SaaS products aren't viral
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This document discusses why achieving true viral growth is difficult for SaaS products. It provides examples showing that even with high user engagement rates, the viral factor (new users signed up per existing user) is typically around 0.01 or less, far below the levels needed for exponential growth. It emphasizes that going viral requires a product that people use frequently in a way that naturally encourages sharing, not just one-time actions like invites or tweets. Product-market fit, daily usage, and high retention are more important factors for growth.
SaaS products aren't viral
- 3. How do I go viral? Going viral = Sustained exponential growth curve with zero cost of acquisition, not just a marketing stunt
- 4. You cant.
- 5. (usually)
- 6. Why not?
- 7. Viral growth, the analytical way.
- 8. 1000 new users 20% send out invites 10 invites sent per user 50% of emails are opened 5% click through 20% sign up = 10 new users sign up Viral factor = 10/1000 = 0.01
- 9. 1000 new users 30% connect to Twitter 20% tweet your link 100 average followers per user 1% tweet CTR 20% sign up = 12 new users sign up Viral factor = 12/1000 = ~0.01
- 10. 0.01 is a waste of time. 3000 2250 1500 750 0 1 2 3 4 5 6 7 8 9 10 Viral factor 0 Viral factor 0.01
- 11. How do I go viral?
- 12. 100X
- 13. 100X* *youll never get there
- 14. 1000 new users 20% send out invites 10 invites sent 50% of emails are opened 5% click through 20% sign up = 10 new users sign up Viral factor = 10/1000 = 0.01
- 15. Not a feature. Not an incentive. Not after purchase. Not just once. Something everybody does, every day, that makes a high-frequency, high-retention product even better.
- 17. 1000 new users 20% send out invites 10 invites sent 50% of emails are opened 5% click through 20% sign up = 10 new users sign up Viral factor = 10/1000 = 0.01
- 18. Targets extroverts. Anyone can use it. The more the merrier. Sharing/communication. Utility + One job title = Fail.
- 19. 1000 new users 20% send out invites 10 invites sent 50% of emails are opened 5% click through 20% sign up = 10 new users sign up Viral factor = 10/1000 = 0.01
- 20. Law of shitty CTRs" Year CTR 1994 78% Hotwired.com 2011 0.05% Facebook
- 21. New channel. Compelling pitch. Low competition. Highly optimized.
- 24. Product/market 鍖t. Daily usage. High retention. Share 鍖les. Already growing fast. <1 viral factor.
- 25. ...
- 26. What about me?
- 28. Based on your product: 1. Dont bother 2. Or, drive down CAC 3. Or, go for it* *probably not
- 29. Andrew Chen voodoo@gmail.com @andrewchen http://andrewchen.co
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