How I’ve Built 5 Multimillion-Dollar Software Companies

hiten shah

Over the years, my co-founder and I have created three software companies: KISSinsights, KISSmetrics, and Crazy Egg. All three companies generate well over a million dollars in revenue and continue to grow at a rapid pace.

In addition to building three software companies, we’ve also bought two: Hellobar and Stride. Hellobar is worth over a million dollars. Stride doesn’t generate any revenue, but we recently received an acquisition offer from a Fortune 500 company for over a million bucks.

When we first started creating software companies seven years ago, not much information was available about what we should do. So, we learned by making mistakes. Luckily, we were able to figure things out, and our businesses thrived.

How to build a multimillion-dollar software company

Why should you have to learn by trial and error like we did?

Why can’t someone just teach you everything you need know about creating and running a software company from the ground up?

Someone can. I happened to know that someone very well.

My co-founder, Hiten Shah, is going to teach you everything you need to know about creating and running a software business.

Here’s what you will learn from him:

  • The processes we used to build five multimillion-dollar software companies.
  • How to find affordable developers and designers, how to communicate with them, and how to get them to build you saleable software.
  • The steps you need to follow to acquire customers on a consistent basis.
  • A high churn rate can kill a software company. Hiten will teach you how to keep customers longer.
  • The difference between free, paid, and freemium models and how to determine which one is right for you.
  • How to buy and sell software companies.
  • How to scale your software so it doesn’t break.

If you want to learn all of that and more, subscribe to Hiten’s newsletter. Or you can just enter your email below.

Subscribe to SaaS Weekly by Hiten Shah

Conclusion

I love being a software entrepreneur because it’s fun and profitable. Being one will allow you to sell your company for a large multiple.

If you go on sites like Flippa, you can buy a web-based business for 1 times yearly revenue. Software companies, on the other hand, sell for 4 to 10 times yearly revenue. I know those numbers sound crazy, but it’s the main reason I’m in the software world.

Plus, the margins on some of these businesses are tremendous. For example, one of my software companies has more profit per employee than Apple. Sure, we are nowhere near the size of Apple, but we generate enough money so I don’t have to work ever again (assuming I don’t blow my money on material things).

Take it from me: if you want to learn about running a software business, Hiten is your best bet. He advises companies like WordPress and Buffer. He also helped Slideshare grow to a point that it was bought by LinkedIn for over $100 million. He did the same for Webs.com, which was also bought for over $100 million.

So, are you ready to build a multimillion-dollar software company?

Comments

  1. Great stuff! I have subscribed to Hiten Shah stuff.

  2. Superb! I am in. Thanks Neil.

    I was actually searching one such person who can help me with such things.

    Thanks Again.

  3. Nikhil Waghdhare :

    Hey Neil,

    This information is great. I only know about your four major companies. Great to hear that these companies are worth a million dollars. Keep Going. Kissmetrics soon becomes a billion Dollar in valuation.
    Best of luck…… 😉

  4. Lewis - Marketing Bees :

    Spoiling us as per usual!

    Obviously subscribed up and ready to learn. I’m half way through the development of my first SaaS project and understand it’s going to be long, bumpy road but hopefully with success at the end of it.

    You both are a real inspiration and are where I’d love to be in several years time.

  5. Prateek Bansal :

    Thanks a lot for bringing something new and exciting on your blog. This is something which an entrepreneur like me always want to read 🙂

  6. Hi Neil,

    As I’ve come from a corporate software world after being there for more than 8 years, I consider an entrepreneurship in this field as a good option in some future.

    I guess, the stuff from Hiten will be interesting.

    Thanks!

    By the way, I remember a phrase from ‘The lean start up’ book. It was said (not precisely as I recollect), that there are possibilities to built almost any software, the point is if it is needed much enough to become a success.

    • Michael, there really are endless possibilities and applications for software. Looking forward to hearing your feedback 🙂

  7. Thanks Neil!

    I’m all for the evolution by osmosis model. Looking forward to the great tips and you earned every bit of your success because you are a living example of paying it forward.

    Much respect and kudos to your generosity (as well as Hiten) to build such strong communities.

  8. Nishant Bazzad :

    Hi Neil,

    I have subscribed to Hiten’s newsletter and it’s really gonna very fun to know that how you and Hiten build these 5 multi million dollar companies.

  9. 5 multi million dollar companies..whoa. Quicksprout has always been my favorite place to get SEO information and so is kissmetrics. Surprisingly, I was not aware of another Gujju partner of yours 🙁

  10. Randy Kauffman :

    Sign me up!

  11. Really Nice stuff ,many things to learn,just subscribed to Hiten. Thanks for sharing.

  12. Nice Inspirational article for all of us! thanks neil to share your experience with audience. 🙂

  13. I actually subscribed to this when I saw it on ProductHunt.

    I was under the impression it was a curated list of SaaS articles that he recommends. Is there an email course coming or something?

    • Some of it will be a list of other SaaS stuff, some of it will be his opinions, and others will be tips directly from him.

  14. This is just an opt-in to build his email list? Where is the article? If you subscribe it doesn’t send you anything.

  15. Great information and good reasons to earn fat revenue by being in the software world. Thanks for the post Neil!

  16. Hi Neil…

    Always i am big fan of you, here you are with one interesting stuff.

    me subscribed.thanks ..

  17. subscribed neil. great stuff.

  18. I am tired of saying it, yet it is worth repeating: You are a mind so ORIGINAL, a knack so rere, the ability to deliver on content that most find useful.
    Your best days are yet to come, keep churning content like this, it tickles our brain in the most creative way.
    Teddy Afro

  19. Thanks for this great information…Especially on sharing the flippa link…I have always wondered where to buy an already established online business.

  20. Thanks for sharing this Neil! I’ve read about Hiten and seen many success stories about him on the web. Great minds move together.

    I’m also in!

    Cheers,

    Ayodeji

  21. wow so much, respect ! This kind of posts do motivate me a lot ! thanks

  22. where i can read complete process for high traffic ..please share direct URL

  23. Neil,

    May ask a question? What capacities a person needs to have to actually build million dollar companies by following Hiten’s guidance? Investment? Idea? Technical skill?

    Thank you for the very inspiring posts.

    Placid.

  24. Thanks for sharing this Neil. I’m looking forward to some great tips from Hiten.

  25. Thank you for the motivational way in which you write.

    I have had a software company in Fiji for a number of years now (our customers are all over the world). I look forward to learning more from you and Hitesh.

    Sanjay

  26. I have been following your blog and your CrazyEgg product for over 2 years now. Love the knowledge you share and tools you have created.

    I believe my current project would greatly interest you and you brilliant business sense.

    It is a service that could improve your CrazyEgg user’s experience while at the same time drastically drop the over head costs of your data warehouse.

    Many congrats on your success! I am not including my project name or website because I am only here to introduce myself, not self promote my actual product to your audience.

    • Blake, great to meet you. Glad we could connect. Let me know if you need help with anything 🙂

      Shoot me an email with your project details!

  27. Zaheer Mohiuddin :

    Hi Neil,

    Thanks for featuring him as I find it relevant and have subscribed!

    Question: How did you find HelloBar to purchase and what led yo you purchasing them? I’d be interested in a post on this!

    Thanks for all the great content btw. I’ve grown one of my side projects to 6-figure yearly revenue with your help!

    • Zaheer, I was using it for a long time and realized it provided excellent solutions. I will definitely put a post together on Hello Bar 🙂

  28. SO inspiring post for me. I read everything you wrote on quicksprout.com and i love it. True Mentor for me! 🙂

  29. I have immense respect for these Gujjus, this statement is coming from a Singh.

  30. Looking forward for more tips 🙂

    Always something to learn in your post. And wow I was suprised by seeing the worth of the company.

  31. Superb! I am also in. Thanks so much Neil.

  32. Awesome stuff! I’m super interested in SaaS, I just haven’t found the right pain point yet. Looking forward to Hiten’s stuff.

  33. Christy Jackson :

    Your blog is much more valuable than those companies. I bet. 🙂

    You are awesome man.

  34. Thanks for the great post. I’ve been looking for some quality SaaS sites and email lists for some time, and haven’t found many. Subscribed right away to Hiten, and am looking forward to his emails!

  35. Hi Neil,

    Thanks for the post, just subscribed 🙂

    Cheers!

  36. I know its kind of weird to ask it here. But will you please suggest me a genesis child theme that is fast loading and seo optimized as yours is

  37. 30 Something Dude :

    Just subscribed to Hiten’s newsletter. Big fan o both you and him, what you’ve achieved is incredible. I’m astounded by the margins available in software companies so want to get on board this gravy train.

  38. Just subscribed to the newsletter.Thanks for this post Neil. You’re such a genius.

    Regards,

    Mich

    • Mich, thanks for signing up. Looking forward to your feedback 🙂

      • Neil,
        Thanks for sharing such a valuable article to us..It enrich our mind to become entreprenuers,…
        It created so much hope to us..
        After reading this having a confident to create a 10 multi-million dollar company..
        And i come to know the unknown site flippa…
        keep on updating…

  39. Subscribed. Sounds like an interesting newsletter.

  40. Daniel Obaike :

    Hi Neil,

    I’m all smiles first I learn digital marketing from your guides. Now I get to learn how to start build a multi million dollar software company From Hiten.

    Happily registered for the newsletter.

  41. Hi Neil,

    subscribed with hiten. always great to see your calm smile and got inspired. got few ideas but don’t know where and how to start. don’t have any mentor or co founder. wish me luck and good luck to both of you. you guy lucky to have each other. WTB

  42. You are a monster, Neil.

    The people who work really hard and over communicate usually succeed no matter what their platform is. You got that two amazing skills that made you what you are today.

    Keep rocking.

  43. Hello Sir.

    Your blog is just awesome…and so are you.

    We are a married couple from Mumbai, India and we are very keen on growing a successful blog and one day – hopefully, get to the stage where we can make some money from it, to keep the fires at home burning.

    We saw your post on the number of words to be written in an article, photos to use, videos to be put etc. So we went and clicked photos and shot videos..all you see on out blog is original stuff…taken by us.

    WE even wrote our first post…Yayyy…8,507 words…wow!!!!

    ALAS, we got not one visitor from this post, even though we used the right keywords.

    Surely we must have done something wrong.

    Can you please let us know what went wrong? We wrote such a big post, only after reading YOUR ARTICLE. And a you must know, writing such long posts, is not at all easy – at least not for us.
    AND, after writing such a long post, if one does not get any traffic, it is very de-motivating – as you must surely know – perhaps you had the same experiences when you started out?

    Can you please let us know, what we did wrong?

    Thank you and regards.

    Vee N Ric

    • Vee, Keep in mind you need to spend time promoting that blog post too. I think it’s great you wrote such a long post, but remember that length isn’t the only thing that matters. Write quality blog posts consistently… and promote 😉

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