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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 realize that how much MRR you're adding in a given month is affected by your pricing. So pricing has a big impact on this, your ACV or your average revenue per account per month. churn is a huge part of this, right? So that's how many people are canceling based on your existing customer base. And so I see companies plateauing at every stage.

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

So realize that how much MRR you're adding in a given month is affected by your pricing. So pricing has a big impact on this, your ACV or your average revenue per account per month. churn is a huge part of this, right? So that's how many people are canceling based on your existing customer base. And so I see companies plateauing at every stage.

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

And frankly, I did a talk at MicroConf Europe about breaking through the seven SaaS growth plateaus. And I identified seven reasons for that companies had plateaued. And I went into tiny seed and actually specific, I have all their revenue graphs, right? 192 companies. And then I specifically reached out and said, oh, you know, you plateaued here, what happened?

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

And frankly, I did a talk at MicroConf Europe about breaking through the seven SaaS growth plateaus. And I identified seven reasons for that companies had plateaued. And I went into tiny seed and actually specific, I have all their revenue graphs, right? 192 companies. And then I specifically reached out and said, oh, you know, you plateaued here, what happened?

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

And so like one of the causes, for example, is not enough leads. And one of them is having a leaky funnel. And the third one is having high churn. Fourth is competition. Fifth is you've tapped out your market. It's just not that big of a market. So the reasons behind why folks plateau are one thing, but the range is, I mean, I see folks plateau at 1K MRR.

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

And so like one of the causes, for example, is not enough leads. And one of them is having a leaky funnel. And the third one is having high churn. Fourth is competition. Fifth is you've tapped out your market. It's just not that big of a market. So the reasons behind why folks plateau are one thing, but the range is, I mean, I see folks plateau at 1K MRR.

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

I see them plateau at 5K, 10K, 15K, 20K, 25, 30, 35. I mean, all the way up. And then I see people plateau at one or two million. There is no certain size of a company where they plateau. The tough part is once you plateau, getting past it is really, really tough. That was actually the kind of sad news as I looked through all these graphs, is that if you don't plateau, then you keep going.

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

I see them plateau at 5K, 10K, 15K, 20K, 25, 30, 35. I mean, all the way up. And then I see people plateau at one or two million. There is no certain size of a company where they plateau. The tough part is once you plateau, getting past it is really, really tough. That was actually the kind of sad news as I looked through all these graphs, is that if you don't plateau, then you keep going.

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

You have momentum. The moment you plateau, the odds of you getting past that plateau are actually quite low, at least from the analysis that I did.

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

You have momentum. The moment you plateau, the odds of you getting past that plateau are actually quite low, at least from the analysis that I did.

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

So that's why you want to always be looking ahead and when things are working, not resting on your laurels because you want to try not to plateau because getting past them and building that momentum from scratch is not quite the cold start problem, but it's just hard. It's hard.

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

So that's why you want to always be looking ahead and when things are working, not resting on your laurels because you want to try not to plateau because getting past them and building that momentum from scratch is not quite the cold start problem, but it's just hard. It's hard.

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

And it often requires a big strategic shift of like, well, I need to expand to do another vertical or we need to like double our pricing or we need an entirely new lead source because everything we've done just

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

And it often requires a big strategic shift of like, well, I need to expand to do another vertical or we need to like double our pricing or we need an entirely new lead source because everything we've done just

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

isn't it isn't getting us there or we need to serve an entirely new user base because our churn is just pegged at five or six percent and although we've tried a ton of stuff nothing has reduced that and so we are just plateauing at this mark so what's interesting is the the answer to how do you break through to the next range a there isn't a range but how do you break through a plateau is

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

isn't it isn't getting us there or we need to serve an entirely new user base because our churn is just pegged at five or six percent and although we've tried a ton of stuff nothing has reduced that and so we are just plateauing at this mark so what's interesting is the the answer to how do you break through to the next range a there isn't a range but how do you break through a plateau is

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

you identify the problem and you fix it, right? So if you don't have enough leads coming in each month, meaning you're not adding enough MRR, then you add more leads. Well, then the question is, well, how do I do that? And that's a whole other thing. We could write books on that.

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

you identify the problem and you fix it, right? So if you don't have enough leads coming in each month, meaning you're not adding enough MRR, then you add more leads. Well, then the question is, well, how do I do that? And that's a whole other thing. We could write books on that.

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

Or if you have a leaky funnel, meaning your conversion rates are low and you're trial to paid or whatever, then you look at that and you optimize that. You know, the how do you break through is actually kind of trivial. It's trivial to know what to do. It's often hard to know exactly how to do it.

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

Or if you have a leaky funnel, meaning your conversion rates are low and you're trial to paid or whatever, then you look at that and you optimize that. You know, the how do you break through is actually kind of trivial. It's trivial to know what to do. It's often hard to know exactly how to do it.