Sep 9, 2022 · 20m · top-founders

$30k in MRR but wouldn't sell for $750k, would you?

Richard Miles · 9m spoken Nathan Latka · 7m spoken
0:00 / 0:00

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In this interview, SaaS founder Richard Miles discusses how his bootstrapped sales automation platform, Closem, scaled to $30,000 in monthly recurring revenue with 227% year-over-year growth. He details his multichannel direct mail strategy, the transition from lifetime deals to recurring subscriptions, and why he rejected early six-figure acquisition offers.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 43.7% of the talking time here. How this is scored →

Nathan as informed peer 6.0 Guest teaching 2.5 Guest disagreement 2.6 Nathan pushing back 5.0
05100:0010:0020:001:28–3:36 · Nathan as informed peer 4/10 Closem Overview: Multichannel Follow-Up and Postal Mail Feature Nathan introduces the guest, clarifies the business value proposition, and pushes Richard to explain postal mail capabilities. Richard explains how postal mail overcomes email inbox fatigue.3:36–6:47 · Nathan as informed peer 7/10 Technical Workflow and Address Verification for Direct Mail Nathan drills down on address verification mechanics, using his own magazine mailing process to challenge Richard's initial assertion that they cannot verify addresses. Richard acknowledges they bounce addresses against lookups.6:47–8:56 · Nathan as informed peer 6/10 Transitioning from Lifetime Deals to Monthly Subscriptions Nathan presses Richard to separate AppSumo lifetime deals from actual monthly recurring paying users, forcing Richard to refine his customer count from 1200 to several hundred.8:59–11:06 · Nathan as informed peer 8/10 Navigating Lifetime Deals and SaaS Activation Metrics Nathan lectures Richard on SaaS activation metrics and usage caps to monetize lifetime users. Richard pushes back on tiered pricing feeling like a bait-and-switch, but Nathan rejects the negative framing.11:07–13:16 · Nathan as informed peer 5/10 Expansion Products, Direct Mail Margins, and Revenue Growth Nathan quickly pins down the MRR numbers, margins on postal mail, and asks for historical growth metrics while Richard shares upcoming add-on products.13:16–16:24 · Nathan as informed peer 7/10 Lean Engineering Structure and Third-Party API Integration Nathan challenges how two engineers can maintain multiple new products and 20 integrations, exposing that the integrations rely on Zapier rather than direct builds.16:24–18:35 · Nathan as informed peer 8/10 Debate Over Product Focus and Target Market Positioning Nathan challenges Richard's broad product positioning and refusal to specialize, pointing out that broad messaging pits them directly against giants like HubSpot. Richard defends his position by saying users switch because HubSpot is too complex.18:35–19:37 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions and Personal Insights Nathan runs through the Famous Five rapid-fire questions, concluding with a recap of CloseEm's business metrics.1:28–3:36 · Guest teaching 3/10 Closem Overview: Multichannel Follow-Up and Postal Mail Feature Nathan introduces the guest, clarifies the business value proposition, and pushes Richard to explain postal mail capabilities. Richard explains how postal mail overcomes email inbox fatigue.3:36–6:47 · Guest teaching 3/10 Technical Workflow and Address Verification for Direct Mail Nathan drills down on address verification mechanics, using his own magazine mailing process to challenge Richard's initial assertion that they cannot verify addresses. Richard acknowledges they bounce addresses against lookups.6:47–8:56 · Guest teaching 2/10 Transitioning from Lifetime Deals to Monthly Subscriptions Nathan presses Richard to separate AppSumo lifetime deals from actual monthly recurring paying users, forcing Richard to refine his customer count from 1200 to several hundred.8:59–11:06 · Guest teaching 2/10 Navigating Lifetime Deals and SaaS Activation Metrics Nathan lectures Richard on SaaS activation metrics and usage caps to monetize lifetime users. Richard pushes back on tiered pricing feeling like a bait-and-switch, but Nathan rejects the negative framing.11:07–13:16 · Guest teaching 3/10 Expansion Products, Direct Mail Margins, and Revenue Growth Nathan quickly pins down the MRR numbers, margins on postal mail, and asks for historical growth metrics while Richard shares upcoming add-on products.13:16–16:24 · Guest teaching 3/10 Lean Engineering Structure and Third-Party API Integration Nathan challenges how two engineers can maintain multiple new products and 20 integrations, exposing that the integrations rely on Zapier rather than direct builds.16:24–18:35 · Guest teaching 3/10 Debate Over Product Focus and Target Market Positioning Nathan challenges Richard's broad product positioning and refusal to specialize, pointing out that broad messaging pits them directly against giants like HubSpot. Richard defends his position by saying users switch because HubSpot is too complex.18:35–19:37 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions and Personal Insights Nathan runs through the Famous Five rapid-fire questions, concluding with a recap of CloseEm's business metrics.1:28–3:36 · Guest disagreement 1/10 Closem Overview: Multichannel Follow-Up and Postal Mail Feature Nathan introduces the guest, clarifies the business value proposition, and pushes Richard to explain postal mail capabilities. Richard explains how postal mail overcomes email inbox fatigue.3:36–6:47 · Guest disagreement 2/10 Technical Workflow and Address Verification for Direct Mail Nathan drills down on address verification mechanics, using his own magazine mailing process to challenge Richard's initial assertion that they cannot verify addresses. Richard acknowledges they bounce addresses against lookups.6:47–8:56 · Guest disagreement 2/10 Transitioning from Lifetime Deals to Monthly Subscriptions Nathan presses Richard to separate AppSumo lifetime deals from actual monthly recurring paying users, forcing Richard to refine his customer count from 1200 to several hundred.8:59–11:06 · Guest disagreement 4/10 Navigating Lifetime Deals and SaaS Activation Metrics Nathan lectures Richard on SaaS activation metrics and usage caps to monetize lifetime users. Richard pushes back on tiered pricing feeling like a bait-and-switch, but Nathan rejects the negative framing.11:07–13:16 · Guest disagreement 1/10 Expansion Products, Direct Mail Margins, and Revenue Growth Nathan quickly pins down the MRR numbers, margins on postal mail, and asks for historical growth metrics while Richard shares upcoming add-on products.13:16–16:24 · Guest disagreement 4/10 Lean Engineering Structure and Third-Party API Integration Nathan challenges how two engineers can maintain multiple new products and 20 integrations, exposing that the integrations rely on Zapier rather than direct builds.16:24–18:35 · Guest disagreement 6/10 Debate Over Product Focus and Target Market Positioning Nathan challenges Richard's broad product positioning and refusal to specialize, pointing out that broad messaging pits them directly against giants like HubSpot. Richard defends his position by saying users switch because HubSpot is too complex.18:35–19:37 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions and Personal Insights Nathan runs through the Famous Five rapid-fire questions, concluding with a recap of CloseEm's business metrics.1:28–3:36 · Nathan pushing back 2/10 Closem Overview: Multichannel Follow-Up and Postal Mail Feature Nathan introduces the guest, clarifies the business value proposition, and pushes Richard to explain postal mail capabilities. Richard explains how postal mail overcomes email inbox fatigue.3:36–6:47 · Nathan pushing back 6/10 Technical Workflow and Address Verification for Direct Mail Nathan drills down on address verification mechanics, using his own magazine mailing process to challenge Richard's initial assertion that they cannot verify addresses. Richard acknowledges they bounce addresses against lookups.6:47–8:56 · Nathan pushing back 5/10 Transitioning from Lifetime Deals to Monthly Subscriptions Nathan presses Richard to separate AppSumo lifetime deals from actual monthly recurring paying users, forcing Richard to refine his customer count from 1200 to several hundred.8:59–11:06 · Nathan pushing back 7/10 Navigating Lifetime Deals and SaaS Activation Metrics Nathan lectures Richard on SaaS activation metrics and usage caps to monetize lifetime users. Richard pushes back on tiered pricing feeling like a bait-and-switch, but Nathan rejects the negative framing.11:07–13:16 · Nathan pushing back 3/10 Expansion Products, Direct Mail Margins, and Revenue Growth Nathan quickly pins down the MRR numbers, margins on postal mail, and asks for historical growth metrics while Richard shares upcoming add-on products.13:16–16:24 · Nathan pushing back 7/10 Lean Engineering Structure and Third-Party API Integration Nathan challenges how two engineers can maintain multiple new products and 20 integrations, exposing that the integrations rely on Zapier rather than direct builds.16:24–18:35 · Nathan pushing back 8/10 Debate Over Product Focus and Target Market Positioning Nathan challenges Richard's broad product positioning and refusal to specialize, pointing out that broad messaging pits them directly against giants like HubSpot. Richard defends his position by saying users switch because HubSpot is too complex.18:35–19:37 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions and Personal Insights Nathan runs through the Famous Five rapid-fire questions, concluding with a recap of CloseEm's business metrics.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 54.6% · guest 45.4%0:00 · Nathan 54.6% · guest 45.4%3:00 · Nathan 39% · guest 61%3:00 · Nathan 39% · guest 61%6:00 · Nathan 57.6% · guest 42.4%6:00 · Nathan 57.6% · guest 42.4%9:00 · Nathan 36.3% · guest 63.7%9:00 · Nathan 36.3% · guest 63.7%12:00 · Nathan 31.4% · guest 68.6%12:00 · Nathan 31.4% · guest 68.6%15:00 · Nathan 41.1% · guest 58.9%15:00 · Nathan 41.1% · guest 58.9%18:00 · Nathan 48.2% · guest 51.8%18:00 · Nathan 48.2% · guest 51.8%
Sharpest disagreement ▶ 18:01 Richard rejects HubSpot comparison and defends niche

Richard firmly rejects Nathan's critique that CloseEm is trying to be HubSpot, arguing that users flee HubSpot because it is bloated and expensive.

Hardest push from Nathan ▶ 16:24 Nathan confronts Richard over lack of product focus

Nathan aggressively challenges Richard for attempting to build a dozen features with just two engineers after three years at $30k MRR.

Biggest teaching moment ▶ 14:58 Richard clarifies integration architecture relies on Zapier

When Nathan assumes maintaining 20 integrations requires full-time engineering resources, Richard corrects him by explaining they route connections through Zapier and webhooks.

Nathan holds their own ▶ 10:20 Nathan outlines activation metrics and net retention models

Nathan counters Richard's critique of pricing tiers by articulating how modern SaaS companies utilize usage limits to drive 150% net retention.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Closem Overview: Multichannel Follow-Up and Postal Mail Feature 4312 Nathan introduces the guest, clarifies the business value proposition, and pushes Richard to explain postal mail capabilities. Richard explains how postal mail overcomes email inbox fatigue.
Technical Workflow and Address Verification for Direct Mail 7326 Nathan drills down on address verification mechanics, using his own magazine mailing process to challenge Richard's initial assertion that they cannot verify addresses. Richard acknowledges they bounce addresses against lookups.
Transitioning from Lifetime Deals to Monthly Subscriptions 6225 Nathan presses Richard to separate AppSumo lifetime deals from actual monthly recurring paying users, forcing Richard to refine his customer count from 1200 to several hundred.
Navigating Lifetime Deals and SaaS Activation Metrics 8247 Nathan lectures Richard on SaaS activation metrics and usage caps to monetize lifetime users. Richard pushes back on tiered pricing feeling like a bait-and-switch, but Nathan rejects the negative framing.
Expansion Products, Direct Mail Margins, and Revenue Growth 5313 Nathan quickly pins down the MRR numbers, margins on postal mail, and asks for historical growth metrics while Richard shares upcoming add-on products.
Lean Engineering Structure and Third-Party API Integration 7347 Nathan challenges how two engineers can maintain multiple new products and 20 integrations, exposing that the integrations rely on Zapier rather than direct builds.
Debate Over Product Focus and Target Market Positioning 8368 Nathan challenges Richard's broad product positioning and refusal to specialize, pointing out that broad messaging pits them directly against giants like HubSpot. Richard defends his position by saying users switch because HubSpot is too complex.
The Famous Five Rapid-Fire Questions and Personal Insights 3112 Nathan runs through the Famous Five rapid-fire questions, concluding with a recap of CloseEm's business metrics.

Statements from this episode (13)

Assertion Not checkable as stated
Miles: Closem costs customers an average of $99 per month
“It's a 99 bucks a month.”
Richard Miles Sep 9, 2022 ▶ 2:17
Assertion Supported
Miles: The average lifespan of an email is 17 seconds
“So the average lifespan of an email is 17 seconds.”
Richard Miles Sep 9, 2022 ▶ 3:34
Assertion Not checkable as stated
Miles: Closem soft launch generated $25k to $30k in sales
“I think we generated about I don't know somewhere around 25, 30,000 dollars in sales.”
Richard Miles Sep 9, 2022 ▶ 6:27
Assertion Not checkable as stated
Miles: Closem has over 1,200 customers
“Over 1200.”
Richard Miles Sep 9, 2022 ▶ 6:45
Assertion Not checkable as stated
Miles: Closem lifetime deal users generate revenue via in-app purchases
“They do pay us because we have other, other product, other products. In, in app purchases that they buy.”
Richard Miles Sep 9, 2022 ▶ 7:07
Insight
Miles: AppSumo launch provided rapid feedback that accelerated product iteration
“It was a good launch strategy for us because it gave us a lot of really good, very quick, hard feedback about, hey, it ought to do this and it ought to do this and it ought to do this. That really helped us iterate and get to the state that we're in today.”
Richard Miles Sep 9, 2022 ▶ 7:27
Disclosure
Closem has stopped selling lifetime deals on AppSumo
“We're not on that platform. We don't do lifetime deals anymore.”
Richard Miles Sep 9, 2022 ▶ 7:44
Insight
Latka: SaaS lifetime deals must cap usage at activation metrics to upsell
“The trick is you have to understand what your software what with the activation metric is. So if it's number of leads reached out to per month, the lifetime deal closes down once they hit a hundred and then you upsell once they break a hundred. But if you've g…”
Nathan Latka Sep 9, 2022 ▶ 10:02
Disclosure
Miles: Closem offered unlimited lifetime deals without tiered upsell caps
“We offered it as with unlimited and we didn't have this sort of like tier that was like, yeah, here's this really great lifetime deal, but it really kind of sucks and you got to pay us more money to get it.”
Richard Miles Sep 9, 2022 ▶ 10:20
Assertion Not checkable as stated
Miles: Closem is growing 227% year-over-year
“So we're about 227% ahead of last year.”
Richard Miles Sep 9, 2022 ▶ 13:03
Disclosure
Closem operates with five staff and two full-time engineers
“We have four or five, five and a half people. Neither my partner or I are technical. We have two, two great developers. yeah, those are full time.”
Richard Miles Sep 9, 2022 ▶ 13:27
Disclosure
Closem relies on Zapier and third-party tools for most software integrations
“That's via Zapier. Connect to Zapier. Yeah, or Connectly, or ConnectZit, or Pavly. So there's a whole bunch of folks who have been building integrations for our product and, you know, you can hook it up to anything.”
Richard Miles Sep 9, 2022 ▶ 15:11
Assertion Not checkable as stated
Miles: Many users switch to Closem from HubSpot over cost and complexity
“A lot of our users come to us from HubSpot because it's too complicated and too expensive.”
Richard Miles Sep 9, 2022 ▶ 18:21
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