One of the hardest parts of building a SaaS company is finding your first few paying customers. If you're still in the initial stages of figuring out distribution for your software startup, we've put together this short guide to help you out.
Here is a step-by-step guide for finding your first few paying customers.
1. Decide on Your Ideal Customer Profile
Before reaching out to potential customers, you need to clearly define who they are. Your Ideal Customer Profile (ICP) will guide your marketing efforts and ensure you’re targeting the right people.
- Demographics: Age, gender, location, occupation.
- Psychographics: Interests, values, lifestyle, and behavior.
- Pain Points: Specific problems your software solves.
Example: Slack initially targeted small tech teams needing better communication tools, tailoring their marketing efforts effectively.
2. Look at Who You Know
Leverage your personal and professional network to find your first customers. These "warm market" introductions can be invaluable in getting initial feedback and traction.
- Reach Out Personally: Contact friends, family, colleagues, and acquaintances.
- Offer Incentives: Provide exclusive early access or discounts in exchange for feedback.
Example: Airbnb’s founders, Brian Chesky and Joe Gebbia, reached out to friends and acquaintances to use their platform, generating their initial user base.
3. Try Cold Outreach
Expand your reach by engaging in cold outreach. Find communities, groups, and platforms where your potential customers spend time, and reach out to them.
Finding Communities:
- Online Forums: Reddit, Stack Overflow, niche forums.
- Social Media Groups: LinkedIn, Facebook groups relevant to your industry.
- Professional Networks: Industry-specific associations or meetups.
Structuring Your Message:
- Personalization: Address the recipient by name and reference specific details about them or their business.
- Value Proposition: Clearly state how your software can solve their pain points.
- Call to Action: Ask for a small commitment, like a meeting or a trial sign-up.
Example Message Structure:
"Hey Name, I'm reaching out to founders that might struggle with X. Is this a problem you're currently facing? If so I'm building Y that might be able to help out. Can we chat sometime about how I can help? "
4. Test Different Cold Outreach Strategies
Experiment with various cold outreach methods to find what works best for your target audience. Monitor your results and adjust your approach accordingly.
- Email Campaigns: Track open and response rates.
- Social Media Outreach: Measure engagement and conversion.
- Direct Messaging: On platforms like LinkedIn, track reply rates and set meetings.
Example: Dropbox used personalized email campaigns and targeted forums to share their beta version, leveraging word-of-mouth to gain early adopters.
5. Use the First Few Customers to Get More Referrals
Once you have a handful of customers from warm market introductions and cold outreach, leverage them to get more referrals. Satisfied customers can become your best advocates.
- Referral Program: Offer incentives like discounts, credits, or cash rewards for successful referrals.
- Ask for Testimonials: Use positive feedback as social proof on your website and marketing materials.
- Customer Success Stories: Share detailed case studies to highlight how your software has benefited others.
Example: PayPal’s referral program, which offered cash rewards, helped them rapidly grow their user base.
Final Note
This guide was intentionally written to be concise and simple. If you'd like a bit more help with your sales strategy, feel free to get in touch. We're offering free consulting to startups just getting started in their journey, email hello@ostradis.com to take advantage.