Disclosure certainty 3/5 debate potential 1/5

Earner capped peak paid ad spend at roughly $2,000 weekly

Enzo Ottens · SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts · Dec 16, 2022 · at 6:58

Earner CEO Enzo Ottens answers Nathan Latka's question about how high Earner scales paid acquisition during tax season.

0:00 / 0:11exact quote · 11.5s
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“Way less than that. We last tax trend season, I think the highest we went is maybe two grand a week. But never higher than that.”

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More from Enzo Ottens

Disclosure
Earner prioritizes monthly active usage over net dollar retention
“We're not actively measuring all the dollar retention figures. Like we're focusing more on just kind of what we built so far. We're looking a lot more into monthly active users and what different features within our app our customers use.”
Enzo Ottens Dec 16, 2022 ▶ 8:10 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
Insight
Fintech apps need 20% to 50% freemium conversion to be sustainable
“Acquisition costs and fintechs are so high, I think you need to have anywhere between 20 and 50% for this to be a sustainable business model.”
Enzo Ottens Dec 16, 2022 ▶ 18:52 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
Insight
Bank connection and tax IDs drive paid conversion for Earner
“The key activation that we've seen is does somebody trust us to connect their bank accounts in the app? So kind of how we automate it is we get access to transaction data and that kind of powers the rest of the features. That is our key activation metric. How …”
Enzo Ottens Dec 16, 2022 ▶ 11:44 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
Assertion Not checkable as stated
About 20% of Earner users connect bank accounts immediately upon download
“Around a fifth of our customers connect their bank account straight when they download the app.”
Enzo Ottens Dec 16, 2022 ▶ 12:24 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
Insight
Accounting data unlocks cross-selling for insurance, loans, and SMB services
“Accounting kind of cuts through a lot of the different Costs of a small business. We can see what kind of insurance you have. We can see what kind of loans you have. We can see what other services you use as part of managing your business. I think there is a r…”
Enzo Ottens Dec 16, 2022 ▶ 17:23 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
Insight
Average customer retention in accounting software is 10 years
“Something to keep in mind is that your average retention when it comes to accounting is 10 years.”
Enzo Ottens Dec 16, 2022 ▶ 4:34 SMB Tax App hits $20k MRR by getting 1k+ Signups and Converting 20-50% to $35/mo paid accounts
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