What were the early days of Weebly like?

In its early stages, Weebly experienced very slow user growth, with only 12 signups on its 'grand signup day' six months after development began. The founders worked intensely, even applying to Y Combinator with less than an hour to spare and eventually dropping out of college to pursue the startup.

How did Weebly overcome financial struggles?

Weebly faced significant financial hardship, at one point having less than $100 in their bank account and struggling to make rent. They eventually secured a $650k angel round and later emphasized the importance of reaching break-even, which they achieved 35 months after starting.

What kind of traction did Weebly experience?

Early traction was slow, with featured articles in publications like TechCrunch, Newsweek, and Time providing temporary boosts but not sustained growth. Real, linear traction began around 20 months in, and by July 2008, organic word-of-mouth growth surpassed the impact of media features, leading to 5,000 new users daily by February 2010.

What is the key takeaway for startup founders from Weebly's story?

The most crucial takeaway is perseverance: 'you can't succeed if you quit.' Weebly's story highlights that behind every 'overnight success' are years of hard work. Building a meaningful company often requires 7-10 years of dedication, emphasizing the importance of not giving up during difficult phases.

How successful is Weebly today?

As of March 2011, Weebly powers about 2% of active websites globally, and 15% of the US visits a Weebly site monthly. The company boasts a Net Promoter Score of over 80%, significantly higher than Apple's 67%, indicating strong customer satisfaction and recommendation rates.

Key Moments

David Rusenko at Startup School 2012

Y Combinator

Science & Technology6 min read19 min video

Oct 25, 2013|10,666 views|87|3

Y Combinator Weebly David Rusenko Startup School 2012 YC

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Key Moments

TL;DR

Weebly spent 35 months building a product before hitting break-even, but their nearly 80% Net Promoter Score is 13 points higher than Apple's.

Key Insights

Weebly secured a $650k angel round right before their bank account dipped below $100, with rent due in two weeks.

After nearly two years (20 months), Weebly finally saw its first real traction, with a linearly increasing rate of new users per day.

Weebly eventually hit break-even in January 2009, 35 months (nearly three years) after starting development, indicating a working business model.

By March 2011 (61 months in), 2% of active websites on the internet used Weebly, with 15% of the US visiting a Weebly site monthly.

Weebly's Net Promoter Score is over 80%, significantly higher than Apple's score of 67%, indicating strong customer loyalty and recommendation intent.

Launching a simple website builder was a decade-long endeavor

Weebly was founded in early 2006 as a class project at Penn State, born from the founders' observation that building a website was still too difficult. Six years later, David Rusenko, co-founder of Weebly, presented the company's journey at Startup School 2012, highlighting the significant challenges and unexpected turns. He showcased examples of diverse users – a photographer, an interior designer, and an 80-year-old ukulele maker – who successfully built professional-looking websites without coding. A particularly impactful example was a group of students who used Weebly to raise over $100,000 for an orphanage in Kenya, demonstrating the platform's potential for social good. This early success and vision laid the groundwork for what would become a long and arduous path to building a sustainable business.

Early progress was glacially slow

The initial development phase for Weebly was marked by extremely slow user acquisition. Six months after writing the first line of code (August 2006), they had only 12 new signups, primarily friends and family. By October 2006, after eight months of work, posting private beta invitations on forums yielded only 30 signups. This lack of immediate traction highlights the difficulty of gaining early users and the long development cycles often required for ambitious software projects. The founders' persistence is evident, as they continued development despite these discouraging early numbers, a testament to their belief in the problem they were solving.

A Y Combinator gamble and early office struggles

A pivotal moment arrived when Rusenko, browsing Slashdot two hours before the application deadline, decided to apply to Y Combinator. He applied without consulting his co-founders, Dan and Chris, guessing they would be willing to drop out of college and move to San Francisco. This impulsive application, combined with favorable timing—a TechCrunch article coincidentally breaking the same morning as their YC interview—led to their acceptance. The call from Paul Graham, informing Rusenko, "I'm calling to end your college career," marked the beginning of their entrepreneurial journey. They moved to San Francisco and began working intensely. By January 2007, eleven months into development, user signups had plateaued at less than 100 per day, and they were operating out of a cramped apartment, a stark image of early startup life where three desks were pushed together in the living room. They famously celebrated a milestone of 4 concurrent users.

Near bankruptcy and the struggle for funding

The journey was fraught with financial peril. By April 2007, 14 months into development, signups were not only stagnant but heading in the wrong direction. The team was finishing their Y Combinator program and desperately trying to raise funds from angel investors. At one point, their bank account held less than $100, with rent due in two weeks. They considered drastic measures like moving to a cheaper location to save $800 a month. Fortunately, they managed to secure a $650k angel round from investors like Ron Conway and Steve Anderson just in time. This period also illustrates how financing methods have changed, with a thick stack of paperwork for equity financing back then, contrasting with today's typically shorter convertible notes.

Media features provided temporary boosts, not sustained growth

Despite significant media attention, sustained growth remained elusive for a long time. Being featured in Newsweek around 15 months in, and later in Time as one of the 50 best websites of 2007 (18 months in), provided temporary spikes in user signups. However, these spikes were short-lived, often followed by a decline, as indicated by the signup graphs presented. This pattern underscores that while press can be valuable, it doesn't necessarily translate into long-term, organic growth without a strong underlying product and strategy. It also highlighted that by 18 months, the team, though naive, remained hopeful that they were solving a valuable problem, even with metrics not yet reflecting significant success.

The turning point: 20 months of development and the path to profitability

The tide began to turn around the 20-month mark after starting development. For the first time, Weebly saw its user acquisition rate increasing linearly, a significant sign of positive momentum. This period also revealed that word-of-mouth growth was outperforming major press features like TechCrunch, Newsweek, or Time. By July 2008, 29 months in, they moved into their first official office, though it was quickly broken into, with their TV stolen. Faced with dwindling funds in the fall of 2008, they began exploring revenue generation by launching Weebly Pro and selling domain names. A critical period followed where they meticulously mapped out bills against projected revenue to survive month-to-month, prioritizing payments that would prevent server shutdowns over those incurring late fees. This intense focus on survival ultimately paid off. In January 2009, a full 35 months (nearly three years) after starting, Weebly finally hit break-even, marking the beginning of a working business model and a profitable direction.

Scaling up and achieving market leadership

By February 2010, four years after starting, Weebly was experiencing significant growth, with daily new user signups reaching around 5,000, primarily through organic word-of-mouth. The earlier press mentions were now mere blips in comparison. In March 2011, 61 months in, they partnered with SEO capital to fuel further growth. By the time of the presentation (80 months, or almost seven years, after starting), Weebly commanded about 2% of all active websites on the internet, according to Netcraft. Fifteen percent of the US population visited a Weebly site each month. A key indicator of their success was their Net Promoter Score (NPS) exceeding 80%, significantly higher than Apple's benchmark of 67%, signifying exceptional customer satisfaction and loyalty.

The core lesson: Persistence is paramount

David Rusenko concluded his talk by emphasizing that success hinges on not quitting. He observed too many entrepreneurs giving up after launching a product, expecting immediate results. He stated that building a truly large and meaningful company requires 7 to 10 years of dedication. The Weebly story, spanning 80 months of development before reaching its presentation date, exemplifies this long-term commitment. Rusenko stressed that even in the early, unpromising days, pushing through by believing in the value of the problem being solved is crucial. The message is clear: marathon runners win, not sprinters, especially in the demanding landscape of startup building.

Mentioned in This Episode

●Software & Apps

●Companies

●Organizations

●Books

Weebly Startup Lessons

Practical takeaways from this episode

Do This

Work relentlessly, but take Saturdays off.

Push through difficult early days even when metrics aren't ideal.

Focus on solving a valuable problem.

Consider a 7-10 year commitment for building a meaningful company.

Continue working on a launch after the initial release.

Avoid This

Don't expect overnight success; prepare for years of work.

Don't give up easily after launching a product.

Don't underestimate the importance of organic growth.

Weebly Signups Over Time

Data extracted from this episode

Time Period	Months Since Start	New Signups Per Day
August 2006	6	12
October 2006	8	30 (Private Beta)
January 2007 (After YC)	11	<100
April 2007	14	Heading downwards
July 2007	15	After Newsweek feature (increased then decreased)
July 2007	18	After Time feature (going in wrong direction)
20 months in	20	First real traction, increasing linearly
July 2008	29	Significant daily users via word-of-mouth (exceeding media features)
February 2010	48	5,000 (Organic Growth)

Weebly Financial Status Over Time

Data extracted from this episode

Time Period	Months Since Start	Financial Status
April 2007	14	Less than $100 in bank account
July 2008	29	Revenue increasing, but runway for ~September/October
34 months in	34	Bank account balance low, unable to pay bills next month
January 2009	35	Hit Break Even, profitable direction
Current (80 months in)	80	Significantly positive bank account balance

Common Questions

Weebly is a user-friendly platform designed for individuals and businesses who want to create websites, blogs, or online stores without needing technical coding knowledge. It aims to provide a simple and powerful way for anyone to establish an online presence.

Topics

Technology & Innovation Business & Entrepreneurship Product Development Startup Growth Web Development Venture Capital Early Stage Startups Company Building Career & Skills

Mentioned in this video

Companies

Weebly

A simple and powerful website builder that allows users to create sites, blogs, and online stores without writing HTML or CSS.

Bose

A company whose noise-cancelling headphones are provided to Weebly employees to help with the noise in their open office plan.

A platform where students posted a Weebly website about an orphanage in Kenya, leading to over $100,000 in donations.

Apple

A company used as a benchmark for Net Promoter Score, which has a score of 67%, lower than Weebly's score of over 80%.

Y Combinator

A startup accelerator program that David Rusenko, Dan, and Chris applied to with less than an hour before the deadline, leading them to drop out of college.

Locations

San Francisco

The city where the Weebly founders moved to after being accepted into Y Combinator to start the program.

Organizations

Netcraft

A company whose public data is used to determine that Weebly powers about 2% of the active websites on the internet.

Sea Cliff Capital

A capital firm that partnered with Weebly in March 2011 to help grow the business.

TechCrunch

A tech publication that featured Weebly, influencing their Y Combinator interview and later reporting on their growth.

Software & Apps

Slashdot