For cash-strapped SaaS startups trying to reach scale, the math doesn’t look great.
A slump in the public markets has dragged the entire sector down, but customer acquisition isn’t getting any cheaper. In the meantime, runways are shrinking like a wool sweater in an electric dryer, and teams that hope to fundraise better have some good news to show potential investors.
So, what’s the plan?
“The key is to focus on scaling sustainably by tapping into more overlooked and underrated sources of revenue,” says Paddle CEO Christian Owens.
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In his TC+ guest post, Owens shares several tactics “SaaS leaders can use to supercharge their expansion revenue,” such as adding upsell tiers and charging customers for priority support.
Just for a moment, forget about onboarding new customers.
Seed-stage startups that demonstrate strong gains in expansion revenue, i.e., money “generated after the customer’s initial purchase,” will always get a second look from investors.
And boosting expansion revenue during a downturn? Well, that’s even more impressive.
I won’t be sending a TC+ newsletter on Tuesday, October 18, but will return a week from today with more resources for founders and early recaps from TechCrunch Disrupt.
Thanks very much for reading,
Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist
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