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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Every product category is different, but let's say your plans are $39/month - $99/month, and you ask for a credit card upfront. We'll assume trial-to-paid conversion is 40% - 60%. You'll want at least 200-300 trials per month. (More if you have lower-priced plans).
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I realize there are lots of other variables: - # of founders and employees you have - what you want out of the business - cost to acquire a customer - churn %, and LTV But generally: If you're bootstrapping SaaS, you're likely going to need hundreds of trials per month.
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This advice is mostly for solo-founders (or dual founders) who want to build a small, profitable, bootstrapped company that gives the founders a good living. People I know in this category (who target SMB) are generally getting at least 200-500 new trials per month.
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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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W odpowiedzi do @mijustin
All are cc upfront? That's interesting if so, because feels like most people are going with no cc upfront nowadays.
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Yup. All CC upfront.
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