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Rob Walling

๐Ÿ‘ค Speaker
3342 total appearances

Appearances Over Time

Podcast Appearances

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So thanks for that question, Eddie. Hope it was helpful. My next question, also from ex-Twitter, is from Tom McGee. Tom asks, My app does a lot of things, and an unexpected auxiliary vertical that's fundamentally different from our primary one is getting a lot more attention than I expected. Should I put it behind a paywall to upsell? Spin it out into its own thing. These are questions.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So thanks for that question, Eddie. Hope it was helpful. My next question, also from ex-Twitter, is from Tom McGee. Tom asks, My app does a lot of things, and an unexpected auxiliary vertical that's fundamentally different from our primary one is getting a lot more attention than I expected. Should I put it behind a paywall to upsell? Spin it out into its own thing. These are questions.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

I'm reading them without question marks, but spin it out into its own thing. The problem with including it as an upgrade is some users only want it so it would have no use for the base product. Got it. So you have a base product, you have kind of an add-on, and somehow a single vertical wants just that add-on.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

I'm reading them without question marks, but spin it out into its own thing. The problem with including it as an upgrade is some users only want it so it would have no use for the base product. Got it. So you have a base product, you have kind of an add-on, and somehow a single vertical wants just that add-on.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Of course, I would really like more specifics, but realistically, spin it out into its own thing? Probably not. Usually the default for me is, don't do that. You need a new website. You need a new domain name. You need a new Stripe account. You need to do marketing and support, and you need email addresses, and you need to do SEO, and you need to do... outbound and a support inbox.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Of course, I would really like more specifics, but realistically, spin it out into its own thing? Probably not. Usually the default for me is, don't do that. You need a new website. You need a new domain name. You need a new Stripe account. You need to do marketing and support, and you need email addresses, and you need to do SEO, and you need to do... outbound and a support inbox.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

And it's just, people think that spinning something out into its own thing is the code. It's easy to spin the code, just fork the code. And it's a, or even I just point to the same repo. And that is, I don't know, maybe 10% of the effort. It's a 20% of the effort. It's all the other spinning something out into its own thing is just don't underestimate how it's launching a second product.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

And it's just, people think that spinning something out into its own thing is the code. It's easy to spin the code, just fork the code. And it's a, or even I just point to the same repo. And that is, I don't know, maybe 10% of the effort. It's a 20% of the effort. It's all the other spinning something out into its own thing is just don't underestimate how it's launching a second product.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So my answer is, unless I saw a really, really strong reason and without All the details, it's hard for me to know if there's a strong reason, but unless I saw a very strong reason to do so, I would put it behind a paywall. And you can either make it a different tier of the product. I mean, you could have two products... on your website, right?

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So my answer is, unless I saw a really, really strong reason and without All the details, it's hard for me to know if there's a strong reason, but unless I saw a very strong reason to do so, I would put it behind a paywall. And you can either make it a different tier of the product. I mean, you could have two products... on your website, right?

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So it's the same domain, but then there's a dropdown and there's XYZ product for this vertical and XYZ product for this other vertical or XYZ product for everyone. And then if you're specifically in this education vertical or whatever vertical it is, you can do that.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

So it's the same domain, but then there's a dropdown and there's XYZ product for this vertical and XYZ product for this other vertical or XYZ product for everyone. And then if you're specifically in this education vertical or whatever vertical it is, you can do that.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Again, it's hard for me to make specific recommendations without knowing the specifics, but would I put it behind a paywall to upsell? I would, if there's a bunch of interest. Now, there's a conversation to be had around, ooh, is it viral? Is it driving new leads? Should it be freemium instead? And again, without info, it's hard to talk that through.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Again, it's hard for me to make specific recommendations without knowing the specifics, but would I put it behind a paywall to upsell? I would, if there's a bunch of interest. Now, there's a conversation to be had around, ooh, is it viral? Is it driving new leads? Should it be freemium instead? And again, without info, it's hard to talk that through.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

But in general, if I get a bunch of interest, I would look to keep it on the same website with all the same infrastructure I have and kind of inch my way out there to see if there's enough interest that people will actually pay for it. So thanks for that question, Tom. Hope it was helpful. And my last question of the day, also from ex-Twitter, comes from Tony Meijer.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

But in general, if I get a bunch of interest, I would look to keep it on the same website with all the same infrastructure I have and kind of inch my way out there to see if there's enough interest that people will actually pay for it. So thanks for that question, Tom. Hope it was helpful. And my last question of the day, also from ex-Twitter, comes from Tony Meijer.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Tony asks, at certain sizes of the company, it seems to stop growing. What are these ranges and how do you break through to the next range? So I appreciate the question, Tony, but I do not accept the premise that at certain sizes of companies, they seem to stop growing. That's not true. It's not about company size. What it's about is the famous formula for plateaus. And that formula is...

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

Tony asks, at certain sizes of the company, it seems to stop growing. What are these ranges and how do you break through to the next range? So I appreciate the question, Tony, but I do not accept the premise that at certain sizes of companies, they seem to stop growing. That's not true. It's not about company size. What it's about is the famous formula for plateaus. And that formula is...

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

is new MRR divided by monthly revenue churn as a percent. So if you are adding $3,000 of new MRR each month and your monthly revenue churn is 5%, that's 0.05, you will plateau at $60,000 of MRR. And if you cut your churn in half, so you're still adding $3,000 of MRR each month and your churn is only 2.5%, you will plateau at $120,000 of MRR. That's it.

Startups For the Rest of Us
Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

is new MRR divided by monthly revenue churn as a percent. So if you are adding $3,000 of new MRR each month and your monthly revenue churn is 5%, that's 0.05, you will plateau at $60,000 of MRR. And if you cut your churn in half, so you're still adding $3,000 of MRR each month and your churn is only 2.5%, you will plateau at $120,000 of MRR. That's it.