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Many founders don't know this: Your churn rate puts a ceiling on the growth of you business! Stagetimer's churn rate is extremely high. Currently at 12% (black line) 😱 Read on if you're curious what that means and what we can do about it ...Permalink On twitter.com
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The ceiling works like this: - We average $1200 new MRR/month - At $10k MRR the 12% churn will eat up all new MRR Here's an example calculation. Observe how the "Net New MRR" approaches $0 as the current MRR gets to $10k. Pretty depressing! Here are our options ...Permalink On twitter.com
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1. Decrease churn That's the best thing we could do. A 4% churn rate would raise our ceiling to $30k MRR 👏 Making your customers loyal is king. But not possible in our case because our product is seasonal. We don't have a pause button (yet), so churn is high.Permalink On twitter.com
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2. Increase growth We could just outgrow our churn (for a time). We are trying to increase growth with SEO and Google Ads. But it gets costly. Getting new customers is harder than keeping existing ones.Permalink On twitter.com
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3. Increasing ARPU (Average Revenue Per User) Stagetimer is on the cheap end for most of our customers. So there's lots of room here for us. And we have concrete plans: - Team (per-seat) pricing - Optional addons Pricing is hard. Especially balancing Prosumer vs. Commercial usePermalink On twitter.com
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4. Accept it As a bootstrapped business I also have the option to accept it and use the steady income to build the next project where I can apply all these learnings. In fact, I'm working on a thing together with @heretorecord right now 😄On twitter.com
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I hope you learned something. Follow me if you like this bootstrapping behind-the-scenes content ❤️Permalink On twitter.com