400K Revenue Secret: Stop Churn
45sReveals a counterintuitive growth strategy that challenges common marketing beliefs, sparking curiosity and debate.
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We do 400,000 revenue a year. We teach people how to like list books on Amazon. We're selling the software. We want to grow the software company. What do you think my constraint is? >> be expectations. Like a lot of software takes a very long time to get right. So, typically for software, you want it to grow organically on its own in a compounding manner. It grows by X% per month just off word of mouth. You want
a resting growth rate. Once you have a resting growth rate, then you can add gas to it. There's two ways that you can grow software. A certain percentage of customers will churn, but a greater percentage of people will come in via referral. If you have that, you can still have high churn, but still have compounding growth because more people refer than churn. The alternative scenario is you just don't lose people. If you lose some, the people
you keep spend more money with you. Spending more money on marketing is completely irrelevant if they're all going to fall out the other side anyways. You just have to have more referrals than churn. So, you have net growth that compounds without advertising.