6 ms·
The simplest explanation for the plateau in a SaaS business is that you're likely at the point where churn eats growth, which you can quickly verify by looking
by patio11 12y ago
The simplest explanation for the plateau in a SaaS business is that you're likely at the point where churn eats growth, which you can quickly verify by looking at the math. (e.g. If you have 5% monthly churn, which you'd be doing well to have at your price point, then you need to find 50 new accounts every month. If it's card-up-front then that's 100 trials. If you convert 2% of visitors that's 5,000 visits. Just to tread water.)
Your solutions include less churn and more growth. Both of these are deep topics.
That said, given that you have an average account value of around $10 per month, I'd be looking for some way to move upmarket. It's just brutally difficult to build a business at $10 a month unless you have massive Dropboxian scale on the back of a very viral product.