Interact
About the Company
Interact is a SaaS company that provides businesses with tools to create interactive quizzes. These quizzes serve as a medium for brands to connect with customers, offering personalized experiences based on quiz results. Founded by Josh Haynam and Matthew Clark, Interact aims to help brands better understand and engage with their audiences. The platform has grown steadily over 10 years, reaching millions of quiz takers annually, with a primary focus on lead generation and customer engagement.
The company operates on a subscription-based model, offering various tiers based on the features and volume of usage. Despite being bootstrapped, Interact has been able to grow organically through content marketing, affiliate partnerships, and webinars. Interact’s focus remains on maintaining high margins and operating efficiently while continually scaling its operations.
Idea Behind Company
Josh Haynam had an entrepreneurial mindset from a young age, starting his first business at 15. The idea for Interact emerged during a casual brainstorming session with his friends in a hot tub. They realized that no other platform offered a way to create interactive quizzes, and the concept intrigued them enough to pursue it. The initial idea was simple—quizzes could help brands have meaningful conversations with customers while providing a personalized experience.
Despite having no background in technology, Josh was motivated by his belief in human connection and saw the potential for quizzes to facilitate this interaction between brands and their customers. This drive kept the team going through the challenging early years, even when profits were minimal, and they lived modestly while developing the business. Their belief in the value of interactive quizzes for human connection helped them persevere.
Creating the Company
The creation of Interact followed a structured process, driven by customer feedback. Instead of building a product based solely on assumptions, the team focused on customer interviews and converting qualitative insights into quantitative data. This approach helped them identify the most requested features and prioritize development accordingly.
Initially, the team tested different business models to generate revenue, starting with freelancing on platforms like Elance (now Upwork), where they built quizzes for clients at low rates. Although not profitable, these experiences provided valuable lessons. They then tried direct outreach to potential clients but faced challenges due to low response rates. Eventually, success came when they began publishing quiz tutorials, which helped them gain traction and secure their first 100 paying customers.
Launching the Business
Launching Interact was a gradual process filled with trials and errors. The founders initially had to navigate the transition from college to entrepreneurship with limited financial resources. Their first attempts to monetize the platform through freelancing and cold outreach were met with challenges, but they kept iterating their approach. They found success by producing content like quiz tutorials that educated potential customers and showcased the platform's value.
Interact's subscription model, which offers varying features and levels of access, allowed them to grow their customer base steadily. Instead of relying on aggressive advertising, Interact focused on building partnerships and offering value through educational content. The product's launch was driven by demand from customers who appreciated the interactive quizzes' ability to engage audiences and gather valuable insights.
Earnings
Interact now generates around $208,000 in revenue per month, totaling about $3 million annually. The company has achieved this growth primarily through organic marketing strategies like content creation, affiliate partnerships, and webinars, rather than paid advertising. Interact's high gross margin and lean operation have contributed to steady profitability, with profit margins hovering around 10%.
As Interact continues to scale, most of its costs are centered on investment in its team, with new hires focused on building industry-specific solutions to further expand the platform's reach. The company’s financial growth is consistent, with a 30% annual increase in revenue over the last few years. This growth trajectory ensures a solid future for the company as it continues to innovate and serve more industries with its interactive quiz solutions.
