← Back to browse

Scout

by Jordan CrawfordLaunched 2016-01-23via Failory
See all SaaS companies using seo
MRR$54k/mo
Growthseo
Pricingsubscription
Built ina few weeks
The Spark

Jordan Crawford had spent years working at tech startups, including as the first non-founder hire at Zinc.io where he helped grow the company to hundreds of thousands per month. Around 2014-2015, he and designer-engineer Zach started building consumer apps together—Sightings, Pushpin, and later Cursive. While these products showed traction (Sightings got 100+ organic downloads per day), none could be monetized. Selling to small businesses through in-person visits, cold calls, and emails proved fruitless.

Building the First Version

When they wanted to send personalized postcards as part of a marketing campaign for their web development business, they discovered no tool existed to do this. So they built one internally. Realizing other businesses might want the same capability, they spent a few weeks building v1 of Scout Studio and launched it to Product Hunt on January 23rd, 2016. The response was immediate: Scout became the #2 product of the day and closed more revenue in 24 hours than Cursive had generated in an entire year.

Finding the First Customers

After the Product Hunt success, Scout's early growth came from multiple channels. Marketing consultants began recommending Scout when clients asked about postcard campaigns, and referrals came through marketing Slack communities. Jordan also implemented a sophisticated cold email strategy with 22% reply rates—he would send highly personalized emails containing company-specific information and financial calculations based on data he had gathered.

What Worked (and What Didn't)

The biggest success driver proved to be SEO and organic discovery. Jordan invested heavily in programmatic SEO, creating glossary pages, postcard example collections with ratings and breakdowns, and pages targeting specific industries. A glossary launched a few weeks before the interview was already accounting for 4% of traffic. He also built pages around solar installer companies by converting public spreadsheets into ranked content. By April 2020, Scout was closing $54k in deals in a single month with solid margins. The model evolved from a self-serve drag-and-drop tool to a hybrid agency-plus-software business, where Scout runs 100% of campaigns for most clients while opening up the tool for self-serve users. Jordan noted that challenges included the "candy everywhere" problem—broad SEO traffic meant customers came from diverse industries, making it harder to develop deep vertical expertise. He also learned to collect payment upfront before running campaigns after earlier cash flow issues.

Why It Worked
  • They solved their own acute problem first (needing to personalize postcards), which gave them genuine product insight and credibility with early customers.
  • Product Hunt's #2 ranking on day one validated product-market fit immediately and generated enough revenue to prove the business model, eliminating the typical early-stage cash flow uncertainty.
  • Building an agency-plus-software hybrid allowed them to generate high-margin revenue while using client work to discover new features and use cases (like solar roof analysis via machine learning).
  • SEO and referral-based growth aligned perfectly with their target market—marketers and agencies actively searching for postcard solutions—creating a self-selecting customer base with high intent.
  • Personalized outreach grounded in customer research (22% reply rate) achieved dramatically higher conversion than the cold email and door-to-door strategies that failed for their previous product.
How to Replicate
  • 1.Start with a tool that solves your own painful problem before trying to sell it; this gives you months of real-world usage data and credibility that customers trust.
  • 2.If you have an existing audience or product, use Product Hunt as a launch vehicle early—the validation and initial revenue can buy you months of runway to refine the product.
  • 3.Build a hybrid business model where agency/service work funds product development and provides a continuous stream of feature ideas and use cases from real customer problems.
  • 4.Invest in programmatic SEO by identifying high-intent keywords in your niche and creating content (glossaries, examples, company-specific pages) that attracts customers actively searching for solutions.
  • 5.Use personalized outreach that demonstrates you've researched the prospect's business and done calculations or analysis specific to them; generic cold email will be ignored, but relevant insight drives replies.

Similar Companies

247.ai

$25.0M/mo

247.ai, founded by PV Cannon in 2000, is an AI-powered customer service automation platform serving over 150 enterprise customers with $300M+ in ARR. The company raised only $20M from Sequoia (2003) and bootstrap, achieving 10% net profit margins while maintaining a 12-month CAC payback period and 100% net revenue retention. Despite a security breach setback around 2018, 247.ai has recovered and recently achieved 20% new revenue booking growth in their best quarter.

iCIMS

$13.3M/mo

iCIMS is a bootstrapped SaaS provider founded in 1999 that dominates the talent acquisition software market as the #2 player, serving 3,500 enterprise customers with an average monthly spend of $4,000. The company exited 2017 with $160M ARR and is targeting 25%+ annual growth while maintaining profitability, recently acquiring Text Recruit to expand into candidate messaging and recruitment advertising.

Zoom

$12.0M/mo

Zoom is a freemium SaaS video conferencing platform founded by Eric Yuan in July 2011 after he left Cisco to build a next-generation collaboration solution. The company has grown to 850,000+ paying customers across individual, SMB, and enterprise segments, generating over $12M in monthly recurring revenue with approximately 100% year-over-year growth. Rather than focusing on customer stickiness or aggressive growth targets, Zoom emphasizes customer happiness and organic word-of-mouth acquisition, which has proven highly effective in driving viral adoption.

Madwire

$10.0M/mo

Madwire is a comprehensive SaaS platform for small businesses (1-100 employees) that combines CRM, payments, invoicing, billing, e-commerce, and multi-channel marketing tools in a single platform. Founded in 2009, the company has grown to $120M ARR serving 20,000 customers with an average revenue per user of $500/month, while maintaining strong unit economics ($3,000-$4,000 CAC with 3-month payback) and recently turning profitable with a focus on reaching 15-20% EBITDA margins. The company is exploring an IPO within 12-18 months without having raised substantial capital beyond an initial $7.5M.

SwiftPage

$7.0M/mo

SwiftPage is a CRM and marketing automation platform founded in 2001 that targets small businesses. Under CEO John Oshel's leadership since 2012, the company scaled from 60,000 customers with $26.2M revenue in 2015 to 84,000 customers today with an estimated ARR of $36M+, maintaining 1.5% monthly logo churn and a 6-7 month payback period with a sub-$500 CAC.

Related Guides