How Ex-Corporate Engineer Jordan Hansen Grew a Profitable Data Mining SaaS
Who is Jordan Hansen?
Jordan Hansen, the founder of Cobalt Intelligence, hails from a software engineering background, having worked as a lead software engineer at Lenovo before discovering his passion for web scraping and data automation through freelance contracts, which eventually led him to establish the company.
What problem does Cobalt Intelligence solve?
Cobalt Intelligence helps businesses automate the cumbersome process of gathering and integrating public data, saving them time and effort in high-volume data search tasks.
How did Jordan come up with the idea for Cobalt Intelligence?
Jordan Hansen's journey to founding Cobalt Intelligence began with his work as a lead software engineer at Lenovo, where he first encountered web scraping through a contract job. This unexpected experience turned on a "lightbulb" in his mind, leading him to explore web scraping with more depth. Fascinated, Jordan began sharing his newfound knowledge via a blog dedicated to the topic, which allowed him to continually learn and uncover the potential of the data being extracted.
As his blog gained traction, Jordan found himself immersed in a community that valued his expertise, particularly within the merchant cash advance (MCA) industry. Here, he identified a gap in the market for automated data collection services, prompting him to contemplate entrepreneurship. Before fully committing, Jordan relied on this growing community for feedback, noted the increasing demand for solutions beyond tutorials, and recognized a business opportunity that aligned with his passion.
Faced with the decision to transition from a stable corporate job to founding a company, Jordan gathered two years' worth of savings, enabling him to make the leap without immediate financial pressure. Although initially reluctant to build a SaaS product after navigating the corporate SaaS environment's complexities, his personal drive and strong initial feedback led him to focus on creating an API that facilitated the automation and integration of public data. This decision was reinforced through involvement with Tiny Seed, which provided both financial support and a supportive network, helping him further refine his business approach and validate his ideas.
How did Jordan build the initial version of Cobalt Intelligence?
To build Cobalt Intelligence, founder Jordan Hansen focused on the specific development of web scraping and data automation technologies to create a suite of products for the finance industry, particularly in the Merchant Cash Advance (MCA) space. The initial focus on web scraping developed over a three-year period, evolving from Hansen's experience as a lead software engineer and his personal interest in data mining. He leveraged his expertise to create an API that automates the retrieval of public data from various state databases, significantly benefiting underwriting processes for customers in the finance sector. Hansen's development process included continuous improvements and maintenance of this API to ensure reliability and relevance. The experience was challenging but rewarding, as he had to balance acquiring new skills in areas like sales and financing while mastering the intricacies of data integration technologies.
How did Jordan launch Cobalt Intelligence and get initial traction?
Content Creation
Cobalt Intelligence initially got the word out through consistent content creation. Jordan Hansen, the founder, started a blog focused on web scraping, publishing one post per week for over a year. This eventually evolved into producing YouTube videos where he shared coding sessions and insights on automated data collection.
Why it worked: The consistent content helped establish Jordan as an expert in the niche field of web scraping and data automation. Over time, this built a dedicated audience who were interested in these topics, leading to customer inquiries and establishing credibility for Cobalt Intelligence.
Organic Outreach via YouTube
Jordan's YouTube channel became a crucial channel for acquiring initial customers. He created detailed videos, including extended coding sessions, which slowly but surely started gaining traction. Despite starting with only a few views, his perseverance eventually paid off as the audience started reaching out with requests for more specialized data solutions, which aligned with the services Cobalt Intelligence offered.
Why it worked: YouTube provided a platform for visual and engaging content that illustrated Jordan's expertise, drawing in potential customers interested in the capabilities of automated data tasks. As the channel grew, it directly fed into lead generation, leading to initial sales and recurring revenue testimonials that spurred business growth.
Direct Engagement and Networking
As the content drew in an audience, Jordan also actively engaged with inquiries that came his way, providing solutions to unique problems posed by viewers. Additionally, he participated in TinySeed, an accelerator program, which not only offered funding but also an invaluable network of fellow entrepreneurs and mentors.
Why it worked: Direct engagement allowed for personalized service that could specifically cater to customer needs, creating satisfied clients who could provide word-of-mouth referrals. The TinySeed connection provided a strategic boost in confidence and a pool of knowledge to help refine marketing and product focus, optimizing customer acquisition.
What was the growth strategy for Cobalt Intelligence and how did they scale?
YouTube
Cobalt Intelligence's founder, Jordan Hansen, initially leveraged YouTube to share insights and tutorials about web scraping, drawing an audience interested in data mining. The channel played a crucial role in generating initial traction and inquiries from viewers who were potential customers. However, over time, the focus drifted away from the core customers of Cobalt Intelligence, and despite reaching 8,000 subscribers, the content was more of a distraction than a business driver. Ultimately, Jordan decided to shift the content strategy to better align with potential customers' interests, focusing on those who would benefit from their data services.
Why it worked initially: YouTube allowed Jordan to build credibility and attract attention from individuals interested in data scraping and automation. However, the lack of alignment with the company's target market eventually necessitated a pivot in content strategy to maintain relevancy and generate valuable leads.
Content Creation (Blogging)
Jordan Hansen began writing a blog about web scraping three years ago, which served as a significant channel for building an audience and establishing Cobalt Intelligence's expertise in data mining. Regular content updates helped attract a consistent flow of visitors, some of whom later became clients. The blog's success illustrates the effectiveness of content creation in building authority and driving organic interest to a business.
Why it worked: By committing to regular content creation, Jordan showcased his depth of knowledge, which helped establish trust with potential customers. The blog also served as a longer-term SEO strategy to keep Cobalt Intelligence visible to those searching for topics around data mining and automation.
Partnerships and Networking
Cobalt Intelligence's involvement with the Tiny Seed accelerator provided not only funding but also a network of entrepreneurs and advisers, which proved invaluable for growth and formulating business strategy. This network supports founders in refining their products and identifying growth opportunities, leveraging communal knowledge and experiences.
Why it worked: Joining an accelerator like Tiny Seed offers both financial and mentorship support, creating a fertile environment for early-stage businesses to thrive. The network helps founders overcome challenges faster and provides access to advice that can significantly influence the business trajectory.
Customer Engagement and Expansion
Throughout the growth of Cobalt Intelligence, Jordan maintained a close connection with his audience and potential customers, continuously gathering feedback and incorporating it into their offerings. This customer-centric approach ensured the development of solutions that closely met the needs of the businesses using their data services.
Why it worked: Engaging directly with customers allows for better product-market fit and makes it easier to iterate on offerings that meet user needs. Listening to feedback and adjusting offerings accordingly leads to higher customer satisfaction and retention.
What's the pricing strategy for Cobalt Intelligence?
Cobalt Intelligence uses a subscription pricing model, starting at $1,000 per month for API access, catering to high-volume data automation needs in the finance sector.
What were the biggest lessons learned from building Cobalt Intelligence?
- Value of Automation: Cobalt Intelligence underscores the importance of automating mundane tasks. By developing an API for automating public data retrieval, they enabled clients to save time and reduce manual errors, highlighting how automation can streamline operations and improve efficiency.
- Overcome Security Challenges: The experience with SnapShooter demonstrated the critical need for robust security and reliable backup systems to protect against data breaches. It emphasizes the importance of being prepared for unexpected security challenges and having a plan to recover quickly.
- Community and Support Network: Involvement in the Tiny Seed accelerator showcased the value of being part of a supportive community. The network provided not only funding but also advice and encouragement, highlighting that entrepreneurship can be bolstered by shared experiences and guidance.
- Focus Over Virality: Jordan Hansen's decision to prioritize targeted content over viral reach with YouTube videos taught the lesson of focusing on the right audience. It's essential to align marketing efforts with business goals rather than chasing metrics that don't convert to revenue.
- Perseverance and Adaptability: Jordan's journey from a corporate engineer to founding a business shows how perseverance and the willingness to adapt skills to meet market needs can lead to entrepreneurial success. It highlights the importance of continued growth and learning throughout the entrepreneurial journey.
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More about Cobalt Intelligence:
Who is the owner of Cobalt Intelligence?
Jordan Hansen is the founder of Cobalt Intelligence.
When did Jordan Hansen start Cobalt Intelligence?
2018
What is Jordan Hansen's net worth?
Jordan Hansen's business makes an average of $/month.
How much money has Jordan Hansen made from Cobalt Intelligence?
Jordan Hansen started the business in 2018, and currently makes an average of .
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