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šŸ§  How to grow your SaaS by building free tools

Learn the strategy top SaaS platforms are using to diversify their growth channels and get more customers...

Happy pre-Friday šŸŽ‰

All SaaS businesses inevitably go through periods of stagnated growth.

An awesome way to combat this is to build free tools into new growth channels.

Today Iā€™m going to break down how and why this strategy works.

Plus Iā€™ll show you the top SaaS platforms using it to grow.

This week in IdeaHubā€¦

  1. The free tool strategy: How free tools are amazing growth channels.

  2. Best ways to use free tools: How to use free tools to test new ideas and create SEO goldmines.

  3. Free tools in action: The OG in free tools and one solo founder having massive success.

Letā€™s jump inā€¦ šŸ‘‡

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1. The free tool strategy

Itā€™s important to understand weā€™re not talking about free trials here.

Weā€™re talking about separate free versions of paid-for products that require no signup whatsoever.

You might be thinking to yourself:

ā€œHow can that be of any use to my business?ā€

Well, to answer that, you have to understand two big reasons customers resist buying your product:

  1. They donā€™t trust you and/or your product to solve their problem.

  2. They canā€™t see results quickly enough to make a buying decision.

Building a separate free tool instantly breaks down both of these barriers.

Firstly, a free tool is much easier to trust as there is ā€˜no harm doneā€™ if it doesnā€™t work out.

Secondly, having no signup, payments or onboarding means customers can see the power of your product much more quickly.

All this means you have a better chance of customers trying out your free tool than your core product.

The trick is to heavily limit the feature set of the free tool and include a strong call to action to drive customers back to your paid-for product.

This naturally means more signups overall than if you had no free tool at all.

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2. The best ways to use free tools

Free tools can provide more than just a growth channel.

They can be real assets in a few different ways:

Testing new ideas

Say youā€™re at a crossroads.

Youā€™re trying to decide whether to expand your product into a new niche or stay put and double down on your efforts.

Itā€™s a big decision to make and could have a huge impact on your future success.

Instead of choosing to go all-in on one or the other, you could spin off your core product into a free tool and use it to validate the new market.

If it shows promise, fold it back into your paid-for product, or simply ditch it if it doesnā€™t work out.

Building SEO

Free tools have huge search volumes.

Weā€™ve all searched ā€œfree tool for [X]ā€ when we know what we need, but we just donā€™t want to payā€¦

Free tool search results

Launching a free tool therefore provides the perfect opportunity to match searcher intent and start driving organic traffic.

Plus, if itā€™s on a separate domain, you can start creating backlinks back and forth from your paid-for product in all of your blog posts.

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3. Free tools in action

Ahrefs

The SaaS that made this strategy famous is Ahrefs.

Itā€™s the number one platform for marketers to research new SEO opportunities.

Almost every vertical feature in their paid-for product is also available as a free tool.

Itā€™s especially important as their products are aimed at users who arenā€™t usually the buying decision-makers in a business.

So when the free tools deliver value, marketers can evidence this to the real decision-makers.

And Ahrefs get the benefit of leveraging the existing trust circles of the organisation to close deals.

Pally

Pally is a social media management tool built by solo founder Tim Bennetto.

So far heā€™s built 9 (!) free tools each focusing on one feature of Pally.

But heā€™s also taking a unique approach:

Heā€™s acquiring free tools as well as building them himself.

As you can see itā€™s working out pretty wellā€¦

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šŸ‘‰ Youā€™ll want to read thisā€¦

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