Mailchimp Was Never Meant to Be the Main Business
In 2001, Ben Chestnut and Dan Kurzius didn’t set out to build an email marketing empire. At the time, they were running a small web design agency called Rocket Science Group. Mailchimp began as a side project—a simple tool built for clients who wanted to send newsletters. It was just one of many services the agency offered, and for years, it flew under the radar.
Letting Customers Lead the Way
Chestnut and Kurzius noticed something interesting: their email tool kept growing. Clients preferred it over other offerings, and word-of-mouth referrals brought in more users. Rather than ignore this, they leaned into it. In 2007, they shut down their agency and went all-in on Mailchimp. That decision—pivoting from custom design work to product development—marked a key turning point in the company’s future.
Bootstrapped by Choice
Unlike most tech startups, Mailchimp never took outside funding. Chestnut and Kurzius chose to bootstrap the company entirely, growing it from customer revenue instead of investor capital. This gave them total control over the business model, product roadmap, and company culture. It also meant slower initial growth—but it allowed them to build sustainably, without pressure to scale too fast or sell early.
Focusing on Small Businesses, Not Big Brands
One of Mailchimp’s smartest strategic choices was staying loyal to small business users. While competitors chased enterprise clients, Mailchimp optimized for usability, low pricing, and design simplicity. Their freemium model allowed millions of entrepreneurs and startups to get started easily—and many grew into paying customers. This long-tail strategy gave Mailchimp massive reach across industries.
From Email to All-in-One Marketing
Over time, Mailchimp evolved beyond email. It introduced landing pages, CRM tools, automation workflows, and e-commerce integrations. The company rebranded itself as an all-in-one marketing platform—especially for businesses that couldn’t afford multiple tools. This product expansion helped Mailchimp stay relevant and defensible as competition increased from newer platforms and big tech companies.
Staying Private Until the End
Mailchimp remained independent and profitable for 20 years. In 2021, the company was acquired by Intuit for $12 billion in cash and stock—one of the largest deals ever for a bootstrapped tech business. Chestnut and Kurzius, who owned the vast majority of the company, proved that slow, strategic growth could pay off more than hyper-scaling through venture capital.
Conclusion
Mailchimp’s rise wasn’t fueled by hype or funding—it was built through patience, listening to users, and the courage to pivot. By turning a side project into their main business, and staying focused on serving small businesses with practical tools, Chestnut and Kurzius created one of the most successful SaaS companies of the 21st century. Their story shows that sometimes, the most powerful growth strategy is to follow what already works—and go all in.
