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39 Actionable Growth Hacking Tactics Part 5/5 – Revenue Hacks

Not all 39 hacks are in this single post: Part 1 Acquisition hacksPart 2 Activation hacksPart 3 Retention hacksPart 4 Referral hacksPart 5 revenue hacks.

You may think that once you get users to this stage, your work is complete. 2% of all your users have entered their credit card and are paying. The world is green and good, and soon Salesforce or Yahoo will be at your door offering an acquisition.

Not quite.

Growth Hacking is not about getting to revenue. That’s where Lean Startup and Customer Development help. They show you product/market fit tactics, ending in taking some revenue.

Growth Hackers look at $5,000 in MRR with 5% monthly growth and are unhappy. They want to know how they can get 30% growth month on month. They see $2 million in monthly ad revenue and want to get to $3 million monthly within 6 months.

You can increase revenue by hacking the 4 stages before it, so that more people hit this stage. But you can also optimise this stage itself so that you achieve more revenue from each paying customer.

Here are some tactics to try:

Revenue

32. Add a BIG discount on an annual payment

While technically a cashflow hack rather than a revenue hack, offering annual payments can offer a great boost to cashflow that would otherwise need to be plugged with equity or debt financing.

Many startups offer a 5% or 10% discount for annual payments. But this isn’t going to make anyone throwdown cash who wouldn’t otherwise – it’s not a bargain. With the average B2B SaaS company having a margin of 70%+ on a customer, then you’re able to get a bit more creative with annual discounts.

Try 30% discounts. Try an annual membership of 50% discount, but with certain limitations like they must take pat in a case study.

Techhub Coworking space in London offer an annual membership of £450 a year, when other coworking spaces nearby charge £100 a month for almost the same service. There’s no surprise that Techhub has grown to own the market and keeps expanding – profitably.

33. Experiment Between Different Promotions and Discounts

Different services and different segments will react differently to different types of offers. Experiment by sending 100 emails at a time with different offers: First month free, but then full price afterwards. Then try 15% discount for life.

Never assume that just because 98% of the SaaS industry have a standard “30 day free trial, no credit card needed” that this is the optimum pricing strategy for your business.

34. Offer an on-page promo code with a countdown to push urgency

Sometimes a user has become convinced of the value proposition, they are interested in the product, but then they just need that little “nudge” of urgency.

A special promo with a countdown is perfect for this. It gives them a very real need to act fast if they want to save 30%, or get that 15% lifetime discount.

A great way to deliver this is with a hello bar style banner that appears after a user has completed certain actions, or been on the page for over a certain amount of time.

Another way is to use a paid retargeting service like AdRoll, and show banners with exclusive promo codes exclusively to people who have visited over X amount of times.

35. Increase your prices. You’re probably undervaluing your product

Many startups with product-market fit are too cheap. You started with extremely low pricing to help capture market share, and since then you’ve been too afraid to increase your prices, because ‘doesn’t everyone else in the CRM space charge $9 for this’?

Salesforce is one of the most expensive SaaS CRM providers you will find. And they also happen to be worth $27 billion.

Nothing in the market says you need to be the cheapest. Being the cheapest is tough business. Salesforce has a dated UI, clunky features, requires a $3000+ consultant to set it up for your organisation, and they insist on a 12 month contract. But still people pay 3-4x times the cost of other comparable SaaS CRM.

You’re probably undervaluing yourself. Put the prices up and monitor what happens to total MRR.

36. Try bundling your product in big deals

Deal websites may have the potential to cripple restaurants and spas, but for SaaS companies with huge margins per customer, they can be a great way to grab a huge slice of a market. This is best done only when you’re confident you have a viral component in your product.

Bundles such as Hacker Bundle and services like App Sumo may not make a ton of revenue for you in their actual sales, but they bring in a huge slice of a pyramid which can then recruit a layer of full-price-paying customers.

37. Simplify your pricing to make choosing easier

Sometimes you can try too much differentiation between your pricing tiers. And you try too many tiers. Too many choices cripples people. We’re just programmed to make better choices when we have fewer options.

Watch this TED talk for many examples and deeper theory into decision making.

The quick hack tactic – have 3 options. If you need a cheaper option that those 3, or a free plan, separate it out from your pricing grid. If you need more expensive options, again separate them out as a “call us” option.

Make it easy for customers to identify which pricing tier or price-plan is the best for them. Use names to make it even easier, “Freelancer, Startup, Big Business”.

38. Use value-based metrics, not cost based metrics

One of the best marketing decisions apple ever made with the iPod was that they were the first MP3 player to not sell GBs to the consumer. Instead, they sold number of songs.

They sold the iPod on the metric that delivered value to the consumer (no. songs), not the metric (GBs) which dictated the cost to the manufacturer.

Do your users want 2 GB’s of storage, or 800 Word documents? Do they want 10,000 email credits, or do they want 500 subscribers but unlimited emails.

Another bold hack to try is combining your top 2 or 3 plans into simple “unlimited” plans. Some people would rather buy ‘unlimited’ so they just don’t have to think about limits – even though they wouldn’t have used up all of the fix plan limits anyway. Unlimited offers peace of mind, and that’s valuable.

39. Switch out your Free plan for $1 Plan

I’m closing this list with something a little radical. Something SaaS companies don’t do – despite the fact that the Adult industry have used these tactics to maintain healthy recurring billing for years.

You’ve launched with freemium because every other SaaS competitor has a free plan. You have 900 active users who have no credit card on their account, and 30 customers who do.

How about if I told you that you could have those same 30 customers, but then instead of those 900 free users you had 400 users who are paying you $1 each?

Okay so $400 doesn’t make a difference. But now those 400 users have their credit card details in your system, all you need to ask them to do is click a few buttons. The whole psychology of getting over the “payment barrier” has already been done.

There’s a reason Apple push you to enter your credit card as soon as possible. It’s so that later, when buying a £4.99 app, it’s just 1 button click away. No CV2 codes, no asking the boss for the departments credit card.

$1 isn’ going to bother anyone. It isn’t going to kill your conversion rates for business users who actually want your product. How many $1 iPhone apps are bought, played for 5 minutes, and then discarded? A Starbucks coffee costs $3!

Try the $1 trials. Experiment. And then come back and let me know how it went!

Published by

Liam Gooding

Liam is the cofounder and CEO of Trakio. Previously an engineer, he writes about growing subscription companies using data-driven techniques and inside glimpses to Trakio's own growth journey. He wrote a book, "Growth Pirate!" which discusses data-driven growth strategies for startups.

  • I am going to try to double the price of the sale of my 3 fundamental modules which are part of my membership. By becoming a member you could get the same modules for cheaper.

    In other words, you can get the 3 fundamentals of singing for 47 Euros or become a monthly member for 27 Euros and have instant access to those same fundamental modules.

    Until now we have been selling those 3 fundamentals for 22 Euros.

  • Never even thought of moving from free plan to $1. Great idea worth testing!

  • Working on a low-cost entry model now that will be priced at $7 vs. $50. It’ll have a limit each month, but hoping that will sign on people faster and make that 1-click upgrade faster. Great series!

  • Gloria

    So nice series! Very informative.
    But I wonder why there is no internet monitoring tips? This is extra useful for growth hacking! Thanks to social listening tools, like i.e. my favorite BRAND24 you are able to find and track mentions relevant to your business, join and engage online conversations and simply offer your service directly to people who are already interested in your topic. This is quite efficient and affordable way which I recommend to try!

  • Craig Palmer

    Allot of us must have fallen for different scam hackers i
    fell for, lost my entire savings and even got into debt because i needed
    a very delicate hack job done. These scam hackers took advantage of me, i
    curse them till their dieing days. It got soo bad i had to open up to my
    very close male friend who always made use of private investigators
    back in the days to spy on his business partners and other loved ones
    but due to the kind of hack job i wanted done which was bank hacks of my
    family’s confiscated funds by the government, i couldn’t just tell
    anyone what i wanted to do except the hacker himself. When he saw how reluctant i was he then told me to contact a guy his private
    investigator used to help him get his ex wife’s location by hacking into
    her bank account and seeing her recent withdrawal locations, this man
    was (“Humaid Asmin”). Since i met him, i can boast that my
    life has turned around, i even have met with him on different occasions
    after buying him tickets that he turned down initially but now we are
    close and good business partners as my secrets are well kept with him. I will advice my fellow ones out there who have lost cash and other
    things to these fake hackers to please stop communication and go for the
    right thing. The advantages of Humaid Asmin is he might
    have pity and give you a discount, always provide something to make you
    rest assured he can do your job and also in most cases if you are close
    to him he would arrange for a meeting. He does any hack job you want,
    just name it and inquire from him, tell him you got his email from
    Craig and let him know you need help. He doesn’t reply immediately as
    hes always very busy so be patient with him.