Many SaaS products achieve remarkable success, generating significant revenue. While superior products are important, the key to exceptional growth lies in effectively expanding the user base and maintaining momentum. This isn't luck, but a science that can be replicated. This article outlines a roadmap with three strategies to acquire more users at every stage of your SaaS journey, from the first few to thousands.
Getting Started: The First Five Users
Before diving into large-scale acquisition, it's crucial to understand the basics of user acquisition. It involves gaining a new user for your platform, considering a method, a channel, and the cost. Different combinations of these elements result in various acquisition strategies, ranging from free, low-effort approaches to expensive, high-effort campaigns. A tailored roadmap is essential, as some methods excel in the early stages, while others are better suited for growth or automation.
Designing Your Initial Acquisition Model
Before acquiring users, you need to design a user acquisition model. While the channel and cost may vary, you can categorize the methods into four types:
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Incoming: Users find you and initiate contact.
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Outgoing: You reach out to potential users.
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Referrals: Existing users bring in new users.
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Advertising: You pay to make users aware of your product.
Acquiring Your First Five Users: Outgoing Approach
For the first five users, use an outgoing approach. The channel will be email or direct messages on messaging apps, with a cost of $0, as you'll be reaching out manually.
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Target your close network: family, friends, colleagues, and partners.
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Inform them about your product and its MVP (Minimum Viable Product).
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Offer them a free account for life in exchange for feedback.
Building Advocates: Creating a Community
Once you have your first five users, include them in a small community (e.g., Discord group, Facebook group).
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Spend time listening to their feedback.
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Fix bugs and implement features based on their suggestions.
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Make them feel like they have a significant say in the platform's development.
The goal is to transform these users into advocates who will champion your product.
Expanding Your User Base: Reaching 100 Users
Leveraging Referrals: Turning Users into Advocates
For the next stage, focus on referrals. The method is referrals, and the channel is referral links provided to your initial users. The cost can be minimal, especially if you've cultivated strong relationships with your first users.
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Offer new users a significant discount for joining early.
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Make both advocates and new users feel special for being part of something new.
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This incentivizes advocates to share the offer, as they have a compelling deal to provide.
Scaling Up: Acquiring 500-1,000 Users
Content Creation and Building in Public: An Incoming Approach
To acquire 500 to 1,000 users, you need a new model centered on an incoming approach. The key is creating awareness through content and building in public. Channels include social media and search engines.
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Create long-form video content for YouTube.
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Write blog posts for Google search.
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Share short-form content on TikTok, Reels, and YouTube Shorts.
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Post updates on LinkedIn, Hacker News, and Indie Hackers.
This strategy requires a significant investment in content creation. Monitor and optimize your efforts, and let revenue from existing users fund new user acquisition.
Sustained Growth: Expanding Beyond 1,000 Users
Stage Three: Continued Growth and Automation
Once you have a thousand users, you can aim for continuous growth. Stage two (content creation) should continue. There are two main paths for stage three: rapid growth by reinvesting revenue, or automating acquisitions for profitability. Two acquisition models are well-suited for either path.
Paid Advertising: Scaling Proven Content
Use the advertisement method. Turn successful content from stage two into paid ads.
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Use Google Ads for search and video ads.
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Use Meta (Facebook and Instagram) for image and video ads.
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Use TikTok for video ads.
The cost depends on your average revenue per user and desired return on ad spend. Growth mode may prioritize user acquisition over immediate profit.
Affiliate Programs: Rewarding Referrals
Implement a comprehensive referral program. Offer an affiliate program where users can sign up, create referral links, and promote your product. Compensation is crucial for this model.
- Offer a percentage of recurring revenue generated by referrals (10%, 20%, or even 50%).
The level of compensation depends on your goals: a higher percentage for growth, or incentives like gift cards or feature unlocks for automation.
Tailoring the Roadmap
This roadmap can be adjusted to fit your specific needs. While this particular roadmap has been successful in building and scaling several products, you can experiment with different strategies at different stages. For example, running ads earlier or scaling cold outreach later.