from Hacker News

Ask HN: Has any SaaS achieved success with Google PPC while under $50k MRR?

by milanspeaks on 7/3/24, 5:50 PM with 4 comments

Theoretically, yes it should be possible. But practically it seems impossible to me as I see the CPC in US market goes almost as high as $80 per click and so if conversion rate is 2% the amount that needs to be spent for just a single order is $ 4000.

So if the lifetime value is less than $ 4000, it seems impossible to get the ROAS.

What have been your experience?

  • by yuri_aimers on 7/15/24, 7:18 PM

    We've tackled similar high CPC challenges in competitive markets for other SaaS businesses. Achieving a positive ROAS is entirely possible with the right strategy and execution. One effective approach is to focus on carefully selected long-tail keywords and niche segments where CPC is lower. Additionally, optimizing dedicated landing pages for higher conversion rates can make a significant impact. Developing the right funnel and working on lead nurturing is crucial as well. Finally, leveraging data analytics to identify and target high-value customer segments can ensure the lifetime value justifies the ad spend.

  • by galeaspablo on 7/3/24, 5:55 PM

    We’ve experimented with this at Ambar. 4000 CAC can be good or bad depending on the LTV of your customers. But if you can indeed get something reproducible you can work on optimizing if you’re within the order of magnitude of being profitable.

    But on a small budget, before dumping money on PPC, I recommend getting better signals on intent, even if you don’t get a conversion.

    Measure what people are doing once they land, and optimize for better engagement. since ready test your theory to see if you can indeed get customers for 4000 bucks or less.