The biggest problem I see from SaaS who target SMBs is they’re not getting enough trials. (You'll need more than you think).
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From the bootstrapped founders I've spoken with (and my own experience), hitting 200-500 trials per month is where the business feels like it's working. (Again: this depends on your price point, churn, CAC) For me, 200 trials per month was when I went full-time on the business.
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Many aspiring bootstrapped SaaS founders are former consultants, who are used to getting a few leads per month. The fundamentals of SaaS are different. You can't dedicate significant resources to nurturing just a few leads a month.
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SaaS is more akin to selling cups of coffee than selling heavy-duty machinery. You want to see a lineup of people queuing up for your product every day. (Like at a coffee shop) Otherwise, you're selling enterprise software (which is fine; just a different model).
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I just spoke with three other bootstrapped SaaS founders (all who have launched within the last 5 years and have traction). Here's how many monthly trials we're getting: 250 400 300 600 (These are 2-3 person companies.)
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Clarification: I'm not saying you should be getting hundreds of trials right of the bat. You'll gradually ramp up over time. Here's how it looked for
@TransistorFM:pic.twitter.com/IOQnt4sWbJ
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Just to put the numbers into perspective. $39 SaaS with a 50% Conversion rate (out of 200 subcribers) and a retention of 60-70% would see revenues of $10K a month by the 4th month. 200 new trails a month for a solo founder might be on the high side.
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But generally, you're "ratcheting up" to that number. It takes time to get up to 200 trials per month (you start at 10, then go to 30, then 50...) These days I'm thinking of $10K MRR as "ramen profitable" for most solo-founders, and $25k MRR as a "pretty good living."
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