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Ah, but consider the value of a 1% uptick in conversion rate. Imagine you have a little $10/month SaaS, with 100 trial signups a month, for which the service i
by jasonkester 10y ago
Ah, but consider the value of a 1% uptick in conversion rate.
Imagine you have a little $10/month SaaS, with 100 trial signups a month, for which the service in question is outrageously expensive.
Assuming one of your users sticks around for a year, his Lifetime Value (LTV) is $120. And assuming there exists some low-hanging fruit optimization that can get you a tiny 1% uplift in conversions. That translates to (0.01 * 100 * 120) = $120 in extra revenue for your startup each month. So even if you spend the rest of your days just looking at our pretty charts and graphs, you're still doubling your investment.
So yeah, it's priced high because it makes you a lot of money.