Increasing Monthly Recurring Revenue for SaaS Businesses: 6 Things You Can Do Today
Can we talk about your MRR for a sec?
If you’re like most founders I coach inside SaaS Academy, chances are you:
- Obsess about growing it
- Overcomplicate how to do it
Truth is, if you’re experiencing a plateau in your MRR, it probably has much less to do with your company’s growth potential, and everything to do with how you’re over-complicating the process of tapping into it.
In this week’s episode, I cover the 6 things you can do TODAY to increase your MRR and set yourself up to toast to a record-breaking ARR in 2019.
Exclusive Download: Precision Scorecard™ — Keep Your Leadership Team Focused & Accountable To Growth
At a high level, here are the 6 things I absolutely want you to start considering:
1. Raise your prices
2. Ditch the free plan
3. Unbundle features
4. Remove unlimited features
5. Move up market
6. Maximize upselling
Now before you start eye-rolling at me through the screen, I really want you to consider the potential impact of raising your prices.
I recently had a client who was charging a cringe-worthy $6/mo for a software that his clients were literally running their business off of.
Meaning, the price to value match was severely skewed against him.
If he bumped that up to a VERY reasonable $25/mo, sure there’s a chance that he’d lose about 10–15% of his clients…
But the net effect would literally be game-changing for him and his company.
If you do nothing else, I’d love for you to take a look at your lowest price tier and just imagine what it would look like if you 2x, or even 5x’d it?
What % of customers could you afford to lose while STILL doubling your MRR?
The quick table-napkin math could literally be the tipping point for your software company this year.
Once you’re done, watch the full episode here, and then drop me a comment letting me know ONE thing you plan to implement this year to increase your MRR.
—
Dan Martell has advised more startups than his hometown has people and teaches startup founders like you how to scale. (Get the free 3 videos to grow your business here.) He previously created, raised venture funding for and successfully exited two tech startups: Flowtown and Clarity.fm. You should follow him on twitter @danmartell for tweets that are actually awesome.
Originally published at www.danmartell.com on January 14, 2019.
