Why 200k Customers Pay SoloSEO Each Month
The story of SoloSEO begins way back in 2005. CEO Michael Jensen, along with business partner Aaron Stewart, founded the company as a means to "scratch their own itch": as two emerging internet entrepreneurs, they had difficulty driving traffic to their own websites.
SoloSEO was born to solve this problem. Today, they offer a set of do-it-yourself SEO tools for individuals and SMBs. They work directly with customers and have numerous strategic partnerships with web hosting companies. They strive to help anyone with a website that wants to rank higher by providing a plethora of tools to reach their SEO goals.
How much do customers pay for SoloSEO?
SoloSEO's offerings vary in price from $19 per month, up to $99. On average, they generate $20-30 per month from their pool of 200k paying customers. They currently generate $4M/month in revenue for an ARR of $48M.
After selling BlueHost to Endurance International Group (EIG), founder Danny Ashworth joined the SoloSEO team. Danny leveraged his relationship with EIG to create the first strategic hosting partnership for the company.
Ever since, partnerships have been a huge source of revenue for the company. SoloSEO pays their hosting partners anywhere from 50-60% of the monthly revenues to include their product as an upsell during registration flows,
How much is SoloSEO's churn annually?
According to Jensen, 65-70% of customers renew annually. Revenue growth has been relatively flat for the Seattle-based startup, coming in at 2-5% over the last 12 months. The team is looking for more strategic partnerships going forward to drive additional growth.
How big is SoloSEO's team size today?
Jensen and his founding team credit minimalism to their impressive ability to grow the company while bootstrapping. Today, the company remains lean with a small core team of just 12, including the 3 co-founders. Overall, most of the team is based in the Seattle area.
What's next for this extremely profitable startup remains to be seen. Jensen and the team remains open-minded about selling the company if the offer is right, but are not actively shopping. They also have not ruled out raising capital for the first time, if the right partner and strategy came along. Only time will tell which direction this team with go in.