“Over the past decade, if you're building in tech, particularly in like SaaS or subscriptions, you now have 16 times the number of competitors if you started a business today than if you did 10 years ago.”
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More from Patrick Campbell
Insight
Campbell: Bootstrapping is for lifestyle businesses, while funding targets $1B revenue
“The basic idea is bootstrapping is for lifestyle businesses that want to cash flow. Funding is for companies trying to create a billion dollars in annual revenue.”
Patrick CampbellFeb 19, 2023▶ 12:2210 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
What-if
Campbell: ProfitWell likely sacrificed a $1B exit by not raising money sooner
“We sold for over two hundred million dollars, et cetera. But we probably, if we had taken money, we could have had a billion dollar exit or we could have kept going and we should have taken money earlier in our life cycle. This was actually a big mistake becau…”
Patrick CampbellFeb 19, 2023▶ 12:4710 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
Insight
Campbell: SaaS retention is highest for daily tools and background automation
“When we look at churn rates across different types of products, those products that are workflow products you use every single day or mostly every single day, or those products you don't have to log into, but you still get the value. That's where the lowest ch…”
Patrick CampbellFeb 19, 2023▶ 28:1910 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
AssertionSupported
Campbell: Freemium Conversions Have 10% to 20% Higher Retention Than Free Trials
“Customers who convert from freemium and become paid customers, their retention is typically about 10 to 20% higher than those who converted from a free trial or converted from kind of like a traditional sales process.”
Patrick CampbellFeb 19, 2023▶ 1:02:2510 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
AssertionPartly supported
Campbell: Freemium Customer NPS Is Typically Double That of Sales Converts
“And then on top of that, NPS or CSAT, we measured it through NPS, is typically about double.”
Patrick CampbellFeb 19, 2023▶ 1:02:3610 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
AssertionSupported
Campbell: Value metric pricing reduces SaaS churn 20-25% and doubles expansion revenue
“Churn tends to be about 20 to 25% lower because people will downgrade, but they're using, you don't get this, like I'm paying for so much and end up not doing, you know, not using a lot of it. It's like, oh, I'm using eight seats this month. I'm going to downg…”
Patrick CampbellFeb 19, 2023▶ 21:4410 lessons on bootstrapping a $200m business | Patrick Campbell (ProfitWell)
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