DigitalMarketer

How Ryan Deiss Grew DigitalMarketer from Dorm Room to $100M Business

February 28th, 2025

Founded By

Ryan Deiss

Monthly Revenue

$833K

Founders

Employees

120 (est.)

Monthly Traffic

465K

Profitable

Yes

Year Started

1999

Customer

B2B & B2C

Revenue Per Visitor

$1.79

Founded By
Ryan Deiss: Monthly Revenue
$833K: Founders
1

Employees
120 (est.): Monthly Traffic
465K: Profitable
Yes

Year Started
1999: Customer
B2B & B2C: Revenue Per Visitor
$1.79

Who is Ryan Deiss?

Ryan Deiss is the founder of DigitalMarketer, and he began his entrepreneurial journey while studying at the University of Texas, where he created a simple website selling an e-book on making baby food. Over time, his expertise in digital marketing and keen understanding of online growth strategies allowed him to build a successful and expansive digital marketing business empire.

What problem does DigitalMarketer solve?

DigitalMarketer tackles the challenge faced by business owners and marketers who struggle to keep up with ever-evolving digital strategies. By offering straightforward, practical training and resources, DigitalMarketer helps its customers confidently execute effective marketing campaigns, saving time and money that might otherwise be wasted on ineffective tactics.

How did Ryan come up with the idea for DigitalMarketer?

Ryan Deiss, the founder of DigitalMarketer, identified a unique opportunity in the digital marketing space through a combination of personal necessity and market observation. As a student at the University of Texas in the late 1990s, Deiss was keenly aware of the dot-com boom and the growing potential of the internet as a business tool. With a pressing need to earn money during college, which became even more pronounced after deciding to buy an engagement ring, he taught himself web design and began exploring how to monetize digital products.

His first project involved creating a niche eBook on making baby food, which serendipitously aligned with growing online search trends. This early success cemented his belief in leveraging digital platforms for business, prompting him to explore further in the digital marketing realm. Through trial and error, and by capitalizing on a rapidly digitalizing world, Ryan eventually transitioned from product launches to a structured model focused on education, thus founding DigitalMarketer to provide comprehensive marketing training.

Deiss's journey wasn't linear; he faced setbacks like being quarter of a million dollars in debt, which taught him the importance of systems and sustainable growth. An experimentative mindset, coupled with a relentless focus on serving emerging needs in marketing, allowed him to refine his business vision over time, ultimately shaping DigitalMarketer into a prominent brand in the industry.

How did Ryan Deiss build the initial version of DigitalMarketer?

Ryan Deiss, founder of Digital Marketer, crafted his business with precision through specific methodologies and strategies. He poured over $15 million into testing marketing strategies, evolving through the digital marketing landscape. To create their content and advertising offerings, his team employed heavy split and multivariate testing, utilizing platforms like Facebook and Google for precise targeting. The tech stack they utilized involved a combination of email marketing tools, landing page software, and analytics platforms to drive and optimize campaigns. They also built their framework on lessons learned from countless tests and iterations over years, pivoting and scaling based on real data drawn from their growing audience. This iterative and analytical approach was challenging, with the necessity to adapt to shifting digital platforms and trends, demanding continuous innovation and resilience from the team.

What were the initial startup costs for DigitalMarketer?

Marketing Tests: Over the past 36 months, DigitalMarketer has invested more than $15 million into marketing tests, gathering insights to refine their approach.
Conferences and Events: Hosting the Traffic & Conversion Summit with over 5,000 participants annually incurs significant costs, though exact figures aren't shared.
Employee Costs: At one point, one of Ryan Deiss’s companies had to lay off 180 employees within months of appearing on the Inc. 500 list due to financial strain.
Transition to Subscription Model: In the shift from one-off product sales to a subscription model, DigitalMarketer faced cash flow challenges significant enough that the business nearly went bankrupt for four months, leading to unpaid wages for Deiss during that period.
Operational and Office Expenses: Prior to COVID, the company spent $80,000 a month on office space, which was later deemed unnecessary.

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

Content Marketing

DigitalMarketer effectively used content marketing to grow their business. They started focusing on creating high-quality, actionable content tailored to the needs of their target audience, digital marketers, and small business owners. This content was not just for their blog but also for their various digital platforms, such as YouTube and podcasts. They made sure their content served as a resource for digital marketing education, thereby attracting a large audience.

Why it worked: By providing free, valuable content, they established themselves as thought leaders in the digital marketing space, which attracted a large audience who trusted their expertise. This trust translated into sales when they offered paid products like training and certifications.

Paid Advertising

DigitalMarketer invested heavily in paid advertising, particularly on Facebook and Google. They refined a strategy where they used these ads to drive traffic to engaging content, rather than direct sales pages. This process included sophisticated retargeting methods, where they would follow up with visitors who interacted with their content but hadn’t converted, offering more value and eventually transitioning them into paying customers.

Why it worked: This approach allowed them to build a substantial retargeting list of warm leads. By initially leading with value through content, rather than a hard sell, they increased trust and conversion rates while lowering customer acquisition costs.

Community Building

A crucial aspect of DigitalMarketer's growth was their emphasis on building an engaged community around their brand. They launched initiatives like a membership program called the "Lab," which provided exclusive content and fostered connections among members through forums and events like the Traffic & Conversion Summit.

Why it worked: Communities create a sense of belonging and loyalty. Members not only continued to purchase and renew memberships but also became brand advocates, spreading the word to others about DigitalMarketer’s offerings.

Event Marketing

The establishment of the Traffic & Conversion Summit as a key annual event showcased DigitalMarketer’s strategies and brought thousands of marketers from around the world into one space. This event helped them strengthen their community, network with other industry leaders, and position themselves at the forefront of digital marketing innovations.

Why it worked: Events create a platform for deep engagement with the target audience. They not only serve as effective marketing tools but also boost credibility and brand loyalty among attendees.

What's the pricing strategy for DigitalMarketer?

DigitalMarketer employs a tiered pricing strategy with DigitalMarketer Lab starting at $95/month, offering diverse content and certifications, plus advanced tiers like Lab+ and Lab Elite for expanded resources and higher educational offerings.

What were the biggest lessons learned from building DigitalMarketer?

Execution Over Learning: Ryan Deiss emphasizes the importance of moving from learning to execution. It's essential to implement actions rather than get stuck in perpetual learning as a means of calling oneself an entrepreneur.
Simplicity in Systems: Instead of over-complicating processes with extensive checklists and SOPs, Deiss suggests focusing on essential elements that truly drive value. This keeps the team aligned and reduces unnecessary busy work.
Adapt and Innovate: By not just relying on tricks or short-term hacks, DigitalMarketer learned the importance of constructing solid marketing fundamentals such as gathering a pixeled audience or leveraging retargeting. This is crucial for sustaining growth even as market dynamics change.
Building Community is Key: A strong community around your brand not only supports growth but also helps in customer retention. DigitalMarketer emphasized creating value and fostering a sense of belonging among their user base, which helps in maintaining long-term customer relationships.
Iterative Feedback and Flexibility: Constantly seeking feedback from customers and adapting strategies accordingly has been a pivotal point in their success. This approach helped DigitalMarketer fine-tune offerings that align more closely with customer needs and expectations.

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