Customer Funded Case Study: Carrd

Background

Carrd was created to provide a simple, free, and fully responsive one-page site builder for anyone who needs a quick and easy way to create a personal profile, landing page, or portfolio. The founder, AJ Kohn, saw a gap in the market for a tool that was both user-friendly and accessible to non-technical users, which led to the creation of Carrd.

» You can read why AJ started Carrd in AJ’s own words.

Basic Details:

• Founders: AJ (Alvin) Kohn

• Founded: 2016

• Time to first customer: Within a few months

• First customer source: Product Hunt and existing connections

• Industry: Website building tools

• Distribution model: B2C (Business to Consumer)

First Customers

Carrd obtained its first 10 customers primarily through Twitter and Product Hunt. AJ Kohn leveraged his existing connections and the community to gain initial traction. This early exposure helped Carrd attract its first users who were looking for a simple and effective website-building tool.

Leveraging Existing Networks

Freelance Clients and Previous Projects: AJ initially pitched Carrd to his freelance clients and cross-promoted it using his previous projects, such as HTML5 UP and Pixelarity. This approach helped him secure the first paying users, generating $100 in revenue.

Twitter Audience: Before launching Carrd, AJ had already built a substantial audience on Twitter by offering free HTML templates. This pre-existing audience played a crucial role in attracting the first 10-100 users to Carrd.

Strategic Launches

Twitter Launch: AJ planned to launch Carrd on Twitter first, leveraging his existing followers and network to gain initial traction. This strategy was effective in drawing attention to the new platform and securing early adopters.

Product Hunt Launch: Following the Twitter launch, AJ launched Carrd on Product Hunt, a popular platform for discovering new products. This launch was instrumental in reaching a broader audience and significantly boosting user acquisition. The first $1000 in monthly recurring revenue (MRR) came from this Product Hunt launch.

The Customer-Funded Approach

Carrd's sales and marketing approach was highly strategic and focused on leveraging community platforms and direct outreach. Here are the key strategies and tactics that helped Carrd get early customers:

1. Product Hunt Launch: Carrd's launch on Product Hunt was a significant driver of early customer acquisition. The platform's community of early adopters and tech enthusiasts provided immediate feedback and visibility.

2. Leveraging Existing Connections: AJ Kohn utilized his network to spread the word about Carrd. Personal recommendations and word-of-mouth played a crucial role in the initial user base.

3. High-Quality Templates: One of the keys to Carrd’s early success was the quality and clean design of its templates. AJ's extensive experience in creating website templates ensured that Carrd offered aesthetically pleasing and functional designs, which attracted users looking for simple yet effective site-building solutions.

4. Referral Program: Carrd implemented a referral program to incentivize existing users to bring in new customers. Users could join the program, receive a personalized referral link, and earn 30% on Pro upgrades and renewals made by those who used their referral link. This program helped in expanding Carrd's user base through the networks of its existing users.

5. Freemium Model: Carrd adopted a freemium model, allowing users to start for free and set up three simple sites. Paid upgrades were available for users who needed more features, starting at just $9 per year. This pricing strategy made Carrd accessible to a wide audience and encouraged users to upgrade as they saw value in the platform.

6. Unbeatable pricing: Carrd took a clever approach to hosting websites through static hosting that made their operating costs trivial. They passed those savings on to their end users and had a product other companies couldn’t possibly price that way. 

Key Milestones

• 2016: Carrd was founded by AJ Kohn.

• 2016 (within a few months): First customers acquired through Product Hunt and existing connections.

• 2017: Carrd reached profitability by maintaining a lean operation and focusing on customer-funded growth.

Lessons Learned

1. Leverage Community Platforms: Launching on platforms like Product Hunt can provide significant early exposure and feedback.

2. Utilize Existing Networks: Personal connections and word-of-mouth can be powerful tools for initial customer acquisition.

3. Focus on Profitability: Maintaining a lean operation and focusing on customer-funded growth can lead to early profitability without the need for venture capital.

By following these strategies, Carrd was able to quickly acquire its first customers and achieve profitability, demonstrating the effectiveness of a customer-funded approach in building a successful startup.

This post was created by combining existing resources, independent research, and my analysis to create a unique piece of content. I did not have first hand knowledge of any information and some things may be wrong. If I got something wrong, please let me know!