From My Free Newsletter: Dec 14, 2024
Of course you want more customers.
But you don’t need them.
Years back, my first company, UpLaunch, was plateaued at $200k in annual revenue, and I was working myself to death trying to grow.
The answer seemed so simple.
Get more customers.
Then I realized that was only 33% of the equation.
There were two other levers I could pull to increase my revenue - and it took all three of them to 10x revenue in just 2 years.
Let me break it down…
Lever #1: Getting customers
This is obvious… but hard to nail.
The key is to find one channel that works - then go all-in until either…
→ It stops working
OR
→ You’re rich enough to invest in other channels
When I started, I was doing it all.
Running ads, blog, partnerships, podcast, social media…
Then I killed everything except our partnership strategy.
Went all-in for an entire year.
It took us from $20k/month to over $1M in annual revenue.
Only then did I add back other channels like paid ads.
I had to get really f*cking good at ONE thing before trying to be decent at seven.
Lever #2: Keeping customers longer
Making a sale is great.
But a customer who leaves after one month is worse than no sale at all. You're out acquisition & onboarding costs - with nothing to show for it.
So pay attention to what happens after the sale.
Three things, in particular.
Activation: Getting them to that first "aha" moment ASAP
Proactive retention: Spotting unhappy customers before they leave (here’s how)
Advocacy: Turning happy ones into evangelists
Activation is all about delivering massive value. Quickly.
The trick is to architect the first 30 days like it's the only thing that matters. I obsess over:
When customers hit their first value moment
What percentage actually reach it
How long it takes them to get there
For retention, I use a customer happiness dashboard.
It puts every customer into a category —- red means they're about to leave, yellow means they need help, and green means they're getting value.
My CS team has one job: turn reds into yellows, and yellows into greens.
Get enough greens, and something magical happens — they start telling your story better than you ever could.
Social proof, case studies, podcasts — they become the heroes of your growth story.
Lever #3: Make customers more valuable
The easiest way to make more money… is to charge more money.
And do to this fairly, you need to charge based on value - not based on what your competition is doing or how much cash you think you need.
Here's what I do:
Build multiple plans for different types of customers
Add consumption-based limits to make sure they move between plans when it makes sense.
When I need to adjust prices, I do personal outreach and give a six-month grace period.
These three levers are powerful on their own.
But when you combine them with the right numbers, that's when things get interesting.
I broke this all down in this video over here.
✌️ MV