Time is the most precious commodity we all have. For Entrepreneurs and Startup Founders, whether you have raised money or not, the one thing we all have in common is that the time we spend on a project, is time we will never get back.
Therefore it is important that you get the most out of every single day. And to do that your company or startup needs leadership and direction. This can be referred to as setting a goal, having a mission or a “North Star” that you want to aim towards.
Over the last week or two I have been giving a lot of thought to this. What truly matters for my startup, Task Pigeon, and what metric should be the one that is the central focus of everything we do.
A common one is Daily Active Users, or Monthly Active Users. This makes a lot of sense for companies like Facebook, Instagam or Snapchat where active users is essentially money. The more eyeballs they get on their apps each day, the more money they make.
Even for SaaS companies with a freemium tier like Task Pigeon, you may be tempted to use Daily Active Users as your go to metric for business growth. But, at the end of the day I think whatever metric you do choose to track has to be something that has a 1:1 correlation with revenue.
This allows you to judge everything you do against that metric. I.e. Will adding this new feature or paying for this advertising campaign move the needle for us and therefore positively impact our revenue.
For that reason I have decided to focus on tracking Paid, Daily Active Users. That is, customers who are paying for our premium/business tier and log in on a daily basis. Tracking this provides an proxy on which to judge both the financial health of our business, as well as user engagement.
With this set in stone then where are we now?
Well, a little while ago I reported that we did our first $1,000 in revenue. And we have now hit more than $3,000 in revenue. But each of these sales came from a sale campaign we are running through a partner called StackSocial.
Because this is a discounted offering I have excluded these users from this calculation. As a result we currently sit at 0 Daily Paid Active Users from our regular Premium/Business plan which is charged at $9 per user per month.
And perhaps more importantly where do we want to be?
Over the next six weeks I have set a goal of getting 25 Paid Daily Active Users. I originally set this goal on Monday the 8th of May and therefore am already a week and a half into the remaining timeframe.
Achieving this target won’t be easy. We are still running the StackSocial campaign that means most of our regular paid users (if we acquire any) are likely to come in the back half of this six week period and we have a bunch of features still in the pipeline that need to be rolled out to make our paid offer more compelling.
So why am I sharing this?
Finally, I wanted to share this goal because I think too often people only talk about their success or share things that they know they will achieve.
There is no guarantee I will hit this target, and there is no reason to share this target with you now, except to highlight my absolute commitment to transparency with my startup.
I will keep you posted in the coming weeks on how we go on our journey towards achieving this target.