Lets start this week with Sahil Lavingia's words on Twitter, "It takes building a business to learn how to build a business." - The only way to do it is to do it.
Then, learn from others while you're building a business - make sure to listen to people that are actually doing what the advice is about, the advice is timely and reasonable applicable to your situation. On to this week's update.
Running a Paid Membership Program - reading time 19 minutes
Excerpt: "When I launched my Explorers Club membership program in January of 2019, I did so with crippling trepidation. So much trepidation that I never once announced it on Twitter or Instagram out of a certain shame."
The cup-of-coffee pricing fallacy - reading time 4 minutes
Excerpt: "If you’re lurking on HackerNews, or are interesting in entrepreneurship, you might occasionally bump into something like this Starbucks coffee is $2.45 + taxes. $100/mo is less than a cup of coffee a day."
How to retain users - reading time 5 minutes
Excerpt: "Retaining a user is like maintaining a healthy relationship. You know they already like you. You spend time listening to their issues and you talk through them together. You surprise them with gifts. And you make sure to show that you appreciate them and are working hard to make them happy."
And the gist about user retention from the same author on Twitter:
FYI, increasing retention by just 5% brings in 25%-95% more profits. Retained users are: 5x more likely to re-buy & tell friends. 7x more likely to try your new stuff. Over 50% more likely to buy vs new prospects. h/t @arvidkahl @ryanckulp
The Rise of Elliot - reading time 4 minutes
Excerpt: "It's not too often that you see a company who is so far ahead that they know what their customers want before the customer does. Such is characteristic of massively successful companies like Apple who took such giant leaps of innovation that they invented an industry."
Some of the highlights in short according to the author:
- automated cross border shipping management 2.
- seamless customer checkout experience— low friction, quick and effortless.
- incentives are aligned properly— no monthly fee. They only make money when you sell product.
- works out of the box... no plugins etc.
From 0 to $1m ARR in less than 2 years and without any fundings - reading time 14 minutes
Excerpt: "In my previous article about how we managed to reach $250,000 ARR in one year with lemlist, I detailed all our growth channels, failures and successes and quickly mentioned that we were also managing 2 other SaaS projects (lempod and lemtalk)."
Our open source 2019 Profit & Loss - reading time 11 minutes
Excerpt: "2019 was our 4th (formal) year in business — and in a lot of ways, it felt like things started to click for us. We tweaked our billing model to be a little more forgiving, grew our team to 19, and started putting in place some new hires to help us button up our ability to create great work."
5x MRR Growth with almost $0 CAC in one year - reading time 4 minutes
Excerpt: "I'd never tell a potential investor that we could grow MRR by 5x with a non-existent marketing budget. Promises like that are "pie-in-the-sky", don't get taken seriously, and end up being broken."
Marc Köhlbrugge on Twitter - on browser payments
About 1 in 2 people seem to use browser payments. Will add it to @wip soon
Noah Prail on Twitter - on subscription metrics software
I use a variety of subscription metrics software and have noticed that they all disagree on MRR. @ChartMogul - $264 MRR @Baremetrics - $361 MRR @stripe - $345 MRR @ProfitWell - $410 MRR I'm curious as to what formula each one uses?
Paul Murphy on Twitter - on starting fresh and community
When we started Dots i had no idea how to run a game studio. So I started a Slack channel with 20 game studio CEO friends of similar size. There have been 10 exits from this group at about $2bn in value. Authenticity creates great returns.
Kevin Hale - Startup Pricing 101 - listening time 19:32 minutes
Technically this has been released for last year's Startup School, but it was just sent out for this year's version, so we'll allow it. Listen to what YC has to say about startup pricing.
Did you know that moving to Stripe billing from Chargebee will save you some real money? Example calculation: On 5000.- in MRR, you'll save 274.-/m.