Baremetrics

How Josh Pigford Grew Baremetrics to $4M as a Side Project

December 12th, 2024

Founded By

Josh Pigford

Monthly Revenue

$333K

Days To Build

Founders

Profitable

Yes

Days To Build

Year Started

2013

Customer

B2B

Founded By
Josh Pigford: Monthly Revenue
$333K: Days To Build
7

Founders
1: Profitable
Yes: Days To Build
7

Year Started
2013: Customer
B2B

Who is Josh Pigford?

Josh Pigford, the founder of Baremetrics, hails from Mississippi and later settled in Alabama. Before founding Baremetrics in 2013, he spent about 15 years building over 50 projects and businesses in various domains from SaaS products to ecommerce.

What problem does Baremetrics solve?

Baremetrics solves the problem of SaaS companies fumbling with spreadsheets and manual calculations by providing clear, automated insights into key revenue metrics, helping founders focus on growth instead of data chaos. For businesses dependent on recurring revenue, not understanding metrics like MRR, churn, or LTV is stressful and error-prone, making Baremetrics a vital tool that turns overwhelming data into actionable business intelligence.

How did Josh come up with the idea for Baremetrics?

Josh Pigford's idea for Baremetrics emerged from his own frustrations. As a SaaS founder, he struggled to extract meaningful revenue analytics from Stripe, spending unnecessary time on calculations that were prone to errors. Recognizing this as a recurring struggle among his peers, Josh saw the potential for a solution not just for himself, but for other entrepreneurs dealing with similar issues. He understood that his own need wasn't unique and that others likely faced the same pain point, which validated the demand for such a tool.

Instead of conducting extensive market research, Josh took an intuitive approach. He built an initial version of Baremetrics in just seven days, focusing solely on the features he personally needed, thus ensuring a lean and focused minimum viable product (MVP). As he tweeted about his progress, other founders began to show interest, confirming his suspicions that the problem was widespread. This organic feedback loop helped Josh refine Baremetrics, making adjustments based on early users' input and ensuring the product addressed real, pressing needs within the startup community.

Josh's journey highlights key lessons for aspiring founders: the value of solving a real personal problem, the importance of validating an idea through direct user interest, and the willingness to iterate based on feedback. Despite challenges like technical hiccups and the pressure to scale, Josh's relentless focus on understanding and addressing customer needs propelled Baremetrics into a successful venture.

How did Josh Pigford build the initial version of Baremetrics?

Josh Pigford built Baremetrics by initially developing an MVP in just seven working days over the course of a month. The MVP was crafted as a side project to address his need for enhanced Stripe Analytics, focusing on metrics like MRR, Churn, and LTV. The MVP launched with only the essential features Josh required, making it a highly specialized tool at the onset. He utilized his skills in development without spending time on market validation, as his primary intention was to create an internal tool for himself. Building the product presented challenges, particularly with ensuring data import accuracy and server stability, but Josh navigated these hurdles by interacting directly with early users, gathering feedback, and iterating upon the product accordingly.

What was the growth strategy for Baremetrics and how did they scale?

Baremetrics initially gained traction by leveraging word-of-mouth marketing and social media. Founder Josh Pigford used Twitter to share his development journey and attract interest from other SaaS founders who faced similar challenges with revenue analytics. This method effectively reached targeted audiences who were already engaged with similar problems. The power of Twitter was evident as the first 100 customers came directly from Pigford's tweets. This approach was successful because it created an authentic connection, engaged the community, and demonstrated the product’s relevance.

Why it worked: The direct interaction on social media platforms created a personal connection with potential customers who were actively seeking a solution. Pigford’s transparency about his process built trust and piqued interest among SaaS entrepreneurs seeking reliable analytics tools.

Content Marketing

Content marketing became a significant growth channel as Baremetrics scaled. Josh Pigford wrote relatable and actionable blog posts, sharing insights into revenue strategies, common SaaS mistakes, and real case studies from Baremetrics’ own experiences. One particular blog post about FB Retargeting ad campaign success gained attention on platforms like HackerNews, directly contributing to an increase in monthly recurring revenue (MRR) as it resonated with the SaaS community and attracted those interested in improving their revenue analytics.

Why it worked: Baremetrics’ content marketing was informative rather than promotional, providing real value to the reader. This approach attracted readers by offering solutions to their problems, which in turn drove traffic and conversions.

Open Startup Initiative

The Open Startup Initiative became a pivotal strategy following a partnership with Buffer, a well-known SaaS company advocating for business transparency. Baremetrics showcased Buffer’s publicly accessible financial data on their platform, fostering a culture of transparency that appealed to other SaaS companies. This collaboration not only validated Baremetrics' credibility but also cemented its position as a leader in the “build in public” movement, attracting more customers who appreciated this level of openness.

Why it worked: By associating with a reputable company like Buffer and sharing transparent data, Baremetrics tapped into a larger trend within the SaaS community, appealing to businesses interested in transparency and data-driven decision-making.

What's the pricing strategy for Baremetrics?

Baremetrics pricing strategy includes tiered plans starting at $208/month, targeting SaaS businesses with scalable pricing based on MRR, and offering high-value add-ons like Recover.

What were the biggest lessons learned from building Baremetrics?

Embrace Transparency: Baremetrics thrived by making their metrics public, which not only built trust but also attracted a community eager to follow their journey. Transparency can turn customers into advocates and partners in your growth story.
Content is King: By focusing on content marketing, Josh Pigford effectively attracted and educated potential customers. Sharing actionable insights and real experiences can position you as an authority and drive organic growth.
Listen to Customers: Early on, Josh engaged directly with customers to understand their challenges and needs, leading to a complete product overhaul. Continuous feedback helps refine your product and build something truly valuable.
Solve Real Problems: Baremetrics' success stemmed from addressing a substantial pain point—accurate revenue analytics for SaaS businesses. Focusing on real, significant problems ensures demand for your solution.
Price Based on Value: Baremetrics' pricing strategy was rooted in the value it provided to businesses with significant revenue. Understanding your product's value to the customer allows for confident and appropriate pricing.

Baremetrics Acquisition: How much did Baremetrics sell for and what was the acquisition price?

Baremetrics was sold for $4 million in cash in 2023 after being developed by Josh Pigford as a side project to address SaaS companies' analytics needs.

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