How This Founder Grew a LinkedIn Tool to $10M in 20 Months
Who is Stefan Smulders?
Stefan Smulders, from the Netherlands, is the founder of Expandi, a LinkedIn automation tool. With a background in growth marketing, Stefan co-created Expandi after previously founding LeadExpress, inspired by challenges in effective lead follow-ups and the need for a more efficient LinkedIn engagement solution.
What problem does Expandi solve?
Expandi solves the problem of cumbersome LinkedIn outreach by automating and simplifying connection requests and engagement, transforming LinkedIn into a powerful and manageable lead generation tool for busy professionals and marketers.
How did Stefan come up with the idea for Expandi?
Stefan's journey to creating Expandi began with his background in non-technical and marketing roles. His initial challenge came from observing that a tiny fraction of website visitors engage meaningfully. This led to the creation of LeadExpress, an IP tracking software, which revealed to Stefan a pressing issue: users needed a better way to engage with identified leads. This insight was pivotal, prompting him to explore LinkedIn as a more effective channel for lead generation.
As Stefan delved into LinkedIn for lead management, he encountered limitations with existing tools, primarily Chrome extensions, that were cumbersome for scaling. Recognizing a gap in the market, he and his co-founder, Glenn, decided to develop a cloud-based solution designed specifically for debunked challenges with LinkedIn lead engagement, leading to the creation of Expandi. They validated their idea by recruiting beta users who struggled with lead follow-up, which not only proved the product's utility but also provided critical early feedback.
In the early days, Stefan and his team faced the financial challenge of bootstrapping their operation. To overcome this, they offered a discounted annual subscription to their initial users, providing them with essential funding for a broader launch. Through this experience, Stefan learned the importance of understanding user needs and validating demand before scaling a business. The direct user feedback also highlighted the necessity of educating his audience on how to effectively engage with their leads, which became a cornerstone of Expandi's strategy.
How did Stefan build the initial version of Expandi?
Expandi was built as a cloud-based LinkedIn automation tool, differentiating itself from competitors that relied on cumbersome Chrome extensions. Founders Stefan Smulders and Glenn Matic built the initial version in early 2019 with no coding skills from Stefan's side, focusing on a sophisticated architecture with dedicated IPs tailored to users' countries. The development of the first prototype involved several young developers working in a makeshift workspace, which proved challenging but validating due to the evident demand. Within a few months, the founders managed to secure 30 to 40 weekly appointments by engaging potential users directly on LinkedIn, using this as a proof of concept. The initial prototype took more than three months to develop, much longer than anticipated, due to the complexities of cloud infrastructure and ensuring safety against LinkedIn's automation restrictions.
How did Stefan launch Expandi and get initial traction?
LinkedIn Targeted Outreach
Expandi utilized highly tailored LinkedIn outreach to generate awareness and secure their first batch of users. They carefully targeted LinkedIn power users, particularly those in groups relevant to LinkedIn automation and marketing. By engaging with these users through personalized messages, they were able to leverage an existing network of individuals interested in LinkedIn tools.
Why it worked: By focusing on users already active in their niche, they ensured their messages reached people likely to be interested in their product, leading to higher acceptance rates and engagement.
Promotion Through Beta Offers
Before the official launch, Expandi offered beta access to target users with one-year subscriptions at a discounted rate. This encouraged early adoption, provided immediate feedback, and generated much-needed cash flow for product development and launch preparation.
Why it worked: This tactic created exclusivity and urgency, encouraging users to commit early and generating initial revenue to fund the business without resorting to external investments.
Strategic Content Distribution
Expandi focused on creating and distributing detailed playbooks and insights regarding LinkedIn outreach and automation. These weren't just blog posts but comprehensive guides demonstrating how to use LinkedIn effectively, which they shared across various online communities popular among potential customers.
Why it worked: The detailed and actionable content resonated well, positioning Expandi as a trusted expert in the field, while simultaneously pulling potential customers into their ecosystem and increasing brand awareness.
Metrics:
- They secured appointments with more than 315 beta users for initial feedback and testing.
- Successfully converted 60 beta testers into paying users with upfront subscriptions, raising around 50,000 euros for their global launch.
What was the growth strategy for Expandi and how did they scale?
LinkedIn Outreach
Expandi utilized LinkedIn as a primary channel for customer acquisition, leveraging its automation tool to enhance outreach efforts. They crafted detailed strategies or "playbooks" to automate many processes like sending connection requests and follow-up messages. By joining LinkedIn groups, they could message members without connection requests, effectively expanding their reach without spamming. Their strategy included scraping data on LinkedIn activities (like post engagements) to identify potential leads and employing personalized messaging techniques to engage these leads.
Why it worked: LinkedIn is a platform heavily used by professionals, making it ideal for B2B interactions. Expandi’s tool catered specifically to LinkedIn, allowing for highly targeted, personalized, and scalable outreach, which resulted in high acceptance and response rates upwards of 70%.
Content Marketing
Expandi focused on content marketing by creating value-packed playbooks and ebooks that detailed lead generation tactics on LinkedIn. These resources included practical examples and step-by-step guides for effective outreach. By distributing these resources across various channels, they managed to attract their target audience, which primarily consisted of growth marketers, agency owners, and sales teams.
Why it worked: The content served as both a valuable educational resource and a promotional tool, establishing Expandi's authority in LinkedIn automation. This trust-building tactic encouraged potential customers to try their solution, distinguishing Expandi from competitors who typically lacked educational content.
Micro-Influencer Partnerships
The company actively engaged with micro-influencers who were already writing about LinkedIn automation. They formed relationships without hard-selling, focusing instead on providing value and support, which led to testimonials and mentions in various influential circles.
Why it worked: Micro-influencers often have dedicated followings interested in niche areas like LinkedIn marketing. By aligning with them, Expandi leveraged authentic endorsements that increased their credibility and expanded their reach organically.
Community Building
Expandi cultivated a community on platforms like Facebook (LinkedIn Outreach Family), fostering engagement and gathering feedback. This community was a safe space for discussing strategies and refining their product based on user insights. They also leveraged their own LinkedIn profiles and interactions to guide community members into discussions and value exchanges.
Why it worked: Community building created a sense of belonging among users and potential customers, encouraging loyalty and word-of-mouth promotion. It also provided direct access to user feedback, which is invaluable for continuous product improvement and establishing authority in the field of LinkedIn automation.
What's the pricing strategy for Expandi?
Expandi offers a LinkedIn automation tool priced at $99 per month per user, focusing on cloud-based safety features to differentiate from competitors' Chrome extensions.
What were the biggest lessons learned from building Expandi?
- Be the Face of Your Brand: Stefan Smulders succeeded by using himself as the face of Expandi, building trust with users who appreciated the transparency, especially in an industry where anonymity was common. This approach enhanced customer connections and bolstered brand authenticity.
- Leverage Existing Communities: Expandi excelled by actively engaging in communities where their potential users were present, such as Facebook groups and LinkedIn. They distributed valuable playbooks to demonstrate the tool's potential and created a buzz without the need for traditional advertising.
- Adapt and Innovate: When LinkedIn implemented changes to limit spam, Expandi quickly adapted their tool and strategies to remain effective. This flexibility in response to platform changes was crucial for maintaining their competitive edge and continuing growth.
- Bootstrap Wisely: By forming strategic partnerships and using innovative funding methods, like offering annual subscriptions to beta users, Expandi navigated financial constraints without relying on external investments. This proved that significant growth is possible even with limited initial capital.
- Listen and Iterate: Feedback from users highlighted gaps in lead engagement strategies. Expandi pivoted from initially targeting the wrong audience to focusing on LinkedIn-savvy users, demonstrating the importance of listening to the market and being willing to shift focus.
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More about Expandi:
Who is the owner of Expandi?
Stefan Smulders is the founder of Expandi.
When did Stefan Smulders start Expandi?
2019
What is Stefan Smulders's net worth?
Stefan Smulders's business makes an average of $833K/month.
How much money has Stefan Smulders made from Expandi?
Stefan Smulders started the business in 2019, and currently makes an average of $10M/year.
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