Zu lange Werbe Amortisation bei SaaS verkürzen

0:00I sell industry vertical software to coaches like executive coaches, life coaches. You sell software to coaches? >> Yeah. So, it's an industry vertical run your business tool, payment scheduling, client comms. >> Yeah. Yeah, and we make a website for them also as part of it. So, a theme that came up a lot this morning was how to scale low ticket SaaS because it has been a struggle and I thought you might have some relevant experience with school. So, our price point is about $50 a month. We don't have anything higher or lower at this point.

0:34>> Okay. Um our ad payback period is 12 months, which is Impossible. Right, impossible and terrible. What has worked for scaling school? What's your viral So, what's your viral coefficient? Um I mean, coaches, you know, know other coaches, hire other coaches, so How many How many How many customers come to you every day and sign up for $0?

1:01For $0, we have about like 2,000 free trials a month, about like 6,000 leads a month. That with no marketing? No, no, we do lots of marketing. >> Okay. So, if you did no marketing, how many customers would sign up? About half. Okay. >> Yeah. So, then your payback period on those is immediate. Mhm. So, basically, if you want to scale a low ticket software, it's all about virality. It has to be able to compound on its own based on word of mouth, based on quality of the product, and and based on, you know, the the growth factors that you put into the actual software and customer experience.

1:35So, like school obviously has once like you start a school community, then you invite 200 people, and then of those 200 people, a couple of those people start school communities, and they turn around by 200 people, and it kind of continues onwards. Um and so, that is what you have to solve for. Yeah. So, yeah, how do you do that fast? It's like we're doing that very slowly. How do you do that How do you make that happen faster? It's a data question. Okay. So, basically, what you do is you look at something called M12 retention.

2:02So, so month 12, right? So, you're like, "Okay, let's look at all of the people who have stayed for 12 months." Now, let's reverse that to the present today. What did these people do? Actions? And then, what do they look like? Demographics? That increased the likelihood that that M12 retention occurs.

2:27>> Mhm. And so, when you do this correctly, you'll say, "Okay, if someone uh gets their site live, uh that 4x's the likelihood they make it to M12. If they uh add a custom URL to their site, it 8x's the likelihood they get to M12." So, you'll basically rank order all of the things as they correlate to M12 retention. And then, you'll say, "Cool, how do I build this into the cust- into the uh front end onboarding flow

2:53>> Mhm. so that I increase the likelihood these things occur?" And then, it's like, "Okay, how do I decrease friction for each of these steps?" And so, this the data problem first, and then it becomes an engineering issue for how you do onboarding. Once you do that, then basically, the people who are coming in, then it's like, "Great, now that we're not we're losing people, now we can look at the vi- basically virality of it, which is how can we encourage people to, you know, bring more friends?" So, like for Face- like growth in SaaS or looks like this.

3:26100 people sign up. That's what growth looks like. You're like, "How does that look like growth?" These 50 people never leave. Mhm. And then, you just can't stop growing. Mhm. That's how That's how it actually looks for growth. So, would you reallocate? So, now we're spending 30k a month on, you know, our super long payback period ads. Would you reallocate that to an onboarding engineering?

3:56I like I actually don't think this is a money thing. Okay. This is a I have to do the math and have a good data engineer who can basically plot out looking at all customers, and it's software, so you should be able to see what actions they're taking within the software. If you don't have that, then you have to get that tracking in place so that you can basically make the correlations based on the actions they've taken on the way in to M12. And if you're like, "Man, this sounds complex," it's like there's a reason that billion dollar companies don't get out of the sky. Yeah. It's hard. Yeah. Yeah.

4:22>> But that's that's the reality of it. That's the real answer. And how do you think about So, I imagine it would be similar with school. Most of our churn is just people being like, "I didn't make any money coaching. I'm not coaching anymore." Should I think of that as a problem to be solved or something that's out of my control? >> Part of that's marketing. Okay. If you frame it as If you use your our software you're going to make money, you will get people who if they don't make money, they will think that your software failed. Mhm. If you say this is the thing that helps you build communities, and you can build a community for free, then they were successful if they got 20 friends to do skateboarding in a online community. Yeah. Yeah.

4:56Okay. Thank you. Yeah. Congrats on the business. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's a my team spends 2 days with you to identify the thing that's holding your business back. And so, if that sounds interesting, click book a call, and if you're a fit, we'd love to potentially see you out here in Vegas.