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The archive · Product Ideas · Product decision · 2016–2017

Canny turns its failed feedback community into a SaaS widget, hits ramen profitability

A public feedback community nobody would pay for becomes a $19/month widget for product teams, marketed by its own 'Powered by Canny' badge.

Canny

The ideaSell companies the machinery of the failed community: an embeddable widget that collects, tracks and ranks user feedback, with a 'Powered by Canny' badge as its ad.incremental

What it had to solve

The two founders, an engineer and a designer who had both worked at Facebook, started from their own itch: companies say 'thanks, we'll pass it on' and nothing happens. They built a public community where anyone could post and vote on feedback for any product; about 5,000 people used it, but retention was weak and product teams would not subscribe to feedback about their own products.

How it works

In 2016 Andrew Rasmussen and Sarah Hum, a couple who had worked at Facebook, were bothered by the same thing many users are: companies say they will pass feedback on, and nothing ever happens. Their first answer was a public community where people could post and vote on feedback for any product, in the hope that visible demand would force companies to listen. Around 5,000 people posted and voted on ideas for several hundred products, but the teams themselves never subscribed.

Interviews revealed the real problem was not indifference but chaos: product managers receive feedback in chats, emails and support tickets, and cannot keep track of it. The founders built a widget to help teams collect and organize feedback, and the first time a stranger paid $19/month for it they treated that as validation. Their pivot was deliberately cheap — they forked the community's code, re-marketed it as SaaS for product teams, and migrated the users they already had into the new paid product.

The launch sequence compounded the advantage: they soft-launched to existing users, ironed out the kinks, then launched on Product Hunt, where more than 350 companies tried Canny that week and dozens converted after the trial. Because the widget appeared on customers' own products with a 'Powered by Canny' mark, thousands of daily users saw it; the founders' strongest channel became organic traffic from people who encountered the tool as end users, not as advertising.

By October 2017, seven months after launch, the startup had reached what Rasmussen calls ramen profitability: revenue covered expenses and the founders' living costs. The pair had moved from San Francisco to Valencia, Spain to make it work on roughly $3,500 a month, and they published the full story with month-by-month MRR as a guide for other bootstrappers.

Why it lands

  • Interviews before more code showed the consumer problem was a business problem: teams wanted to listen, but feedback was scattered across chats, emails and tickets.
  • Charging $19/month to a stranger was the honest validation gate — willingness to pay proved the problem before they invested months in a pivot.
  • Forking the community platform turned sunk code and an existing audience of about 5,000 users into the new product's first users instead of starting from zero.
  • The visible 'Powered by Canny' badge made every customer's end users a marketing channel, and those users included exactly the PMs and founders who would later buy for their own products.
  • Delaying the Product Hunt launch until after a paid soft launch meant the launch converted an already-working funnel instead of merely testing whether the idea had legs.

What it did

Seven months after launch Canny covered its own costs and the founders' living expenses: monthly recurring revenue went from $0 in October 2016 to $100 in December, $1,000 by May 2017 and $3,500 by October, with nearly 100 paying customers and no outbound sales. Most months churn was zero, and the launch post drew 603 points and 165 comments on Hacker News.

Write-upOriginal story: bootstrapping to ramen profitability

What you can take

When a consumer fix stalls, look for the paying owner upstream: feedback-drowning teams bought the organizing tool, and visible attribution turned customers' users into the next leads.

Since then

At the October 2017 write-up Canny was nearing 100 paying customers with no outbound sales; the first $19/month customer was still subscribed a year later and most months had zero churn. The founders lived as digital nomads in Valencia so expenses stayed below the roughly $3,500 monthly revenue. The post drew a 603-point Hacker News discussion in which they answered questions about pricing, marketing and launching; next they planned to chase traffic through blogging, advertising experiments and free side projects.

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