growth, generating $105k in sales in one week and $180k in June 2016 alone. She now replicates her Facebook Live model across multiple partner groups, converting warm audiences at 50% rates.

SaaSword-of-mouthsubscriptionvia Nathan Latka Podcast
The Lice Placeby Cody Bradstreet

The Lice Place is a service-based franchise business that manually removes lice from hair without chemicals or pesticides. Cody Bradstreet purchased the first underperforming corporate location in Austin in October 2012 for approximately one year's Dell salary (from a base revenue of $50k), while maintaining her full-time job for two years. By 2015, she had grown the first location to $250k in revenue and opened a second location from scratch, now doing over $500k total annual revenue across both clinics with 11 employees.

Otherword-of-mouthusage-basedvia Nathan Latka Podcast
Shoes of Preyby Jodi Fox

Shoes of Prey is an e-commerce platform where women design their own custom shoes, founded in 2009 by three ex-lawyers (Jodi Fox, Michael Fox, and Mike Knapp). The company broke even in two months, reached multimillion-dollar revenue in under two years, and has grown to a global enterprise with over 6 million shoe designs, retail partnerships with David Jones and Nordstrom, and $24.6M in funding. 75% of traffic comes from word-of-mouth, with an average order value of $220 and team size of 220+ employees.

E-commerceword-of-mouthone-timevia Nathan Latka Podcast
EcoSafe Spacesby Lily Cameron

EcoSafe Spaces is a green design-build construction firm founded in 2007 by Lily Cameron and her husband, focusing on healthy, high-performance homes with exceptional energy efficiency. Operating in Austin, Texas, the company generates approximately $3 million annually by handling 2-3 large-scale custom builds per year at the $500,000+ range, using cost-plus contracts to maintain flexibility with clients. Growth is driven primarily through word-of-mouth referrals within Austin's environmentally-conscious demographic, with Lily balancing the business as a side venture while serving as Director of Project Management at Rackspace.

Otherword-of-mouthone-timevia Nathan Latka Podcast
Antonelli's Cheese Shopby Kendall and John Antonelli

Antonelli's Cheese Shop is a specialty cheese retailer and distributor founded in 2010 by Kendall and John Antonelli in Austin, Texas. Starting with $350,000 in first-year revenue, the business grew to $1.9M in 2015 through a multi-channel model combining retail sales, wholesale distribution to ~200 restaurants and chefs, subscription boxes, and events/catering. The founders built the brand on storytelling around artisanal cheese makers rather than making cheese themselves, allowing for a lifestyle business that supports travel and family.

Otherword-of-mouthsubscriptionvia Nathan Latka Podcast
Tiger Propby Max Corsi

Tiger Prop is a residential real estate brokerage founded by Max Corsi that disrupts the traditional model by rebating 20% of commissions back to buyers and standardizing professional photography/videography for all listings. Launched 2.5 years before this interview with ~$200-250k first-year revenue, the company grew 100% year-over-year to $800k in 2015 with 25 agents, while also opening a co-working space with gallery and coffee shop at their downtown Boise headquarters.

Otherword-of-mouthsubscriptionvia Nathan Latka Podcast
Skillbridgeby Salim Choudhury

Skillbridge was a curated marketplace connecting high-end management consultants with companies needing specialized expertise. Founded in 2013 and launched in 2014, the platform used intelligent matching algorithms to connect consultants based on demonstrated competencies rather than ratings. In March 2016, just under $500,000 in projects were posted on the platform, with an average project size of $5,000-$10,000, and the company was acquired by TopTal.

Marketplaceword-of-mouthusage-basedvia Nathan Latka Podcast
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