ghost

How Two Founders Grew an Open-Source Platform to $750K ARR

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About
Business

John O'Nolan

Founder, ghost

Founders

ghost

ghost.org

from Nashville, Tennessee, USA

started January 2013

Founders

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Starting Costs

$300K

Founders

Monthly Traffic

505,813

Profitable

Yes

Year Started

2013

Customer

B2B & B2C

Founders

Monthly Traffic

505,813

Profitable

Yes

Year Started

2013

Customer

B2B & B2C

Who is John O'Nolan?

John O'Nolan, the founder of Ghost, is originally from the UK and previously worked as a core contributor to WordPress. He pivoted from a freelance web designer to launching Ghost, driven by a passion for creating a modern publishing platform focused on journalism.

What problem does ghost solve?

Ghost solves the problem of bloated, outdated, or closed publishing platforms by offering a sleek, open-source solution specifically designed for journalists and publishers who need flexibility, control, and transparency.

How did John come up with the idea for ghost?

John O'Nolan, the founder of Ghost, came up with the idea out of a frustration with the current state of publishing platforms. He was an active contributor to WordPress but grew disillusioned as it transformed from a simple blogging platform to a complex CMS. John wondered what WordPress would look like if it were rebuilt with a modern focus purely on journalism and simplicity, without all the accumulated bloat.

He initially drafted his vision in a blog post, which quickly went viral, indicating a strong demand for an open-source, focused platform. This immediate traction validated his idea and spurred him to pause his freelance work to pursue it fully, relying on savings. Despite initial setbacks in finding developers, he partnered with Hannah Wolfe and successfully created a basic prototype.

To test the market willingness to fund the project, John turned to Kickstarter, which was still a novel avenue for software projects. The campaign's success, raising significantly more than expected, highlighted the resonance of his open-source, non-profit vision. This journey taught John the significance of market-specific insights, the importance of transparent communication, and the value of approaching business with long-term, purpose-driven goals.

How did John build the initial version of ghost?

Ghost was initially built through a collaborative and iterative process leveraging modern technology. The founders, John O'Nolan and Hannah Wolfe, started by developing a basic prototype using Node.js as the core foundation, which set it apart from older, more bloated CMS platforms like WordPress. The initial three-month development phase was challenging as many features in the MVP shown during their Kickstarter campaign were essentially mock-ups, emphasizing a focus on validating interest before committing to fully developing those features. Despite these challenges, they focused on building a real, functioning Node.js application with the intent of expanding and refining it post-Kickstarter success, where they managed to raise over $300,000. This approach, combined with Ghost's open-source philosophy, allowed them to release a platform that was fast, secure, and visually appealing, specifically designed to meet the needs of publishers and journalists.

What were the initial startup costs for ghost?

Crowdfunding: Ghost was launched with a $300,000 Kickstarter campaign to fund development.
Sponsorships: An additional $50,000 was raised in sponsorships after the Kickstarter campaign.

How did John launch ghost and get initial traction?

Kickstarter

John O'Nolan used a Kickstarter campaign to launch Ghost, a new open-source publishing platform. They set an initial goal of $30,000 for the campaign. Remarkably, they achieved this goal in just 11 hours. Over the course of 29 days, they raised approximately $300,000 from backers, and an additional $50,000 from sponsorships once the campaign ended.

Why it worked: Kickstarter allowed them to tap into a community interested in supporting innovative ideas, especially those that went against the grain, like an open-source platform focused solely on publishing. This approach provided immediate visibility and validation, enabling the team to kick off product development with a solid foundation of financial support and customer interest.

Blog Post & Mailing List

Before the Kickstarter campaign, John wrote a blog post that explained his idea for Ghost. This post went viral, particularly gaining attention on platforms like Hacker News. As a result, about 30,000 people signed up to a mailing list expressing interest in the concept and wanting updates on its progress.

Why it worked: The blog post acted as an initial spark that captured the attention of many who were dissatisfied with existing platforms. The subsequent mailing list sign-ups ensured that there was a ready audience to notify when the Kickstarter campaign began, translating initial interest into financial backing.

Community Engagement and Transparency

Throughout the process, Ghost maintained a transparent and open approach. They shared regular updates and involved their community in discussions about the platform's development. This transparency helped in building trust with potential users and kept the interest alive leading up to the product's launch.

Why it worked: By keeping potential users involved and informed, Ghost cultivated a sense of ownership and involvement among early supporters. This community engagement strategy meant loyal customers were ready even before the final product launch, ensuring early adoption and a steady growth trajectory.

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

Kickstarter

Ghost launched through a Kickstarter campaign, with an initial fundraising target set at $30,000. They exceeded this target quickly, ultimately raising $300,000. This campaign helped them generate significant interest and build a large, engaged audience that was invested in the product's development.

Why it worked: The Kickstarter campaign served as a validation of market interest, while also funding the initial development. It capitalized on the transparency and open-source nature of Ghost, resonating with backers who were looking for a new publishing platform that differed from existing options. The campaign created a community of early adopters that became invested in the platform's success, providing an immediate user base once the product launched.

Email Marketing

Ghost leveraged email marketing extensively, starting from John O'Nolan’s initial blog post. He managed to collect around 30,000 email addresses from interested readers. These email subscribers formed a ready audience that they kept updated about progress, product launches, and when the Kickstarter campaign went live. Post-campaign, the list expanded to nearly 80,000 subscribers.

Why it worked: By collecting email addresses from the get-go, Ghost ensured they had a direct line of communication with interested potential customers. This consistent engagement kept the community informed and engaged, transforming them into early adopters who were willing to back the product financially and eventually transition into paying users.

Community Engagement and Content Marketing

A viral blog post was pivotal in the early success of Ghost, with 250,000 views in one week, demonstrating the power and reach of content marketing. This initial traction was maintained through constant updates and engagement with the community via blogging and forums.

Why it worked: The blog post and ongoing updates provided transparency, fostering trust in the project. Regular, honest, and engaging content not only kept the audience informed but also built a relationship grounded in the shared goal of creating a superior publishing platform, differentiating Ghost as a community-focused endeavor rather than just a product.

Partnerships and Open Source Community

Ghost's open-source nature encouraged partnerships with various developers and organizations. Its codebase invited collaboration and improvements from the community, further popularizing the platform among tech-savvy users and organizations.

Why it worked: The open-source model attracted like-minded developers and organizations who saw the platform's potential and contributed to its growth and improvement. It led to its adoption by large organizations like NASA and Mozilla, which provided credibility and exposure, encouraging further adoption and contributions.

What's the pricing strategy for ghost?

Ghost employs a tiered pricing strategy, offering managed hosting plans ranging from $11 per month for personal use to $199+ per month for enterprise needs, making it accessible for varying customer segments while funding ongoing development as a non-profit.

What were the biggest lessons learned from building ghost?

Validate Before Building: Ghost's Kickstarter campaign showed the importance of validating demand before fully building a product. This ensured that there was a ready market, reducing the risk of failure.
Pricing Wisdom: Ghost learned that low-priced tiers often bring more trouble than value, leading them to raise prices for a better customer base. Always consider the type of customer your pricing attracts.
Adapt with Mistakes: Subcontracting crucial components in a different tech stack led to maintenance issues. Ensure your technology choices align with your long-term vision and skill set.
Focus on Core Strengths: By choosing to be a nonprofit, Ghost concentrated on creating a great product for users rather than maximizing profits, showing the power of mission-driven focus.
Remote Team Success: Emphasizing a distributed workforce allowed Ghost to hire top talent worldwide. Building strong communication and occasional in-person retreats proved vital for maintaining team cohesion.