Often when I meet new SaaS startups they tell me proudly that they have grown their user base without “spending a dime on marketing”. While that is a great accomplishment and a testament to the quality of the product (product = marketing for great web services), it does lead me to ask why! Did the [...]
I’m guessing that most everyone who reads this blog uses Dropbox. The four year old company has over 50M users and adds a new user every second! It can be dangerous to use such run away successes as lessons when building your own startup. After all, most startups never achieve this level of success. Still, [...]
So far in the SaaS Math series, we have looked at why investors love SaaS, definitions of the key terms in SaaS math and last week we looked at user acquisition math. This week we’re talking about activation, retention and its polar opposite – churn. As you will see, churn and retention are the most [...]
For the 3rd instalment of SaaS Math, we’re going to dig into the 1st step in the conversion funnel: acquiring users. For this and all posts on the conversion funnel, I recommend you read/ watch Dave McClure’s excellent talk on Metrics for Pirates. As the name suggests, acquisition is all about driving new users, readers [...]
Sep
16
Before we start going deep into SaaS Math, it’s important to level set on terminology. So without further ado, here are the key terms used. If you think I have missed any, please let me know. AARRR: A pirate war cry or more importantly, an acronym coined by Dave McClure to summarize the flow of [...]
Hey folks, this is the 1st post in the SaaS Math series. Today I’d like to start with I love SaaS. And when I say “I”, I mean investors. When I entered the startup World, most companies sold software under a perpetual license. Software was downloaded and maintained on the customers’ servers. It was sold [...]
