Revenue Experiment

Look at growth from new users versus growth from existing users.

Look at growth from new users versus growth from existing users.

At we use Stripe to handle all the credit card charges. Recently I started using Profitwell, a free tool for SaaS metrics, to try to understand better where we are making money and where we are losing it.

Most of our growth today comes from new users. Wouldn’t it be great if we could convince existing users to spend more? For us, that means users with an existing camera might be enticed to add another camera. After all, if you’re paying $9.95 for one camera, adding a second for only $4.95 should seem attractive.

I decided to try an incentive. I looked for all users who have a single camera on the site, are in good standing, and have logged in recently. That turned out to be 138 users. This morning I sent them an offer that I hope they can’t refuse. If they add a second camera by April 26th, I’ll give them a credit of $14.90, or one month’s service.

I have no idea if this will work or not, but I’ll report back and we’ll see!

BTW, I used Mail Chimp to do the email campaign.  The most difficult part of this was building the SQL query to gather the emails.    Now that I have that, I may try to integrate an ongoing campaign using

I must say that this experiment is also inspired by the book Predictably Irrational by Dan Ariely.  Reading about how people make decisions is pretty interesting!