In October, we grew the Send Later Gmail chrome extension customer base by 20% and MRR grew to $2400. I’ve also set up new marketing automations and lifecycle emails using Drip’s new drag and drop editor and continue to own 100% equity in my company by paying a developer through TopTal instead of trying to recruit one as a co-founder.
Last month I showed you how I drove our first 100 paying customers by focusing on increasing usage and getting churn to <1%. Most SaaS companies are in 3%-6% gross monthly churn rate based off my latest data collected on my 15 minute calls each morning with the worlds top CEO’s on my podcast The Top Entrepreneurs.
I also made the decision to remove a controversial growth hack I launched last month, adding “Sent with Send later to the bottom of every email”. Big mistake, here’s why.
No More “Sent with Send Later”
Ignoring an initial bump, daily new users has slowly declined since September 27th when I added “Sent with Send Later” to every email sent with the tool.
During week of 10/3 we averaged 231 new daily users, 162, 146, 128 for the following 3 weeks respectively. Whats happening is that people are signing up, but using the tool less because of the “Sent with Send Later”. If users send less emails with the Send Later chrome extension, less people see “Sent with Send Later” and user growth declines.
Starting in November, I will remove “Sent with Send Later” from the bottom of all emails (even free users!). Chalk this up to a good example of experiment fast, learn, then make corrections if necessary.
In summary, in product marketing cant’ diminish the value of the tool. “Sent with Hotmail” or “Sent with iPhone” work but “Sent with Send Later” reveals to the recipient that the sender scheduled an email to be sent later – not something you’d likely want people to know.
Starting today, no one using Send Later will ever see “Sent with Send Later” on the bottom of their emails again
0% Churn is Big Win
I’m only showing $5/mo paywall to users who have used the tool more than 50 times. In October, we added 27 paying customers to that plan (avg 1/day) and lost none. Total paying customers on $5/mo plan is now at 96, up from 69 last month.
I’m excited with our “value based pricing” – where we don’t want to charge people unless they are using the product. The trick now is figuring out how to make that pie bigger.
How can we get more people using the tool at least 50 times? Almost 30% of people who hit this usage metric end up converting, with no touch, to a $5/mo account with a <.05% liklihood of churning.
On the flip side, the $50/mo plans I’ve been selling via webinars had a 16% churn rate in October. Many of these people never even install the chrome extension much less actually use it.
I need to do a better job making these people stick but it requires more of my time to do so. Compare this to the no touch onboarding model of the $5/mo plan and you start to wonder where it makes the most sense to spend my time over the long term.
This revenue is only from Send Later and does not include 6 other revenue streams I’ve set up ranging from real estate to my podcast sponsorships, startup investments to dividend returns.
Income: $2401 (only includes Send Later subscriptions)
Drip: $1 (Use this for marketing automation, like more than Infusionsoft, and like the drag and drop editor so I don’t have to hire a developer to code my marketing funnels)
TopTal: $2996.91 (I hire the worlds top 3% of developers using Toptal and pay them as contractors so I can keep 100% equity in my company)
Acuity Scheduling: $10 (I use this to schedule podcast guests in my calendar. The tool gives me a link which I send to people I want to meet with and they can then pick a time. Saves me email back and forth)
HostGator: $36.85 (Renewed hosting on several domains, bought new domain for new project which will be revealed next month)
Cirrus Insights: $19 (Using as my CRM, experimenting, integration with salesforce sits in my inbox which is nice)
SndLatr: $5 (Use to set email reminders, schedule emails to be sent later)
GoToWebinar: $265.43 (Use this to close $50/mo new customers on my software products)
Leadpages: $97 (Use for webinar landing pages)
SumoMe: $20 (Use for email capture on this blog)
This includes all of my expenses ($16953) across all my businesses (includes podcast, software, etc):
Commissions & Fees $18.4
Contract Labor $5423.15
Credit Card Interest $450
Gas & Fuel $29.9
Health Insurance Premium $658.88
Materials & Supplies $598.62
Meals & Entertainment $869.05
Office Expenses $208.28
Other Business Expenses $5108.6
Software package/suite $21
Moving Forward in November
- No more Send with Send Later
- Experiment with getting users to “add team members” to drive up average revenue per user (ARPU)
- Release new features like team reporting
Check back in November for updates!
It’s currently about 8:03am here on Wednesday November 2nd, I’ll hang out in the comments to answer any questions you have today