You may have heard that a “good” LTV:CAC ratio for a SaaS startup is 3:1 or more. Well, I’m here to tell you something contrary.
The truth is that 99% of SaaS startups have no idea how marketing expenses relate to revenue growth. And without understanding that relationship, there’s no scientific way of coming up with a marketing budget. There’s gotta be a better way than pulling a number out of thin air, right?
I’ve launched on Product Hunt several times. SavvyCal (#2 Product of the Month) and Swipe Files (#2 Product of the Day) most recently, but there have been a few others in the past. Plus, many others have used my advice to launch to #1 of the day like Reform and Potion. And there is no secret. Getting to #1 Product of the Day is not about a fancy strategy. It’s all about execution. I'll show you the playbook.
I've found that marketing strategies and tactics can be broken down into three main categories: Owned, Rented, and Borrowed. In other words, you have lines of communication to an audience that you either own, rent, or borrow.
Good marketing (the type you don't mind and that may actually be enjoyable) takes hard work. Bad marketing (the type you remember forever and complain online about) takes little to no work. And earning trust — the privilege of asking for the sale — is hard work.