#266 – Lessons Learned Building a $37k/mo Business in 2.5 Years with Mat De Sousa of WideBundle
Episode
38 min
Read time
2 min
Topics
Career Growth, Productivity, Remote Work
AI-Generated Summary
Key Takeaways
- ✓Problem Validation Before Building: De Sousa posted a Photoshop mockup in Facebook groups before writing code, asking if merchants wanted bundle functionality above the add-to-cart button. He received multiple requests for the app name immediately, confirming demand. This approach prevented wasting months building unwanted products like his previous three failed apps.
- ✓Conversion Rate Optimization Through Cohort Analysis: Using Mixpanel, De Sousa created two cohorts—users who paid after trial versus those who didn't. He identified that paying users clicked to preview how bundles appeared on their store, while non-payers skipped this step. Adding this preview to mandatory onboarding increased conversion from 7% to 40% over time.
- ✓Breaking Revenue Plateaus With Churn Focus: After stalling at $25,000 monthly revenue, De Sousa hired a marketer dedicated solely to understanding churn. They intercepted users in the dashboard via live chat to schedule calls, discovering patterns in who stayed versus left. Reducing churn from 30% to 25% immediately resumed growth by focusing on weaknesses instead of acquisition strengths.
- ✓Real-Time User Engagement Strategy: De Sousa's team receives Slack notifications when users enter the app dashboard, including tenure and revenue generated. They immediately engage via Crisp live chat to schedule discovery calls. This proactive approach overcomes the typical Shopify app problem where merchants rarely respond to emails, enabling direct feedback collection for product improvements.
- ✓Shopify App Advantages Over Traditional SaaS: Shopify handles payments and taxes automatically, eliminating infrastructure complexity. The app store provides free organic traffic without marketing expertise. Users don't enter credit cards during trials since Shopify already has payment information, and apps inherit Shopify's brand trust, significantly boosting conversion rates compared to standalone SaaS products.
What It Covers
Mat De Sousa built five Shopify apps generating $450,000 annually in just 2.5 years, growing from zero to $37,000 monthly revenue. He shares his validation process, conversion optimization tactics that increased trial-to-paid from 7% to 40%, and how tracking specific user behaviors through Mixpanel helped break through a $25,000 monthly revenue plateau.
Key Questions Answered
- •Problem Validation Before Building: De Sousa posted a Photoshop mockup in Facebook groups before writing code, asking if merchants wanted bundle functionality above the add-to-cart button. He received multiple requests for the app name immediately, confirming demand. This approach prevented wasting months building unwanted products like his previous three failed apps.
- •Conversion Rate Optimization Through Cohort Analysis: Using Mixpanel, De Sousa created two cohorts—users who paid after trial versus those who didn't. He identified that paying users clicked to preview how bundles appeared on their store, while non-payers skipped this step. Adding this preview to mandatory onboarding increased conversion from 7% to 40% over time.
- •Breaking Revenue Plateaus With Churn Focus: After stalling at $25,000 monthly revenue, De Sousa hired a marketer dedicated solely to understanding churn. They intercepted users in the dashboard via live chat to schedule calls, discovering patterns in who stayed versus left. Reducing churn from 30% to 25% immediately resumed growth by focusing on weaknesses instead of acquisition strengths.
- •Real-Time User Engagement Strategy: De Sousa's team receives Slack notifications when users enter the app dashboard, including tenure and revenue generated. They immediately engage via Crisp live chat to schedule discovery calls. This proactive approach overcomes the typical Shopify app problem where merchants rarely respond to emails, enabling direct feedback collection for product improvements.
- •Shopify App Advantages Over Traditional SaaS: Shopify handles payments and taxes automatically, eliminating infrastructure complexity. The app store provides free organic traffic without marketing expertise. Users don't enter credit cards during trials since Shopify already has payment information, and apps inherit Shopify's brand trust, significantly boosting conversion rates compared to standalone SaaS products.
Notable Moment
De Sousa discovered that 20% of his 25% monthly churn came from merchants who opened and immediately closed their Shopify stores, not from product dissatisfaction. This meant his actual controllable churn was only 5%, completely reframing how he approached retention strategy and revealing that COVID created temporary merchant inflation that normalized post-pandemic.
Episode Transcript
Hey. How's it going, Matt? Hey. What's up? Welcome to the show. Let me introduce you, Matt. You're Matt D'Souza. You are an indie hacker, and you tweeted on July, you tweeted, I built five Shopify apps, and it makes me over $340,000 a year, which is amazing. Yeah. It makes me more today. But, yeah, that was Oh, yeah. With what are the revenue numbers that are? How much? $450,000. Wow. Okay. Per year period. Yeah. Yeah. I see you on your Twitter profile now. You updated your bot. Yeah. Yeah. Exactly. Exactly. 37 k a month. How long did it take you to get there? It's crazy. Like, was this like if you've been working on these apps for, like, ten years? Yeah. Two years in in the health. Something like that. Because I started Two and a half years? Yeah. I started in May 2020, so that's it. Wow. That's amazing. Do you have, like, a team? Do you have business partners? Did you raise money? Like, how much is this you? How much are are you being helped? Yeah. So I started alone. So I was the only one in the project when I started. Six months in, maybe a bit less, I hired the first person because I didn't expect that growth. So basically, someone joined the team, but only for customer support. And so today we are five in the team. I have, like, two developers, one person for marketing and one person for customer support. And there is me, obviously, I'm doing everything. Doing all this in two years is insane. But I have to say that, I mean, the 340,000 to 400 and what, 50,000 between July what, like, six months to five months is really insane. Yeah. You just gave yourself a 100 k raise in five months. Yeah. But basically That's a big deal. That that was complicated because, you know, I had the the big growth, like, in the beginning, because in in something like six months, I went from 0 to 10 k per month. So, that was, like huge growth. And in less than a year, we were at 25 ks. Right. I thought I was going to reach like, well, I don't know, like 100,000 in two years or something like that. And the only thing is that I was stuck at 25, you know, and I didn't know what was like, what was happening and something. And once I found why I was stuck, you know, I started to grow again and we're growing. So that's cool. How did it feel to get to 25 so fast? I mean, going from, like, $0, you know, perhaps working for yourself Yeah. Working for others. And then suddenly, you know, you've got your own sustainable business that's, like, crushing it so quickly. Like, did your life change? Did your outlook change? Like, How did that feel emotionally to start making so much money on your own? Yeah. …
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Books, tools, and gear mentioned in this episode
SignalCast may earn commission on purchases via these links.
Tools
- CrispRecommended
by Crisp
“De Sousa's team receives Slack notifications when users enter the app dashboard, including tenure and revenue generated. They immediately engage via Crisp live chat to schedule discovery calls.”
- SlackRecommended
by Slack
“De Sousa's team receives Slack notifications when users enter the app dashboard, including tenure and revenue generated.”
- MixpanelRecommended
by Mixpanel
“Using Mixpanel, De Sousa created two cohorts—users who paid after trial versus those who didn't. He identified that paying users clicked to preview how bundles appeared on their store, while non-payers skipped this step.”
company
- ShopifyRecommended
by Shopify
“Mat De Sousa built five Shopify apps generating $450,000 annually in just 2.5 years. Shopify handles payments and taxes automatically, eliminating infrastructure complexity. The app store provides free organic traffic without marketing expertise.”
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