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If I was a solo SaaS founder, I'd rather have 100 customers paying me $100/month apiece than 1,000 customers paying me $10/month. Your time is worth something,
by aaronbrethorst 10y ago
If I was a solo SaaS founder, I'd rather have 100 customers paying me $100/month apiece than 1,000 customers paying me $10/month.
Your time is worth something, and customer support is a very real burden. In the case of a $10/month user, answering one customer support email more than wipes out all of the revenue you've earned from them that month.
- k__ 10y agoIs there a sweet spot for customers? 1 customer is a high risk. 10 are better. But 1000 are Bad again?
- Silhouette 10y agoIt's not the number of customers that really matters but the value per customer. It just happens that if you fix the total revenue for comparison, they're inversely proportional.
- greenleafjacob 10y agohigher customers = less volatile risk of churn, but the volatility in churn rate for 100 customers is probably about the same as the churn rate for 1000 customers, but 10x the support burden.
- k__ 10y agoHm, then how is it that companies like Google have millions of users and virtually no support?
- jakobegger 10y agoIf you are overwhelmed by support requests, one way to fix it is to charge more. Another way is to solve the underlying problem. If only one in 100 customers sends a support request, you can spend an hour to answer it, and you still made a lot of money even if each user only pays $10.
- aaronbrethorst 10y ago> If you are overwhelmed by support requests, one way to fix it is to charge more. Another way is to solve the underlying problem. These are not mutually exclusive choices.