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The products we sell go for about $100/year. As @chrija
has covered, scaling a SaaS company hunting mice is extremely difficult.
http://christophjanz.blogspot.com/2019/04/five-years-later-five-ways-to-build-100.html
So we were looking at ways in which we can move to higher ARPA levels.
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has covered, scaling a SaaS company hunting mice is extremely difficult.
http://christophjanz.blogspot.com/2019/04/five-years-later-five-ways-to-build-100.html
So we were looking at ways in which we can move to higher ARPA levels.
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One way was to sell our same product in larger SKUs essentially. Hence we acquired @wpremote, with agencies being the target customer segment. They have >20 sites which leads to ACV of $600-800.
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The second way is to build products which have higher perceived value to the customer. This is the direction of some of the future products we are working on. Build something which is of higher importance to our existing customer segment.
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There is a third way to think about this. It comes back to what @atulsian had said. Not everyone derives the same value from the same product.
https://twitter.com/akshatc/status/1294001268948520960
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https://twitter.com/akshatc/status/1294001268948520960
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Recently we hired a talented copywriter to work on our WP Remote website. We are able to pay him X, because we feel that great copy can let us earn >> X. However, this is not true for all companies.
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For the same copy, an upstart will most likely pay < X. Because the value they derive from the copy will be much lower.
Similarly a much larger company will be able to derive even more value from the copy. Hence they will be willing to pay much more than X for the same.
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Similarly a much larger company will be able to derive even more value from the copy. Hence they will be willing to pay much more than X for the same.
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The challenge hence for the copywriter is to prove that he is capable of delivering the value. He also needs to be able to talk to be able to connect with the larger company. Once he does that, he can easily charge proportionate to the value being created.
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How does it apply to us? We have a highly differentiated product. But we have never positioned ourselves for the higher tier customers.
We do not market to them.
We do not try to sell the value we deliver.
Neither do have pricing to take more money from them.
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We do not market to them.
We do not try to sell the value we deliver.
Neither do have pricing to take more money from them.
8/n
Will changing the above be enough?
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