Gail Goodman – Boston Business Journal:

"We literally can change the course of a smalkl business by helping them communicatee with their best customerswith great-looking e-mail," she said. "Bu it has to be easy." In the nine years sincr taking the helm of which has since changed its nameto CTCT), Goodman has helped transform the way tens of thousands of small businessew market and interact with customers and The company' e-mail marketing which include newsletters and survey tools, are used by 164,00 0 small business and nonprofit customers.
After strugglinbg with finding funding and workintg hard to gaincritical mass, the CEO now must determinee how to expand her marketing empire — and eventuallt turn a profit — while still keepiny things simple and convenient for her small-businesw customers. "The hardest thing for us is reachingfsmall businesses; they're everywhere and nowhere," she said. "The next set of hurdlea is answering: Can I do it, and is it Constant Contact's business model, whicg largely derives revenue from subscriptione forthe company's e-mail marketingy and promotional templates, appears to be the plan of choicew for many of Massachusetts' newest class of softwared companies.
The company charges most smal l businessesbetween $15 and $30 per month for the e-mai marketing service. While the model has allowef the company to remain close to the customer and theoretically an unlimited profit it puts the company at the mercyu of a clientele easily squeezed byeconomic woes. The optimistixc yet pragmatic chief executive says she knows the onus is on Constantr Contact to constantly prov eits value, and she is more than up to the A mix of confidence and humility, Goodmanh instantly exudes warmth to a stranger even on the most brutaol of February days.
She speaks about her role in not only as an executive but as a mentor and modeo to the next generationof entrepreneurs, with humorous gravity, knowinv that her most valuables assets are her experience and the team built around her. "She's got a calm way about her that makews peoplefeel she's approachables and very smart," said Joyce Plotkin, president of the . "She'ds taken a business that was not the hottesgt thing and gotten value outof that, and that's what we like to Goodman's passion for helping the little guy shines when she speak s of her early days as an engineere with and subsequent shiftf to the software "What was very clear to me (at IBM) was that I was more interestex in how the technology was used," she said.
"Software is really where the user meetsthe technology." She did stintss in traditional software at , Dun Bradstreet Corporation Software, and finally the startupl , which she said had a great conceptt but "was ahead of the curve." It was therre she met Roving Software founder Randy Parker, settinv the stage for her future involvement with the company. When she took the rein s at Roving Software, she was faced with a startup's most commonj issue: finding funding. The company received its first rounsdof funding, valued at $2.5 million, from and in Augusty 1999.
Jim Savage, partner at Longworth, said the combinatiobn of a great product and great leader made the sale forthe "We saw the enormous markef opportunity of helping small businesses that were Savage said. "Then what really excitef us was Gail willing to come on boards and take that opportunity to make thecompangy operational." But when the company needed cash a year funding was not to be found. "There was a pointy where I wasn't sure we were going to find the Goodman said. "But we had revenue momentum and the customers were voting withtheir feet," notin that customer retention remains high.
The company finallyg raised a $10 million second round from , Commonwealtuh Capital Venturesand Longworth, and garneredd $36 million in funding between 1999 and 2006. It changed its name to Constant Contact in 2004 before going public last Forher efforts, Goodman earned $275,000 in base salary last year, and stoodx to receive up to 45 percent of her base — or $123,000p — in cash bonuses if certainj performance metrics were reached. She took home $333,000 in pay and received anothet $230,000 in stock-option grants in 2006. "Ifr we wanted to build something big, we wantedx some visibility and being public had something to do with Goodman said.
"It was clear IPO was the way to go andI can'ty tell you how much visibilitgy it has brought us." Now that the company has gone public, it must now face investorse in the eye and convince them that quarters of losses will eventually turn into profit. The company narrowed its losses in thefourth quarter, reporting $1.1 milliojn quarterly loss on $15.8 million in revenuew in 2007 compared with a $3.8 million loss in 2006. For the the company lost $8.2 millio on revenue of $50.4 And the company expects more redthis year, having forecasted a net lossess of $2.5 million to $3 million.

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