How Keith Perhac Went From Agency Hack to Seven-Figure SaaS
How Keith Perhac Went From Agency Hack to Seven-Figure SaaS
Dec 27, 2024
Keith Perhac
Keith Perhac
⏳ 6.4 min
⏳ 6.4 min
Revenue/month
Revenue/month
>$100,000
>$100,000
>$100,000
No. of founders
No. of founders
1
1
1
Startup costs
Startup costs
N/A
N/A
N/A
Company type
Company type
Company type
Saas
Saas
Saas
Contents
About the Founder
About the Founder
Keith Perhac didn’t set out to build a SaaS company. He stumbled into it, armed with a mix of curiosity, technical skill, and a knack for recognizing opportunities. Today, SegMetrics—his marketing analytics tool—generates low-to-mid seven figures in annual revenue. Here’s how he turned an internal agency product into a thriving SaaS.
Keith’s journey began in an unlikely place: teaching English in Japan. Graduating during the first dot-com bust, he found limited job opportunities in the U.S. and decided to move abroad. What started as a one-year adventure turned into 15 years, during which he got married, worked as a Japanese salaryman, and eventually discovered his entrepreneurial streak.
A pivotal figure in his story was his friend Patrick McKenzie. Patrick’s encouragement pushed Keith to leave his corporate job and start freelancing. What began as technical marketing freelancing grew into a consultancy, which later evolved into a conversion rate optimization (CRO) agency.
The agency specialized in helping data-driven clients. However, one recurring challenge stood out: they were spending more time generating reports than crafting marketing strategies. This inefficiency planted the seed for what would become SegMetrics.
Keith Perhac didn’t set out to build a SaaS company. He stumbled into it, armed with a mix of curiosity, technical skill, and a knack for recognizing opportunities. Today, SegMetrics—his marketing analytics tool—generates low-to-mid seven figures in annual revenue. Here’s how he turned an internal agency product into a thriving SaaS.
Keith’s journey began in an unlikely place: teaching English in Japan. Graduating during the first dot-com bust, he found limited job opportunities in the U.S. and decided to move abroad. What started as a one-year adventure turned into 15 years, during which he got married, worked as a Japanese salaryman, and eventually discovered his entrepreneurial streak.
A pivotal figure in his story was his friend Patrick McKenzie. Patrick’s encouragement pushed Keith to leave his corporate job and start freelancing. What began as technical marketing freelancing grew into a consultancy, which later evolved into a conversion rate optimization (CRO) agency.
The agency specialized in helping data-driven clients. However, one recurring challenge stood out: they were spending more time generating reports than crafting marketing strategies. This inefficiency planted the seed for what would become SegMetrics.
Building SegMetrics
Building SegMetrics
SegMetrics started as an internal solution to streamline reporting and analytics for Keith’s agency. It saved time and provided more accurate insights, but its potential became evident when clients began requesting access. What started as a simple tool morphed into a standalone product with user logins and billing features.
By 2020, SegMetrics had outgrown the agency. Keith made the bold decision to shut down the consultancy and focus entirely on the SaaS. Joining TinySeed, an accelerator for bootstrapped startups, solidified this transition and set the stage for growth.
SegMetrics started as an internal solution to streamline reporting and analytics for Keith’s agency. It saved time and provided more accurate insights, but its potential became evident when clients began requesting access. What started as a simple tool morphed into a standalone product with user logins and billing features.
By 2020, SegMetrics had outgrown the agency. Keith made the bold decision to shut down the consultancy and focus entirely on the SaaS. Joining TinySeed, an accelerator for bootstrapped startups, solidified this transition and set the stage for growth.
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➤ Every week, we dig up stories of how regular people started and grew their businesses—
➤ Plus the marketing hacks that won them customers.
➤ Then, we share those insights with you.
➤ Every week, we dig up stories of how regular people started and grew their businesses—
➤ Plus the marketing hacks that won them customers.
➤ Then, we share those insights with you.
The Value Proposition of SegMetrics
The Value Proposition of SegMetrics
SegMetrics is a marketing analytics platform designed to help SaaS companies and content creators understand the ROI of their marketing efforts. It connects revenue to individual customer touchpoints, revealing insights that were previously buried in data silos.
The business generates revenue through three main channels:
Subscription Model (73%)
Customers pay a recurring fee based on their pricing plan, with additional metered charges for specific metrics. This steady income forms the backbone of SegMetrics.
Technical Partnerships (16%)
By integrating with platforms like ConvertKit, SegMetrics powers analytics for other companies’ customers. These collaborations have driven significant growth.
Services and Training (11%)
Despite moving away from the agency model, Keith’s team offers direct training and services. This hands-on approach helps new customers onboard quickly, reducing churn and recovering acquisition costs faster.
SegMetrics is a marketing analytics platform designed to help SaaS companies and content creators understand the ROI of their marketing efforts. It connects revenue to individual customer touchpoints, revealing insights that were previously buried in data silos.
The business generates revenue through three main channels:
Subscription Model (73%)
Customers pay a recurring fee based on their pricing plan, with additional metered charges for specific metrics. This steady income forms the backbone of SegMetrics.
Technical Partnerships (16%)
By integrating with platforms like ConvertKit, SegMetrics powers analytics for other companies’ customers. These collaborations have driven significant growth.
Services and Training (11%)
Despite moving away from the agency model, Keith’s team offers direct training and services. This hands-on approach helps new customers onboard quickly, reducing churn and recovering acquisition costs faster.
Balancing Agency and SaaS Revenue
Balancing Agency and SaaS Revenue
Running a SaaS while managing a consultancy posed a unique challenge. Agency work provided immediate revenue, whereas building SegMetrics required long hours with uncertain returns. The decision to focus exclusively on the SaaS came at a cost but proved essential for its growth.
Keith’s advice to others in similar situations? You can’t grow a product unless you dedicate focused time to it. Investing in a SaaS is betting on your future—a gamble that often requires sacrificing short-term gains.
Running a SaaS while managing a consultancy posed a unique challenge. Agency work provided immediate revenue, whereas building SegMetrics required long hours with uncertain returns. The decision to focus exclusively on the SaaS came at a cost but proved essential for its growth.
Keith’s advice to others in similar situations? You can’t grow a product unless you dedicate focused time to it. Investing in a SaaS is betting on your future—a gamble that often requires sacrificing short-term gains.
The Evolution of SegMetrics’ Tech Stack
The Evolution of SegMetrics’ Tech Stack
SegMetrics has undergone significant technological transformations over the years. Initially built on Laravel, the platform now uses Vue.js with InertiaJs and DigitalOcean for hosting.
One game-changing upgrade was migrating to SingleStore, a columnar database that dramatically improved performance. While the transition took six months, it unlocked new possibilities for handling complex analytical queries. Keith reflects that this move should have happened earlier, highlighting the importance of anticipating scaling needs.
SegMetrics has undergone significant technological transformations over the years. Initially built on Laravel, the platform now uses Vue.js with InertiaJs and DigitalOcean for hosting.
One game-changing upgrade was migrating to SingleStore, a columnar database that dramatically improved performance. While the transition took six months, it unlocked new possibilities for handling complex analytical queries. Keith reflects that this move should have happened earlier, highlighting the importance of anticipating scaling needs.
Cracking the Growth Code
Cracking the Growth Code
Like many startups, SegMetrics’ early customers came from existing agency relationships and word-of-mouth referrals. Within the first week of launching, the platform hit $1,000 in monthly recurring revenue (MRR). But scaling beyond the initial customer base required experimentation with various acquisition channels:
Ads: Search intent and display ads were effective but not transformative.
Partnerships: Collaborations with thought leaders and platform integrations drove the most significant growth. By aligning with trusted personalities and technical ecosystems, SegMetrics tapped into established audiences.
B2B2C (Business-to-Business-to-Customer): Marketing agencies became a key channel, with each agency bringing in multiple customers. This strategy significantly boosted lifetime value (LTV) and streamlined acquisition efforts.
Keith emphasizes that “build it, and they will come” is not a growth strategy. Founders need to find marketing tactics that align with their strengths and resonate with their target audience.
Like many startups, SegMetrics’ early customers came from existing agency relationships and word-of-mouth referrals. Within the first week of launching, the platform hit $1,000 in monthly recurring revenue (MRR). But scaling beyond the initial customer base required experimentation with various acquisition channels:
Ads: Search intent and display ads were effective but not transformative.
Partnerships: Collaborations with thought leaders and platform integrations drove the most significant growth. By aligning with trusted personalities and technical ecosystems, SegMetrics tapped into established audiences.
B2B2C (Business-to-Business-to-Customer): Marketing agencies became a key channel, with each agency bringing in multiple customers. This strategy significantly boosted lifetime value (LTV) and streamlined acquisition efforts.
Keith emphasizes that “build it, and they will come” is not a growth strategy. Founders need to find marketing tactics that align with their strengths and resonate with their target audience.
Staying True to Core Customers
Staying True to Core Customers
One misstep in SegMetrics’ journey was veering away from its original customer base—small to medium businesses. Pressure from competitors and industry trends led to attempts to move upmarket. However, this shift alienated their core users.
Keith’s takeaway? SaaS is like a marriage—if you don’t enjoy your customers, it’s hard to build a great product for them. Refocusing on their initial audience has helped SegMetrics reconnect with its roots and deliver value where it’s needed most.
One misstep in SegMetrics’ journey was veering away from its original customer base—small to medium businesses. Pressure from competitors and industry trends led to attempts to move upmarket. However, this shift alienated their core users.
Keith’s takeaway? SaaS is like a marriage—if you don’t enjoy your customers, it’s hard to build a great product for them. Refocusing on their initial audience has helped SegMetrics reconnect with its roots and deliver value where it’s needed most.
What’s Next for SegMetrics
What’s Next for SegMetrics
The journey doesn’t stop here. Keith’s team is constantly iterating to keep up with market demands and technological advancements. Their current focus is simplifying data reporting so non-technical users can gain actionable insights effortlessly.
At the same time, they’re doubling down on serving small and medium businesses, ensuring these users can access powerful analytics without being overwhelmed by complexity.
The journey doesn’t stop here. Keith’s team is constantly iterating to keep up with market demands and technological advancements. Their current focus is simplifying data reporting so non-technical users can gain actionable insights effortlessly.
At the same time, they’re doubling down on serving small and medium businesses, ensuring these users can access powerful analytics without being overwhelmed by complexity.
Key Takeaways for Aspiring Founders
Key Takeaways for Aspiring Founders
Start Small: SegMetrics began as a simple internal tool, proving the value of solving your own problems first.
Be Ready to Pivot: Keith transitioned from freelancing to running an agency to building a SaaS, adapting as opportunities arose.
Invest in Your Future: Building a product often means sacrificing immediate income for long-term rewards.
Know Your Audience: Staying true to your core customers can be the difference between success and losing your way.
Leverage Partnerships: Collaborating with thought leaders and platforms can accelerate growth far beyond what’s possible with ads alone.
Start Small: SegMetrics began as a simple internal tool, proving the value of solving your own problems first.
Be Ready to Pivot: Keith transitioned from freelancing to running an agency to building a SaaS, adapting as opportunities arose.
Invest in Your Future: Building a product often means sacrificing immediate income for long-term rewards.
Know Your Audience: Staying true to your core customers can be the difference between success and losing your way.
Leverage Partnerships: Collaborating with thought leaders and platforms can accelerate growth far beyond what’s possible with ads alone.
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One month stretch ⇢ $100
Three-month stretch ⇢ $250
Final Thoughts
Final Thoughts
P.S. I’ve got a weekly newsletter where I dig up stories of how regular people started and grew their businesses— Plus the marketing hacks that won them customers. Then, I share those insights with you. I would love for you to join us here
Shoot me a DM if you want to share your story, or visit this page to submit your information 💌
- h/t Medium, Indie Hackers ⇢ Great resources
P.S. I’ve got a weekly newsletter where I dig up stories of how regular people started and grew their businesses— Plus the marketing hacks that won them customers. Then, I share those insights with you. I would love for you to join us here
Shoot me a DM if you want to share your story, or visit this page to submit your information 💌
- h/t Medium, Indie Hackers ⇢ Great resources
