Designmodo: Empowering Creatives with Easy-to-Use Web Design Tools
Company profile
Company business details
Strategies
Pre-Launch (Product Development & MVP)
Revenue Sharing Model
Andrian Valeanu, the founder of Designmodo, implemented a revenue-sharing model with his team to build the initial product. This approach allowed him to collaborate with partners who were willing to work on a revenue-share basis, which was crucial given his limited budget at the outset. By aligning the team's incentives with the success of the product, they were able to maintain high design quality and improve functionality, setting themselves apart from competitors.
Launch Stage
Content Marketing through Blogging
To attract users and grow Designmodo, Andrian focused heavily on content marketing by maintaining a blog with over 1,000 published articles. A few of their most popular free content pieces generated significant traffic and backlinks from high-authority websites, which improved their search engine rankings. This strategy proved effective in building a user base and establishing Designmodo as a reputable brand in the industry.
Growth Stage
Subscription Business Model
Designmodo transitioned from a one-time payment model to a subscription-based model, offering monthly, quarterly, and annual subscriptions. This shift allowed them to predict future revenue more accurately and plan investments in product development. The introduction of subscriptions significantly increased their revenue, with Stripe processing over 60% of their income, demonstrating the effectiveness of this business model in driving growth.
Maturity & Scaling
No-Code Tool Development
As part of their scaling strategy, Designmodo aimed to develop no-code tools for their applications, starting with the Postcards app for newsletter creation. This focus on no-code solutions was intended to broaden their user base by making their products more accessible to non-technical users. The goal was to update all their apps to be no-code ready, which would enhance user experience and drive further adoption.
Saturation & Retention
Continuous Reinvestment in Product Development
Andrian emphasized the importance of reinvesting profits back into the business to fuel growth. After experiencing a revenue crash, he pivoted to focus on developing new features and improving existing products. This strategy not only helped recover from the downturn but also positioned Designmodo for future success by ensuring that their offerings remained competitive and aligned with user needs.
