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SaaS products
aren’t viral*
*usually
SaaS products aren't viral
“How do I go viral?”
Going viral = Sustained exponential growth curve with
 zero cost of acquisition, not just a marketing stunt
You can’t.
(usually)
“Why not?”
Viral growth, the
analytical way.
1000 new users
20% send out invites
10 invites sent per user
50% of emails are opened
5% click through
20% sign up
= 10 new users sign up

Viral factor = 10/1000 = 0.01
1000 new users
30% connect to Twitter
20% tweet your link
100 average followers per user
1% tweet CTR
20% sign up
= 12 new users sign up

Viral factor = 12/1000 = ~0.01
0.01 is a waste of time.
3000



2250



1500



 750



   0
       1   2   3      4         5   6       7        8      9   10


               Viral factor 0           Viral factor 0.01
“How do I go viral?”
100X
100X*
 *you’ll never get there
1000 new users
20% send out invites
10 invites sent
50% of emails are opened
5% click through
20% sign up
= 10 new users sign up

Viral factor = 10/1000 = 0.01
Not a feature.
   Not an incentive.
  Not after purchase.
    Not just once.
Something everybody does, every day, that makes a
high-frequency, high-retention product even better.
SaaS products aren't viral
1000 new users
20% send out invites
10 invites sent
50% of emails are opened
5% click through
20% sign up
= 10 new users sign up

Viral factor = 10/1000 = 0.01
Targets extroverts.
   Anyone can use it.
 The more the merrier.
Sharing/communication.
   Utility + One job title = Fail.
1000 new users
20% send out invites
10 invites sent
50% of emails are opened
5% click through
20% sign up
= 10 new users sign up

Viral factor = 10/1000 = 0.01
“Law of shitty CTRs"
   Year       CTR


   1994        78%
             Hotwired.com




   2011       0.05%
               Facebook
New channel.
Compelling pitch.
Low competition.
Highly optimized.
SaaS products aren't viral
SaaS products aren't viral
Product/market fit.
    Daily usage.
   High retention.
     Share files.
Already growing fast.
   <1 viral factor.
...
“What about me?”
You’ve already chosen.
Based on your product:

1. Don’t bother
2. Or, drive down CAC
3. Or, go for it*
*probably not
Andrew Chen
 voodoo@gmail.com
    @andrewchen
 http://andrewchen.co

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SaaS products aren't viral

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