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SaaS products aren't viral
 

SaaS products aren't viral

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SaaS products aren't viral SaaS products aren't viral Presentation Transcript

  • SaaS productsaren’t viral**usually
  • “How do I go viral?”Going viral = Sustained exponential growth curve with zero cost of acquisition, not just a marketing stunt
  • You can’t.
  • (usually)
  • “Why not?”
  • Viral growth, theanalytical way.
  • 1000 new users20% send out invites10 invites sent per user50% of emails are opened5% click through20% sign up= 10 new users sign upViral factor = 10/1000 = 0.01
  • 1000 new users30% connect to Twitter20% tweet your link100 average followers per user1% tweet CTR20% sign up= 12 new users sign upViral factor = 12/1000 = ~0.01
  • 0.01 is a waste of time.300022501500 750 0 1 2 3 4 5 6 7 8 9 10 Viral factor 0 Viral factor 0.01
  • “How do I go viral?”
  • 100X
  • 100X* *you’ll never get there
  • 1000 new users20% send out invites10 invites sent50% of emails are opened5% click through20% sign up= 10 new users sign upViral factor = 10/1000 = 0.01
  • Not a feature. Not an incentive. Not after purchase. Not just once.Something everybody does, every day, that makes ahigh-frequency, high-retention product even better.
  • 1000 new users20% send out invites10 invites sent50% of emails are opened5% click through20% sign up= 10 new users sign upViral factor = 10/1000 = 0.01
  • Targets extroverts. Anyone can use it. The more the merrier.Sharing/communication. Utility + One job title = Fail.
  • 1000 new users20% send out invites10 invites sent50% of emails are opened5% click through20% sign up= 10 new users sign upViral factor = 10/1000 = 0.01
  • “Law of shitty CTRs" Year CTR 1994 78% Hotwired.com 2011 0.05% Facebook
  • New channel.Compelling pitch.Low competition.Highly optimized.
  • Product/market fit. Daily usage. High retention. Share files.Already growing fast. <1 viral factor.
  • ...
  • “What about me?”
  • You’ve already chosen.
  • Based on your product:1. Don’t bother2. Or, drive down CAC3. Or, go for it**probably not
  • Andrew Chen voodoo@gmail.com @andrewchen http://andrewchen.co