:bootstrap:saas:
Bootstrapping a SaaS Product to thousands of Users #
2021-03-13
Source: https://trends.co/video/bootstrapping-a-saas-product-to-thousands-of-users/
The consensus:
| desc | enterprise | consumer |
|---|---|---|
| revenue per customer | massive | tiny ($5 - 10) |
| price sensitivity | low | high |
| churn | low or negative | huge (>30%) |
| customer support | sales opportunity | overwhelming |
| barrier | high | none |
| victory | couple key sales | winner take all |
Contrarian view:
- Consumer SaaS is less crowded.
- Consumer are more willing to subscribe.
- No salesperson required.
- User is the buyer. Fast feedback loop.
- You’re building for human.
Caveats:
- Need millions of users to attract VC. Best to start with niche.
- Long, slow SaaS ramp of death (Gail Goodman of Constant Contact).
- $10/mo takes a lot of customer to survive
Lessons: #
- Product first approach.
- you can’t afford sales and marketing
- products gives organic reach
- Reduce friction
- Speed new users to magical moment.
- Use Superhuman PMF to steer ship (https://review.firstround.com/how-superhuman-built-an-engine-to-find-product-market-fit)
- Develop fast to get feedback.
- Read company histories to see how to survive.
- Be aware of idea maze. (https://cdixon.org/2013/08/04/the-idea-maze)
- Be good at interviewing user.
- You need free users to iterate before charging.
Book recommendations: #
- Traction. You need to focus on growth and product at the same time.
Best marketing channels #
- SEO and content marketing.
- Referral and affiliate marketing.
- Social marketing wasn’t working for them.