Email Hosting Service

4 Email Hosting Service Success Stories [2024]

Pat Walls

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Updated: October 8th, 2024

Thinking about entering the world of digital services? Consider starting an email hosting service. In simple terms, an email hosting service provides personalized email accounts for businesses, giving them a professional touch with custom domain names.

Setting up your own email hosting business involves investing in reliable servers, acquiring necessary software, and ensuring robust security measures. You stand to benefit from recurring revenue streams, as customers will require ongoing service and support. Given the increasing focus on cybersecurity and data privacy, this could be an opportune time to carve out your niche.

With businesses constantly in search of reliable, secure email solutions, there’s a steady demand for your services. If you’re tech-savvy and enjoy the idea of a subscription-based business model, email hosting could be an engaging and profitable venture to consider.

In this list, you'll find real-world email hosting service success stories and very profitable examples of starting a email hosting service that makes money.

1. Superhuman ($20M/year)

Rahul Vohra, the founder of Superhuman, identified the problem of email inefficiency through personal experience and professional observations while managing his previous company, Reportive. He noticed that productivity tools like Gmail were becoming increasingly sluggish and cluttered over the years, and that plugins to enhance functionality often exacerbated these issues. This frustration was shared by many high-volume email users, including venture capitalists and founders, whom Rahul interacted with regularly.

Realizing the opportunity for a better email solution, Rahul conducted extensive informal research, asking potential users about their email pain points and needs. He also capitalized on his firsthand knowledge and experience to envision a more efficient email client. To validate his idea, he continuously gathered feedback from initial users, iterating the product based on their insights.

Essentially, the process was driven by a mix of personal annoyance with existing tools, market validation through direct user engagement, and a continuous refinement loop. Early challenges included the technical complexity of integrating advanced features into a seamless user experience, which Rahul overcame by assembling a talented team and paying meticulous attention to design and performance. This iterative approach ultimately helped shape Superhuman into a tool that significantly enhances email productivity.

How much money it makes: $20M/year
How many people on the team: 130

How Rahul Vohra's Superhuman Scaled to $20M ARR

Discover how Rahul Vora took Superhuman from idea to $20M/year by solving email inefficiency with a high-speed, user-focused interface, securing $800K in seed funding, conducting 700+ user interviews, and leveraging viral growth strategies.

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Read by 79 founders

2. Fastmail ($6M/year)

Bron Gondwana, the CEO of Fastmail, came up with the idea for the business in 1999 when he noticed that existing email services were slow and cluttered with ads. He and the Fastmail team decided to create a premium email hosting service that prioritized speed, usability, privacy, and value for customers. Since then, Fastmail has grown and attracted a loyal customer base, with over half of its original paying customers still using the service today.

How much money it makes: $6M/year
How many people on the team: 40

How Our Focus On Quality Helped Us Reach $500K/Month With An Email Service In A Space Full Of Free Alternatives

Fastmail CEO shares how focusing on quality and respect for users' privacy helped the email hosting service reach $500k/month in revenue, along with insights on building a loyal customer base, developing innovative email protocols, and the tools and resources that have been critical to his success.

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Read by 11,935 founders

3. Thexyz ($1.8M/year)

Perry, the founder of Thexyz, initially started as a traditional French polishing shop but quickly realized the slow business during Toronto's summer months. To boost his business, he decided to design his own website and found that people were more interested in having him build their online presence. Reluctantly closing his shop, Thexyz was born on October 7th, 2007, and has since become a successful email hosting service.

How much money it makes: $1.8M/year
How much did it cost to start: $50K
How many people on the team: 30

I Built A $1.8M/Year Email Hosting Service [100% Self-Funded]

Thexyz is a self-funded email hosting service generating over $100k of recurring revenue each month, offering uncomplicated privacy and fantastic customer service, and expanding through international sales.

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Read by 4,135 founders

4. antoniarasheva3614 ($1.2K/year)

Antonia Rasheva, an artist and designer by heart but tourist by profession, tapped into her love for abstract art to start a custom fashion and home products business in 2015. Despite initial financial roadblocks, she constantly advertises on social media, aiming to turn a $100/month profit into a sustainable full-time venture.

How much money it makes: $1.2K/year
How many people on the team: 0

On Selling Custom-Designed Fashion And Home Products Online

This case study follows a Bulgarian artist and designer who sells custom products featuring her hand-painted designs, with an average monthly profit of $100, relying heavily on advertising via social media and offline to grow her business.

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Read by 5,291 founders