October Income Report for Send Later

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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.

Income/Expenses

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)
Expenses: ($5690.19)

Selected Expenses:
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)

Total Expenses
This includes all of my expenses ($16953) across all my businesses (includes podcast, software, etc):

Advertising $272.26
Commissions & Fees $18.4
Computers $67.6
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
Travel $1584.08
Uncategorized $1021.99
Utilities $611

Moving Forward in November

  1. No more Send with Send Later
  2. Experiment with getting users to “add team members” to drive up average revenue per user (ARPU)
  3. 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 :)

15 thoughts on “October Income Report for Send Later

  1. Nathan thank you, for me the post was a bit confusing but what you’re saying is now there is 50 e-mails without the paywall and beyond 50 activates the paywall? Is that 50 count lifetime or monthly?

    1. Sorry in other words SndLater offers 50 emails (with no signature) at no cost and beyond 50 it is $5/mo. Is that 50 count lifetime or monthly.

  2. I uninstalled SndLatr because of the forced signature line quite some time ago. I agree that having a forced signature defeats the purpose of the system. I would like more information on the $5 paywall. Not sure if its $5 per month or $5 per year. Is it 50 free emails then $5 per month or year? It just wasn’t spelled out well for me to understand. It would be something I would use, but just not sure how much it will cost me.

    I am a web developer and have many clients that could use this system, but just do not have a good grasp on the details. Maybe you could shoot me an email and we could talk about you doing a guest blog for my clients?

    I always love to see other companies P&L’s because it sheds light on things I could possibly do better.

    Thanks again for the update, please send me more information!

    1. Its totally free. Even after you use it 50 times, you can click “keep using for free”. Does that answer your question Erik?

          1. That’s great! But how does the $5/month charge come into play? If you are allowing it to be used for free? Just not sure that I understand this free vs $5 per month.

  3. Hi Nathan, thanks for removing that banner. It was a wise move. It really sucked when I didn’t notice it and sent an email to my manager and CEO late at night. It was an answer to a question from earlier in the day and I was just getting to it. It gave the appearance that I scheduled the email to be sent later to give the impression that I was working late (but I was actually working late). Thankfully the CEO replied and I was able to reply back showing I was up. I have since disabled the extension but will now turn it back on.

    Your service is great but what makes it different from Boomerang? I’m happy to pay but you are both equivalent in price? I just have simple needs to schedule email sends to a select list almost everyday. Can you institute a yearly price with discount? Or half yearly?

  4. Hey Nathan,

    Its really a great decision. A forceful signature looks verse in some cases. I didn’t get any verse condition due to this but now i am happy to see that you have removed it. Keep growing man. you are doing nice work.

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