How Loom grew to $50,000,000/year (1 billion dollar exit)

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Hey, hey - it’s Mike! 😁

Loom recently exited for nearly 1 billion.

Yes, that’s with a B 🤑

How did this little Chrome extension grow to $50,000,000/year, starting 8 years ago with ZERO revenue?

Let’s break it down!

• Crucial Pivots

• User Feedback

• FOMO marketing

• Viral features

• Viral Loop Marketing

TLDR: watch the video!

1. Crucial Pivots

Loom actually pivoted twice.

2015: It launched “Opentest” as a usability tool (but did not find users)

2016: Rebranded into Openvid with the 1 feature from Opentest that did find some common ground with users: their video recording tool.

Within 24 hours, they gained over 3000 new users.

Only 1 problem.

A lot of those users thought of it as a “nice to have”

In SaaS, you don’t want to be a “nice to have” since you want to solve real-world problems.

To find the real problems to solve, they used strategy 2.

2. User Feedback

After talking to a lot of users, they quickly found a group that was willing to pay for a solution: remote workers looking to communicate better with their teams.

They refined the product and made a major shift in positioning and strategy since they would now focus on remote workers.

In 2017, they then pivoted into Loom.

Based on new user feedback, they build new features that make the product worth paying for.

The Chrome extension was, by far, the most important one.

3. FOMO Marketing

If you’ve been using Loom before, you probably know the famous “Your video has been viewed” notifications.”

This is actually one of the best FOMO marketing implementations I’ve seen.

It always triggers me to click through and thus come back to my Loom dashboard.

Thus, I stay familiar and connected to the brand and product.

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4. Viral features

Loom’s product team is one of the best in terms of building viral features.

I especially love their video speed control.

It literally shows you how much time it will cost you to watch, which I think is just brilliant.

Watch the video for more viral features.

5. Viral Loop Marketing

To make sure they get lots of new users to sign up without spending too much on marketing, they created a viral loop.

Loom acquires lots of new users through its actual products and simply because of the URLs that its users share.

These strategies, combined with just an awesome product, resulted in the rapid growth of Loom (and a nearly billion-dollar exit).

Cool, right?

Liked this? Forward to a friend! 🙌

Mike
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