What drove the most referrals to your business?

Every app / start-up will be different, but looking back, here’s the approximate mix we had:
  • 15% from partners. No individual partner did 5%, but as a group, they drove ~15% of our revenue. Importantly, they closed at a higher rate than other leads because in general, the partner pre-qualified them.
  • 20% from upsell. Not sure this counts, but we had about 120% net revenue retention from our non-self service accounts. So double-down on customer success and making your customers happy.
  • 20% from viral. Not all apps have this. We were at about 20%. A lot, but not enough on its own.
  • 10%+ from referrals from other customers. We should have counted this better, but at least 10% of new business came from referrals. That’s what we logged from the sales reps. But — it was likely much larger.
What we should have done more, at least after $5m of Continue reading "What drove the most referrals to your business?"

SaaStr Podcast #187: Christoph Janz, Managing Partner @ Point Nine Capital on Making Venture Capital More Human

Welcome to Episode 187! Christoph Janz is the Managing Partner @ Point Nine Capital, one of Europe’s leading early stage funds, with a portfolio that includes the likes of ZenDesk, Algolia, Delivery Hero, Revolut, Contentful, and many more incredible companies. Before that, he co-founded two Internet startups (DealPilot.com in 1997 and Pageflakes in 2005). In 2008 he became an angel investor and discovered Zendesk, Clio, FreeAgent – and his love for SaaS. Christoph is also the writer of the phenomenal blog, The Angel VC, a must read for me. In Today’s Episode You Will Learn:

Scaling Your Company from Abroad to the US

Company growth is something we all pursue and celebrate, but we must also acknowledge that each stage of expansion comes with its own risks and challenges. There are many milestones along the journey. Some require more preparation, planning, and deliberation than others. For Founders outside the U.S., one major milestone that merits considerable thought is expansion into North America. Many questions come up as an organization begins exploring the possibility of opening a North American office. Will the Founder need to move? How will you attract and build a team in a new market? How do you distribute and successfully manage a leadership team across international sites? How do you keep your company culture intact, thriving and well aligned? In my previous role as Chief People Officer at Atlassian, I experienced these exact challenges as we grew from our homebase in Australia to six offices (and three partner
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What do consumers prefer more – lower prices or higher quality?

In SaaS, it is very difficult to win simply being cheaper. The biggest burden is simply getting anyone to buy yet another web product. But within a range, is it really worth saving $2 a month for a cheaper version of Dropbox? Most SaaS products are not commodities. A few areas start to get there — basic email platforms do compete on price, as do very low-end hosting services. But most SaaS products improve a core business process. What customers want is the best product at a fair price, that doesn’t feel expensive compared to other products they buy. That’s the winning formula. View original question on quora The post What do consumers prefer more – lower prices or higher quality? appeared first on SaaStr.

Blissfully grabs $3.5 million seed investment to help companies get their SaaS in gear

Blissfully, a New York City startup that helps companies understand their SaaS usage inside their organizations, announced it has received a $3.5 million seed round. The investment was led by Hummer Winblad Venture Partners. Hubspot, Founder Collective, and several unnamed pre-seed investors also participated. They got a $1.5 million pre-seed investment, bringing the total so far to $5 million, according the company. Company co-founder and CEO Ariel Diaz says Blissfully actually helped him and his co-founder solve a problem they were having tracking the SaaS usage at their previous startups. Like many companies, they were using spreadsheets to track this information and they found it was untenable as the company grew beyond 30 or 40 people. They figured there had to be a better way, so they built one. Their product is much more than simply a database of the SaaS products in use inside an organization.
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Everything You Need to Know About Freemium Pricing

Special thanks to Laura Rosca who helped compile this research.  Freemium in SaaS is old news. The much-discussed pricing strategy took over the SaaS world and helped fuel the phenomenal success of SaaS pioneers like Dropbox, Evernote, SurveyMonkey and Hootsuite. These successes then spawned a number of copycats, that bet big on freemium only to see free offerings become a resource-draining distraction. I actually wrote about the phenomenon, which I called ‘The Slow Death of Freemium’, back in 2016. Freemium appeared to be declining in popularity and, when it was in place, drove next to zero new ACV for most SaaS companies. Flash forward to 2018 and freemium again feels cutting edge. SaaS companies have gotten much smarter about when to apply a freemium model to their products – and how to do it. They also better understand how to measure the success of freemium and strategies to
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Customer Growth: The Difference between Sales and Expansion

If you missed it, I’m done talking about churn. If you have a churn problem, read this post and follow my directions. Churn won’t be an issue for you anymore. Now we can move onto GROWTH! And the first order of business is understanding the difference between Sales and Expansion and why knowing the difference is so important. I’ve said that Sales is part of Customer Success before, and by that I mean Sales – like every other part of the company – should be governed by Customer Success as a philosophy. But, when it comes to operationalizing account growth, where do you draw the line between sales and expansion? Good question, let’s dig in. In my experience, if you want to remain a small company, have your New Business Sales team also handle Expansion (Upsells, Cross-sells, etc.) sales. However, if you want to grow fast, sustainably, and
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What VCs Look for in Product Led Companies [Podcast]

What the heck is product led growth? We sit down with OpenView Founder & Managing Partner Scott Maxwell to find out. In this first episode of BUILD Season 3, we define product led growth and find out what makes a PLG company unique. Scott also discusses the metrics investors look for in product led growth companies and the future of this go-to-market approach. Prefer to listen on iTunes? Click here.
The post What VCs Look for in Product Led Companies [Podcast] appeared first on OpenView Labs.

How to Create a $50M ARR Inbound Revenue Machine with Justyn Howard and Mike Volpe

Last February, former Hubspot CMO Mike Volpe sat down with Sprout Social Founder and CEO at the SaaStr Annual to talk product pricing, delivering individualized value, and creating a $50M ARR inbound revenue machine. Check out the full session video and transcript below! And in case you haven’t heard, we’re building a completely immersive experience in San Jose for SaaStr Annual 2019! With 3 full days of sessions, featuring over 300 speakers from the best SaaS companies around the world, SaaStr Annual will be filled with actionable thought leadership to help grow your business. Get your tickets to the SaaS show everyone will be talking about! Transcript: Announcer:  Please welcome Mike Volpe, CMO at Cybereason. And Justyn Howard, Founder and CEO of Sprout Social. Justyn Howard: Do you have a preferred side? We’re gonna do a little rearranging here. Mike Volpe: Awesome. Cool. Wow. Clearly the bar must Continue reading "How to Create a $50M ARR Inbound Revenue Machine with Justyn Howard and Mike Volpe"