How Papermark Reached $900K ARR with an Open-Source SaaS Model

The Origin: Validating Demand Through a Tweet

Co-founder Mark Sacker tweeted about building an open-source alternative to document-sharing platform DocSend. The tweet garnered 40,000 views in hours, with overwhelming demand confirming market need.

Within a weekend, Mark built the MVP. The launch tweet reached 100,000 views, and early users immediately asked to pay for the hosted service.

What Papermark Solves

Papermark provides document analytics and secure sharing. Users can:

• Convert documents into shareable links
• Apply security features (passwords/watermarks)
• Track engagement metrics (view duration, slide-level analytics)

It targets innovation gaps in legacy tools like DocSend, which focus primarily on enterprise clients.

The Open-Source Advantage

Papermark’s core code is publicly available, enabling:

• Community contributions: 60+ developers enhanced features
• Transparency: Auditable code builds trust for security-sensitive industries
• Reduced adoption barriers: Users can self-host for free

Business Model Mechanics

Revenue streams include:

• Hosted SaaS: Non-technical users pay for managed service
• Enterprise licensing: Self-hosted advanced features

Growth Drivers

Key strategies:

• Public development: Sharing progress on Twitter/LinkedIn
• Community events: Participation in Hacktoberfest accelerated feature development
• Velocity advantage: Outpacing incumbents in innovation

Operational Insights

Tech stack: Next.js, TypeScript, PlanetScale (PostgreSQL), Resend (email), Vercel (hosting)

Cost structure:

• 80% freelancers and founder salaries
• 15% growth experiments
• 5% tools

Advice for Open-Source Builders

Critical considerations:

• Target markets with stagnant incumbents (e.g., CRMs for niche verticals)
• Convert community excitement into paying users early
• Prioritize surpassing competitors, not just matching them