Dear SaaStr: When Do You Start to Develop a Brand in SaaS?
In my experience, probably about $2m worth of happy customers. At that point, you don’t have a world-famous brand or anything. But you do start to have a “mini-brand”, where folks in your top niche or segment start to have heard of you.
- If your product costs $2,000 a year, that might be around 1,000 customers.
- If your product costs $20,000 a year, your mini-brand might kick in around 100 customers.
At this point, customers start referring other customers to you. Folks talk about you in the industry. And prospects looking at the competition will begin to in-bound because they at least want to look at you, too.
Sales is always hard
SaaS is always hard
But there is a moment in time when your brand kicks in
When it gives you a real tailwind in sales, in marketing, in partnerships
Really lean in when you see it, feel it, and know it
— Jason ✨Be Kind✨ Lemkin (@jasonlk) May 12, 2022
At this point, you should start investing in “brand”, as much as you might otherwise think it’s a waste of scarce time and resources. The higher your brand equity, the more deals you win. And while no one starts off with much of a true brand, you do get a mini-brand sooner than you might think.
A little more here:
heard good things image from here