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WildBit

by Natalie NagelLaunched 1999via The SaaS Podcast
See all SaaS companies using word of mouth
Growthword of mouth
Pricingsubscription
Built in3 months (Postmark)
The Spark

Chris Nagel started WildBit in 1999 at age 19 after dropping out of college, initially running a web design consultancy with a developer in Romania. The business grew through the early 2000s doing flash sites for local restaurants and nightclubs. Natalie joined the team a few years later without a technical background, starting with QuickBooks and invoicing before gradually taking on more responsibilities. As they transitioned from web design to building social networks for clients, they spotted an opportunity: local marketing companies needed email newsletter solutions. Rather than outsource the work, they offered clients a deal—contribute a nominal amount toward development, and they'd get free access to the product forever. This experiment, called Newsberry, became their first foray into product, though it would eventually be shut down in 2011 despite generating around $75,000 annually.

Building the First Version

The real turning point came when Chris, managing many SVN repositories on the server, realized there had to be a better way. He asked friends locally in Philadelphia if they'd be interested in a product that hosted SVN repositories online and managed users through a web interface. Their response was unanimous: "You're crazy. Why would I give you my precious source code to put on the internet?" But Chris and Natalie had nothing to lose. They built Beanstalk while continuing consulting work, leveraging their consulting revenue to hire a developer in Russia—who remains with the company today—to work on the product part-time. The financial cushion from client work meant they could iterate without desperation. "We were making so much money in client work that we were able to hire somebody in Russia," Natalie explained. "We didn't have to rush to launch or chase money."

Finding the First Customers

Beanstalk launched at the perfect moment—when launching SaaS products was rare and noteworthy. Growth came almost entirely through word of mouth and strategic integrations. "People would use the tool, blog about it with their small following, and it would spread," Natalie said. "It became like a thing: 'Did you hear about Beanstalk? Did you hear about Beanstalk?'" They integrated with complementary tools like Basecamp (linking repositories to projects so commits would post updates) and Fogbugz (auto-closing tickets when referenced in commits). These weren't aggressive partnership pushes—they were symbiotic relationships where both products benefited from shared users. The word-of-mouth effect was amplified by the relative quietness of the market; there was no Product Hunt, no noise.

Postmark arrived three years later, born from pain within Beanstalk itself. Natalie handled support and constantly heard: "I invited my client and he never got the email." Chris would dig into server logs to investigate. Rather than accept this as a support headache, they built an entire transactional email product in three months. When Postmark launched, they made $6,000 in the first month—flooring the team. "We had Beanstalk as a perfect audience," Natalie said. "We just had an audience who loved Beanstalk and Wildbit, and we built them something they needed." DeployBot followed a different path. As GitHub, Bitbucket, and GitLab grew, they noticed customers hosting code elsewhere but still wanting Beanstalk's deployment tools. They spun out the deployment engine as its own product. "That one wasn't done for the right reasons," Natalie admitted. "We built that to make money, which is something I wouldn't recommend."

What Worked (and What Didn't)

Newsberry's failure in 2011 offers the most instructive lesson. Despite generating $75,000 annually, it felt like a distraction. The core issue: they built it without understanding their audience—marketers. "Marketing was a bad word to us," Natalie said. "We were so dogmatic and stubborn about things we didn't understand." When customers asked for holiday email templates, they refused: "You use our gray and blue template. It's foolproof." When customers wanted to drill into individual subscriber data, Natalie dismissed it: "It's bulk mailings. Why would you need that?" The product was profitable but philosophically misaligned. Chris and Natalie ultimately shut it down, prioritizing focus and cultural fit over revenue.

Postmark and Beanstalk succeeded because they solved real problems the team experienced. As Natalie reflected: "It wasn't like you sat in a room and brainstormed ideas about what product to build. It was more that we were already experiencing this pain." This philosophy informed their broader strategy. While conventional wisdom demanded focus on a single product, WildBit stayed "product agnostic." They built multiple offerings because the company was founded on the team first, products second. "If a product dies, the team doesn't die," Natalie explained. "We want WildBit around for the next 15 years. That means we hedge our bets."

Where They Are Now

With 26 employees—half in Philadelphia, half distributed globally—WildBit generates multi-million dollar revenue while remaining bootstrapped and profitable. The company's culture deliberately rejects startup orthodoxy. Employees work no more than 40 hours a week. Everyone in the Philadelphia office has a private office with a door. The homepage proclaims: "Most things are not urgent. Be patient. Stay calm. Go home." This wasn't idealistic posturing but hard-won insight. Early in WildBit's Philadelphia expansion, they rented 10,000 square feet for 12 people—an extravagance that proved essential when developers complained they couldn't focus in open offices and preferred working from home. Private offices solved the distraction problem.

Natalie credits this culture to influences like 37Signals' *Getting Real* and the team's evolution together. As people married and had children, the importance of life outside work became undeniable. "Our company's job is to enable us as individuals to have a really fulfilling life," she said. When incidents happen—service outages that hurt customer businesses—the team stays calm. "Nobody's going to die because we're down," Natalie reminds them. "So let's focus on solving the problem." This mindset fosters better decision-making than panic. The company measures success by a single metric: customer success. Revenue and profitability follow naturally. "We're not going to be profitable if we're not building things that solve true pain," Natalie noted. After nearly 25 years, WildBit remains a rare proof that you can build a valuable, profitable software business while respecting the humanity of your team.

Why It Worked
  • Building products to solve their own operational pain points (SVN repository management, email delivery) meant they deeply understood the problem and could iterate confidently without second-guessing market fit.
  • Maintaining a profitable consulting business provided financial runway that eliminated the pressure to monetize prematurely, allowing them to focus on product quality and organic growth instead of aggressive sales tactics.
  • Strategic integrations with complementary tools like Basecamp and Fogbugz created natural distribution channels where users of one product naturally discovered theirs, amplifying word-of-mouth in a pre-crowded-market era.
  • Their reliance on user-generated content and organic blogging created authentic social proof that was far more credible than paid marketing, turning early adopters into advocates who promoted the product within their networks.
How to Replicate
  • 1.Identify a specific operational bottleneck or pain point within your own business that you suspect other companies share, then validate that assumption by asking 10-15 people in your target market if they face the same problem.
  • 2.Maintain a profitable services or consulting business alongside product development to create a financial buffer that lets you prioritize product quality and sustainable growth over immediate revenue targets.
  • 3.Map out three to five complementary products used by your target customer and propose lightweight integrations that benefit both user bases equally, focusing on removing friction rather than heavy-handed co-marketing.
  • 4.Encourage and make it easy for early users to share their experience publicly by building a product worth talking about, then monitor blogs and forums where your target audience hangs out to amplify organic mentions.

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