- IdeaHub
- Posts
- š§ How to grow your SaaS by building free tools
š§ 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 š
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 Iām going to break down how and why this strategy works.
Plus Iāll show you the top SaaS platforms using it to grow.
This week in IdeaHubā¦
The free tool strategy: How free tools are amazing growth channels.
Best ways to use free tools: How to use free tools to test new ideas and create SEO goldmines.
Free tools in action: The OG in free tools and one solo founder having massive success.
Letās jump inā¦ š
Get Smarter About SaaS
Every week discover the best growth, marketing, tech and product development strategies for your SaaS. Join 1,900+ SaaS founders and indie hackers.
1. The free tool strategy
Itās important to understand weāre not talking about free trials here.
Weāre talking about separate free versions of paid-for products that require no signup whatsoever.
You might be thinking to yourself:
āHow 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:
They donāt trust you and/or your product to solve their problem.
They canāt 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 āno harm doneā if it doesnāt 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.
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 youāre at a crossroads.
Youāre trying to decide whether to expand your product into a new niche or stay put and double down on your efforts.
Itās 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 doesnāt work out.
Building SEO
Free tools have huge search volumes.
Weāve all searched āfree tool for [X]ā when we know what we need, but we just donāt want to payā¦
Launching a free tool therefore provides the perfect opportunity to match searcher intent and start driving organic traffic.
Plus, if itās on a separate domain, you can start creating backlinks back and forth from your paid-for product in all of your blog posts.
3. Free tools in action
Ahrefs
The SaaS that made this strategy famous is Ahrefs.
Itās 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.
Itās especially important as their products are aimed at users who arenāt 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 heās built 9 (!) free tools each focusing on one feature of Pally.
But heās also taking a unique approach:
Heās acquiring free tools as well as building them himself.
As you can see itās working out pretty wellā¦
I've said it before, build free tools as marketing.
Last month I launched an image caption generator.
Then this week acquired image-to-caption.io (ranked #1 on google) for $2K and redirected to mine.
- 87K users
- 400 free signups
- 195K captions generatedā Tim Bennetto (@Timb03)
11:54 PM ā¢ Sep 15, 2023
š Youāll want to read thisā¦
List Your SaaS - Get eyes on your product with this list of the 20 best SaaS directories. Or at the very least - get free backlinks! š
Fake Stripe Notification Generator - play a harmless prank or give yourself an ego boost š¤Ŗ.
Join 1,900+ indie hackers learning how to build products with weekly discussions straight to your inbox
āIdeaHub is a goldmine for founders.ā
āI subscribed and quickly realised that the content was incredibly relevant for building our startup.ā
āFrom onboarding to pricing, each post offers a comprehensive overview of a specific topic. It's like revision cards for product people.ā
- Julian Zmiro, Founder @ AskMoreAI
P.S. Check out the official IdeaHub Reddit community where you can share ideas with other builders
Reply