#14 Interviews - Dmytro Krasun
Almost $4K MRR | Indie Bootstrapper |
I have been following Dmytro on Twitter for a while and really like his transparent tweets where he shared all of his ups and downs. Not like other founders who use their accounts as promotional material.
I would like to thank him for joining our series.
We talked about;
How did he start his journey,
Why did he focus on API projects,
How did he survive during the tough times,
The power of SEO,
Advice for other bootstrappers.
Posts of the week:
I think with the help of AI, we will see more bootstrapped companies and this can be a new trend or hype, I don’t know what to say. Anyway, a new video from YC has released which is all about vc-backed and bootstrapped companies.
Don’t miss the event of MicroConf at Atlanta, 21 - 23 April. Many many key speakers will be there, including Rob as well. Here is the link.
For those who live in Istanbul, I will host an event all about bootstrapping a SaaS company. There will be 3 bootstrapped founders who will share their experience with us. Here is the link and you have a special 50% discount. Code: INDIRIM50
Updates from my end:
Our newsletter reached almost 500 subscribers with an average of almost 50% open rate. And I am planning to have sponsorship part on my newsletter. For the early adopters the price will be 50$ per issue and 150$ per 4 issues. Reply this email if you are interested in.
For those who don’t know me, SaaStrappers is like my second project at the moment and I mainly concentrate on offering positioning & revenue operations consultancy services to early stages and seed SaaS companies with my partner. We have 20+ years of experience in that space and helped four companies to reach their $1M ARR. For my posts about positioning, you can follow me on LinkedIn.
So I have been following you for a while from Twitter and following your project - screenshotone. Can you give us some details about your background?
Thank you for having me and for the opportunity to speak. Yes, we have interacted quite a few times on Twitter. I remember you were building a project with landing pages.
So about me, it's a bit complicated. Let's start from my software engineering background first. I learned computer science in university about 10 or 11 years ago. After that, I worked as a junior software developer at various startups, gaining experience over 10 years. Two years ago, I decided to quit my job and try building my projects. I didn't have specific plans but felt it was the right time to take the leap. However, finding success took time and money. Although it was challenging, I don't regret it.
When I tried building side projects while working full-time, it was difficult to find energy and focus. So, I decided to quit and dedicate myself fully to building my projects. This decision coincided with the birth of my second child, which added to the complexity. In January 2022, I began exploring different ideas, engaging with communities on platforms like Twitter, IndieHackers, and Reddit. Initially, I tried to build an audience, following a popular trend, but it didn't resonate with me.
Instead, I decided to leverage my experience as a backend developer to build API products, which I found simpler. With a list of over 50 ideas, I randomly chose one related to APIs. Despite having no marketing skills and a small Twitter following, I launched my API product in May 2022. To support its launch, I also published articles describing related problems and solutions, aimed at improving SEO. Although this approach generated some traffic, it didn't lead to significant conversions.
In June 2022, I decided to promote my API across various platforms like IndieHackers, Reddit, Twitter, and LinkedIn.
While Product Hunt wasn't part of my initial launch strategy, I explored every avenue available to reach potential users.
Before that, Dmytro, I have another question. For that time, for June, and I guess you left your job, maybe 2021. You didn't mention that, but after you left your job, I mean, you were spending your savings, right?
Yes, indeed. After leaving my job, I had no income and relied solely on my savings. The situation was compounded by the fact that a significant portion of my savings was invested in the stock market, which was experiencing a downturn at the time. This created immense pressure, and I contemplated abandoning my entrepreneurial pursuit to return to traditional employment. In April, I even entertained job offers from promising startups, but I hesitated. If I had accepted, I feared I would never know the outcome of my project.
The looming economic uncertainty, coupled with global challenges, added to the stress. However, I resolved to give it another six months. If I couldn't secure any paying customers within that timeframe, I would return to the job market. The cost of living in my area for a family with two children was substantial like 5K - 7k dollars per month, making this experiment financially demanding. Despite the pressure, I decided to cast aside my fears and intensify my marketing efforts.
Then, in July, a breakthrough occurred. A Twitter friend working on a project for creators, became my first paying customer. It was a moment of immense joy, even though the subscription was just $7 per month. This modest transaction validated my efforts and provided a glimmer of hope. Encouraged by this initial success, I set a goal to acquire two paying customers by the following month.
With renewed determination, I continued to promote my API. By August, I had secured five customers, followed by ten in September. This gradual growth signaled that my venture was gaining traction.
How people find your solution and what did you do to promote your company?
Ah, this is a crucial topic. Initially, Twitter played a significant role. Many individuals building projects stumbled upon my API and decided to give it a try. Approximately 70 percent of my early traffic came from Google, both through organic searches and Google Ads.
Today, I rank second on Google for the key phrase "screenshot API," a position I've achieved through persistent SEO efforts. It took nearly two years to reach this ranking, and I anticipate climbing to the top spot in the coming months. While this visibility brought in revenue, it wasn't enough to cover my expenses, presenting both a blessing and a curse.
I had set a personal rule that having at least one paying customer would prevent me from returning to traditional employment. However, this mindset was flawed as the income wasn't sufficient to sustain me. Consequently, I gave myself another six months to intensify my efforts and generate more revenue.
During this time, I moved to Israel, where I continued to focus on growing my business. The six-month deadline pushed me to explore additional avenues for income. I decided to launch my product on Product Hunt, which provided valuable exposure and high-quality backlinks. The supportive community, particularly on Twitter, further boosted my morale and visibility.
The Product Hunt launch significantly increased my monthly recurring revenue (MRR) from $200 to $800, but I needed more to cover my expenses. I began taking on freelance jobs and consulting projects to supplement my income while continuing to develop and promote my product. Despite the challenges, I remained committed to building and improving my business while ensuring financial stability.
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So, at that time, were you also providing consultancy services to companies, or were you only focusing on the ScreenshotOne API? Or did you build anything else to earn money?
Around eight months ago, in March 2023, I started to feel the financial strain and decided to pursue additional income streams. I took on a consultancy project with a friend of a friend, which provided much-needed financial stability and reduced my stress levels. This allowed me to experiment further and expand my projects.
One of these experiments was Damn Good Tools, a collection of AI-powered tools that I developed for fun and to explore emerging technologies. The project gained traction and was even featured as the product of the day number two on several platforms, thanks to the supportive community. I eventually added payment features to Damn Good Tools, generating around $500 in revenue within two weeks.
As I experienced increasing support demands for ScreenshotOne, I took a break from work and went hiking in the Bulgarian mountains. Prior to this trip, I listed Damn Good Tools on various business-selling platforms, including Acquire.com, with a price tag of $9,500. To my surprise, I received multiple inquiries and offers to purchase the project during my hiking trip.
While tempted to sell Damn Good Tools, I ultimately decided against it because of my attachment to the project and the difficulty of managing multiple projects simultaneously. Although I entertained offers for ScreenshotOne as well, I opted to retain ownership, as the proposed prices didn't meet my expectations.
In the end, you did sell the project, correct? Would you be willing to share the price at which you sold it?
Yes, I eventually sold it for $9,500. I had spent about four months working on the project, including the time I devoted to other activities like hiking trips. In terms of actual time dedicated to building it, it was probably closer to two weeks to one month. For me, it was a significant sum that provided some relief and allowed me to alleviate some stress.
It was also an interesting experience because I had never sold a project before. I wanted to see if I could do it and understand how it would feel. Selling the project was a bittersweet moment. While it was a win financially, I also felt a sense of loss because the project had gained popularity within a niche community.
However, after receiving more support tickets for ScreenshotOne, I realized that selling the project was the right decision. I simply didn't have the time to manage two projects simultaneously. Now, I can focus entirely on ScreenshotOne and see how it continues to grow. Currently, my goal is to grow it to $10,000 in monthly recurring revenue (MRR). That's where I stand at the moment.
Currently, how much Monthly Recurring Revenue (MRR) are you generating through ScreenshotOne?
At the moment, it's around $3,700 MRR, give or take $100. Each month, it grows by about 10%. However, the growth is quite slow, which is my main concern. I'm hoping that within the next two months, I'll be able to reach the first position on Google, which should provide a significant boost.
I plan to capitalize on this by improving my landing page and dashboard to increase conversions. Additionally, I'll focus on enhancing stability and performance. If these efforts don't lead to reaching the $10,000 MRR milestone within the next six months to a year, I'll seriously consider either selling ScreenshotOne or exploring other side project opportunities to see how they fare.
I understand. So, currently, you're not tapping into your savings because the income from your freelance job and ScreenshotOne is sufficient to cover your expenses. This newfound stability must be quite reassuring for you. Does it also mean you have more confidence to explore new product ideas or invest further in your existing projects?
Yes, exactly. With the combination of my freelance work and ScreenshotOne's revenue, I'm feeling financially secure again. This stability allows me to entertain new ideas and conduct experiments without the pressure of immediate financial concerns. However, I aim to maintain consistency and thoroughly explore each idea before moving on to the next one.
Your journey certainly seems to emphasize the importance of self-discipline and taking action, even when you don't feel fully ready or perfect. It's interesting how you've learned to embrace opportunities like this podcast interview despite initial hesitation. Do you believe that taking imperfect action and consistently showing up can eventually lead to success, even if it means making mistakes along the way?
Absolutely. Taking imperfect action and consistently showing up is crucial for progress and success, in my opinion. It's about overcoming the fear of imperfection and failure and realizing that progress often comes through iteration and learning from mistakes. By consistently taking action, even when things aren't perfect, we create momentum and opportunities for growth. It's a journey of continuous improvement and adaptation, and sometimes the biggest lessons come from the mistakes we make along the way.
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